Startup Success Isn’t Made In America: It’s Built Globally

Max Nirenberg, chief revenue officer and general manager for North America, Commitment USA.

Launching a startup will never be easy; just ask the 90% of startups that fail to take off. But just because the odds are stacked against you doesn’t mean success is out of reach.

Many experts will tell you that to ensure success, there is no better place to start a company than the US, and 10 years ago, that was sound advice. In 2012, six of the top 10 startup hubs were located in the United States, and nearly two-thirds of early-stage funding was concentrated in North America.

But today we are in a very different startup ecosystem, one in which success is not made in the United States, or in any nation. It is built globally.

Our world and workplaces are evolving, and new technologies are making it easier than ever to connect with the global economy and marketplace, presenting massive opportunities for organizations willing to look beyond their own backyard.

By accessing talent and resources, reducing costs, and/or new customers, startups that capitalize on globalization are positioning themselves to succeed and establish a competitive advantage for years to come.

We have to overcome budget constraints.

Many startups struggle to overcome budget challenges, especially when bringing new innovations to market. For most startups, one of the biggest cost drivers comes from how teams are built and managed.

Let’s face it, the costs of hiring competent tech experts are skyrocketing. Today’s US-based software engineer earns around $140,000 per year, and this can be much higher for experts in high-demand fields such as cloud computing, analytics, intelligence artificial, FinTech technologies and medical technologies.

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The time spent recruiting talent can also come with hidden costs, with 68% of software development startups taking a month or more to hire a developer and 20% of recruits having to be replaced. If teams aren’t careful, the costs of recruiting, retaining, training, and more can eat into budgets.

By providing a way to reduce expenses without sacrificing quality, globalization offers top-tier technology development talent at a more affordable cost. That’s why 70% of respondents to a 2020 Deloitte survey said their main reason for outsourcing was cost reduction.

By sourcing from a global pool, organizations are no longer tied to local resources and can draw from a wider talent pool for skills faster and at a lower cost. This can be invaluable when working with tight budgets and tight deadlines.

It is important to seek out experts.

Globalization is not just about cost reduction. Many high-tech startups require a range of experts to develop new technologies. These professionals include product managers, software developers and designers, DevOps engineers, database specialists, and more.

In addition, many fundamental elements of R&D, such as securing data or choosing the right technology, must be addressed in advance. If a team chooses the wrong platform early on, it could impact development or force them to rely on expensive, vendor-supported hardware.

Many mistakes can be avoided and projects can be kept on track by ensuring that your team has the necessary resources to manage all elements of a project. Importantly, this means having experts who are able to address the issues before they become problems.

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Sourcing professionals globally expands a person’s talent pool, providing access to hard-to-find holistic skill sets and experiences. This is important in fast-changing industries like fintech, where emerging technologies like blockchain are evolving at breakneck speeds.

We need flexibility and scale.

In high-tech startups, not all skill sets will be needed with the same intensity throughout the development process, especially after a product is launched. Failure to recognize this could drain budgets, lead to production shutdowns, or worse, abrupt layoffs, something we’ve seen all too often in tech.

Many startups, especially those that have raised $5 million or less, could benefit from a more flexible and flexible approach to managing resources. Globalization can be key to achieving this.

With rapid and broad access to talent, any size organization can structure and build teams that better accommodate budgets and skill requirements.

For example, many new companies only require a business leader, a product leader, and a technology leader. Rather than hiring a full-time team of developers, these organizations can benefit by outsourcing the remaining functions to projects.

The three permanent managers lead the development from start to finish, ensuring that information flows smoothly and that vital knowledge is not lost, while focusing temporary employees on specific tasks. Once a task is done (and the paper is no longer needed), the project is complete and resources and budgets can be reallocated to where they are needed.

Without sacrificing quality, this approach provides greater budgetary control over development costs.

Multiple perspectives enable stronger innovation and vision and greater success.

Relying too much on a single individual or homogenous core group is a surefire way to stifle innovation.

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Bringing diverse perspectives together can be invaluable in promoting vital new ways of thinking. This is one of the reasons why companies with diverse teams are 35% more likely to perform better and 70% more likely to capture a new market.

Thanks to globalization, it has never been easier to access diverse talent with unique ideas and experiences in terms of technology, challenges, cultures, governments, organizational structures and methodologies. This can improve the way an organization works, such as by sharing best practices or new tools. For example, having an intimate knowledge of a specific region or culture can influence an organization’s position when adapting an end product for use in different global markets.

Globalization is no longer an alternative; it is essential.

No matter how good an idea is, building a winning startup still comes down to building a team with the best talent and the right experience.

However, while globalization offers many opportunities, it does not guarantee that every business will succeed. There are many approaches to globalization – success largely comes down to knowing how to leverage to reach beyond your time zone or geographic boundaries. For struggling businesses, finding and leveraging partners who share your same core values ​​and have a long global reach will significantly increase your chances of achieving your goals.

So, if you’re launching a startup, don’t worry about being “made in America”; think globally to find the best talent, period.

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