The top 20 reasons SaaS start-ups fail – and how to avoid being one of them.
Take a look at this chart taken from CBinsights, showing the top 20 reasons SaaS start-ups fail. The number 1 reason is due to poor market research, 2 poor financial planning, number 3 is about the people – even when number 1 and 2 are well executed not having the right team will result in failure.
As a start-up it can be difficult to attract the right talent who have the experience, expertise, energy and drive you need to grow your business.
Many companies do a good job of building their initial team from their existing networks which can work well IF those people are really the right people for the critical roles in the new business.
To get the best talent on board you need the best people to help you. Outsourcing recruitment is expensive but choosing the right executive search firm will result in having the best possible foundations for your business to grow. The cost of using a recruiter is insignificant to the cost of hiring the wrong people.
How do you choose the right executive search firm?
There are hundreds of executive search firms out there, varying in experience, expertise and ability- so which one is best for you? I think the best criteria for picking the right search firm are:
1. Does the search firm have experience working in your sector?
Select a firm with experience in your area of focus. Don’t waste time and money with recruiters who don’t know where to start or who have no contacts in the industry.
2. Does the search firm produce results?
Ask search firms for case studies and testimonials, and compare these companies with your own. Check the results the firm are capable of producing – a firm with a proven ability find the best talent in your sector.
3. Do you and the search firm have similar ethics and partnership ideas?
Using an executive search firm should involve working together in the quest to find the perfect talent. To work together you must have the same ethics and ideas about what are looking for and want to achieve – once you have established this you are half way to finding the perfect talent for your company.
It’s not only recruitment where you should search for partners rather than services, this article is really insightful into how you should seek partners rather than just money when finding investment (click here).
Having the best team on board eliminates the 3rd top reason why a start-up would fail so take the time and invest in the right executive search firm.
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