Startups and their challenge with ‘learning it all’
Whenever a business is starting out, it can be an overwhelming process. Often times, the founders are experts in the product or service they are offering the market. Managing other departments like sales, marketing or accounting is not necessarily their forte, but failing to address these other costs can hinder the new company’s progress.
This challenge is common among new business owners, but in the startup culture it is an even bigger problem. Initially, funding comes from venture capitalists and equity from stockholders, it is up to the startup to fill the gap between assets and liabilities to have a strong balance sheet, Forbes Magazine explained.
“So why is the forgotten financial statement in large [multi-national companies] so important for startups? Because they are not generating profits and free cash flow in their early days,” Forbes contributor Jeff Thermond wrote. “They’re burning through cash and accumulating losses (negative shareholder equity) in their early days as they seek Product Market Fit, increasing sales, and cash-flow break even.”
In Florida, there are 3,000 startups that may be going through this problem at this very moment, according to data from Gust.com. Thermond found in his experience that sometimes, outsourcing some of these services at an ad-hoc basis was extremely beneficial. In fact, there are many other professional services that are readily available on a temporary basis.
When Margaret Mariani of Eraser Farm opened her marketing firm, she called On Point Executive Center to outsource some of her business service’s needs. Instead of opening new accounts with vendors and managing the operations of each; she relied on the relationships already established by On Point. By outsourcing locally she is able to save hundreds of dollars each month as well as her valuable time.
On Point helps small businesses eliminate their overhead while elevating their professional image through virtual office services or renting out meeting rooms and executive suites. We are here to help growing businesses have the tools they need to succeed, even if they don’t have the resources for a long-term lease.
On Point also offers notary, receptionist and corporate address hosting services. Running a lean company doesn’t mean that you have to sacrifice quality.