It takes a while for your business to fully develop and acquire stable sources of income, but if this period lasts too long, your company could collapse due to lack of liquid funds.
Nobody likes to wait, especially when the outcome can determine your future. However, it is necessary to be patient when starting a new business, since it takes time to organize the office and get ready for the challenges of the open market.
Of course, every month that passes before the organization can break even and start pulling in profits represents additional risk and accelerating the development is crucial.
Here are a few tried and true methods that could help you quickly climb up the ladder and earn a spot among the fastest growing startups in this industry.
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Invest in Experienced Employees
It is tempting to hire young and talented prospects with little professional experience – they come cheaper and tend to be more motivated to prove their worth. On the flip side, they also tend to expend more time performing basic tasks and can be indecisive when the stakes get too high.
That’s why it may be prudent to spend a little more on top-level established talent, at least at decision-making positions. A single mistake can be very costly in the financial world and you can’t afford to train people on the job. The average salary for a top professional in this industry can be more than $100,000, but this is an investment that could pay off manifold if you pick the right people.
Pick Primary Markets and Attack Them With Full Force
Trying to be great at too many things at once will drain your resources and may introduce a measure of confusion into your process. Sure, leading financial companies are capable of covering the entire global market and providing a broad portfolio of services but they also have a legion of experts on the payroll and operating budgets in the multi-million range.
Instead of emulating the big players, you would be wiser to concentrate your resources on a few well-defined markets and only expand beyond your primary area of expertise once the chief revenues sources are secured.
Avoid Unnecessary Risks
Good understanding of the financial markets and proven ability to analyze trends are a prerequisite for success in this job. Despite this, young companies would be well advised to err on the side of caution and avoid too unconventional strategies that could get them in trouble in case of a miscalculation.
Following the logic of market leaders is usually the best approach during the earliest stages of company development, and according to Vanilla Options, there is a simple way to achieve that. When you have limited capital to operate with, the safest option can sometimes be the most profitable as well.
Advertise in Industry Publications
One important feature of the financial industry is its close-knit nature. You don’t need to get your brand splashed across the TV screens all the time, the target group you are after is very narrow and you need to reach it through means it is familiar with.
Advertising in specialized publications such as Forbes, Bloomberg Businessweek or Kiplinger’s can be an effective way of penetrating the inner circle and getting your message across to the people most likely to be interested to hear it. If you can’t afford to buy ad space in top-level international magazines, consider targeting local media platforms popular with the financial elites.
Hunt for Free Publicity
Since startups typically have limited funds to spend on promotional activities, it is necessary to search for opportunities to showcase your brand without having to pay for it. This can be done in a myriad ways, from contributing opinion pieces to online portals to attending key events where your potential clients might be present.
You never know which of your actions might result in a lucrative new contract that will launch the company to the next level, so you want to remain proactive and ready to try anything that could bring some publicity for your brand and/or your key people.
Attract Outside Investment
The financial industry is a field of business that angel investors and investment funds keep a keen eye on, so getting an early round of funding may be more attainable than in other lines of business. Promising companies are sometimes able to attract millions of dollars in external funding, which gives them the means to realize the business plan way faster than would otherwise be possible.
Of course, you will have to demonstrate the ability to be profitable before you can seriously aspire to investors’ attention, so relying too much on this kind of instant solution and ignoring other ways of improving your business operations can be a dangerous delusion.