Starting a tech business has never been easy. It’s notoriously one of the most competitive industries you could possibly enter, and since over a third of startups close within the first two years of opening, there’s every chance that a tech business could go bust even if everyone involved is trying their hardest.
It’s fair to say that starting up a tech company is one of the hardest things you could choose to do. With that said, it’s not completely out of your control whether your tech business succeeds or fails.
There are lots of things you can do to improve your chances of standing out in a crowded market and therefore achieving some measure of success.
We’ve put together a checklist to help you know exactly what you need when you’re starting up a new business.
Every new business needs funding. Whether it comes from your personal coffers or a business loan, you’re going to need some money to ensure that you have what you need to pay staff, launch products, and generally exist within the world of business.
There are a number of sources you can look to when it’s time to find funding.
Business loans are the go-to option for most companies, but you can also find a provider to give you personal loans and quick loans alike so that you can fund your business with your own money.
However you do it, you’re going to need money.
A Good Idea
There’s a myth within the tech industry that only businesses with new ideas can ever survive.
This simply isn’t the case; the chances are that unless you’re lucky enough to hit on some innovative new concept, someone will probably have had an idea before you do, so don’t worry about breaking new ground.
Instead, focus on an idea that serves an underrepresented market niche, and work on making your company the best possible solution to that problem.
A successful business is simply one that serves its customers well, so that’s what you need to work on.
A Strong Core Product or Service
Not all tech companies need to offer a product. Some, for example, will focus on a service; cloud computing support, for example, or expert reviews for a product line or type of technology.
Whatever you’re offering to your customers, you need to make sure it’s extremely strong before you go into business.
If the product or service which is at the core of your business is weak, then you can build as strong a business around it as you like, but it’s probably still going to fail.
The foundation of your operation needs to be strong for the rest of the business to thrive.
A Solid Business Plan
All good businesses have both short-term and long-term plans that outline where they want their business to go and how they want it to operate.
The tech industry is no different; when you have your core product, you’ll want to figure out exactly how you’re going to market it, who your core demographic is, and how you’re going to achieve your objectives.
This has the added benefit of looking extremely appealing to lenders, who like to see a business whose affairs are in order.
You’re going to look more attractive to partners and financiers alike when you have a robust plan in place.
An Idea of The Competition
No matter what sector of the tech space you’re entering, you’re going to have some stiff competition.
It’s a good idea to conduct market research in order to understand what your competition is doing. If you’re a cloud computing solution provider, who are your major competitors?
What are they doing, and is there anything you could offer that they don’t? The same goes for any tech product or service you’re offering; you need to try and find a way to circumvent the big names.
Almost more than any other space, tech is dominated by a select few huge companies, so try not to offer what they’re offering!
A Friendly Attitude
Whoever said that business is brutal was only partially right. You should befriend your competition and open up a dialogue with them.
For a start, it looks great for your image; if you’re regularly chatting with competitors on social media (much like many fast-food restaurants do), then you’ll win people over with your charm.
In addition, you’ll also notice that things become easier if you’re friendly with your competition.
You don’t look desperate or hostile, and customers will come to you more frequently if you display positive characteristics as a business.
A Willingness to Take Risks
Since the tech sector is at the forefront of innovation, it’s important that you and your business are willing to take some risks in order to succeed.
It’s true that you don’t need a new idea in order to make it in the tech world, but you certainly do need to apply yourself and work hard in order to make your dreams a reality.
If you don’t push yourself and make decisions that aren’t necessarily 100% guaranteed to pan out, then you’ll never find those underserved niches or that product that could launch you into the big leagues, so keep your eye out at all times.
Having an optimistic attitude as an entrepreneur is no bad thing. Optimism can help to drag you through some very difficult times.
However, you should be aware that many businesses fail, and that their failure isn’t necessarily anything to do with you or your employees.
Sometimes, businesses simply fail through no fault of anyone’s, and you have to pick yourself up, dust yourself off and try again.
Maintaining realistic expectations about your business is important if you’re going to navigate the tricky world of the tech industry.