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Start-ups are taken for granted by clients as low-cost alternatives since they feel any business should be good business. However, for the level of expertise and efforts that start-ups put in, they deserve to be paid a fair share, if not the same price as an established firm in the same domain.

Many start-ups are unable to stay afloat for long or struggle in the initial years, getting below-par compensation for their work.

Minimum Profits against growing costs

The easiest way to attract customers for start-ups is offer heavy discounts on services and package deals to ensure they stay for a long term. Operating with slim profits in a growing cost scenario is a challenge that doesn’t help in staying afloat.

Returning customers may be reluctant to opt for fresh services at a higher rate, so even if prices are increased, it will have to be done modestly. Some start-ups put their foot down and let their actions justify their price; this principled approach has few takers among SMEs, who are their bigger clientele.

Balancing focus between Investment, profit generation and tapping the market

For start-ups, the struggle begins with making their presence felt in the market and thereafter exploring new, untapped markets for better profits. In IT sector, investments in new technology and renewed training is on-going and have to be built into the operations cost.

Often, technology is not cheap to purchase, in such cases smart partnerships can be breached with another IT company with profit-sharing understanding that will be mutually conducive.

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Attracting proper talent

The diversity in projects and resource constraints makes it difficult to attract the right type of talent. Very few professionals are willing to take the risk to trade the experience for good pay in their career.

Fresh talent has to be trained and will take the time to learn and hence, even if they are talented they will cause a lag lack of adequate experience.

Lucrative looking improper short term decisions

Start-up operations are not very large, so managing multiple clients is a challenge with limited resources. Hence, decision-making process is tougher in start-up organizations, where projects have to be chosen carefully, balancing opportunity and profits.

Tough projects imply greater exposure, big clients imply reputation and higher monetary pay-offs imply greater profits. All three factors have to be balanced when onboarding a new customer.

We often partner with start-ups in projects where technical know-how and infrastructure requirement is high. With their expertise and our experience, we have executed many successful projects of global scale.


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As a Senior Tech Enthusiast, I bring a decade of experience to the realm of tech writing, blending deep industry knowledge with a passion for storytelling. With expertise in software development to emerging tech trends like AI and IoT—my articles not only inform but also inspire. My journey in tech writing has been marked by a commitment to accuracy, clarity, and engaging storytelling, making me a trusted voice in the tech community.

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