Quotes from Yowchuan (Meshio.com, Malaysia Financial Planner):
1) make decisions as if you are running this business using your own money
2) become self-sustainable as soon as possible
3) reduce setup cost to the minimal – the idea is to have a nice working environment, not the next Google campus. Get 2nd hand equipments if you have to, rent or outsource whenever you can.
4) check and watch your operational expenditure like a hawk – analyze the figures on a weekly basis at first, and then when it’s much more stable a bi-weekly check would do. Eliminate or cut down certain expenditures that can jeopardize the company’s survival, especially the recurring ones (hint: payroll). Watch your cash balance monthly and keep it at a healthy level, say around 20 to 30% of total turnover would be a good benchmark for starter. The higher the better.
5) when times are good, always prepare for the storm ahead, vice versa. This is applicable financially. When you have ample of reserve, it’s tempting to go on a splurge. Good times don’t last, so do bad ones.
6) always remember that your resources are finite- time, manpower/womanpower, cash. Hence, speed to market is crucial, and generating businesses should always be the top, if not the only priority for a start-up, despite what the perfectionist might think.