In today’s world when everyone has a multi-million-dollar Tech idea and wants to create a company with high revenue in quick time. There are over 28 million small business (>99% wow!) in the US. But only 50% of them survive. Moreover, only one-third of them survives 10 years or more. The reason for the business dying out is not bad ideas, most of the time it’s the choices and decisions that the startup make to execute their idea.
To understand your business future road, we have got you this blog where if we have nailed down few reasons for a Tech Startup failure and you can figure out what is to be done with your organization. So let’s begin.
1. High Development Cost
The cost is increased when you hire an in-house developer or outsource to a local company in the US. While outsourcing to an offshore company outside the US may save you extra budget, but simultaneously you have to give up control on your project to some extent. Also generally, while launching a new product or service, the development cost is higher. Which needs to be compensated with the regular development of the technology and proper commercialization.
2. Missing Timelines
This includes missing the right window for right action. Hiring freelancers is a good option to consider for new companies as they are low cost, but then you have to bear the no fixed dates of deliveries etc. Premature scaling, for example, hiring too many employees too early or spending a huge amount on marketing. According to Startup Genome, about 70% of startups miss important timelines, either premature scaling or late scaling.
3. Too much involvement in technical issues
The top brass of the company is responsible for not only the technical wing of the organization but for others as well. This generally happens when there is in-house development team with the organization, apart from complete control over the project, this strategy also increases overhead. If they are too much involved in the technology, the balance of the monitoring fails and so does the business.
4. Low Marketing Budget
As they say, what looks well, sells well. Proper marketing has to be done in order to sell products and make money. There are examples of great products failing just because of lack of proper marketing or improper marketing as well. Here working with freelancers may work for new companies, as they have low cost and no overheads, but only if you can cope with the flexible delivery dates.
5. Low-Quality Deliverables
Hiring an offshore company outside the US is most common since last few years, but apart from saving money, it reduces the quality as well. The product of the company is in itself the best marketing, and if it does not perform well, you are in trouble. After all, it’s your baby and your future, you cannot risk it because of few dollars.
6. Poor Management Skills
This is one of the most common reasons for the business failure n US. Not having enough experience to handle employees or making the right decision at the right time are the symptoms of weak management skills of the top boss. Even when the business got some pace, accepting the changes and inculcating them into the company is also a test of your leadership.
The above-mentioned points sketch out the pros and cons of different models. But in these models, you have to make compromises somewhere or the other therefore we at MYZEAL I.T. Solutions offer you a new engagement model which is, “Pay As You Grow”. Under this model, we work as a Technology partner with a tech startup, helping them to launch and market their product quickly with very less cost, however keeping contracts bound to local (US) laws.
We have helped many tech startups to build their product and start making revenue before they pay for it.
Advantages of Availing Pay As You Grow Model
1. We pledge under US contracts and local abiding laws, unlike offshore companies.
2. We offer cheap rates, offshore rates starting at $18/hour only.
3. Project Management is done from our HQ in California.
4. Go live in 90 days and pay us in 12 months.
5. We provide 1 year of maintenance & support.
6. Our plan includes 3 upgrades.
7. You retain copyright, source code & Intellectual property.