So you have a startup. It’s a gazzilion dollar idea, of course. Therefore, you start throwing in cash like it’s not yours to keep.

After all, it’s a million dollar idea, right?

Big no!

A million dollar idea is worthless without a million dollar product, service, business, whatever you call it. Really.

Try selling an idea to a potential client. He’ll say: I want to try it out. You have to options:

A. You have a kick-ass product. Client loves it. Client buys.
B. You have a shiny office, a Versace suit, a nice conference room but your product sucks. Client doesn’t buy.

You lose.

The Basics:

A. Focus on your product. Put most of your cash there. Make sure it’s a state-of-the-art, top-notch, outstanding product.
B. Have a goal. Where do you want to be in 2, 3, 5 years?
C. Keep a tight fist on all your expenses. Only buy what will help you reach your goal.

A few things you DON’T want to spend on:

1. Expensive office space. You can easily start from your home, outsourcing all the work.
2. Cheap & unreliable developers. What you pay is exactly what you get. A ‘cheap’ product.
3. Expensive hardware. Apple computers are great, yeah. But you might consider Dell instead, until you start cashing in.
4. Brand names. They’re usually repackaged generics.
5. Conferences & workshops. They’re usually expensive and don’t bring much value, besides the networking. Try going in by trading services for an invitation. It works, most of the times .

Save up! You’ll definitely need it in the future.