Startups are growing like mushrooms after the rain but still, almost 90% are failing. Why the statistic is so sad and how you can avoid the failure? There is a set of reasons why startups fail. Every startup owner wants to get to the successful 10%. How to make it real and how to save the business from mistakes?
The majority of people think that startups fail because of budget, somebody might think that the reason is in the team or in the idea. But there is one more important reason. Startup owners usually are great idea creators, sometimes with a technical background. They might have strong management skills, but all these skills can’t guarantee success. That’s why startup consulting exists. What is it and why do you need it?
Startup consulting companies provide either strategic consulting or a full cycle of services for startups. The second one is more preferable because you’ll have both the strategy and the team for the practical implementation of your idea.
What does this startup consulting do?
There are some common steps in the startup growth cycle. They mostly depend on the funding and each of them needs some corrective actions.
The very first step is called seed funding. At this stage, a startup owner usually invests his or her own money or finds angel investors. Talking about the practical part, the main goal here is to make a Proof of Concept (PoC). This is a presentation of your idea where you can prove that the idea can be accomplished. Here you can say about the advantages and benefits of your future product. The main idea is to attract investors.
The second step is Series A. You should create a Minimum Viable Product (MVP). This is the first version of your product you can show to the end-customers. Here you also will have investments.
The third part is Series B. Here you can scale the project. It is important to make it at an appropriate time because a lot of startups start to scale too early. Series B allows receiving the final investment and meet the demands of new customers.
After these stages, the product is growing further or the startup owner sells the project to bigger company and starts to accomplish a new idea.
Well, but where is the consulting? Actually, everywhere. The best way is to hire the Managed Services Provider (MSP) who can consult and accomplish the product. The experienced MSP will help you to create a roadmap, make a clear strategy, design the PoC and MVP, as well as ongoing development and infrastructure management. Some Managed Services Providers can also organize customer care and support. So, actually, with a reliable MSP you can cover all your needs for startup growth.
How to choose an MSP?
Reliable MSP can lead your startup to success and unscrupulous one can spoil all the internal processes and doom the project. So, you should choose meticulously because some part of your business success will depend on your future contractor.
Experienced MSP always can share successful cases in different areas. Some MSPs are specialized in narrow areas and you can choose the one you need. A reliable company has feedback from previous customers and can show it for you or you can find it yourself. Also, it will be a good point if you look for the selected MSP in some worldwide ratings. Such ratings include the company, specialization, price and feedback, so it is very convenient for searching.
The startup is a great opportunity to accomplish the idea and startup owners should be careful while choosing. There are several common steps every startup passes. Every step is important and in every step, the MSP can help you a lot. So, don’t be afraid to hire startup consulting companies. Of course, it needs some investments but as a result, you’ll have a lot of fundings and an accomplished product.