Tackling start-up pain points
Starting a new business can be a daunting & demanding task, but careful planning and execution can make it a very rewarding experience. With hard work and dedication, your business can be a success. However, as businesses grow, they often face the challenge of how to scale up their operations effectively. Businesses need to find ways to maintain quality and efficiency while increasing production and this can be a difficult task.
Fortunately, working with an outside firm can solve many of staffing, technology, and other problems quickly, effectively, and on budget, so the businesses can ensure that they are able to effectively scale up their operations.
Following are the key areas where high-growth businesses struggle:
Success is not created by the product or the work environment, but by the dynamic workforce. As your company becomes more successful, and you begin to develop a bigger workload, chances are you’ll need to hire staff and place them in right positions to succeed & retain them. However, limitations on resources like physical space can keep you from hiring the necessary people.
To save your money on hiring costs and overhead and at the same time get access to experts, the right solution is often to outsource work to a firm that will provide you with flexibility and provide you with experienced professionals. You can dip into the pool of experts without having to spend on staffing & training.
Cash Flow Challenges
Cash is king for scaling start-ups and managing it efficiently perhaps the greatest challenge. The subtle art of managing a company’s cash flow during hypergrowth involves careful budgeting and forecasting. It is really important to have strong liquidity, to know when it is the right time to take calculated risks and to be able to invest in high paying projects and initiatives.
Selecting the right KPIs to adequately manage one’s cash flow can be an unnerving task and can take substantial time away from working on your core business. Hypergrowth also comes with many incentives, including the availability of fresh cash. But this phase also comes with several challenges, including managing that new cash. You are either worried about where the next round of funding will come from or how to properly invest that into the business, which takes precious time & focus away from your vision of keeping the business moving in the right direction.
A professional accounting and finance firm can help by your managing cash flow so you can focus on taking strategic decisions for the growth of the company.
A study conducted by Startup Genome found that 74% of high-growth internet start-ups fail due to premature scaling. Scaling too hastily can overstrain your resources and leave you in a tough situation.
Seeking the help of a financial consultant can help you take your company to the next level effectively by avoiding the pitfall of radical growth. Increased sales and rising revenue, will also lead to more invoices, greater tax burdens, and a more complex system to manage. Dispensing these tasks off to a team of experts will allow you to keep your focus on your core business.
Flexibility & Automation
Startups need to shift gears constantly to adapt to the changing needs of consumers and markets. Your team also needs to stay nimble & flexible to adapt quickly to these changes, so they don't become stuck in old habits and become too static.
When you reach a point where the processes in your company start to become strained & complex and achieving the right level of productivity becomes tough, then outsourcing the labor-intensive roles to a firm that works as quickly and effectively as you, is the way out of your scale-up challenge.
An outside firm can help you automate your processes and free up both time and resources, so you can remain flexible as you grow and focus on the areas where you can make the most impact.
You understand your startup better than anyone and your vision & your mission are important factors in your success. With growth comes new complexities, new roles & new responsibilities.
When it comes to accounting, you should not have to do it alone. By entrusting your accounting and other labor-intensive jobs to professionals, who will always have your best interests in mind, gives you enough time to drive your startup forward as opposed to handling the tasks which are better understood by experts.
Accounting and bookkeeping services are vital and complex parts of your business and by outsourcing it, you an reap the benefits of cost-efficiency, time-saving, flexibility, expert advice, and much more.
At Vizhen, we work with a start-up mentality and provide assistance to high-growth companies. You can rely on our team of experts to receive a clear and thorough outlook to help you sail through the challenges & mitigate them successfully.
Contact us today to schedule a free consultation to learn more about how our team can help you scale your business.