How can you build a winning team for your startup?
In a recent study on startup failures published by CB Insights, they have analyzed over 100 post-mortem essays by startup founders and provided some great insights into the deep-rooted problems of startups. According to their findings, the most important factor is the lack of understanding of market needs. Almost 42% startups considered this as the biggest issue. While ‘financial constraints’ stands on the second position, ‘the difficulty in building the right team’ is the third important factor as it accounts for the failure of 23% of the startups.
When does team building become a hurdle before startups?
The issue appears in different ways and in different situations. So let’s examine each scenario separately.
1. The smartphone boom makes a highly tempting call for aspiring youngsters to turn into entrepreneurship and thus stand on their own feet. Usually, what they only have are new ideas, and what they don’t have are financial backing, and experience in marketing, research, management and team building. Among these the most crucial obstacles are finding budget to build infrastructure and hiring employees .
2. To set it rolling, they will arrange limited budget, and set up the office and team somehow. Most probably, it will evaporate as salaries and maintenance cost even before they could launch the product. Everything has to be stopped halfway.
3. If they could successfully complete the product and find its niche in the market, the demand may skyrocket. The startup founders have to enhance the product features and customer support so that it can cater to the needs of a larger audience. But in such circumstances they may have to overcome a crisis due to difficulties in raising budget to expand the team and infrastructure.
What options do startups have for increasing team strength? What are the challenges?
Initially, most startups go for onshore hiring because of the advantages in project coordination. However, in most cases, this process takes them to a desperate end for various reasons. Since startups can’t afford a full-fledged recruitment team like top companies, onshore hiring will eat up the time of existing employees and management. So they will lose effective working hours on their product development and customer support. More importantly, getting experienced candidates is not easy for startups since they won’t choose to move to a company with an uncertain future. Moreover they demand high salaries beyond the usual budgets of startups.
The second option is hiring freelancers to get the work done. The results are often catastrophic since the low credibility and accountability, issues in communication, hassles in project coordination, failures in meeting deadlines and so on. Freelancers cannot be used as a long term strategy.
For startups, the most viable team building strategy is dedicated offshore outsourcing if they get a trusted and experienced outsourcing vendor. Outsourcing can help startups in many ways including getting quality talents at affordable costs, reducing cost for infrastructure development and maintenance, and getting more time and money to focus on other core functions of business. Therefore, there will be a significant savings in expenditure, and a resultant increase in the profit.
How dedicated outsourcing works for a startup?
The most important thing, as already stated, is finding a credible dedicated outsourcing vendor with an exceptional history of client servicing. A good offshore outsourcing company works with professional ethics and a well developed method of operations. They collect exact requirements of clients, and make a clear understanding of their client’s expectations and concerns. Based on them, they find out the best candidates who match the criteria perfectly. After initial rounds of interview, they arrange direct online interview with the client and let him choose their team members. After getting the consent, the candidates will be recruited to their development center and work as a dedicated team for the client.
What client needs to do is just focus on his project and get it done on time. The rest including all HR work will be carried out by the outsourcing company. Dedicated outsourcing is highly flexible too. He can easily replace a non performing employee and fill that space with a more competitive resource quickly. From the startup’s point of view, offshore outsourcing is a great remedy for all the hassles they need to face from hiring to firing. Thus this strategy turns out to be the most effective method for a startup in the initial and growing stages.
However, many people make call against outsourcing by pointing at certain disastrous risks. The common drawbacks of offshore outsourcing are lack of quality, risk of confidentiality, weak customer support, and hidden costs. Therefore the most crucial part is the choice of outsourcing vendor. Such issues do not happen with a highly experienced, transparent and trustworthy offshore partners.
So, if you are planning to establish a startup or already running one in a growing phase, feel free to consult your team building problems with us. As an offshore outsourcing company with years of experience and proven record of success, we are confident that we can give you the right solution.