Every starting is challenging and requires great hardship. Starting a tech company is no different. Those who manage to stick with the hardship can expect a similar outcome. And those who lack some of the necessary skills or proper skillset, or fail to do enough hard work, fail in their businesses. However, there are some other essential qualities and criteria that a successful company requires. If you can follow those strategies, you can hope for the satisfaction of your customers. And ultimately, customer satisfaction is the key to the success of any company. But you should know that taking proper strategies and following them is not even near easy.
In the next paragraphs, we will talk about the necessary steps for the proper beginning before starting a tech company.
We have disintegrated the whole procedure into ten steps.
Some other blogs describe it in many more steps, and some describe it in fewer steps.
However, our prime target will be customer satisfaction.
That is because customer satisfaction is the actual key to the success of a tech startup.
And we hope, after reading the whole article, you can achieve success and get positive customer feedback.
Besides the steps, we will share some reasons why a tech company fails.
But let us start with the definition.
What is a tech startup?
As you are going to start a tech company, you should have a better knowledge of what a tech startup is.
Let’s start with the word ‘startup.’
A startup can be a company, a temporary organization, a partnership, or any other business type.
In a word, ‘startup’ refers to any young business hoping for success.
There is a slight distinction between a ‘small’ business and a ‘young’ business.
A small business refers to such companies that cover comparatively a tiny area.
In other words, it has a limited number of products or services, or it reaches a small group of audience.
Many people misattribute it with a young business.
A young business is such a company that has started anew.
It does not imply that the company is either small or big.
It can be either of the two.
Now comes the other word- tech.
As we all know, tech is the short form of technology.
So when we utter the word ‘tech,’ we mean ‘technology.’
Now, let’s connect both words. As a whole, ‘tech startup’ refers to a company that has started its business anew, serving in the range of technology.
Now, what is the range of technology?
Well, the range of technology is vast now in this modern era.
Previously, it covered only some hardware and software.
But now, there are other virtual services.
Almost all technology-based services are online.
Hence, their audiences are also huge.
So, if you follow proper strategy, you have so much possibility to win in this field.
Why startups fail?
If you want to have a successful startup, you should know the top reasons why startups fail beforehand.
Although the reason for failure is not fixed, there are some common reasons.
For example, 42% of startups fail because there is no market need for such products or services.
The next place of failure belongs to the budget.
Many startups fail just because they run out of cash.
Surveys show that the rate is 29%.
Then, there is another vital cause, and that is the lack of a perfect team combination.
As we know, any business requires some different categories of staff.
Here, by staff, we mean skillset.
All people do not have the same skillset.
That is the primary purpose of having a versatile team.
So if your group comprises only a similar kind of skillset, you will fail in your startup after a while.
The rate is above 20% for this kind of failure.
Many companies fail just because they ignore their customers.
Researches show that the rate for this type of failure is no less than 14%.
As we mentioned many times, customers will bring success for you.
So you must be willing to provide them with what they deserve.
The pricing issue is yet another essential part of the loss.
The pricing of products leads to 18% of failures.
If your demand a massive amount for your product, customers will indeed run from you.
On the other hand, if there is a competitor business and sells the same product at a lower rate, your failure is a must then.
Besides the high-price, there is another issue- the quality of the product.
17% of companies fail because of the poor quality of products.
So before starting a tech company, you must be aware of the product quality and pricing.
How to start a tech company?
As we will discuss how to start, you must understand that the formula does not work like one size fits all.
For different companies, the strategies will vary.
Furthermore, your budget and planning will also affect the procedure.
Hence, we will proceed with a standard guideline proven to help startup companies.
Keep in mind that the further we proceed with the steps, the more important it gets.
That means step 3 is more important than step 2 and likewise.
So do not stop in the middle.
Instead, finish all the steps.
Here are ten steps of how to start a tech company.
1. Take some time and think
The first and foremost reason most startups fail is that there is not enough thought behind the company.
The owners just have had a budget and some resources.
They just started the company with those resources regardless of any plan.
As a result, they had success for a few days or months.
But after some time, all their efforts ended in vain.
Indeed, you do not want your startup to end like that.
That is why taking some extra time just to think about your startup is necessary.
How does that benefit you?
Well, we already discussed a reason. Yet, there is more.
Sometimes, starting a business is not at all fit for our financial and other conditions.
In that circumstances, you do not want to start the company at all.
And guess what?
Now, let’s say that you are going to build a software service.
The idea of the software may excite you much.
But as you break the idea down, you will find that the concept is not suitable for the market.
Or, building the software will take more than the profit it will result.
In a word, it is not viable in the market.
In that case, you should not carry on with the idea.
A proper thought of your budget, resources, team, etc., will help you determine that.
So sit calmly and think.
Think about all the aspects that your business will cover.
If the answer is no, stop right there and do not spend a single more second in the idea.
And if the answer is yes, let us proceed to the next step.
2. Define an MVP
MVP stands for Minimum Viable Product.
What does that mean?
If you have noticed, in the previous step, we mentioned that sometimes the service you are offering might not be ‘viable’ in the market.
That is the primary concept of MVP.
As defined, MVP is the most basic functional version of a product.
Every product or service is based on solving a problem or trying to solve a problem.
The minimum viable product refers to the basic features that will ensure that the product solves that problem.
If your product does not have the minimum viability, you can say that it will fail without even launching it.
For example, let’s say that you have come up with an idea for software.
However, the software product does not solve any problem or improve our lives.
So why will people buy it?
And how do you expect to succeed with your startup?
That ensures the necessity of defining an MVP.
But the next step is more vital.
3. Validating your MVP
In the previous steps, we have understood the importance of viability.
Now, similar to viability, its validating is also essential.
But how to validate your MVP? Well, there are many ways to do that.
Now, let’s describe the validity of your product with answers to two simple questions.
1- Does it solve a problem? And 2- Does it improve our lives?
The answers to these questions will help you understand the viability of your product.
Yet, there is more advantage to it.
As you are proceeding with your startup, you will have to set up a price for your product.
Detailed answers to these questions will help you determine the price of your product.
Some more questions will help you validate your MVP.
Are there adequate customers of this product or service?
Are these customers willing to pay for it?
Is there any or enough investor to invest in this tech product?
Will you earn enough profit from the startup?
How far can you go with the product?
And lastly, what is the competition in the market for the same product?
That leads us to the fourth step.
4. Evaluate your competition
As we mentioned earlier, many startups fail just because they could not win the competition.
Indeed, you do not want your startup to be such.
Some fields face so much competition.
And some others do not meet much.
As we all understand, getting success out of a huge competition is tough.
On the other hand, a little effort will bring success in fields with less competition.
That is why evaluating your competition is necessary.
The role of competition in any business is enormous.
It does not only determine the best quality but also eliminates the lowest.
You do not want to be the latter for sure.
That is why you must be tactful while evaluating the competition.
Although we mentioned that fields with less competition gain more success, there is something more.
Less competition indicates that the demand for that product in the market is less.
We use the term ‘market size’ to determine that.
Therefore, although less competition brings you the hope for success, it also raises the question of a fallen market.
There is yet another thing to consider in the competition.
That is your competitors.
5. Know your competitors
As we mentioned in the previous step, competition plays a vital role in the success of a business.
If you have noticed, huge competition is harmful, but no competition also indicates low market size.
Your competitors are the difference here.
If the competitors are big, your probability of success reduces.
And if the competitors are not that big but the market size is enormous, your win probability rises.
So how to determine the quality of your competitors?
It is not as tough as it seems.
If they have thousands of good reviews in their pockets, you better consider other fields.
That is because you cannot outcompete already highly-established businesses.
Instead, if you attend another domain with no big companies in it, it will work better for you.
However, you should be aware of the market size.
Because most often, the bigger the market size, the more prominent companies are there.
If you find that the specific market is not suitable for you due to the high competition level, go back to step 1 and consider another market.
Most successful tech companies that we find today have implied the same.
6. Understand primary business workflow
Now comes maybe the most crucial step.
The step is to know how to handle your business.
If you cannot handle your business correctly, all your effort are in vain, that we can say for sure.
To operate correctly, organize a workflow and follow it.
What is a workflow?
A workflow is a way to get something done.
In this instance, that something is your new business.
To get the best out of your plan, assign different tasks of your workflow to different people.
Later, we will talk about the team you should prepare.
Many businesses fail here.
The owner seems to think that if they accomplish the task themself, they will be able to cut costs.
However, the actual scenario is quite different.
While you doing some work will cut some costs, it will hamper the quality of your products or services.
So as a whole, try different workflows.
Check which one works the best for you.
And when you find the perfect workflow, organize your plan according to it.
7. Having a plan for all the time
It is one of the essential criteria for a successful startup.
Many businesses fail just because they do not have a good plan.
Business enthusiasts suggest something more.
They suggest that you have an exit plan too.
Although it may sound unnecessary, many businesses have proven themselves to be successful just because they had an exit strategy.
Your plan will work as a backup for you.
But, there is something critical about plans.
You guessed right.
That is the execution.
If you have so many plans but failed to execute a single one, you better had not taken any plan at all.
That is why you must include a plan for implementing those plans.
Many companies fail to do that.
And as a result, although they have taken some nice strategies, their efforts go in vain.
As told before, you should also emphasize a backup plan.
In business, nothing goes as planned.
Let’s say that you want to launch a software product.
But one of your competitors has managed to launch something similar before you.
In that case, you can just make some changes to your software and upgrade it.
Now, launching it will benefit you for sure.
Only a plan beforehand will make sure that you can continue with the product.
Marketing is the head of any business strategy.
It involves a lot of areas, but we will not start with any of those.
We will share the primary purpose of marketing and how to implement them in your new company.
To market properly, you need to understand your industry well first.
You can market with strategies accordingly then.
An advantageous way to market your product might be to go to a startup community.
There are so many such communities around us now.
If you can reach such an organization, you can learn so much about your business.
Besides, if you can persuade adequately, you may have one or more investors for your company.
After all, getting potential clients is highly necessary for any tech company.
Also, you can have a partner if they find interest in your company.
And eventually, their skillset might help in the success of your company.
9. Fighting adversity
If you want to succeed, you must be willing to fight.
That is the first word of any success.
As a startup, you will face many types of adversity.
There will be some big companies against you.
You may sometimes have a lack of budget.
Sometimes, there will be a lack of resources or teammates with proper skills.
No matter what the problem is, you must be willing to fight until you get out of that.
Proper planning and assessment of risks can help you in this aspect.
Moreover, we mentioned backup plans in the previous steps.
Backup plans will help you much in this purpose.
When a big company comes in the way, you can follow the backup plan and alternate your strategy.
Or, when you do not have adequate cash, your backup plan will help you draw investors.
And as a result, you can face the truly wanted success.
Also, this fighting will strengthen your position in the market.
Eventually, customers will trust you more than ever.
After all, customers are the heart of any company.
10. Hiring the appropriate team
You might not get the best team always.
But hiring the right team is always necessary.
The first thing you should consider while creating starting a tech company is the proper skillset.
As a tech company is somewhat unique, it requires much more qualified personnel than other companies.
However, for any business, assign people according to the essential trio.
The trio includes marketing, accounting, and operations.
At first, ensure that you have people for these sectors in your team.
Then, based on your company type, you can hire more people based on their specific quality.
There is a difficulty that you may face in your pursuit of hiring a skilled team.
The problem is your budget.
However, you must be willing to spend handful amounts of cash during your first months.
After you settle, the paid money will eventually bring you the success you wanted.
When you manage to bring some quick wins home, there will be tons of sponsors and investors in your company.
And as a result, you won’t need to be tensed about success.
We have described the pathway in 10 steps.
However, you will find some other blogs with more or fewer steps.
Nevertheless, the ultimate result of every procedure is the same.
We believe that if you implement these ten steps correctly and adequately, your company will see the light of success in no time.
However, you must be passionate about your goal on the way and act accordingly.
Only then can we guaranty your success.
Besides, you should be aware that based on your company type and the customers you are going to serve, your steps will deviate from the actual ones.
Be strong. Keep in mind that the best place to start a tech company lies within yourself.