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6 Ways a Small Business Can Afford a CTO

6 Ways a Small Business Can Afford a CTO

A Chief Technical Officer (CTO) is someone who will make everything work. More and more businesses rely entirely on computerized systems and automation to function. The average entrepreneur starting a new small business has a small technical team, and the CTO is the thought leader. They won’t just repair they’ll innovate, making this an essential role within the company.

What can you do when you’re a small business without any additional room in your budget?

1. Work Over Your Budget Again

It’s easy to assume you automatically can’t afford to add another person to your team. Take a closer look and factor the cost into your current budget. You’ll be surprised at how quickly you can find some wiggle space by making cuts and adjustments elsewhere. Sometimes the best way to afford a CTO is to force one into your company.

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2. Outsource the CTO

There are independent consultants acting as CTO’s for multiple small businesses at the same time. To ensure the smooth running of your small business you shouldn’t spend money you don’t have. Outsourcing the issue and paying someone for a couple of days every week may allow you to slip that new member into your team.

You could even bring someone in remotely. For example, you could employ an independent CTO from another country and deal with them remotely.

3. Begin Combining Roles

To start strong in business you need to economize. Sometimes the best way to do this is to combine roles together. Similar roles, such as IT consultant and CTO, can be dually handled by the right candidate. Employing someone to carry out both tasks can be a great way to cover two positions without paying two salaries.

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Beware of combining roles exclusively for the reason of saving money, though. It’s always better to have an expert in one position than an over-stretched worker covering two positions.

4. Going into Debt in the Short-Term

A CTO can be such a valuable part of the company during the new business formation phase. You may discover that the best way to afford one is to go into debt in the short-term. Payable debt is common for small businesses, so should you ever go into debt to afford a CTO?

This all depends on your income plan. How quickly will you be able to generate enough money to cover the new position and how much debt will you be in when you reach that point? You must decide based on your own calculations whether going into short-term debt is the right option for you. If you want to start strong in business you may find that debt is the worst possible option for you.

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5. Don’t Choose the Best CTO on the Market

Small businesses don’t need to have the most qualified CTO. The chances are your internal systems aren’t big enough to warrant a full-time, high-cost CTO. It’s always nice to have the best CTO in the world working for your company, but do you really NEED them? In a lot of cases, their skills are completely wasted on the average new business. Think about searching for someone more affordable. They may have less experience or they may specialize in micro businesses.

6. Wait Until Later

In the first six months, you won’t necessarily have the need for a CTO. You’re establishing your product and working on basic marketing. Too many entrepreneurs attempt to employ a full team from day one. It isn’t the best decision money-wise because you can’t utilize their full potential just yet. Can’t afford a CTO right now? Wait a month or two when you can better utilize them.

You can make room in your budget for a CTO if you try hard enough. But what’s more important is hiring the right person for your business. The ingredients for a perfect start include a robust hiring process, acknowledging your short-term needs, and considering what you can do with each member of your team in the future.

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How and when will you make room in your budget for a CTO?

Featured photo credit: Pexels via pexels.com

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Ryan Kh

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Last Updated on June 13, 2019

15 Best Entrepreneurs Books to Start Reading Now to Be Successful

15 Best Entrepreneurs Books to Start Reading Now to Be Successful

Knowledge is power, and you’re going to need a lot of it if you’re going to be able to steer your business to success.

Without further ado, let’s take a look at the 15 best entrepreneurs books to get inspirations about success and grow your business.

1. Think and Grow Rich by Napoleon Hill

    This book has been dubbed the Granddaddy of All Motivational Literature, and it was actually the first book that gave a prescription of what it takes to be a winner.

    Napoleon Hill draws from the stories of millionaires like Henry Ford, Andrew Carnegie, and Thomas Edison to illustrate the principles he put forth.

    Get the book here!

    2. The Lean Startup by Eric Reis

      A lot of startups end up failing, but many of these failures are actually avoidable. The Lean Startup provides a different approach that is now being adopted all over the world and changing the way that companies are developed and products are being launched.

      In The Lean Startup, Eric Reis describes what is required for a company to penetrate the fog of uncertainty in order to discover a path to a sustainable and successful business.

      Get the book here!

      3. The E-Myth Revisited by Michael E. Gerber

        In a revised edition of the 150,000-copy bestseller, The E-Myth, Michael Gerber refutes some of the myths that surround starting your own business and shows just how commonplace assumptions can end up getting in the way of being able to run a successful business.

        Gerber succeeds in walking the reader through the steps that occur in the life of a business, from infancy, through the pains of growing as an adolescent, to the perspective of the mature entrepreneur.

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        Get the book here!

        4. Rework by Jason Fried

          Most of the business books that you get today will give you the same advice: draft a business plan, study the competition, look for investors, and all that.

          However, Rework shows you a more effective, easier and faster means of succeeding when running a business. By reading it, you’ll be able to know why some plans are harmful, why you don’t really need to get investors, and why you’re better of shutting out your competition.

          Get the book here!

          5. How to Win Friends and Influence People by Dale Carnegie

            This is one of the most successful motivational books in history, selling well over 15 million copies since it was released in 1936. The book is timeless, and it appeals to businesses, self-help startups, and general readers.

            Carnegie believes that a lot of successes come from an ability to communicate rather than having brilliant insights. In his book, he teaches how to value others and make them feel appreciated and loved.

            Get the book here!

            6. Outliers: The Story of Success by Malcolm Gladwell

              Through this amazing book, Malcolm Gladwell is able to take the reader on an intellectual journey through the world of ‘outliers’. He asks the question of what truly differentiates high-achievers.

              His answer to this question is that we tend to pay too much attention to what successful people are like, and less attention to where they are actually from.

              Get the book here!

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              7. Rich Dad, Poor Dad by Robert T. Kiyosaki

                This is the best personal finance book ever written. It tells the story of Kiyosaki and his two fathers; his real father, and that of his best friend (his rich dad), as well as how the two men helped him shape his opinions on money and investing.

                It refutes the myth that you need to earn high to become rich, and it distinguishes between working for money and having money work for you.

                Get the book here!

                8. The Ascent of Money: The Financial History of the World by Niall Ferguson

                  Niall Ferguson, in this book, follows the money to tell the story behind the evolution of the word’s financial system, from the beginning way back in ancient Mesopotamia to the latest occurrences in what he had dubbed Planet Finance.

                  Fergusson also reveals financial history as the backstory behind our very own history, with an argument that the evolution of debt and credit is as significant as the history of technological innovation and the rise of civilization.

                  Get the book here!

                  9. Liar’s Poker by Michael Lewis

                    Michael Lewis landed a job at Salomon Brothers after getting out of the London School of Economics and Princeton within three years, he had risen to the rank of bond salesman, making millions for the firm and cashing out steadily.

                    Liar’s Poker is the amalgamation of these years — a look behind the scenes at one of the most turbulent times in American business. His book is Lewis’s account of an era where greed and gluttony were the order of the day.

                    Get the book here!

                    10. Drive: The Surprising Truth about What Motivates Us by Michael H. Pink

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                      A lot of people see money as the best motivator. Michael pink says it’s a mistake.

                      In this provocative book, he asserts that the secret to high performance anywhere is the need to direct our lives, to learn and create, and to do better by our world and ourselves.

                      Get the book here!

                      11. Getting Things Done: The Art of Stress-Free Productivity by David Allen

                        Outdated methods don’t work in today’s world. In this book, Allen shares some awesome methods for stress-free performance that he has shared with thousands of people all over the world.

                        His premise? That productivity is proportional to your ability to relax.

                        Get the book here!

                        12. The 7 Habits of Highly Effective People by Stephen R. Covey

                          In this book, Stephen Covey presents a holistic approach for overcoming both professional and personal issues. With insights and anecdotes, Covey presents a way to live with integrity fairness, service and dignity.

                          Get the book here!

                          13. The 4-Hour Workweek: Escape the 9-5, Live Anywhere, and Join the New Rich by Tim Ferriss

                            In this book, Ferriss dishes on the tips he has learned from studying the New Rich, a subculture of people who did away with the deferred life plan and mastered time and mobility to developed luxury lifestyles for themselves.

                            If you’re looking to make your way in this revolutionary new world, this here is your compass.

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                            Get the book here!

                            14. Delivering Happiness: A Path to Profits, Passion, and Purpose by Tony Hsieh

                              The CEO of Zappos shows how a unique kind of corporate identity can help deliver a huge difference in the way results are being achieved — by creating a company that values and delivers happiness.

                              Get the book here!

                              15. Losing My Virginity: How I Survived, Had Fun, and Made a Fortune Doing Business My Way by Richard Branson

                                From Virgin Atlantic Airways, Virgin Records and V2 to Virgin Cola, Virgin Megastores and a wide array of other companies, Richard Branson is the rockstar billionaire that a lot of us want to be.

                                Branson, however, did business by following a simple philosophy:

                                “Oh, screw it, let’s do it”

                                Losing My Virginity is an unusual, borderline outrageous autobiography of one of the greatest business geniuses in the world. Branson and his friends named their business “Virgin” because that was what they were — virgins at the game.

                                Since then, he’s written his success rules, creating a global business that has no headquarters, no management structure no corporate identity as it were.

                                Get the book here!

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                                Featured photo credit: rawpixel via unsplash.com

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