working capital management Working Capital Management | Page 18

CAPITAL FUNDING
If a startup is not currently in the process of raising capital
funding or is unlikely to do so in the future, then it’s crucial
to prioritize sales and validate the business model rather
than spending money on research or product
development. The ideal behind this strategy is to either
improve the startup’s operations or generate sales
through marketing.
But many entrepreneurs, nonetheless, still believe in
building a minimum viable product, then raising the assets
to build it into a complete product. This strategy may work
for a quickly growing services startup, with a proven
business model from the first day. Although, if that is not
the case, the startup should focus on the business model,
as well as the customer purchase process and the value
chain.