Are you starting a new business for the first time with what seems like a large sum of your money? How much should you invest when starting a new business?

I’ve built media organizations in the past, but never at the expense of my savings. When I was in charge of a small services firm ten years ago, we used some of our profits to fund a website for authors. Offering services that generate cash flow and investing time in developing the new asset is one of the finest methods to bootstrap a business if you still need money saved in the bank.

HOW WAS I ABLE TO BUILD A MEDIA BRAND FROM SCRATCH?

Be equipped with the proper knowledge enough to start and continue

Before building a media brand, ensure to have all the information. You can gather knowledge through experience, courses, or consulting with an expert.

Get funding or save up.

You might have someone with the same ideas or thoughts as you. Seek funding from investors or, better still, save up.

Yes, investing your funds involves a risk as opposed to raising money and shifting at least some of that risk to another party. Only some people should or are capable of taking this risk.

Be consistent, create a routine and follow through with it

In September 2021, I started working on my new project for roughly 30 hours a week (my definition of a full-time job).

Seeking help in all the right places.

Even though I’m the only employee, I collaborate with a group of independent contractors that handle most of the work: reporters, researchers, a podcast producer, and a designer, as well as an operations manager. 

I aim to recruit a few staff members. My model is a compact team and high income, which is made feasible at large by the fact that it is an internet firm.

Have a clear goal and keep focus

We’re developing tools to assist business owners in selling their enterprises, such as a database that monitors large purchases.

I chose this subject because it addressed a problem I had personally encountered: I needed to figure out where to look for specialists or assistance when I sold my enterprises. 

I thus set out to create this resource for company owners. Still, it soon became apparent that investors, M&A experts, and business owners intending to purchase enterprises also need this knowledge.

Strive to increase profitability

By the end of this year, I want to make enough money to pay my bills. Our current monthly burn rate is $10,500, but as startups experience rapid change, actual results may vary monthly.

Do what you may to increase profitability and stay relevant for future years. 

QUESTIONS ASKED

People ask specific questions about investing my savings, and below are the answers I gave.

1. Why build when you can purchase a media company/brand?

Someone once questioned why I would invest my money in starting a business when I could run a Substack or work for a media organization.

My answer: Creating something from nothing to be significant is thrilling; although I’m good at writing, my actual talent is constructing. I can recognize possibilities, put everything in place, and persevere long enough to produce something worthwhile. This, along with my ability to play by my own rules, you know this well if you’re an entrepreneur. Every little victory is exciting.

2. Is it excessive or insufficient?

Once you’ve achieved accomplishment and are reflecting on the steps you took to get there, disclosing this kind of data is simple. 

The amount I spent could appear excessive to some. Before investing much money, I should have paid less on an MVP to see whether anyone was interested.

Some would argue that it is insufficient. Some of the media firms I follow on Twitter raised millions of dollars to support their initial years of expansion. With only $73,000, how will I ever scratch the surface?

That investment was appropriate for me despite being high to some and low to others. By investing these funds, the brand was launched with just the right amount of polish for it to be taken seriously.

3. Why are you open about your investments and savings?

Openness seemed crucial to demonstrate to people what it truly takes to start a firm consistent with our brand concept. So I’m doing what we say by sharing my horrific milestones. 

It was a relief to my fellow business owners to hear someone admit, “I put my own money in, and this is terrifying.” They felt noticed.

4. What was the most challenging while starting up?

Of course, I don’t want to imply that everything was simple; there have certainly been difficulties, such as finding excellent reporters with the correct skill set has been challenging. The most challenging aspect for me was choosing how much to invest as the initial investment; instead, I decided to continue investing as necessary.

My initial strategy involved spending $60,000 to launch our business with the expectation that we would soon be revenue-funded. But as we gained momentum, I decided to increase my investment.

After the launch, we increased our email subscriber base to several thousand. We attracted sponsors that wished to connect with our audience of business owners interested in acquisitions. Our goal struck a chord.

I will continue to do so as necessary, trusting my instincts and keeping a high confidence that this plan will succeed—I know it will.

Contact Information:
Email: [email protected]
Phone: 1949245898

Bio:
Madison Browning holds a Bachelor of Science in Business Management and has extensive experience in leadership roles within notable companies. Currently, Madison serves as a marketing specialist for Financial Media Marketing. With a keen eye for design and a passion for storytelling, Madison is also an avid graphic designer and content writer, consistently delivering compelling and visually appealing content.