Why Too Much Money Can Hurt Your Startup!
“I always tell people that if they want to do anything well, they must plan and prepare.”
—Richard Branson
Everybody wants more money for their startup. It’s natural—building something new, whether it’s a social enterprise, non-profit, or small business, is resource-intensive. The work is tough, and we’re often operating with very little, so we start chasing funding wherever we can. We make lists of potential partners, dig through Facebook to see if any friends might be interested in investing, consider raising capital, or begin writing grant proposals.
Yes, every organization needs money. That’s a fact. If you're not bringing in at least a dollar more than you spend, you're not running a sustainable operation.
But here’s the catch: money isn't always the answer.
There have been times I was convinced I needed money, but after some reflection, I realized what I really needed were the things money could buy. That simple shift in thinking changed everything. It helped me keep money in perspective and focus on real solutions instead of just chasing cash.
As you set out on your own journey, keep this in mind:
Danger: Money Can Pull You Away From the Creativity Table
A few years ago, I left a stable job to start a new organization. Some generous people pitched in with a bit of seed money, but we were operating on a shoestring budget. Every day I was reminded that the money would eventually run out—and that pressure weighed on me.
I made a list of what we needed: salaries, equipment, event budgets, web design, tech—you name it. The costs easily reached into the hundreds of thousands. It felt impossible. Where would that kind of money come from?
Then it hit me: we didn’t need the money—we needed the stuff.
In The Best Game, my friend Michael S. Smith writes:
“The success of any endeavor is dependent on how well scarce and precious resources are invested for their highest and best use in pursuit of a goal.”
That line stuck with me. Instead of focusing on how to spend money, we focused on how to invest it—and how to get creative with what we already had access to.
So, we threw a launch party—but with a twist. We called it a “Baby Shower.” After all, we were launching our new “baby” and invited friends, family, and community members to come celebrate. We made a gift registry of all the things we needed—from office furniture to audio visual equipment—and asked people to help us get started by bringing a gift from the list.
We also realized that churches often have exactly the kinds of items we needed sitting unused. Many of our team members were connected to local congregations, so we reached out.
Pastors got involved, and their communities responded with generosity. That opened the door to speak with congregations and share of our project.
The event was a blast! We had games, a volunteer DJ, storytelling, and a clear vision to share. Not only did we receive every item on our list, we also received additional donations from people who were inspired by our mission.
The Bottom Line
Sometimes, the resources you need are already around you—you just have to look at them through a different lens. Don’t let a lack of money discourage you. Instead, get creative. Rethink your assumptions. Remember: money is just one resource. Vision, relationships, and ingenuity will take you just as far—if not farther.
