Start ups need freelancers

The BVCA (British Venture Capital Assocition) conference in Manchester had one clear over riding message – venture capitalists have lots of cash but will only support lean start ups.

Lean start up? What is that, some kind of bacon?

And what has this got to do with freelancers anyway? Everything!

A lean start up is a new business that is using the digital environment to massively reduce fixed and operating costs, increase flexibility and get to break-even earlier.

Gone are the days of Venture Capitalists descending on half baked ideas and handing over large sums of money. The credit crunch has seen the end to that. But also there is a new realism around start ups and that is that the best source of funding are satisfied paying customers.

So the business needs to get its products and services to market faster.

At the same time, the need of start ups to keep costs low but to be able to resource up quickly means a greater reliance and dependence on freelancers.The reality of business start ups is that revenue growth is not smooth and steady but lumpy. This makes it particularly hard to ensure a break-even on a month to month basis with lots of employees because of the fixed cost nature of staff salaries.

So start ups have a greater need of flexible freelance resource than other more traditional businesses.

Equally, it is worth freelancers knowing that the money men (or women) behind those start ups are pushing the entrepreneurs towards flexible freelance resource too.

Next time when, as a freelancer, you are pitching for work with a start up entrepreneur, it would be worth reminding him or her that not only are you an expert in your field, available on a highly flexible basis, brimming full of original ideas but also that you help keep his or her financial backers happy.

Now which full time employee can say that?

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Want to find out how start ups can quickly leverage freelance talent? And how freelancers can benefit from this increase in demand for their services? Click to read more about Wirral and Liverpool freelance job fair…

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Written by Editor on September 23, 2010 and filed in Entrepreneurs, Featured, News, Opinion , , , , ,


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Emma Runciman

Emma gives her feedback on the first - pilot - Enterprise Freelance Fair in Warrington, June 2010.

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