Reducing Burn Rate in startups through a global mobility strategy

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In the exciting world of startups, every euro counts. The ability to maximize available resources and minimize expenses is crucial to ensuring the survival and growth of a new company.

A critical metric that startups must consider is the burn rate, which represents the speed at which a company is spending its initial capital. Reducing the burn rate is essential to prolong the startup’s lifespan and increase its chances of long-term success.

A smart strategy to achieve this goal is to implement effective global mobility.

In this article, we explore how startups can reduce their burn rate through a well-planned global mobility strategy.

burn rate

Why is Reducing Burn Rate Important in a Startup?

Startups often operate with limited financial resources, meaning that every euro spent must be invested strategically to maximize growth and long-term viability of the business.

A high burn rate can quickly deplete a startup’s initial capital, which can result in financial difficulties and even the closure of the company.

Reducing the burn rate allows startups to conserve capital and prolong their operational time, giving them more opportunities to achieve profitability and success.

Global mobility: a strategy to reduce Burn Rate

Global mobility involves relocating employees to different geographical locations to leverage market opportunities, access global talent, and reduce costs. For a startup, implementing a global mobility strategy can offer several key benefits to reduce the burn rate:

Access to global talent at competitive costs

Startups often face challenges in hiring and retaining local talent due to budget constraints and competition with established companies. By expanding their search globally, startups can access a broader pool of highly skilled talent, often at more competitive costs than in more expensive urban centers.

Global mobility allows startups to recruit talent from around the world, regardless of geographical location, which can help reduce labor costs and improve the quality of the team.

Optimization of operational costs

Global mobility can also help reduce a startup’s operational costs. For example, setting up development teams or customer service centers in locations with lower living costs can result in lower salaries and, therefore, a reduction in personnel expenses.

Similarly, establishing offices in areas with tax incentives or government subsidies can help reduce the total operating costs of the company.

Leveraging international markets

Global mobility allows startups to expand their reach and take advantage of market opportunities in different regions of the world. By establishing an international presence, startups can diversify their sources of income and reduce their dependence on a single market.

This can not only help reduce business risk but also increase the company’s total revenue, thereby contributing to the reduction of the burn rate.

Flexibility to adapt to market conditions

Global mobility provides startups with the necessary flexibility to quickly adapt to changing market conditions.

For example, if a startup experiences a sudden increase in demand in a foreign market, it can quickly deploy additional personnel to that region to meet the demand without incurring significant hiring and training costs.

Implementation of a Global Mobility Strategy in Startups

reducir el burn rate

Implementing an effective global mobility strategy in a startup requires careful planning and diligent execution. Here are some key steps startups can follow to maximize the benefits of global mobility and reduce their burn rate:

Needs and Resources Assessment

Before implementing any global mobility initiative, it is important for startups to evaluate their business needs and available resources. This includes identifying critical roles and skills for the company’s success, as well as determining the budget available for global mobility initiatives.

Development of Policies and Procedures

Startups should develop clear policies and procedures to manage the global mobility of their employees. This can include expense reimbursement policies, visa and work procedures, and guidelines for communication and coordination between geographically distributed teams.

Utilization of Technology

The use of appropriate technology can facilitate the management of global mobility in a startup. Tools such as project management software, online communication platforms, and expense tracking systems can help coordinate and manage teams distributed across different geographic locations.

Collaboration with Partners and Providers

Startups can collaborate with partners and providers specialized in global mobility to maximize the benefits of their initiatives. This may include working with international recruitment agencies, relocation service providers, and consultants specialized in international labor regulations.


In conclusion, a well-planned and executed global mobility strategy can be a powerful tool to reduce the burn rate in a startup. By leveraging global talent, optimizing operational costs, and taking advantage of international market opportunities, startups can prolong their lifespan and increase their chances of long-term success.

Eres Relocation is the ideal solution for startups looking to implement an effective global mobility strategy.

We offer comprehensive relocation services and international mobility consulting, helping companies navigate the complex relocation processes and maximize their resources.

With our support, your startup can reduce costs, access global talent, and focus on what really matters: growing and thriving in a competitive environment.

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