The stresses of running a Service-based company

Day 340 / 366

It’s scary how close we are to the end of the year. Just 26 days remaining!

In the last week or so, most of my time has gone into hiring new people for my company. Which is both exciting and scary. I love recruiting. It is one of my favourite parts about running my own company. I love talking to new people and getting to know their stories. And it feels amazing when I find someone that I just know is going to fit in great with the rest of my team.

I mostly hire interns. This is because my company is primarily a service-based company. We work on freelance projects from clients, and that is how we make money. This means that it is difficult to forecast how much money I would be making in the next 3, 6 or 9 months. If I hire a full-time employee for say a 4LPA package, I will have to be certain that they would be able to do enough work to justify that. That is hard to do for a new service-based company like mine.

In contrast to this, we have a product-based company. They get their money in one of two ways. Either they raise funding, and they have money in the bank from the start. So they can hire full-time employees with large salaries without that much stress. If they run out of money, they have to raise more or shut down. Another way they can make money is through their product, which is recurring revenue.

But building a product is tough, and funding is not that easy to get these days. Regardless, my plan is to slowly transition to a product-based company, as that was the whole reason I decided to start a company of my own.