IoT GUIDE

Traditionally, startups have tried to meet their goals by hiring more employees without first considering how they could make both their current team and any new hires more effective and productive. They also may buy technology without building a sufficient understanding of their market. Both of these approaches can be huge risks for startups struggling to conserve money. During the startup bubble of the 90’s, many companies held the view that they had to “get big fast.” They were under the impression that to beat their competition, they had to get as many customers as quickly as possible.

But just getting bigger is often not better. A Fortune magazine analysis of 101 startup post-mortems written by failed companies’ founders lists “running out of cash” as the number two reason for startup failure, trailing only “lack of sales.” The goal of strategic-thinking startups should be to be as resourceful as possible with what they have until they can obtain more resources. So, how can startups better enable their teams and apply available resources to scale quickly?

Startups must be flexible when it comes to deciding how to spend their money. Although founders may be passionate and determined, they must also understand that creativity can help them overcome unforeseen barriers. Here are five tips to help your startup scale quickly without draining your bank account.

You can read and download the full report on IBM here