Securing investments from venture capital, angel investors, or private investors is a moment of triumph for startups. Even proving to the bank that you are worthy of traditional business loans is something to be cherished. It signifies validation and provides the much-needed working capital to fund and fuel growth.
However, this step is just the first of many when starting your new business journey. To make the most of equity financing as a business owner, you must be committed to repaying the faith with great returns or risk financial backers pulling out.
For those with a loan, the future can be even bleaker as interest payments can start adding up, forcing you to tap into personal savings to pay interest or ask friends and family to help you out.
Freelancers give startup founders the breathing room they need to allocate resources where they are most needed while adding necessary skills to enhance your value proposition.
In this blog, we will discuss how adding freelancers to your team can help you focus on delivering tangible results to clients while producing significant returns to keep your investment in check.
The need for startup founders to prove potential
Investors who believe in the potential of a startup often require concrete evidence of their capabilities. This is where startups need to leverage their resources strategically and demonstrate their ability to execute effectively. It’s not enough to have a promising idea; startups must prove their worth through efficient operations and focused execution.
Often, startup founders will work harder, not smarter, when things get complicated. This can lead to burnout and result in failing to live up to the expectations of your financial backers. There’s only one thing worse than securing an investment: losing one.
Using freelancers to keep startup funding
To mitigate investment risks, startups are turning to talented freelancers worldwide. This abundance of well-versed professionals is a resource just waiting to be tapped and can mean the difference between sinking or swimming with the tide. If you already find yourself in a shallow talent pool, perhaps it’s time to move to a bigger pool.
Freelancers offer myriad benefits that align perfectly with the urgent need for startups to streamline their operations and focus on value-adding activities.
All too often, you will hear of stories where few-found capital is squandered on projects and activities outside the remit of your overall business plan. One way to avoid this pitfall is to invest some cash flow into securing personnel to create wealth so you can continue growing.
How startup costs are reduced by leveraging expertise on demand
Just because you started the company and have a big idea doesn’t mean you have all the necessary skills to keep it going 12-24 months down the track. Founders who avoid hubris and pull together a great team ensure their viability long after they launch.
If it’s cost you’re trying to avoid, then in the early stages, steer clear of unnecessary full-time hires in favor of freelancers. This is a great choice, not least of all because they bring diverse skill sets and specialized expertise you may not have on hand.
Whether it’s graphic design, software development, marketing, content creation, or virtual assistance you need, freelancers possess the skills necessary to deliver high-quality results.
Quite often, outsourced hires will have worked in the startup environment before, so their expertise extends beyond a single domain, enabling startups to access a world of talent without the burden of full-time hiring.
From technical skills to creative expertise in small business administration, freelancers bring a versatile toolkit to the table. Startups can tap into this diverse talent pool and handpick freelancers with the specific skills required for their business types and projects.
Getting freelancers with fresh perspectives
Collaborating with freelancers injects fresh perspectives into the startup ecosystem. These independent professionals often bring industry-specific knowledge and insights from working with clients and similar companies. Their unique experiences can ignite innovation and help startups approach challenges from new angles.
Remember, your investors are generally only interested in the return they get for fronting up the cash, not how you earn those returns. If you believe that freelancers will help you achieve those ends, start writing your job description now. You might be surprised at the quality of candidates to choose from.
Every startup business needs high-quality results
Freelancers are often thought to be only in it for themselves and that every client is the same. This is patently false.
While it is true that freelancers are driven by their reputation, this means that they are more likely to deliver exceptional work as their livelihood depends on providing high-quality results. Therefore startup founders can rest easy knowing they can create value by extracting top-notch deliverables from talented candidates.
Embracing agility reduces operating expenses
New digital businesses operate in a rapidly evolving environment where agility is crucial for survival. Startup costs are not cheap, so adaption is the key to success when market conditions, customer demands, and project requirements can change at a moment’s notice.
Unlike full-time employees, freelancers are used to changing tack at a moment’s notice and are not demotivated because things don’t work out as planned.
Adapt business plan with ease
Unlike traditional employment models, freelancers seamlessly integrate into existing teams, allowing startups to scale their resources up or down as needed. Startups can quickly ramp up their workforce during peak periods and scale down during quieter times, ensuring optimal resource allocation.
Known as the feast or famine cycle of work, hiring freelancers eliminates the massive cost of keeping full-time hires when there is less work. It is impossible to ‘just get rid’ of an employee without potential legal ramifications. With freelancers, both parties know where they stand and expect those workloads can change at the drop of a hat.
Meeting the demands of small businesses
The ability to adapt swiftly to change is a fundamental characteristic of successful startups. Freelancers are accustomed to working on various projects with different requirements and adapting to shifting demands. Their experience and flexibility empower startups to confidently embrace change, knowing they have a workforce that can quickly pivot to new priorities.
Because of these fluctuating demands throughout a startup’s growth journey, freelancers are well-equipped to provide the agility needed to meet varying demands head-on. Whether it’s a sudden surge in customer orders, an urgent project deadline, or a new market opportunity, startups can use outsourced hires to align resources and seize the moment quickly.
Maximizing business startup funds
Even when an entity provides capital injection to fund startups, there is still no margin for error regarding spending. It often doesn’t matter how much funding you have access to. There is always something to spend it on.
The efficient allocation of resources is crucial for sustainable growth. Instead of paying multiple people to do different jobs, freelancers can call on years of experience working in various industries to do the job of many. This is particularly crucial for online self-funding businesses as they must watch every dollar.
Reducing expenses incurred
Perhaps one of the biggest ticks in the ‘yes’ column when hiring freelancers is that they operate as independent contractors. This means you pay less for benefits, office space, or equipment.
With additional funds on hand, business owners can redirect resources toward core business development activities. Moreover, startups can outsource non-core company functions, such as administrative tasks or specialized projects, to freelancers, ensuring that every dollar is allocated towards value-adding operations.
Stretching startup funds wisely
Working with freelancers allows startups to stretch their limited funds wisely. Unlike full-time employees, there is no hard-and-fast rule regarding how you pay them. Many outsourced hires offer competitive rates and flexible engagement models to entice clients, enabling startups to access top talent within their budgetary constraints.
By minimizing unnecessary expenses and leveraging cost-effective financing solutions, startups can extend their runway and improve their chances of long-term success.
Accelerating speed to market
Every startup founder knows that the entrepreneurial world waits for no one. Speed is of the essence.
By quickly marketing their products or services to gain a competitive edge, startups increase their chance of making more money and tackling new markets.
Gaining a competitive edge in the early stages
Once again, freelancers have a role in accelerating project completion and meeting tight deadlines. As their own livelihood depends on your success, they waste no time ensuring you have what you need before you need it.
Speed to market can be a decisive factor in a competitive landscape. By leveraging freelancers’ quick turnaround times, startups can seize opportunities swiftly, outpace competitors, and capture customers’ attention.
Meeting deadlines to maximize funding needs
Meeting deadlines is critical for your business goals, maintaining credibility, and building trust with customers, investors, small business owners, and stakeholders.
With their focus and commitment to meeting project milestones, freelancers can help startups consistently meet and even exceed deadlines. This reliability enhances the startup’s reputation and instills confidence in its ability to deliver on its promises.
Demonstrating startup potential
Investors and stakeholders need concrete evidence of a startup’s potential and value. Delivering results is the ultimate validation demonstrating a startup’s ability to execute effectively and efficiently. Startups can showcase their value through tangible outcomes by streamlining operations and leveraging freelancers.
Attracting venture capitalists, angel investors, and crowdfunding campaigns
Investors want to see startups that can deliver on their promises. By efficiently utilizing freelancers, startups can showcase their ability to manage resources effectively, achieve results, and meet milestones. Venture capitalists especially are keen to see a return on their investment; therefore, the pressure to do so can be immense.
The confidence gained from delivering on time and within budget can significantly enhance the startup’s appeal to investors, increasing the chances of securing additional funding for future growth.
Streamlining your startup to mitigate risks
Almost all startups face investment risks and the need to prove their potential. Sometimes bootstrapping is sufficient to get you moving in the right direction, but other times a business loan or venture capital will be required.
Regardless of how you are financing your new business, leveraging freelancers to help you get through the workload offers a powerful solution. By unlocking specialized talent, adapting to changing needs, optimizing costs, accelerating project timelines, and delivering tangible results, startups can reduce investment risks and streamline operations effectively.
Embracing freelancers as integral partners empower startups to focus on value-adding activities, showcase their potential, and thrive in a dynamic and challenging business environment.
Quickly Hire: Helping startups attract investors with talented freelancers
Instead of searching for your ideal freelancer yourself, many high-growth companies are turning to outsourcing marketplaces like Quickly Hire.
At Quickly Hire, we have a network of talented professionals ready at a moment’s notice to start working on any task you need. From software development and copywriting services to web design and virtual assistants, we can provide you with the perfect fit.
Vetted and tested for their skills and aptitude when dealing with startup founders and small business owners, Quickly Hire freelancers to mitigate the risk when borrowing money or wisely spending capital from an angel investor or a crowdfunding campaign.
While we are biased, every startup should have freelancers as part of their detailed business plan, as you can get work done faster and at a reduced cost without the hassle of training and onboarding.
Considering getting in contact today if you have any questions about sourcing your own freelancer for your startup or small business. We would be happy to hear from you.