What to Consider Before Putting up a Tech Business
A tech company has the potential to change the way people do things and benefit the world. Zoom, for instance, is an enterprise video communications tool that experienced massive success during the coronavirus pandemic. It has enabled employees to conduct meetings and brainstorming sessions in the comfort of their homes.
If you’re interested in creating a startup and becoming the next Zoom, Facebook, or Google, know that achieving success won’t be a walk in the park. Data from Small Business Trends reveal that only 56 percent of small businesses survive their fifth year. The rest fail because of not having the right team, poor marketing, and pricing issues, among others.
The good news is that the tech market has plenty of room for innovative ideas and technologies. What’s more, you don’t have to be a tech geek, like Bill Gates or Mark Zuckerberg, to produce something valuable and exciting. With the right plans and wise choices, you’ll have a shot in running a successful tech-based biz.
Here are six things you need to know when establishing a tech startup:
1. Survey The Landscape
The tech industry has different kinds of businesses. Your goal is to find out who your direct competitors are, check what they offer, and uncover the gaps that your startup can fill.
2. Try to Improve Previous Tech Products or Services
When you launch a tech business, you don’t have to necessarily come up with something brand new. You could check what’s on the market and make it better. If you’re looking to create a chat bot platform, for instance, you don’t merely copy the features of an app and then market it to YouTubers. Develop an app or software that addresses the need or pain points of your target market.
3. Secure Funding For Your Tech Idea
You need seed money to turn your brilliant tech idea into reality. Think about sources where you obtain your startup fund. Besides borrowing money from friends and family, you could get a loan, start a Kickstarter campaign, and seek out angel investors.
When funding your business, you don’t necessarily need to borrow huge sums of cash to get the ball rolling. Approximately 33 percent of small businesses start with capital below $5,000.
4. Come Up With A Solid Business Plan
A business plan provides you the basic outline of what your tech startup will look like, how much funding you’ll need to develop your app, who your team will be, and how you’ll make company decisions. You can refer to this document should things start to turn south.
You’ll also need this document when you pitch your idea to investors. A business plan shows that you’re committed to building your tech startup.
5. Evaluate Your Skills
Starting a tech business isn’t all about knowing how to code or develop a user-friendly platform. You also need business and leadership skills. If you’re not confident about the idea of managing a business, you could take up relevant online courses on websites like Udemy and Coursera.
Alternatively, you could enroll in a community college near your area and learn much-needed business skills, such as digital marketing and accounting. If you’re establishing a tech startup, you’ll likely fill nearly every position in your organization initially.
6. Look For A Mentor
You don’t have to take your entrepreneurship journey by yourself. Get a mentor to help you navigate the difficulties of launching a tech startup venture. This person has to be well-versed with the ins and outs of the tech industry. A mentor should also be someone willing to offer you sound business advice.
A mentor can be just about anyone. This individual could a successful local business owner you admire, a university professor who is an expert at programming, or a consultant with extensive experience in the software development industry.
If you’re unsure where to find a reliable mentor, attend tech conventions or trade shows and get to know individuals who are running a business related to your startup. Once you establish a connection, ask if they’re willing to take on the role of a mentor.
Note that not everyone you meet is open to the idea — and that’s okay. Your goal should be to find a mentor who sees great potential in your skills or idea and genuinely wants to see you succeed. Just keep on asking people until you find the right one for you.
Consider these six things before tackling the challenges of building a tech startup company. If you have an amazing idea that could potentially change the world for the better, get your business in order first and then use everything you’ve learned to create that life-changing app, platform, or software.
– a contributed post
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