The best founders are masters of both grit and strategy. While they wear pretty much every hat and push through countless setbacks to build their businesses, they also know that sustainable success means working smarter, not just harder. It's the 90/10 rule in action: achieving 90% of your goals with just 10% of the effort — if you know where to focus.
That's why we turned to the experts. As the financial partner to one in three venture-backed startups in the US, Brex has a unique view into founders' journeys. While we help simplify their financial operations with integrated card, banking, expense, and bill pay solutions, we see firsthand how they tackle challenges across every aspect of company building. So, we asked them to share their best advice for building a successful startup.
We've distilled their hard-won insights into 20 actionable tips covering everything from validating your concept and raising money to building your team and scaling operations. Their answers make it clear that every path is different, but some success patterns kept popping up:
Ultimately, in today's world of AI innovation and global remote teams, building a sustainable company requires more than a big idea and hustle. The real key is knowing where to focus your time and energy. Whether you're just beginning to sketch out your idea or you're in the thick of building the company, read on to get real advice for startup success.
startup-fundraising
startup-fundraising
Understanding your startup
To effectively pitch your startup, you must have a deep understanding of its core elements. Start by clearly articulating the unique value your startup offers to customers. This value proposition should be concise, compelling, and easy for potential investors to grasp. Next, define your ideal customer segment and their specific pain points. Investors want to see that you have a clear understanding of who your target market is and why they need your product or service. Analyze your competitors thoroughly and identify your competitive advantage. Be prepared to discuss how your startup stands out in the market and why customers would choose your offering over alternatives. This analysis should naturally lead to developing realistic financial models, including revenue forecasts, expenses, and profitability projections. These financial projections should be closely tied to your startup budget. Be prepared to walk investors through your startup budget, explaining key assumptions and how you plan to allocate funds. A detailed and thoughtful budget can significantly boost investor confidence in your financial management skills. Researching potential investors
With a solid grasp of your startup's fundamentals, turn your attention to identifying relevant investors. Use online databases, industry networks, and referrals to find investors interested in your sector and with a history of investing in similar startups. As you compile your list, analyze each investor's criteria and preferences. Understanding their investment thesis, preferred deal size, and typical investment stage will help you tailor your pitch effectively. Go beyond basic research to understand the typical expectations of investors in your industry. Familiarize yourself with common benchmarks for return on investment (ROI) and exit strategies. This knowledge will help you align your pitch with investor goals and demonstrate that you've considered their long-term interests. Crafting a compelling pitch deck
Armed with a deep understanding of your startup and potential investors, craft a compelling pitch deck. Include essential slides that cover key aspects of your startup, such as the problem you're solving, your solution, market opportunity, team qualifications, traction to date, financial projections, and your specific fundraising request. As you develop these slides, focus on creating a narrative that conveys your startup's vision and passion. Make your pitch deck visually appealing with high-quality images, graphs, and charts. A well-designed deck will keep investors engaged and make complex information easier to digest. Remember, your pitch deck is often your first impression, so ensure it reflects the professionalism and potential of your startup. Practice, practice, practice
With your pitch deck ready, it's time to refine your delivery. Rehearse your pitch multiple times to improve your delivery and boost your confidence. Practice in various settings — in front of a mirror, with friends, or even recording yourself to identify areas for improvement.
tips-on-how-to-build-a-successful-startup
tips-on-how-to-build-a-successful-startup
07: Get clear on why you’re hiring.
“For most roles, I look at whether not hiring would mean leaving money on the table. For positions focused on risk prevention, I consider the potential issues we might face if something goes wrong.”
— Fabiano Rocha, Jumpstart Finance
08: Learn from founders who are ahead on their journey.
“Surround yourself with founders who are one or two steps ahead of you because they can look around corners you might not have come to yet. I’ve learned through those conversations a lot about first principles thinking, and the core human-level problems we’re solving — not just the business problems. That helps put into context the problem that everyone in the world faces that your company can solve at scale. That’s how your idea becomes a $100 billion idea.”
— Avante Price, CEO, Posh
09: Get help understanding your financial strategy.
“I believe all founders and CEOs have three core imperatives: managing finances — knowing when to raise, spend, or conserve capital; evolving product-market fit with your customers — because it’s never a final destination; and retaining your best people. Financial strategy is critical, and tools like Brex have completely reshaped how I approach it. It gives me the clarity I need without taking up the time I don’t have. It’s a true win.”
— Imran Syed, Founder and CEO, Hatchproof
10: Balance new features with bug fixes.
“Find a healthy balance between new feature development and bug fixes. It’s natural to want to build all the new features on the roadmap but you also have to support the features you’ve built for your customers so far.”
[
](https://www.linkedin.com/in/thomasmirmotahari/)
11: Be comfortable putting yourself out there.
“You have to be comfortable with people criticizing you. One of the prerequisites for success in anything is doing things that are perhaps cringe or shameless. Posting content is one of those things, and the only way to get people to stop scrolling is to catch their attention. But I don’t ever want to become a caricature of who I am. I do find that what I authentically feel or think happens to resonate the most.”
— Arjun Mahadevan, Founder and CEO, Doola
tips-on-how-to-build-a-successful-startup
tips-on-how-to-build-a-successful-startup
Table of contents
Table of contents
](/spend-trends//how-to-establish-business-credit-fast)[
22 tips from founders on how to build a successful
Get real advice from entrepreneurs who've built, scaled, and in some cases sold successful s across various industries. ](/spend-trends//tips-on-how-to-build-a-successful-)[
5 growth strategies that market leaders follow
Discover the proven growth strategies that transformed s into billion-dollar leaders. Learn how successful s scaled into market leaders. ](/spend-trends//-growth-strategies)[
How to hire and structure a finance team for a growing
Discover when and how to scale your 's finance team, from outsourced services to building a full department. Expert guidance for every growth stage. ](/spend-trends//structure-a--finance-team-and-department)[
What is a fractional CFO and what should a look for? Learn what a fractional CFO can do for your . Discover key responsibilities, costs, benefits, and how to find the right fractional CFO for your business. ](/spend-trends//fractional-cfo)[
Early stage funding: Pre-seed vs. seed rounds compared
Learn the differences between pre-seed and seed funding rounds. It explains the purpose of each round, typical investment amounts, and ideal stages for a to pursue each type of funding. ](/spend-trends//pre-seed-vs-seed-funding-round)[
How to create a healthy budget in 6 steps
Use this step-by-step guide to build a budget that lets you estimate your costs, monitor your cash flow, and stay lean from day one.
business-startup-costs
business-startup-costs
Cost-saving strategies that can reduce your startup costs
Whether you're bootstrapping or deeply engaged in startup fundraising, implementing cost-saving strategies can help you make the most of your available capital. Here are a few practical strategies that can help trim your startup costs without compromising on quality or productivity.
Many essential business functions can be managed using free or low-cost software alternatives. For example, use Google Workspace for email and document management, Canva for basic graphic design, and Wave for accounting. Open-source software can often replace expensive proprietary solutions for tasks like project management or customer relationship management. By thoroughly vetting these free or low-cost options, startups can reduce their foundational technology expenses while enhancing productivity and efficiency.
Opting for a remote work model is a good way to reduce overhead costs associated with office space and utilities. Virtual office services can provide a professional business address and mail handling at a fraction of the cost of a physical office. This approach also expands your potential talent pool, allowing you to hire skilled workers no matter where they are. Additionally, studies show that remote work can lead to increased employee satisfaction and productivity, further benefiting your startup.
Outsourcing essential but non-core work, especially finance, is a pretty standard move in the startup world. Functions like bookkeeping, IT support, or customer service. Outsourcing gets you access to specialized expertise without the cost of full-time employees and associated benefits. It also provides flexibility, allowing you to scale services up or down based on your needs and budget.
Approach your suppliers and service providers to see whether prices and terms are up for negotiations. Many vendors are willing to offer discounts for long-term commitments or bulk purchases. Consider proposing alternative payment terms, such as deferred payments or installment plans, to help with cash flow management. Building strong relationships with your suppliers now can lead to better prices and more favorable terms down the road.
Co-working spaces like WeWork and Serendipity Labs are a cost-effective alternative to traditional office leases, especially for small teams. These spaces often provide high-speed internet, printing services, and meeting rooms at a fraction of the cost of standalone office space. Co-working environments also offer networking opportunities and potential collaborations with other founders and startup employees. As your business grows, you can adapt your space needs without being locked into a long-term lease.
startup-fundraising
startup-fundraising
When should my startup raise money?
The timing of fundraising can significantly impact your venture's trajectory. Several indicators suggest your startup might be ready for external funding. These include significant growth potential with a clear path to scaling, demonstrable market traction with a growing customer base, a solid team capable of executing your vision, a validated business model with consistent sales, and a specific plan for utilizing additional capital.
It's important to be cautious about raising funds too early. Premature fundraising can lead to excessive dilution of ownership and create unrealistic investor expectations, potentially putting undue pressure on your young company. The risks of early fundraising should be carefully weighed against the potential benefits of additional capital.
The optimal timing for fundraising often depends on factors such as current market conditions, industry trends, your startup's stage of development, available startup runway, and the competitive landscape. Ideally, you should seek funding when you can demonstrate tangible progress and a clear path to future growth, but before you're in desperate need of cash. This position of strength will allow you to negotiate better terms and attract high-quality investors who can truly add value to your startup journey. Remember, the goal is not just to secure funds, but to find the right partners at the right time to propel your startup forward.
Once you've determined the right time to seek funding, the next critical question is how much capital to pursue. The amount you raise can significantly impact your startup's trajectory, so it's essential to approach this decision thoughtfully.
startup-fundraising
startup-fundraising
How much funding should I raise for my startup? Once you've determined that it's the right time to raise funds, it’s time to decide how much to raise. The amount of funding you should seek is closely tied to your startup's specific needs, growth plans, and current stage. A common rule of thumb is to raise enough capital to give your startup 12-18 months of runway. This time frame typically allows you to achieve significant milestones and position yourself for the next round of funding or profitability. To calculate this base amount, multiply your monthly burn rate (total monthly expenses) by the number of months of runway you're targeting. For instance, if your monthly burn rate is $50,000 and you're aiming for 18 months of runway, your baseline funding need would be $900,000. However, this calculation is just a starting point. You also need to factor in capital for growth initiatives. These could include hiring key personnel, investing in marketing and sales, product development, or scaling your infrastructure. The exact amount will vary based on your industry and specific plans. For example, a SaaS startup might need additional funds to hire engineers and invest in customer acquisition, while a biotech startup might require substantial capital for research and development or clinical trials. Your funding target should align with specific, achievable milestones. These milestones should significantly increase your company's value and set you up for your next funding round or path to profitability. For instance, an e-commerce startup might determine it needs $2 million to launch its platform, acquire 10,000 customers, and reach $1 million in annual recurring revenue within 18 months. Industry norms and investor expectations in your region also play a role in determining how much to raise. In tech hubs like Silicon Valley, seed rounds often range from $1-3 million, while in other regions, they might be closer to $500,000-$1.5 million. Research recent funding rounds for comparable startups in your area and industry to gauge appropriate amounts. It's wise to include a buffer of 20-25% in your calculations to account for unexpected expenses or opportunities. If you've determined you need $1 million to achieve your goals, aim for $1.2-1.25 million to give yourself some cushion. Balancing your funding needs with dilution is essential. While you want to raise enough to achieve your goals, you also don't want to give away too much of your company too early. Typically, startups aim to limit dilution to 20-30% in any given round. If your startup is valued at $5 million post-money, for example, you should aim to raise no more than $1-1.5 million to stay within this dilution range. Let's look at a practical example. Imagine you're founding a SaaS startup in Austin, Texas. You calculate that you need $60,000 per month to cover salaries for a team of five, office space, and other expenses. Aiming for 18 months of runway, that's $1,080,000. You also plan to hire two more developers and a marketing specialist, estimated at $300,000 for the first year, and launch a major marketing campaign costing $200,000.
business-startup-costs
business-startup-costs
Introduction
Launching a startup is a challenging but exhilarating journey, one filled with promise and potential. But did you know that 90% of startups fail within the first three years? A big reason for this is the underestimation of startup costs, which will eat into your cash more quickly than you anticipate. Understanding and planning for all manner of startup expenses can mean the difference between your business taking flight or crashing before it leaves the ground.
That’s why we put together this essential guide to startup costs. Whether you're a first-time entrepreneur or a seasoned owner looking to expand, our roadmap will help you navigate the financial nooks and crannies of launching a business. We'll delve into what startup costs really are, how to prioritize each, and how to budget for them effectively.
From legal fees and office space to marketing costs and employee salaries, we'll break down the most common startup expenses and give guidance on how to manage them. More importantly, we'll show you how to calculate these costs accurately, explore strategies to reduce them, and help you avoid the pitfalls that have tripped up many before you.
If you're ready to turn your startup dream into a reality, think of this guide as your first step toward building a solid financial foundation for your business. Let's dive in and set your startup on the path to success.
tips-on-how-to-build-a-successful-startup
tips-on-how-to-build-a-successful-startup
12: Remove the finance busywork from your plate.
“When you’re a YC company, there are some very well-trodden paths that you should follow to de-risk things. Brex is one of them. In my last business, I spent a non-trivial amount of time, probably 2 hours a week, just sorting and logging personal and business expenses, and that was a real pain. Now I spend less than 10 minutes doing it with Brex.”
— Hunter Brooks, Co-Founder and CEO, Ellipsis
13: Hard work will bring you the right mentors.
“You can’t be afraid of failure; the key is to put yourself out there and meet people. You probably won’t find the perfect mentor right away, and you’ll need different kinds of mentors at each stage of your company. Make sure that whoever you decide to work with respects and supports you and your vision unconditionally.”
— Madeline Fraser, Founder and CEO, Gemist
14: You can’t do it all — so don’t feel like you have to.
“Employees were using personal cards for expenses, travel, offsites, and stipends and then sending me emails requesting reimbursement. I asked myself, ‘why am I doing this every month?’ I didn't know a solution like Brex existed that would be this easy, yet still appropriate for small and growing teams.”
— Jake Disraeli, Co-Founder and CEO, Treet
15: Don’t be afraid to use your own playbook for recruiting.
“We do everything from first principles, including recruiting. For instance, our head of tax was our first company-changing hire, but it broke all the common startup rules on what your first five employees should be. However, from a first principles perspective, hiring this person made a ton of sense for us and we threw out the playbook.”
[
](https://www.linkedin.com/in/andrewrea1996/)
16: Go all in on the grand vision when pitching investors.
“A big problem we faced early on in the fundraising process was vision. It was very hard to pitch something bigger than what the solution is today. Sometimes it can come across as exaggerating what it is. But that’s the entire thing you’re fundraising to do — to bring that idea to that next level. Good investors want to see that you have that vision and know where you’re going to take the company. So the big shift from Seed to Series A is expanding your mindset to turn your idea into something much bigger.”
— Avante Price, CEO, Posh