If you’ve ever wished a unique product or service existed, you’ve had the same experience as millions of entrepreneurs around the world. While some of us might dream about our idea getting featured on Shark Tank or becoming a high-selling Etsy shop, others might go further and enter the complicated and competitive world of startup companies.
Do you have a million-dollar business idea?
Though many startups start in a college dorm room (Facebook) or a basement (Amazon) or a garage (Apple), they can graduate to multi-million dollar generating companies with employees all over the world. Startup companies are rooted in innovation. They provide a service that has not existed before, bring it to market and make sure that it is both irresistible and irreplaceable. Creating a successful startup requires a place in the market, significant funding, passion, speed, and a willingness to fail. That of course, and a lot of luck.
Obstacles that Startups Often Face
- High rates of failure. About 90% of startups fail, and 10% do so within the first year.
- Lack of money and resources. 77% of entrepreneurs have to draw from their own funds to carry their startup. Equipment costs alone could reach $10,000 to $125,000. The cost of health insurance is ranked as the highest hindrance to a startup’s survival.
- Time management. Leaders of smaller startup companies spend upwards of 40% of their working hours on agenda items that don’t generate income, such as hiring, HR tasks, and payroll.
- Competitors. For a startup to catch the attention of a hungry market, it needs to present an irresistible service or product that cannot be obtained anywhere else. New rivals can quickly alter the playing field, and competition can be stiff in well-developed industries.
Many other elements can affect the lifespan and success of a startup company, namely poor management, ineffective leadership, neglecting marketing and sales, and insufficient experience. The markers of success in a fledgling startup company can grow slowly or quickly, but success is contingent on growth. It might take 3 or 4 years before the company even starts turning a profit, and 7 to 10 years before it reaches the potential that the original creator envisioned. Over time, startups are able to refine their customer acquisition, brand message, product development, management team, fund management, and other critical elements that turn an idea scribbled on a napkin into a well-oiled machine of a business.
So how can startup companies create streamlined, flexible workplaces with passionate employees that pave the way for a path to success?
Cloud Services Solutions
When the tech industry refers to the Cloud, they are referring to the Internet. More specifically, the cloud is the on-demand availability of computer system resources in a process that uses the internet for storing and managing data on remote servers. Cloud computing users do not own the physical infrastructure of servers, data centers, or security; they rent usage from a third-party provider, who may own servers in data centers all over the world.
For example, let’s take the company Netflix, one of the biggest global streaming platforms. They were one of the earliest businesses to adopt Cloud computing, which was a large shift in the business model that its leadership team attributes much of Netflix’s large success to. After major database corruption in 2008, Netflix migrated over to Amazon AWS, one of the many cloud provider options. With constantly growing volumes of data, Netflix realized they needed a reliable, elastic, secure and durable means of storing billing infrastructure as well as all aspects of their customer and employee data management. By 2016, Netflix credited the Cloud with providing thousands of virtual servers and petabytes of storage within minutes. This feat would have used a significant amount of time and resources to build independently.
The Cloud is an immense asset to startup companies, which are often stretched for space, security, and funds. It gives smaller businesses and startups the opportunity to compete with the bigger budgets of larger competitors.
Here’s how Cloud platform solutions help startups thrive and create flexible workspaces:
How Cloud Solutions Help Startups Thrive
- Instant Infrastructure Capacity
To store data, you need a data center full of servers. The traditional way of storing data requires startups to build this infrastructure from scratch, which costs a lot of money up front. If the company deals with private information, it will have to staff security personnel to guard this new data center. Additional security in the form of redundant data centers are also needed to ensure that, in case of a fire or flood that destroys the data center servers, a backup server is available to keep the website from failing or all the data from being lost.
Cloud solutions allow startups to pay a third party, such as Google Cloud Platform, Amazon AWS, or Microsoft Azure, in exchange for these companies’ already secure infrastructure at a significantly reduced cost. Data centers exist all over the world with built-in security measures to prevent theft of servers and information. With the enormous task of infrastructure building, maintenance, and safety taken care of by Cloud solutions, startups can focus on the more pressing and crucial aspects of business.
2. Improved Collaboration
Cloud collaboration is the backbone of remote collaborative work. Through the Cloud, employees can access files, documents, data, or valuable materials from anywhere via the Internet. Regardless of location or time, employees can work together on projects and documents without limitation. Data is instantly saved and available in the Cloud. Even if a team is halfway around the world, they can use the Cloud to:
- Upload data, charts, and all relevant materials or information
- Comment on and edit others’ work in real time
- Cohesively work on master documents that are always up-to-date
3. Flexible Pay Scales
Off of the cloud, a startup would need to pay for servers and a data center. This could already take months or years to outfit! They would also pay for any additional capacity needed once the company begins to grow.
With Cloud platform solutions, startups can click a button online to triple their capacity needs. Many Cloud platforms offer pay-as-you-go models that allow startups to begin with a small amount of infrastructure. Then, startups may purchase more space as necessary. Rather than needing to build, connect, and secure more infrastructure at great expense, startups can simply allow Cloud Solutions to take these difficulties out of their hands. Plus, cloud infrastructure systems are cheaper since they use them in such bulk.
Does your startup need IT consulting?
At LA Creative Technologies, we’re proud to work alongside the local architecture firms that serve our community. Spend more time on design and less time on day-to-day admin tasks by outsourcing your IT consulting. To learn more, get in touch with us today by calling (323) 250-9112.