FIVE CREATIVE WAYS STARTUPS’ FOUNDER GENERATE REVENUE (2024)

22 Feb 2022

For startup founders, making money is one of their top priorities. However, finding the right way to do so can be quite challenging. Startup founders have some option to make money, such as income from dividends, a salary, receive founder’s stock or other equity compensation, or take on outside investment which can provide them with capital in exchange for a percentage of the company. These options may provide extra financial resources and an incentive to grow and also create value for its shareholders. To determine which option works best for your startup is quite tricky. Let’s see those five options:

1. Charge users for access to their service or product. Most startup offers a free trial period, and then either charge the user after the trial expires or at some other point in time. Another option is to sell one-time subscriptions, which would allow users to access the service indefinitely. The last option is let users to pay per use/monthly basis.
2. Chargebusinessesfor advertising or sponsorship space on their innovative website or in their app.
3. Sell products or services to otherbusinesses. Startups can sell products or services to large companies that have a lot of cash but need specialized help with a certain task.
4. Offer consulting services to businesses. Startups can focus on consulting services that clients needed the most.
5. Accept investments from venture capitalists, angel investors, or private equity firms in exchange for a percentage of ownership in the company. A venture capitalist provides startup business with the initial funding they need to get started. When a company has reached profitability and begun generating revenue, it can then repay the debt from its venture capitalist investors.

Surely, there are more ways for startup founders to make money and profit, to add more resources in order to develop an innovative product and growing the startup business into a large corporation.

References:

• Vo, Thomas. 2018. How startup founders make money. https://medium.com/@thomasttvo/how-startup-founders-make-money-cb0fd5b05223

Picture: Yahoo Images

Linda Kusumaning Wedari, S.E., M.Si., Ph.D., Ak., CA., CLI., CSRS