Launching a successful venture hinges on the strength of its team. This presents a classic dilemma right from the start: securing funding requires a competent team, yet assembling such a team necessitates funding.
The reality is that top-tier developers expect compensation for their work. Only a few would consider working for equity, and even then, only if it grants them significant control over business decisions. Opting to offer equity over salary raises questions about how you value your own project.
This leaves many entrepreneurs in a bind, armed with a promising concept but lacking both capital and a team. Hiring staff demands substantial investment. For example, hiring a local developer might cost around $90,000 annually. While it's possible to find cheaper alternatives, cutting costs in this area won't significantly lower overall project expenses. To prevent decision-making bottlenecks, a team of at least three is advisable, though you might manage with just two. This scenario equates to an annual expense of $180,000 or $3,600 weekly.
You might think, "I won't need them all year." However, consider this: you'll likely need their services for about 20 weeks, spread throughout the year. If their payment stops, they'll seek employment elsewhere, and once they're committed to another job, they won't have time for your project. Replacing developers and bringing them up to speed can set your project back by $20,000 and six weeks, in the best-case scenario.
At Squads, we adopt an alternative strategy. We first assemble teams within other startups or projects, fostering a work ethic that keeps us united. We manage to distribute our collective capacity across various clients without disbanding into individual freelancers. The teams behind Squads have remained intact for over years, having worked together on several projects.
Our model benefits from having multiple clients who require varying workloads, allowing them to pay only for what they need while ensuring the team's availability for future projects. This approach offers the best of both worlds: a dependable team and adaptable expenses.
Moreover, as a developer, I've found working with Squads far more rewarding than traditional office employment, even within a startup environment.
The solution to this entrepreneurial dilemma is straightforward:
Prioritise forming the right team.
Collaborate with an established team, ensuring its stability.
Ensure the team's cohesion isn't solely dependent on your financial input.
From there, you can gradually build your project within your financial means.
Looking for a dedicated team? Consider Squads!