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If you are establishing a start up that is offering a new service to the market, what should you focus on while planning your first budgets?
I assume the question is about where the initial capital should be spent. As a startup, the initial capital distribution is key to its continual. If the initial capital is set on fire (spent fast and early - as many startups do), the startup fails right there and then. Roughly, 15 to 25% should be spent on the market research. This is a huge effort as it is key for building confidence in the idea of the startup, building the financials, and gives the startup key elements to track all along the next phases. 65 to 75% go into the development of the startup idea. This of course includes the team members, the development software, hardware, and anything that relates to the development idea. Finally, 10 to 15% would go into marketing of the idea; this creates the face of the startup to the public. These figures are general and should be tuned for the nature of the startup.
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