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Revenue Flow in 6 Months

January 08, 2019
A tight budget is a major bottleneck for startup growth. Limited resources drive founders to single-handedly work on development, marketing, pitching, and more. However, success stories prove that concentrating all effort on one goal provides the best results. Startup founders would see quick results and revenue growth if they were to delegate the technical side of starting a business and focus on strategic tasks. Today we'll discuss the best approach to increase the company growth rate, raise investment, and meet the development deadlines with a small team.

Startups on a Budget. Business Barriers

Successful startups take different routes to the top, while failed businesses face the same problems, such as:

  • Not enough time and people to develop the project and promote it;
  • Humble initial budget and no way to raise more money;
  • Lacking technical expertise among the startup founders;
  • No senior-level developers with IT experience and expertise on the team.

Teams that can't meet these challenges miss the deadlines and face the risk of outright failure and bankruptcy, even if they come up with a groundbreaking idea and select a good business to start. Getting into the incubator doesn't guarantee the startup's rapid growth. Success hinges on the founders' tenacity in their search for venture investors and startup promotion that require endless reserves of time and energy.

How to Increase the Revenue and Raise Investment

The most efficient ways to solve the problem of not enough time and resources are web development services outsourcing and outstaffing. If you hire an experienced senior-level developer, they can divide their time between working on the project and filling in the role of the CTO. Outsourcing to an IT vendor is preferable to working with freelancers as you get:

  • Guarantees and legal protection;
  • Replacement tech lead in case of emergency;
  • Scalable development team;
  • Talent pool to outsource design, QA, project management, and more.

Upon transferring the technical management to the outsourcing developer, startups can focus on strategic planning and promotion, dealing with:

  • New investors search;
  • New sales channels search and testing;
  • Project's strategic development planning, including feature set, integration options, cross-platform and cross-device implementation, and more

While starting a new business, hiring an outsourcing junior or middle-level developer is cheaper. However, we recommend senior-level experts. The former do not possess the knowledge and technical expertise to build the project from the ground up and factor in future upgrades and evolution. Considering the lead developer will take on the role of the CTO, look for a senior-level specialist to:

  • Select the technology stack taking into consideration future development;
  • Develop an efficient architecture;
  • Establish the project's security;
  • Implement necessary features quickly;
  • Provide technical consultation on the project's issues and feature implementation;
  • Establish seamless communication with in-house team.

While some think outsourcing is not viable for startups, there are dozens of success stories that feature external developers. The fastest growing small companies used offshore talent to meet the deadlines when building MVPs, raise investment funds, and turn into successful businesses. Opera, Mindspark, Solix, and even Skype are among them. Did you know Slack outsourced mobile and web development along with a logo design on the earliest stages? Now the company is worth over $3 billion.

Outsourcing for Startups 101

We have already described in great detail the process of finding the right outsourcing company for startup needs. Let's recap the highlights. To ensure high-quality and timely development, you should:

  • Assess the web development company's reputation on Clutch.co;
  • Research the vendor with proven expertise in your business niche;
  • Browse cases for projects similar to yours;
  • Negotiate the outsourcing terms and interview the developers to assess their expertise and English directly or through an intermediary;
  • Focus on IT vendors with highly qualified software engineers and affordable rates, such as Ukraine, Belarus, and other Eastern European states.

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