A startup business is faced with many logistical problems. A target market has to be identified for the startup's services and customer acquisition needs to occur to rationalize expenditures and payroll.
A May 2011 survey by The Startup Genome Report, a research group dedicated to analyzing trends and statistics of new businesses, found that a majority of startups fail because of premature scaling. This means that startups are often too ambitious in their staffing initiatives, and as a result, quickly have trouble affording employee salaries and operating costs.
This is a dangerous situation for startup owners, because after funds run dry, bills will still need to be paid and staff compensated.
Considering the economic pitfalls facing startup businesses, owners need to maximize cost efficiency by understanding how to trim the fat while still maintaining smooth daily operations.
One way to do so is by deploying the services of a third-party answering service. While a startup wants to come off as professional by always having someone available to field customer concerns, receptionists are compensated for every second they're on the clock, even when the phones are not ringing. Moreover, with the amount of time receptionists are away from their desks, phone calls will inevitably go unanswered.
By contrast, outsourcing phone calls and customer service to a third-party answering service can be a far more viable solution for a startup because representatives are available to field every incoming call. This means these services can efficiently relay the message to the client through any number of preferred mediums so immediate action can be taken.
Also, because many of the best answering services only charge a fee for the time actually spent on the phone, a startup owner can maximize cost efficiency by only paying for time when services are rendered, rather than having a salaried employee who also requires benefits and bonuses.