13% of startups fail because founders don’t scale

Founders are failing to delegate. Food Rocket CEO discusses the need for founders to hire more staff and delegate earlier. Outsourcing and offshoring provides the solutions for resource-constrained startups.

13% of startups fail because founders tend to do everything themselves during the early stages of putting up a business, according to Vitaly Alexandrov, CEO of Food Rocket, a startup grocery delivery company.

With limited resources, knowing where to begin the hiring process can be tricky. Alexandrov said, it’s best to hire based on your primary goals. 

Additionally, even though it might cost a bit more at first, it’s often the right move to outsource things like basic accounting, marketing and PR. Research shows that smart outsourcing can increase productivity up to 100-fold, so letting expert agencies handle non-core functions is a good allocation of resources.  

In-house vs. offshore

Data from Deloitte reports that 70% of firms outsource jobs to minimize costs. But Alexandrov suggests that startup founders need to assess if outsourcing should be permanent or temporary. 

If you are looking to fast-track project completion, outsourcing could be your best bet. But for jobs that entail details that require in-depth knowledge and understanding of the company vision, you might be better off hiring an in-house employee. 

At the end of the day, only you can tell what your company needs. 

If you decide to hire for certain posts in your company, take your time. When you can find a person whose passion and search for meaningful work dovetails with your mission, that is the right moment to hire.  

There’s no magical formula that dictates the exact right moment that startups should hire. It will be a slightly different path for every founder, remember that outsourcing is a practical solution for startups in the beginning.

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