Home Business How Can Startups Utilize Their Funds Optimally?

How Can Startups Utilize Their Funds Optimally?

by Olufisayo
Brilliant ideas & strategies, an enthusiastic workforce, and utilizing funds optimally are often at the core of successful tech startups.

Brilliant ideas & strategies, an enthusiastic workforce, and utilizing funds optimally are often at the core of successful tech startups.

If you analyze where you might spend most of the funds you raised, you will realize that payroll and infrastructure consume over 50 to 60 percent of it. Wouldn’t it be great if you can save some of these huge expenses? You could re-channelize saved funds for other activities, such as sales & marketing, utilities, etc.

Solving the talent puzzle

“Okay, so what you’re saying here is, instead of hiring software developers with 6 years of experience, I should instead hire somebody with 2 years of experience instead because they are easier to hire and I wouldn’t have to pay them as much.”

Absolutely NO!

If you get lucky because those developers you hired are quick learners, it could be a temporary relief. But do you really want to take that risk? And what if it doesn’t work best for you? It will only invite more trouble. You may have to extend your runway, which isn’t something you may afford as a cash-crunched or early-stage startup.

       

“Then how else can I save the money I would be spending on the payroll? There’s a talent crunch in the U.S., and candidates with the kind of experience my startups need prefer working with established organized organizations.”

Even if you manage to hire the right candidates in the U.S., the chances are that your well-established counterparts will be able to lure them through incentives & perks, stability, and a better work-life balance. So, why don’t you consider building an offshore team in India?

“Seriously? Is it really worth it?”

Whether you are hiring developers during initial funding rounds or in the phases of scaling up your business, building an offshore team in India will greatly benefit you.

The salary of a software developer in India is almost one-fifth of that in the U.S. Plus, you will get access to a wider talent pool, and your offshore team will function as a seamless extension of your onshore team. Moreover, you can leverage the time zone difference to enable round-the-clock operations and achieve a faster time-to-market.

       

Solving the infrastructure puzzle

“And what about infrastructure? Wouldn’t I have to establish a legal entity in India and set up an office there? I don’t see that to be a very convenient option.”

True! Utilizing the available funds optimally is the key here. So, setting up an offshore development center might not be the best option for your startup. But have you thought about teaming up with an offshore software development company? That should save you from all these hassles.

“But how do I find the right offshore development firm to partner with?”

There are various factors that you may have to consider before you outsource work to an offshore development company. Given below is a list of these factors:

  • The duration for which they have been in the business
  • Countries where they have clients
  • The kind of projects they have handled
  • Client satisfaction ratings
  • Employee satisfaction ratings
  • Their financial position
  • Data security & privacy policies
  • Their infrastructure
  • Flexibility to accommodate changes in the process
  • Post-development support

Building a cross-cultural team by going offshore with brands like Braves Technologies will promote a culture of diversity & inclusiveness in your organization. This will not only build a good brand reputation for you but also boost organizational productivity by several folds.

       

Through a diverse team, you will also be better equipped to serve your customers round-the-clock and ensure higher customer satisfaction. All this will play a crucial role in making your startup venture a huge success.

Photo by Ron Lach from Pexels

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