Though Silicon Valley remains the top-spot for founding a startup, innovative minds are now also eyeing other US cities as prime locations to jump-start their new business. Excellent universities turning out bright young minds, lower costs of living, and attractive offerings by local governments are causing startups to multiply across America, from Boston to DC, Chicago to Austin, and New York to Seattle.
With all this startup fever, however, comes a lot of competition to secure VC funding. As a startup, you have to consider what it is that Venture companies like to see when they look at a start-up as a potential investment opportunity. One area that a startup can make itself stand out is in its reliable and efficient product development. This, however, can be one of the toughest areas to manage in a business, as it can be very difficult to hire and pay the right talent that will deliver predictable results. One way to achieve this, though, is through taking on an outsourced product development partner that truly understands product engineering, as it can solve a number of your early startup woes:
1. Hiring the Right Talent
It’s tough right now for tech employers in the US. It takes time to find the right talent given that the best are being snapped up by Google, Apple, and Microsoft. It is often difficult to find the budget to pay the right talent what they’re worth, and it can be hard to attract talent as a startup because you’re not proven as a business yet. If you use an outsourced product development firm like OFS, it frees you up to focus on your business while they concentrate on selecting and securing the right talent for you from their large pool of resources.
2. Setting Up Corporate and Engineering Infrastructure
Startups often don’t have the corporate and engineering infrastructure needed to successfully build a product development department domestically. You have your core, small team of “idea guys” at your company, but you don’t have the infrastructure needed to be productive. Outsourcing lets you use somebody else’s well-established systems and equipment to take care of HR, administration, office space, and servers and software for your product development resources.
3. Having the Necessary Flexibility
Hiring resources in the US creates a permanent expense. As a startup, it’s difficult to predict what the needs of your company will be in the near and long-term future. With outsourcing, you get the expertise you need without the permanent financial commitment, which allows you to easily scale your team up or down, with little notice, depending on your business needs.
4. Impressing the VC’s
VC’s are not going to put millions of dollars into your startup without seeing a level of professionalism and predictability that gives them comfort. By outsourcing your product development to a well-known provider, you will get your product releases done on time with innovative features, sound architecture, and modern development practices and tools. Demonstrating this sort of dependability makes VC’s confident that choosing to invest in you is a good and stable financial decision on their part. Also, because using an offshore provider keeps your costs down, the VCs will be happy to see their money go further in building your business.
Through these advantages, an outsourced product development partner can be just the thing to advance your startup to the maturity needed for securing VC backing.