Both of these types of businesses are looking to save money while actively growing. Leasing IT devices can provide the opportunity to utilise the best equipment while reducing and spreading the cost of IT hardware. For new and rapidly growing businesses, this offers a much greater level of financial flexibility.
Our leasing agreements are extremely simple and straightforward to initialise for motivated businesses who need to put effective hardware in their staff’s hands quickly. Our Support Wrappers are built to boost your business’s productivity, for example, fully configured and installed devices.
Naturally, all our leasing options are different. Which of our various packages will best suit your business depends on your goals and status.
The needs of startups and scaleups are different from other companies. These businesses are in a state of rapid growth, financial funding applications, and hence periods of constant change.
This is what makes leasing IT hardware a big bonus for businesses of these types. In addition to reducing upfront costs, so funding can be pushed into profit-driven campaigns, it also prevents swiftly shifting companies from permanently acquiring devices they won’t need in the future. While our leasing systems are the best solution for startups and scaleups, these two types of business are different. Each has their own unique needs and that could determine which of our leasing packages is right for you.
What Are The Main Differences Between Startups and Scaleups?
Isn’t A Startup Just Any New Business?
Startups aren’t just brand-new businesses. They are typically created by entrepreneurs with a view to following a scalable business model. They are the scaleups before they grow. Now, not all of them may actually be successful in scaling up at the rate that they project. Some may fail or just become a standard business; however, the notion is that that they will rapidly grow and drive large profits by being an innovation in their target market.
What Defines A Scaleup?
Scaleups aren’t just growing businesses moving from the status of launching into an official SME. Scaleups by definition must be growing by 20% year on year for three years in terms of financial turnover or employee number to be officially classed as a scaleup. The key ingredient is the notion of large, rapid exponential growth.
More Key Differences Between Startups And Scaleups
In the world of entrepreneurship, there are many different types of businesses, each with its own unique characteristics and requirements. Two types of businesses that are often compared are start-ups and scale-ups. While the two terms are often used interchangeably, there are some key differences between them.
A start-up is a newly established business that is still in the early stages of development. These businesses are typically focused on developing and testing a new product or service, and their primary goal is to establish a viable business model that can be scaled up over time. Start-ups are often founded by entrepreneurs who are looking to disrupt existing industries or create entirely new ones.
In contrast, a scaleup is a business that has already achieved some level of success and is now focused on scaling up its operations to reach new markets and customers. These businesses have already established a successful business model and are looking to grow rapidly to capitalize on their early success. Scaleups are often led by experienced entrepreneurs who have a track record of success in their industry.
There are several key differences between start-ups and scale-ups. For one, start-ups are typically more focused on product development and market validation, while scaleups are more focused on scaling up their operations and expanding into new markets. Start-ups are also more likely to be bootstrapped or funded by early-stage investors, while scaleups are more likely to be funded by venture capitalists or private equity firms.
Another key difference between start-ups and scaleups is the level of risk involved. Start-ups are inherently riskier than scaleups, as they are still in the early stages of development and have not yet established a proven business model. Scaleups, on the other hand, have already achieved some level of success and are looking to build on that success to grow their business.
In terms of financing, start-ups and scale-ups also differ in their funding requirements. Start-ups often require seed funding or early-stage financing to get off the ground, while scaleups may require larger amounts of growth capital to finance their expansion plans. Scaleups may also be more likely to pursue debt financing or strategic partnerships to fund their growth, while start-ups are more likely to rely on equity financing.
Overall, while start-ups and scaleups share some similarities, they are distinct types of businesses with different characteristics and requirements. Start-ups are focused on developing and testing new products or services, while scaleups are focused on scaling up their operations to reach new markets and customers. Start-ups are typically riskier and require more early-stage financing, while scale-ups require larger amounts of growth capital to fund their expansion plans. Understanding the differences between these two types of businesses can help entrepreneurs determine which path is right for them.
Which Device Leasing Options Best Suit Startups?
Hardsoft have a number of leasing solutions available for businesses. While all our leasing options will be a great fit for both startups and scaleups, (depending on their goals, stage, and industry), there are some which are especially suited to startups, and others to scaleups.
We have several leasing options that are perfect for both scaleups and startups, including our DaaS packages, Flexi-Lease and Pure Rental. However, Pure Rental and Flexi-Lease and some of the very best matches for new startups looking to score their first rounds of funding.
Pure Rental – The lowest cost option for new startups. There is no movement towards ownership, Pure Rental is exactly how it sounds. Devices are available at highly discounted rates.
Flexi-Lease – This solution is ultra-flexible for a growing startup. It is ideal for those startups that are further along but not quite at the scaleup stage. These startups may have all their seed funding and be working on their Series A funding pitch. Flexi-Lease is highly popular as it lets your business CHANGE, CONTINUE or CANCEL the lease with ease.
Which Device Leasing Options Best Suit Scaleups?
DaaS – Both Flexi-Lease and Pure Rental can be excellent options for scaleups. With flexibility or the ultimate cost saving, these gives scaleup businesses the space to grow while minimising costs.
However, our Device as a Service solution is the ultimate option for truly ambitious scaleups. It is more than a leasing option, but rather a device solution that works with your company to reach the objectives of your scaling.
There are both Essentials and Premium options for our DaaS solution. DaaS puts the emphasis on service, so Hardsoft work with you to identify the right devices, fully configure and install them and support you throughout our partnership.
What makes DaaS different from other leasing options are the built-in upgrades throughout your lease. This prevents obsoletion with fast moving tech and ensures maximum staff productivity.
On the premium package you can upgrade, swap, or return devices as your business scales. You can actually alter the number of devices up or down or change the devices as roles in the company shift.
What’s unique about Hardsoft’s DaaS, Devices For Teams is that there are zero penalties for returning devices. This makes it one of the best packages for scaleups whose operations quickly flux during their rapid development. A fast growing and changing team require this level of flexibility and support.
Carissa Parnell has been with HardSoft for over 10 years, she is a content writer and helps us with blogging. She is highly experienced in copywriting for SEO strategies, web copy, email marketing and article writing.
Carissa’s interests include Gaming, Sci-fi, fantasy and fashion.
LinkedIn: Carissa Parnell