Did you know 23% of the startup founders feel that their venture fails because they are not able to put together the right team for the project? This is the third most important factor that affects startups all over the world, after understanding market needs and finance.
No company, without a competent team, can give life to an idea. For startups, it’s crucial as the initial team becomes the foundation of their product. Since the market is getting ruthlessly competitive, it’s important to have the right talent, at the right place and at the right time. Ideally, it becomes difficult for startups to pace up with the fluctuating market.
Thus, global virtual teams are the perfect solution wherein you get required service in a cost-effective manner. Let’s have a look how you can benefit from it.
Virtual Team for Startups
Practically, your virtual team can be anywhere in the world. You may get a chance to interact with them personally or perhaps not. While, this might raise your concern over their authenticity and trustworthiness, you should not neglect few factors.
Cash flow is critically important for any startup. Any universally exceptional idea would need funds to execute it and give that idea a life. While you’re struggling to arrange assets, talent acquisition adds up to the expenses. The reason it’s an expense since you would spend time and money in hiring process.
Besides, if you would need to add up to the existing team, you would be going through a long process of talent acquisition. Also, if you wish to reduce the team, then you need to take care of the legalities, which further would add-on to the existing expenses.
Considering all these hassles, it is suggested to opt for virtual teams, which is far better than their counterparts. When you opt for virtual team service of a company, you are assured of getting the right talent for the right work. Furthermore, adding-on or reducing the team members is easier and economical.
Benefits to startups
Generally, startups have to negotiate during talent acquisition. In most cases, the talent they want isn’t available within the city limits. Very few decide to cross the borders and look beyond city or state. But still, they are restricted within a particular area.
Experts suggest that one needs to open their brackets and should go beyond borders and look for talented global virtual teams. Today, technology has made everything possible and thus one shouldn’t hesitate to use this for their benefit.
There are companies in the world, especially in India, who offer virtual team services to startups. Since they understand the cruciality of time and its importance to the new venture, they provide all required assistance that one would need. Let’s look at other essential benefits of having a leading virtual team.
1) Cost effectiveness:
Every business has assets without which they can’t function. This is the essential organizational set up to ensure productivity. Since startups face financial limitations during their initial years, they need to find out alternatives to wisely use their limited monetary resource. In addition to this, having employees on a regular payroll would add up to the responsibilities and liabilities. Since human resource is an essential factor of any company, startups can’t ignore them.
However, with virtual teams, the scenario would be different. If you hire a team from a remote location in the world you could save money on the office space and set up. Also, you would be releasing yourself from the employees’ liabilities that may have come otherwise.
2) Right talent from all across the world:
Talent acquisition is vital for any company, but for startups this becomes an essential factor. Right talent at the right time can boost up the business activities. Startups’ initial years are crucial and they need to make a mark within that limited time frame.
A proper guidance and support of talented and competent experts, is what the new ventures need during their initial years. Despite being aware about the importance, startups struggle to gather competent experts.
A virtual team, on the other hand, is the solution new ventures should always consider. Those, who provide virtual assistance to startups, are well versed with the talent these new enterprises need. Thus, having virtual team on-board would help you keep pace with a growing market.
3) Increase in productivity:
Rob Rawson, in his blog titled “10 advantages of virtual teams” quoting Stanford study, mentioned that the productivity can increase to 13% in virtual teams. The reason is the team eliminates office distractions. This also reduces the travel time and allows certain flexibility, which otherwise won’t be possible.
Another research was conducted by the American Sociological Association to gauge the level of work-family conflict amongst employees. The research showed that those working from home are more satisfied with their work since their work-family conflict reduced over months as opposed to those working as a regular full time employee.
The association is yet to come up with this result in correlation with the productivity, but it does highlight the level of satisfaction one gets and how it can improve the productivity of an individual.
4) Broaden the approach:
For startups, marketing is as essential as having a strong team. Steve Olenski wrote in his blog titled “3 benefits of having a virtual marketing team” and says that by having a virtual team from different places of the world you’re not confined to one city or location. In fact, you would be expanding your horizon and would get a chance to strengthen your foothold in various parts, easily.
5) Round the clock service:
Practically speaking, it’s not feasible for startups to offer round the clock service. In order to achieve that, they need to have strong human support, which would put an additional burden on their limited finances.
The solution to this is to hire a virtual team. For instance, you have hired a virtual team from India. This team would fill in the space when your physical team is not working during the night. This way, you would be getting 24 hour assistance without putting a burden on your finances. The team, in addition to this, would narrow your time to reach the market.
Essential attributes of global virtual teams
Hiring virtual team is the cost effective and the best option for startups. But, this doesn’t mean that every virtual team would be suitable for your venture. Since the number of companies offering virtual team has increased recently, one should expect exceptional features from a good virtual team. Marty Zwilling has quoted Yael Zofi’s “A Manager’s Guide to Virtual Teams” and have mentioned 8 important attributes of a good and supportive virtual team. These are:
1) Global mindset: One of the reasons to hire virtual team is to enjoy the global mindset. Thus, when you’re hiring a virtual team closely observe their mindset. Ensure that the manager is able to provide you assistance for the global market.
2) Create an environment of trust: It’s necessary, as then only the leader of the virtual team would be able to defuse miscommunication and provide an environment of trust amongst their employees and clients.
3) Sharing responsibility: When you’ve an in-house team you can control the sense of responsibility which may come as a drawback in virtual teams. Thus, you need to ensure that the team, itself, is responsible and undertake tasks just as your in-house team.
4) Informative communication: Regular communication amongst the client and virtual team is essential as this would demonstrate the sense of responsibility and dedication towards the product.
5) Managing conflicts: To keep trust intact, managers or leaders should be able to manage the conflicts properly. A good virtual team is able to overcome such differences.
6) Regular flow of information: Communication gets necessary in virtual teams. Thus, ensure that the team uses latest technology to maintain a regular flow of information.
7) Overcome distance and time factor: A good virtual team is able to overcome the distance and time factor and is able to keep up the positive attitude all through the work.
8) Maintaining timeframe: One of the objectives of hiring a virtual team is to narrow the time to market. This could be possible if they follow the timesheet and deliver tasks as promised.
Mobisoft Infotech partners with startups and provides them virtual team assistance. The company has been associated with more than 100 startups and is continuously doing it. We provide value addition and adhere to the commitment that makes us stand out in the competitive world. For us, providing virtual team isn’t enough, a right guidance and support are equally important for startups to grow and flourish in today’s market.
Nitin Lahoti is the Co-Founder and Director at Mobisoft Infotech. He has 10+ years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling. Follow him @nitinlahoti