Many startups have found themselves relocating to NYC or San Francisco. It’s been said that startups that want to belong in the upper crust of those who grow into big companies find these places as the “place-to-be” if they want to succeed.
In today’s world, and especially under the pandemic, this isn’t true anymore. Since businesses had closed down, you can find talent sitting at home, trying to find you. For instance, if you’re trying to look for a product such as a vulcanizing or a car tire changing machine, where do you go to? You go to the internet. It’s the same thing when looking for the best people during the pandemic — they’re found on the web.
A remote startup is the best you can begin with under the circumstances. If you think this is for you, then read on to find out what are the benefits that outweigh the challenges of operating a remote company.
Extra Specializations and Saving on Cost
Part-time workers are not unheard-of; in fact, there are people who are working two jobs at a time. It’s how you use these people’s expertise in your company that matters.
These online “moonlighters” have a wealth of knowledge and best practices they can apply to your task for them. They’re usually working full-time jobs, and at a fraction of the cost, you gain the benefit of learning some more stuff from the full-time work they are experts in.
Speaking of costs, remote workers may also come from different parts of the world or of the country. Their rates vary drastically from those looking for work in a city like San Francisco or New York. With a lowered cost-of-life wherever they may be living, you gain the benefit of saving on salary.
Lower Costs on Labor and Rent
A remote workforce differs vastly from an in-office group in that they are just working from their homes. Startups can start without as much capital as a big company and still manage to succeed, provided they make the right decisions. They can also avoid worrying about limited resources since they’re virtually using their own resources, the workers, and the employer alike.
Contractors can also save you a lot in payroll taxes and insurance costs. Since you don’t rent office space nor do you have to pay them certain extras, you can also save from those payments as well.
Flexibility is Big for Most People
Outside of the office, most employees often have a life. John might surf on the weekends while Marcia spends time with her folks frequently. Since most of the work is done remotely — especially during this pandemic situation — John and Marcia can spend their time however they like, wherever they like.
The same is true with working remotely. Your workforce is allowed to take vacations as often as they like — within reason — and because of this, they can return and show up online refreshed. You benefit from that with productivity unlike any other, trumping even that of well-paid corporate employees.
A Virtual HQ Doesn’t Cost Anything
If you’ve got the budget to start an office in a brick-and-mortar space, here’s why you should go with a virtual office instead.
Once your remote workforce is together, you can start setting up your virtual headquarters. This also entails rounding up the essential apps you need to use for your company’s niche. These may cost you some money, but usually not as much as when you rent an office space.
All you need is a project management tool or the virtual space where your workforce will work and a video conferencing app. You can also add more tools as you see fit, and you’ll have enough leftover budget should some employees ask for a raise.
Let Your Virtual Workforce Work
Remote startup founders are usually a bit apprehensive of letting their employees go. They end up micromanaging and, in the end, they tend to drive away employees which would’ve been direct contributors. It’s something startups should avoid doing.
Instead of micromanaging, you should instill responsibility and accountability in your employees. Give them their tasks and a set time on which they need to finish them. You should also use those video conferencing apps to know how your employees want to work.
Managing a startup is already hard; it’s even harder when you choose to go remote. The wave of the future appears to lean towards maintaining a remote office, however. If you learn how to ride this wave, then you might be looking at a profit, unlike anything you can earn from a conventional company.