Growing a business is a complex undertaking. There are a number of steps developers need to take in order to get from brainstorming an idea for a product the market wants to producing a product that’s profitable. One of the first steps is ensuring you have the financial resources to bring your idea to fruition.
I speak to the importance of fundraising in the first post in this three-part series on developer funding, and my second post shows you where to look for funding. The first two blogs in this series provide some great information about where to find funding, including a nod to a new fund through Intuit and Lighter Capital (one of the first lenders to use revenue-based funding, or RFB, to fund tech companies): the $15M Lighter Capital Intuit Developer Fund.
Today, I’ll give you some ideas on the best way to put the money you’ve secured to good use, with the end goal being growth for your business.
Developer Funding and What to Do with It
You’ve researched, applied for, and secured developer funding, possibly through the aforementioned $15M Lighter Capital Intuit Developer Fund. If you applied for or researched the fund, you know it provides Intuit developers access to $50K-$3M in growth funding and that qualifying developers could receive funding within 4-6 weeks without the fear of giving up equity or dilution.
Intuit Developer Group director Alex Barnett says, “We’re thrilled Lighter Capital is committed to providing our developer partners access to capital that can help them scale their apps and better serve the millions of small businesses that use QuickBooks Online with apps to help them streamline their workflow.”
However you secured your funding, the question now becomes, what do I do with it? Here are some ideas to get you started.
Hire the right people
Do you have defined hiring practices along with an HR team, or do you have experience in hiring? If not, you’ll want to take time to set your business up with proper hiring procedures.
Once you’ve got the right procedures in place, you need to think about hiring people that not only have the skills to do the job—specialists, often developers—but who also fit your company culture. It’s important that you don’t waste your newly acquired funding on employees that don’t share a passion for the app you’re building, or see how they fit into your company’s culture and growth plan. Hiring specialists doesn’t come cheap, but their expertise will be invaluable as you take your business to the next level.
Increase marketing activities
How should you spend your developer funding when it comes to your marketing needs? You’ll want to decide if this means hiring in-house or working with an agency. You will also want to consider putting funds towards advertising. Marketing establishes your brand identity and can help you gain customers more efficiently. If this hasn’t been your focus up to this point, you now have the funds to make it a priority. I also recommend you further your efforts in gathering user feedback; this information is invaluable in directing whether you keep moving forward in the direction you have been, or if you need to pivot and head somewhere else.
Establish better infrastructure
Have you been working out of your home or the corner coffee shop? Now is the time to consider investing in professional surroundings. An office space—with all the normal trappings—can act as your headquarters, which can serve to validate your business to potential customers while affording you privacy. It can also contribute to your team’s synergy as well as clients’ experience. Make sure you also have the right technology that enables you and your employees to be successful and efficient. Don’t forget we have a whole marketplace of apps that automate tasks for small businesses just like you and sync all that data back to your QuickBooks.
Tailor Developer Funding to Your Needs
These were just a few tips, but there are plenty of great ways to use developer funding. Each business has its own specific needs, and it’s up to you to ensure that you allocate them in growth-generating ways.
If you have yet to secure developer funding, you may want to consider, as I suggested earlier, the $15M Lighter Capital Intuit Developer Fund. The benefits of RBF include (but are not limited to) capitalizing on your recurring revenue by making payments based on a percentage of your monthly revenue, no hard collateral/personal assets required, and retaining control of your business.
These benefits can be yours, and I encourage you to check the fund out today.