Develop your product, understand business needs, create branding, expand reach, network, hire a strong team, foster culture, prepare for the long run, and secure funding.
The truth about tech companies nowadays is that many of them are funded by VCs, especially those focused on software. So, if you’re considering building a new tech company, here are 9 tips to know before starting a business.
Tip #1: Get started on your tech product
The greatest advantage of building a tech start-up is that, as long as you have people who can code or have advanced tech knowledge, you can often build your product using your own equipment. If this applies to you, then start working on your product, even before legally establishing your company. Do it yourself or find an expert founding partner who knows what they’re doing. Use this opportunity to determine your Minimum Viable Product (MVP). To do this, ensure you have a clear understanding of the problems your business will solve and how it will improve the lives of your future consumers. Additionally, make sure you differentiate between a small business and a start-up.
Tip #2: Don’t overlook business needs
While basing your company on software may make product development easier, don’t neglect the regular business needs. Just like any other start-up, you’ll need to work hard to learn how to manage a business effectively. Whether you’re in tech or any other industry, understanding start-up fundamentals is crucial. Here are some considerations for a tech start-up:
- Study and understand workflows and how they operate.
- Determine which workflows will work best for your tech start-up and your team.
- Identify your company’s scope and limitations.
- Experiment with different project management tools to find the ones that suit your needs.
Tip #3: Create memorable branding
Choose a name for your company that is easy to remember and spell. The same goes for your logo. Your branding should be simple and memorable. You can also prepare your website’s landing page before having a full product. Be transparent and direct about the status of your tech company and its product while it’s still in development. Provide contact information for potential clients to reach you. Keep visitors updated about your start-up through the landing page by using high-fidelity wireframes and mock-ups for reference.
Tip #4: Expand your reach
Start thinking about how you’ll market your company and product, develop marketing strategies, and reach potential customers. Seek a wide branding presence across channels. Initially, explore free means of advertising your product. Also, consider building partnerships or business relations with other companies and organizations that can help your start-up scale. Look for mentors and advisors who can provide guidance on growing your start-up.
Tip #5: Never stop networking
Networking is essential for growing your business and gaining valuable insights. Attend events where you can make new connections that may help scale your business and shape your business vision. If you’re inclined, you can even organize business events or groups where people can connect around shared interests and needs. Get out there, reach out, and create valuable business connections.
Tip #6: Hire a top-performing team
Take the time to hire the best-performing team members you can envision for your tech start-up. This includes not only designers, coders, or engineers but also leaders who excel in marketing, accounting, sales, and legal advice. A well-rounded team will contribute to the probable and profitable growth of your tech company.
Tip #7: Foster a strong company culture
Competitive wages are essential but also focus on creating a company culture that encourages long-term commitment from your employees. Keeping your staff happy is vital, and perks or other important conditions can help achieve that. However, be prepared to hire and let go of people as needed. Although uncomfortable, letting go of those who are not aligned with your company’s best interests may be necessary for the success of your start-up.
Tip #8: Be prepared for the long run
Starting a tech start-up requires as much effort as maintaining it over the years. It may take a long time before your start-up reaches a unicorn level or considers an exit strategy. Prepare yourself for the challenges, financial difficulties, and potential failures that commonly occur in start-ups. Stay committed to your business even when things get tough.
Tip #9: Secure funding
Raising funds is one of the most challenging stages for any start-up. Ensure you have the necessary funds to scale your tech start-up. Crafting an excellent pitch deck and having expertise in raising funds can be immensely helpful. Spend time developing a solid financial plan once you have finalized your product and idea. Consider reaching out for assistance in creating a tailored pitch deck that meets your business needs.