Learning from Bumble’s founder: Whitney Wolfe HerdJana Engelbrecht
In the world of finance, start-ups gain a lot of interest. We all have that “one idea” we want to bring to life, but we don’t always have the financial know-how to prevent pitfalls and financial ruin.
That shouldn’t stop you from trying! With an experienced Financial Executive from The Finance Team, financial management and planning could greatly escalate the probability of your business thriving.
Starting with a modest budget
Whitney Wolfe Herd, the CEO and founder of Bumble, reportedly started with a “modest budget” and in 2021 became the world’s youngest self-made female billionaire after taking Bumble public.
Her idea, which was a female-friendly dating app, topped $13 billion in valuation after listing shares on the Nasdaq exchange in February 2021, reported the Financial Times.
“Stretch a dollar”
Wolfe Heard says in a MasterClass on business that was released last week, that not all new ideas need a big investment. You can “stretch a dollar”. As former co-founder and vice president of marketing for the dating app Tinder, she knew how to reach audiences and demonstrated a very strategic approach to funding utilisation. By utilising funds correctly, it allows entrepreneurs to maintain control, minimise debt and demonstrate commitment to potential investors.
Prioritise expenses and avoid spending until the product-market is clear
Bumble secured $10 million in funding but Wolfe Herd prioritised essential expenses, such as product development. She avoided big marketing spend until a clear product-market fit was achieved to lead the company to success. Instead of utilising a big chunk of her funding for marketing, she used unconventional, low-cost marketing techniques to engage with target audiences personally.
Professional financial guidance evident
As you grow your start-up, the need for professional financial guidance becomes evident, especially if you want to secure funding. And once you’ve secured funding, where should the resources go? Whether you have a big tech idea like Wolfe Herd, or a small start-up in manufacturing or want to take your business to new heights, it’s important to avoid costly mistakes.
Interim and part-time Financial Executives an asset
You might not have the need for a full-time Financial Executive but you need the strategic financial knowledge to help you plan financially, understand your expenses, revenue and cash flow – and that’s where an interim or part-time Financial Executive can be of great value.
Don’t sit on that idea too long. Take the leap well-prepared to ensure confidence in your businesses’ financial stability. With more than 10 year’s experience, our Financial Executives offer expertise in financial management and planning, risk management and investor relations, helping start-ups navigate the complexities of business.