A lot of companies and investors in developed regions have demonstrated that tech startups can be one of the most profitable, scalable, and promising investments nowadays.
However, investors are often dissuaded by the high cost of hiring local tech professionals. Sometimes the hidden fees and other important financial considerations involved in launching a startup alone can discourage people from investing in or founding a tech-based company.
That’s why we’ve dedicated this article to discussing the necessary key components for launching a tech startup and how to leverage hiring talent in Latin America through Workana to build your company efficiently and affordably.
What kind of costs can you expect to incur while developing and launching a tech startup?
Dividing the expenses into costs incurred in different categories and/or project stages is the easiest way to give you a clear idea of everything involved in launching a tech startup.
That way you can generate estimates and overall budgets that are pretty close to what you’ll actually be spending. You’ll also be able to use that information to create a viable ROI strategy.
1.- Idea and confirmation
Let’s imagine that you have a great idea or business model that seems really promising. Before investing in any development or operational activities, it’s imperative that you investigate this business model and take it from a hunch to hard data.
This involves having solid knowledge of your target market, identifying the needs and problems that your product or service can meet or solve, and even building preliminary prototypes and beta tests to assess demand. You can enlist the help of market research experts and developers that use predesigned creation tools to do this.
This won’t be the final technology that you’ll use, but it’ll help give you a much clearer idea of how viable your idea might be and what features you’ll need to include.
You’ll also need to make sure you have the right legal counsel to make sure that you’re compliant with local regulations and applicable laws. This can include intellectual property protection, contract drafting, data privacy policies, and other industry-specific legal matters. Consulting with specialized attorneys will help prevent future legal problems.
It’s also a good idea to calculate an approximate budget with the total costs of developing and launching your startup. Make sure you never invest more than 5% of your budget on the confirmation stage.
2.- Development and technology infrastructure
Once your hunch has been confirmed, you’ll need to develop your product or service. This can mean hiring software developers, user interface (UI) and user experience (UX) designers, and other tech professionals to enable cloud technology.
A tech startup also requires constant supervision and effective management. This involves having a project leader who can coordinate and manage remote team members effectively, establish clear systems and processes, assign tasks and responsibilities, check on progress, and adjust the course of the project if necessary. Generally, a highly experienced stack dev fulfills this role.
In addition to product development, you’ll have to invest in the right backup infrastructure technology: servers, cloud storage, development and testing tools, project management software, and others.
Make sure you ask your project leader for a breakdown of the costs associated with infrastructure technology, look for profitable and scalable solutions, and compare different providers before making a final decision.
Hiring remote talent in Latin America can be an extremely profitable option. You can find highly-qualified IT professionals who speak your language, and their rates are much more affordable (up to 30%) compared to local developers in your region.
3.- Marketing and client acquisition
Unless it’s extremely niche, nearly every startup’s success is dependent on the ability to attract a lot of potential clients and grow quickly.
This involves creating an effective digital marketing strategy with search engine optimization (SEO), search engine marketing (SEM), content marketing, or social media strategies.
Consider hiring remote digital marketing and growth hacking experts to help you promote your startup and reach your target audience at an affordable investment rate.
4.- Operating and administrative costs:
Your startup’s operating and administrative costs will include SaaS, software licensing, remote work tools, insurance, salaries, taxes, and other miscellaneous expenses that depend on your region’s laws and your hiring model.
Remember, not all operating costs are created equal. They’ll vary during the development, launch, and consolidation stages because they all require different types of services and professionals.
What you can count on is that the operating costs will pay for themselves as you get more clients, so you’ll need to assess how calable your tech model is. In theory this model should grow exponentially without the costs growing exponentially with it.
5.- Talent acquisition and retention
One of the most critical elements of your startup’s success is making sure you have the right talent to develop your systems and enable the technology that you’ll need. Hiring qualified and experienced professionals can radically transform your business idea’s growth and development.
Workana can be a great solution for you. It allows you to access a wide pool of certified talent in Latin America at affordable prices without having to sacrifice quality. Best of all, our talent speaks your language. You can find software developers, stack devs, designers, digital marketing experts, consultores and plenty of other highly qualified professionals for a very reasonable price.
At Workana, we have everything you need to invest in a tech startup by hiring reliable, qualified, and verified professionals. Build your dream team without spending an arm and a leg on high labor costs in more developed markets.
Take advantage of our one-of-a-kind risk-free trial, and get started today.
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