Member Article

Growing number of startups going from concept to customer in just six weeks, according to online marketplace

The number of small businesses getting off the ground in just six weeks to a point where they are ready to trade has risen by 45% in the last twelve months, according to online freelancer marketplace PeoplePerHour.

PeoplePerHour, which has more than 670,000 freelancers and small business owners on its site, surveyed 3436 new businesses that had started up within the last 12 months.The survey revealed how long it had taken them to get from concept to up and running with a minimum viable product.

An impressive 21% of businesses surveyed managed to get up and running within 6 weeks, 28% in 6 - 12 weeks and 19% took 12 - 20 weeks. Just 7% of those surveyed said it had taken them longer than a year.

One of the factors contributing to the speed of the startup was the fact that 71% of those surveyed raised money needed from their savings and the bank of friends and family. Avoiding the long lengthy process of all too often rejected bank loans, saved time. Some 13% said that redundancy money provided their start-up funds.

PeoplePerHour figures also revealed that 22% of those surveyed started up with less than £2000 and 17% managed to start with less than £1000. Perhaps this is a reflection of the generally more positive economic outlook, 45% were optimistic that their business would grow over the next twelve months, 18% were cautiously optimistic. Just one in eight felt their business prospects were less than positive over the next year.

One third of those businesses surveyed said they planned to hire at least one full time or FTE employee in the next six months, with a further 18% saying they planned to hire between two and three FTE employees.

Xenios Thrasyvoulou, founder and CEO of PeoplePerHour, comments:

“A major factor in this growing trend of new small business owners, across generations, is how cheap and easy it is to set up a business and build a client base from day one. The barriers of starting a business being lowered is one of the main reasons we’re seeing such a noticeable rise in the nation choosing the self employment route earlier than ever before in their careers.

“With online platforms such as PeoplePerHour providing access to a global pool of potential customers, as well as providing experts in all areas at just a mouse click away, starting your own business is far less daunting than it once was.

“Since the recession, people have ventured into being self employed through necessity, but with an improving economy many are still seeing this avenue as a more satisfying one than the old 9-5 day job. The ever increasing amount of people deciding to be their own boss indicates self-employment is a trend that is here to stay”.

This was posted in Bdaily's Members' News section by VP .