I won't lie to you. Well, I might if the need arises 🤭. But for now, I won’t lie and say money isn’t important. It definitely is. However, what’s even more crucial is starting. And you know what complements starting well? Selling. 

If I had a dollar for every time a would-be founder told me they haven't launched because they lack funds, or for every email pitch I've received from founders claiming they only need $250k to kickstart their venture, I'd be quite wealthy by now. They have no waitlists, no Letters of Intent (LOIs), no prototypes—nothing, yet they’re asking for how much? Loool.

Alright, let’s get to it. 

When considering starting a company or stepping into the founder role, you need to think about money at different stages: the start-up phase, scaling beyond your Minimum Viable Product (MVP), and the growth stage. Each stage demands distinct funding types, which is why there are various funding rounds. Let’s focus on the initial stage for now.

Money is undoubtedly vital, but attracting investors can be tough when you’re just starting out. If you’ve amassed a wealth of experience in a related field or played a key role in a prominent startup, you might have a shot at raising funds based on your background. But often, that’s not the case, leaving many founders starting from scratch with no prospects for outside funding. I encourage aspiring founders to really ponder what they need the money for. Many seem to lack clarity in this area, so let's look at it together.

In my view, in the beginning, you typically don’t need a large sum of money. Your financial needs usually fall into categories like personal expenses, company setup, essential tools, and customer acquisition. You'll have to be disciplined and precise in managing these costs.

For personal expenses, I suggest saving enough to sustain yourself for at least a year, ideally two. Be prepared to dramatically alter your lifestyle. It’s a sacrifice worth making if things pan out. Too many people cling to their comfortable, well-paying job habits—please stop. That won’t cut it as a founder. If you're well-off, that’s great. But if not, adjust your expectations. 

Be ready to live modestly for a couple of years. This is serious; expect to be financially strained as a founder. It’s okay to keep your day job while validating your idea, but don’t expect investors to fund you during this phase. If you can’t afford basic costs like company registration and domain purchase, maybe starting a business isn't for you. Family and friends might help with these small initial expenses. 

Remember, if maintaining your current lifestyle is non-negotiable, then perhaps entrepreneurship isn't your path. Many founders need to cut back, unless they’ve saved substantially or have a side business generating passive income.

Now that we have gotten some things out of the way, let's talk about the most important bit of your new life; building with no money.

Product development is where I see many stumbling. You should be able to craft an MVP, a prototype, or a landing page and build a waitlist without hefty funding. 

Numerous no-code tools are available to help create a basic version of your product for sale to potential clients or customers. Use free resources like Google Forms, Zoho Mail, Airtable, Notion, Coda, Webflow, etc. Learn as many skills as you can, or ask friends for free help. Engage with communities and connect with people who might want to gain experience by working on your project or idea. Early on, hiring shouldn’t be where your funds go.

Starting lean helps instill discipline for when you do have more funds to manage.

Lastly, focus on selling. It’s the lifeline of your business. Once you have a rudimentary solution to your customers’ problems, start selling, no matter how basic your offering may seem. If a group of people are willing to pay for your crappy product, you’ve passed a major test. Never outsource this bit. If you can’t sell your idea or product yourself, no one can. It’ll surprise you how much useful feedback you can get from directly reaching out to your customers yourself.

If potential customers are interested but require a more developed product (common in the B2B space), secure a Letter of Intent (LOI) from them. This can be a powerful tool when approaching investors, showing you already have committed potential buyers.

So, now you see why I initially bypassed the topic of money? Having ample funds doesn’t guarantee business success. Generally, you need less money than you think to start that business. Discipline is key.

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Thanks to Victor for the very very small editing help 😏.