How to start your own tech business
Planning your own Tech Startup? While it can be quite exciting as well as nerve-racking if you are the first time entrepreneur, we have a few tips which you will find helpful to avoid the most rookie mistakes new tech firms make when starting out,
Starting your own company is never an easy feat and the tech industry can be particularly competitive. As a budding entrepreneur, entering a potentially saturated market, it's important to start thinking about the bigger picture as early as possible. How do you market your business to the right people? Should you hire your own staff or focus on outsourcing? How do you source reputable suppliers? There are a million things to think about before you take the first steps on this exciting journey so here are some guidelines to note when starting your own tech business.
1. Think about it
This seems obvious but it takes time to really think about starting a tech company. Generating ideas about building software or creating your own business can get very exciting but once you start to break it down into parts you may see that it is not viable or the market is impenetrable for newcomers. You'll have to start thinking about the really hard questions, like where can you source traceable electronic components? And how can you keep costs low, without compromising on quality? Alternatively, your product could be a game-changer for a lot of people, and you find that you have a real chance to break into the market and be successful.
2. Define a minimum viable product
A minimum viable product is the most functional version of your product. It should provide all the basic features to solve the problem you are addressing.
3. Validate your minimum viable product
Following the first two steps, you will know that your product is valid if it solves a problem and improves peoples' lives, these factors determine the value of your product. Are people willing to pay? Are investors willing to invest? Do you see yourself earning a profit off of this product?
4. Consider the competition
Competition is usually perceived negatively but it can play a huge part in building your company. This will help you validate your product. Find competition in the industry you are hoping to penetrate, and this makes your product valid! This means there is a demand.
5. Understand basic business workflow
A huge part of your success is about knowing how to handle a business. Focus on organising workflow – define tasks and assign people to them. This way you can determine the flow that best works for you and your workers and identify the scope and limitations of your business.
6. Always have a plan
Make sure you have a plan for everything and have something to fall back on if needed, even the most well-orchestrated business plan can face unpredictable hurdles and you need to account for these. Whilst it might seem a little defeatist, you should have an exit plan right from the beginning just in case anything happens – going down in flames makes it much harder to get back on your feet and try again.
7. Source the right supplier
Whether you're developing an OEM business from scratch, or developing your own products, it's sourcing the right suppliers for your electronic components and mechanical elements that will ensure your business gets off to the very best start. While many startups go for quantity over quality by reaching out to local suppliers or those with the cheapest price, by sourcing your parts online via an online, global marketplace instead, you can take a completely different approach and reap the benefits.
Utilising a digitised marketplace, you can upload your BOM and shop for the components you need within seconds, setting search criteria that help you stay on budget without compromising on quality. When you source parts from accredited and regulated suppliers, you'll have fewer problems on your production line, produce a higher quality product and build on a portfolio of happy and incredibly satisfied customers.
8. Keep Your Business as Green as Possible
Starting your own tech business means doing your bit for the environment and applying "green" practices to your daily operations. Not only does this approach reduce your overall running costs, but it can also give you a strong USP (unique selling point) which may give you the edge over your competitors and establish your brand as an industry leader.
Some of the most straightforward green ideas for your business could include, installing energy monitoring systems, investing in recyclable materials and components, choosing a renewable energy supplier, keeping your heating at an optimum temperature, switching off appliances when they're not in use and encouraging an eco-friendly work environment, by encouraging your employees to recycle and even carpool to work.
9. Consider Outsourcing your Weaknesses
You might be a tech entrepreneur, but that doesn't mean you don't have weaknesses. Whether you struggle to get your head around finances and your tax obligations, or designing and managing your website is simply too time-consuming for you to factor into your day, as a business owner, outsourcing your weaknesses is a simple but effective solution.
Exploring freelance sites such as Fiverr or Elance can help you source experienced and talented professionals who can take care of these roles for you. Outsourcing these jobs can increase the efficiency of your startup, help you reach your goals quicker and gain access to industry knowledge and advice. It's also a great way to keep your budget in check and manage your rising costs.
Market your company and your product. Start by understanding your industry and then market strategically. Interact with people in the community and learn from them, acquiring potential clients and business partners.
11. Hire the best team
If you decide to move ahead and employ full-time employees, building the best development team is essential and could be a key component of your company's success. Focus on the most fundamental trio in business organizations – marketing, accounting, and operations. With these bases covered you are setting yourself up for a great start to your business.
Starting a technology business from scratch comes with a variety of factors and considerations. It's normal for entrepreneurs to feel completely overwhelmed by the amount of work and plates they have spinning as they get their business off the ground. Therefore, it's important that business owners set manageable goals, outsource as much as possible and avoid spreading themselves too thinly. With the technology industry remaining persistently competitive, it's vital that you hit the ground running with your enterprise by having as many factors and operations in place as possible, before you launch. Consider the points above to start your own tech business.