In today’s article, I wanted to touch on the subject of working with startups.

To be more precise – I want to tell you why you should NOT work with young companies.

Yes, they’re usually easy to onboard (assuming that they know they want – otherwise it’s a nightmare). And, there’s a certain amount of romanticism involved in working with startups. You feel like you are part of their story.

Plus, there’s a chance that if they grow into something special, you’ll get a piece of that pie. In the end, they’ll need more work done which means more money for you.

But, what if they won’t?

What if they fail? And the chance that this is what actually happens is quite high.

The sad truth is, around 90% of startups fail.

This means that, on average, only 1 out of 10 such clients that you secure will stay with you long-term.

Not the best forecast, would you agree?

First, you spend your time and money on marketing and onboarding new clients. You meet with them, exchange emails, sign a contract… all this takes a massive amount of time.

Unfortunately, 90% of that initial work goes to waste when your clients go out of business.

Not to mention all the potential revenue and growth lost.

Every time a startup fails, you need to start all over again. Find a new client to take its place, onboard, and learn the ins and outs of their needs.

You can’t build a sustainable business working with such clients.

The answer? Work with established businesses. Their owners know what they want and can pay for it.

Of course, don’t forget about other principles – make sure that, while established, they’re still looking for opportunities to grow and expand. As an ambitious person, you should partner with ambitious people.