Avoid three pitfalls for startups

Outsourcing for starups

Avoid Three Pitfalls For Startups ➢ The equity trap When a startup is short on cash and flush with contributors, it can be tempting to start doling out equity in the operation in lieu of paychecks. Not only is this method a massive red flag to potential employees, it erodes the owner’s company share, and consequently, that of potential funders down the line. Even if your business plan is solid and you have growth potential, investors aren’t likely to want the small slice of equity remaining after you’ve given large percentages away when times were tight.

Outsourcing for starups

➢ The salary problem Founders can fall into two vastly different, but completely understandable camps when it comes to personal valuation.

Over/ valuation comes when a founder starts to see some profit, but instead of reinvesting it in the company, he ups his salary. This, of course, is a symptom of larger issues (like poor foresight) – but it’s not the sole indication of improper startup management.

Outsourcing for starups

The salary issue works in the reverse – the spartan founder that insists upon an unlivable salary is bound to burn out. There is a proud tradition of bootstrapping operations in startup culture – after all, it gives CEOs valuable perspective.

But the founder who sees under/ payment as a badge of honor until she becomes the next Steve Jobs will be in for a long, unpleasant run.

Outsourcing for starups

The lesson to learn here is simple: be realistic about your finances. Whether you yourself to Fortune 500 CEO benefits or scrape by when there’s enough to live comfortably, neither of these practices are sustainable, and will either cause bankruptcy or burnout. ➢ No plans to scale sustainably When growth is the name of the game, those who stagnate lose out. Similarly, that act too big for their britches fall into the traps listed earlier. And since most first/ time startup founders don’t have much HR experience, labor can become an unsustainable cost. Outsourcing for startups is the answer to the sustainability question. Of course, you wouldn’t want to outsource vital functions when you’re growing, but you can outsource many standard business processes that scale with you. Business process outsourcing comes with sustainable cost that scales with you.

Outsourcing for starups

You don’t need to fall victim to improper scaling. Be proactive and make the move to a business process outsource provider like SupportNinja . Get coherent team extensions to maintain control of your processes, but forget the hassle of coordinating and babysitting your back office team on site.

So keep more of your company, pay yourself fairly, and feel confident in your future growth, and watch your outsourcing for startups thrive.