IT services for startups

IT services for startups

Startups are as popular as they were at the start of their occurrence. This kind of business is quite suitable for solo entrepreneurs, small and big companies as well. Usually, startup owners are very creative people who quickly come up with the idea and need to accomplish it fast. There are a few points to turn the idea into a real product:

  • the idea itself;
  • the team which will work with the idea;
  • business model;
  • funds.

In today’s article, we will find out how IT services can make startup profitable and what startup services are really needed. 

Startup components

Starting with the idea, startup changes during its lifecycle. Startup depends on the points listed above and all of them are connected with each other. Let’s talk about funds first.

There are four common stages in the IT startup investment:

  1. Seed funding. Usually, this is the product owner’s money, some savings or income from another project. It can be loans, investments from friends or angel investors. At this stage is important to present the Proof of Concept (PoC). This is some demonstration of your idea that proofs it can be accomplished and become working at all. Such a demonstration allows getting more funds for future development.
  2. Series A. This is the second stage for startup funding. Here you can get more investments for further development. On Series A, you should present the MVP – a Minimum Viable Product. This is the first version of your product with minimal functionality that can be used by your target audience. If things go well, you’ll get a profit on this stage. Also, you might have debts from the previous stage and might pay them from received profit.
  3. Series B. The third stage means the scaling of your project. Your product is growing, you get more clients and investors. At this stage, you might add new features that make product updates depending on users needs and you also might invest in the marketing, advertising and other promotion tools.
  4. Exit. This is not a necessary step. It means you sell the startup and reinvest the money for new ideas and new startups. There is another way, you might keep your startup and grow as a product company.

How IT services can help the startup to succeed?

As you read above, the startup needs the PoC and MVP. After idea comes, the future product owner should find a team for accomplishing the product. Thus, you might need the consulting about selecting the right business model, implementing some features, about investments, promotion and other moments.

Talking about IT startups and IT services, we need to mention how important the team is for them. You’d prefer to collect a team of reliable and experienced people who will work with your startup. How to do this?

There a few approaches. You might collect team from your ex-colleagues, friends or just hire new people in-house. Here is one problem. It costs a lot to rent or buy an office, to pay salaries and even pay for the recruitment of all these people. So, there is one more approach – referring to the Managed Service Provider (MSP). MSP is a company with wide experience in  delivering outsourcing services. This is cost-efficient because you don’t need to hire people one by one, rent office, etc. Also, this is a much simpler way to find one dedicated team without additional recruitment processes. 

You might ask, how useful it will be to hire an MSP. Well, quite a lot. An experienced MSP can provide you with dedicated team which will deliver PoC, MVP and further support for the product. Experienced MSP companies can work with the full cycle of startup development with the newest IT technologies and tools.

Wrap up: IT services as a successful investment for a startup

IT startups definitely needs IT services for accomplishing their goals. There are a few ways to receive a good team for making the product real. The most efficient is to hire the MSP who will provide a dedicated team of qualified specialists with wide experience for your project. Such teams can use the best tools and technologies for your product and help you succeed.