Why do startup founders have a hard time building remote companies?

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Remote work has gradually weaved its way into the tapestry of everyday life. There is a very evident reason why “start-up marketing agency “has reached the top-tier of Google search results. The philosophy of working collectively from offshore or remote locations has been in existence since the beginning of the digital revolution.

However, it has accelerated since the beginning of the lockdown during the pandemic. In times where ideas are treated as currency, start-up founders are observed towards working from a distance. The benefits of starting a company remotely can easily surpass the advantages of a traditional, brick, and mortar setup. 

To help our esteemed audience find their way in the open start-up market, we have gathered a comprehensive resource to assist you. We address your concerns about start-up funding, cognitive dissonance of working outside an office, and even the nitty-gritty matters of going remote.

Before we proceed to explain the challenges of building a remote company, here is a brief overview to explain why going remote is an ideal choice in the first place.

Why build a remote company?

The need for limited resources

From a founder’s perspective, remote companies only require a phone, laptop, and a stable internet connection. Each employee needs similar apparatus which works in favor of saving costs. As a start-up, you must be looking for ways to cut costs that allow better allocation of the limited resources. When working remotely, each employee makes independent arrangements that help save the rent of an office space and utility costs. This situation enables the founder to develop start-up equity for greater challenges that lie ahead.

Access to a larger pool of talent and rare skills

In-house teams often lack the creativity needed to think out of the box. Their skills and talent pool may not be able to cover the expanse of a contract that you have worked hard to sign. This is why working remotely offers the chance to hire experts for a large number of niches. It eases your burden of financing high salaries for well-experienced and highly skilled employees on the payroll. You can promptly manage an agile team of five to eight members and then enlist the help of experts on a project basis. This model offers financial relief to founders as they have a chance to worry less about maintaining high cash-flows to pay the larger team.


In terms of prudence, a start-up is always fraught with risks. It requires flexibility. Remote organizations have the opportunity to constantly uphaul the internal structure to improve production outcomes. The flexibility in occupational decisions is the ultimate benefit of remote work. Since start-ups are the torch bearers of speed, flexible decision making through shorter feedback loops is the precise route to success. 

Now that we have gained a further understanding of the benefits of a remotely operating start-up, here is why founders are often stuck deliberating the decision. 

Why start-up founders have a hard time building remote companies?

Here is a list of concerns the start-up founders face that need to be addressed before beginning work remotely.

Minimal experience

The most significant challenge towards building a remote company is the limited experience of remote work. Since a vast majority of start-up founders have experience in conservative or traditional models, transitioning towards the new business model leads to cognitive dissonance. The concern of attaining sufficient start-up equity remains a concern of paramount immediacy. The lack of experience could lead to inconsistency in decision making, which results in an unnecessary hesitance towards taking the plunge.

Constricted Control

Once an individual overcomes the fear of limited experience, the next issue is the constriction of control. Remote work allows employees to remain autonomous in decision making. They have the liberty to choose their working hours of choice. It also allows them the chance to be their own boss. The concept of being one’s own boss translates into a fear of inefficiency in the founder. The founder could feel that they have lost control over the organization when the execution of any project goes off-center.

The physical distance between employees requires a cultural bond that holds them accountable for their actions. This is why we suggest the use of digitized solutions for all remote working companies. Customized software that streamlines the work process can work wonders for a company. This has led to software development for start-ups to become the market leader in outsourced operations. 

Deficient communication

Diverse teams from various geographical locations and cultural origins tend to have a difficult time communicating with each other. The difference in time zones and work ethic could be problematic for the delivery of a project. The insight of miscommunication within the team can lead to precautionary measures. 

The development of inclusive company culture and constant communication within the
organization can prevent gaps in communication. This can help develop a team
that stands strong and has an inherent sense of connectivity, even if distance is a former matter.

Business Survival

Financial stability is often questioned in the case of start-ups; stress increases when an organization has a fluid-structure. In light of the current pandemic and its consequences on the global economy, it is obvious that businesses develop an alternative of working remotely. In the long run, remote work cannot be limited as a method of building flexible teams. It is, in reality, a Unique Value Proposition that can be used for competitive advantage. This resource-efficient model of business serves well when start-up funding is limited.


Remote work is likely to become a norm in the coming weeks, and even years to follow. The pandemic has indeed caused a seismic shift towards the ideology of working-from-home, and this interest is not coming to an end soon. 

We have addressed the benefits of founding a remote organization and the immediate challenges faced by a founder. We believe that all organizations starting with remote operations share the same combination of elements. It needs a strong leader who can direct company resources in the right direction. A dynamic culture that encapsulates the essence of remote work, and efficient work processes.

At Norgic, we believe that the best foot forward is to have a customized software solution developed for the business. Investment in remote team management is the foundation that helps a company stand strong even in the most tumultuous of times.

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