Top 3 Reasons Startups Fail
Startup entrepreneurs may have a fresh new business idea, but also have to deal with obstacles in its execution like low capital, not enough experience, staff low on skills etc. Although the recent growth of startups paints a rosy picture, the fact remains that 90% of startups fail within their first year. Innovation and unique enterprise are definitely valuable but in order to succeed as a business, there are certain dos and don’ts that startups need to adhere to – outsourcing being a major one of the dos. Outsourcing has time and again proven to be a key catalyst that accelerates growth for startups. Let’s take a look at the top 3 reasons why startups fail and how outsourcing can play a vital role by being a key for startup growth
1. Ran out of cash
It is of vital importance that a startup should have some breathing room, especially from the financial aspect. At the onset, a startup is seeking to gain a foothold in the industry and are generally low on profits. Here is where outsourcing can help solve the problem. Offshore outsourcing centers offer a range of skilled back office services at a very competitive price range. Not only does this provide invaluable breathing space to the startup, but it also means startups can allocate more of their investors’ money into core processes where they can generate higher turnovers.
2. Not the right team
It is vital to a startup’s success that they hire and train the right team who can achieve their productivity goals. An in house services team means a lot of time and money is spent on hiring processes, employee management and training. It may take a long time for the staff to overcome the learning curve and acquire all the competencies to execute the job. A more efficient and practical way is – to outsource. Jobs like data entry, virtual assistance, telemarketing etc. can be assigned to an experienced and expert offshore outsourcing provider, who will already have the required trained resources, expertise and infrastructure needed to do these jobs and be productive almost instantly. Thus, outsourcing eliminates the hassles of not having the right team.
3. Get Out Competed
With high competition, it is vital that every startup develops expertise in its core function. This is also a scenario where outsourcing can play a role. In order to keep employees focused on the core business, startups should allocate non-core functions to an outsourcing services provider. Thus, the startup gets optimal time to focus on the core business, gain expertise and deliver. This greatly improves the chances for the startup to out compete others rather than getting out-competed.
Outsourcing is a key for startup growth.
Thus, outsourcing is a tactical strategy that can be employed by startup companies to their advantage. If you are looking for an outsourcing partner, Indian outsourcing companies provide good flexibility, skills, timezone advantage and business value to startups. BPOs like Telegenisys come with 2 decades of success in propelling American companies and are thus most suitable for allocation of back office work for startup companies.