Creating a tech startup isn’t an easy task, to say the least. How difficult? Even with groundbreaking ideas and innovative products, roughly 90% of startups fail, with around a fifth of these startups failing in their first year.
But it’s not a lack of innovative or amazing products on their end: rather, the failure happens because they’re unable to secure funding while they’re perfecting their product. And it makes sense: tech startups are usually staffed with amazing engineers and programmers, but not enough business development experts and specialists.
Outsourcing some business processes, however, are a great way to ensure your company sees multiple anniversaries, not to mention the fruition of your tech ambitions. Here are other reasons why your tech startup should consider outsourcing.
Outsourcing Helps You Keep Afloat
After a company goes through its seed funding, it will have to start looking for Series A, B, or C funding, which will, ideally, help it improve its product offerings, increase its user base, and of course, create an impressive profit-generating strategy.
Sadly, this is where many tech startups fail because they try to take on all the tasks at the same time in-house, wrongly believing that spending on outsourcing their business process is detrimental to their growth. But here’s the kicker: outsourcing will actually keep your tech startup afloat during those dark days between seed funding and Series A funding, mostly because the processes you outsource will directly lead to increasing your chances of further funding.
Remember that investors aren’t just looking for great products: they’re looking for companies with a business strategy that will generate profit for them. While tech startups are usually filled to the brim with tech experts, it can lack in the business development aspect. Our advice? Outsource these processes to people who know how to do it.
Outsourcing Helps You Expand
A tech startup’s financial worth is determined by the amount of money it can generate, obviously. However, consider this: if your tech startup is relying heavily on producing just one thing, you’re going to be going up against the stiff competition, not just from other startups (who are probably just as brilliant as you), but from established corporations as well (and big tech is NOT an easy machine to beat).
By coming up with ideas for other products and outsourcing the development of these to freelancers, your tech startup’s product offerings can expand with a little bit of investment on your end. Think of it this way: your company might want to focus on being the best neural network development company out there, but hundreds of thousands of companies still need C# application development. By outsourcing your C# application development efforts, you’ll be able to continue generating a profit and keeping your business afloat while you work on your expertise.
Outsourcing isn’t about being unable to handle all aspects of your business yourself. Rather, it’s allowing experts to help you get your startup to where you want it to go so that you can focus on developing your main projects and becoming the next big tech giant.