
Investing in Your Startup
Time vs. Money
Building a startup takes a lot of everything. A lot of effort, a lot of coffee, a lot of emails, a lot of long days and late nights.
It also takes balance.
You can outsource a project to save time, but that costs money. You can in-source a project to save money, but that takes time. How do you decide between investing your time in a project or investing your money?
Your time and your money are likely already in high demand. And these initial resource decisions are often critical, especially for the emerging startup. Consider these notes as we explore ways in which you can maximize your investment, and level up faster…
Money
It is largely different for every business, but there are a few crucial things you should invest in.
- Legal Advice.
A good lawyer can help you build important initial documents, like a business plan and agreements between co-founders. This isn’t the place to skimp — you could potentially save thousands in potential lawsuit damages in the long run.

- CFO/ Accountant
Sales and Use Tax is hard. As a startup owner, you do not have time to learn everything about it, and you REALLY do not have the money for fines that you may incur without the proper guidance. We recommend that you either pay for an accountant or hire a CFO to take care of the financials.
- Reliable Web-Hosting
You shouldn’t have to fight with your website or email server every other week in order for it to be functional. You likely have to pay for web-hosting no matter what, so ensure it will be worth the expenditure by using a reliable service.
- Good Staff
Working at a startup is hard. It’s a high-stress environment where everyone wears many hats and the expectation is 90-hour weeks.
The excitement of getting in at the ground floor and potentially having claim to stock is often enough compensation at the beginning, when money is tight. As cash flow grows, it can be tempting to spend capital on fancy new desks, office ping-pong tables, or other sparkly commodities. While these are fun and flashy, they won’t keep key contributors around like a fair salary will.
Time
Some tasks are better kept in-house at the beginning. These will help you to establish the startup you envision, and can help you save money at the same time.
- Market Research
Do people who are willing to pay money for your product/ service exist? Where are they?
Take the time to learn about your intended customer base. Use your research to shape design, and ensure that you build something they want. Then market where they are. (If you’re targeting elderly women, creating an Instagram campaign will *probably* be a waste of your time.)
- Marketing and Branding
As a startup, you can do a lot in this realm with nothing. Investing the time to properly configure social media profiles, set up website SEO settings, and create strong copy is more than worth it.
When you have the cash flow to start spending money on marketing, do it a little at a time. You can do a lot with $100.

- Product Development
You need to nail your product or service to make it something worth building a business around.
This doesn’t mean it needs to be perfect — too many people spend forever trying to make version 1 perfect. Your first version won’t likely be your last version, but it should be functional and deliver a benefit to your customer.
Invest time in continuous improvement.
- Networking
Unfortunately, we all have to pay our dues. To build connections, networking is critical (though sometimes painful). You will make some valuable connections right away, and you may continue to run into the same “app developer” who has yet to produce an actual app.
As you grow and have a more intertwined network, you can stop attending every meeting and start making appearances every so often. Nonetheless, it is crucial in the beginning to introduce yourself to tons of local businesses, and put in the time to continue to connect with them at a high frequency so that they remember you.
Wrap Up
Resources are scare in a startup and it’s all about balance. Diversify your strategies to ensure you aren’t stretched too thin any one way.
Pay attention to activities that your business has high expertise in. Spend resources on the items that are crucial to defining business direction. Measure the benefits of spending time instead of money, or money instead of time. And remember, a diverse network can be your biggest asset.

Kenosha Startup Week is an annual series of events designed to bring together entrepreneurs, investors, and leaders from across the region with the intention to share, celebrate, and innovate.
Kenosha Startup Week is a local effort, designed by entrepreneurs and supported by community partners.
Aligned with Wisconsin Startup Week, events are planned for November 6–12, 2017.
Read our Official Press Release
Cassandra Polzin is a co-organizer of Kenosha Startup Week. Connect with her on Twitter @cassipolzin.

