Technology is a key part of our world. Without it, we are almost lost. The interesting thing is that our thirst for innovation and new solutions hasn’t diminished at all. What’s more, people are now even more open to exploring all kinds of new technologies. Of course, this has led many entrepreneurs down the path of starting their own tech enterprises. After all, the trend of small start-ups that create incredible solutions began just like that.
Even though stories like the creation of Facebook and Uber can serve as inspiration, we have to remind ourselves that such fairytales are the exception, not the rule. That is why we’ve created this article, to provide aspiring tech company owners with all the simple steps they need to follow in order to avoid all the challenges they’re likely to face as they create their own company.
How to Start a Tech Company – Nine Essential Steps
There’s no one perfect way. Tech companies tend to be different. Some are born out of a great idea that a person had one day, while others are a product of hard work and diligent research. Regardless of how the start-up has been founded, its lifespan still depends heavily on how you plan to develop it and manage it afterward.
With that said, let’s be clear on one thing: there’s no perfect formula, no magical path, there’s no one-size-fits-all solution, so don’t expect to find that in the steps below. Instead, what we offer you are significant guidelines that will lead you on your journey to becoming the successful owner of a tech company.
Consider Why You Want to Start
The first thing you need to do is think about why you want to start a tech company. Is that the best option for you? Is it a passion of yours? Do you have an exciting business idea you want to pursue?
Having a reason why is vital. It’s not only important for you, as it will get you through the tough times, but it’s critical for your brand as well. One of the easiest ways to ensure that your company will stand the test of time is by having a purpose.
Define a Minimum Viable Product
You might be wondering what a minimum viable product is. It’s essentially the most basic function of the product you want to offer. Your minimum viable product should contain all of the basic features you need in order to solve the problem it’s designed to work for.
Let’s take the candle as an example. Its basic feature is to illuminate any dark place. But as innovation moves forward, we’ve stopped using candles, and instead, we’ve moved on to LED lights, which are more powerful, last longer and work better.
Validate Your Minimum Viable Product (MVP)
There are many different ways to validate your MVP. As mentioned above, you first need to ensure the product solves a particular problem and that it makes people’s lives easier. Both of these factors are key in determining the value of the product you want to offer.
Another way to validate whether your MVP is worth it or not is by finding the answers to these questions:
- Why will people want to pay for the product?
- Why will investors want to fund its creation?
- Will you be able to generate profit from it?
- Are there any competitors that offer a similar product or offer solutions to the same problem?
If you deem that your answers are solid, then you can move on to step number four.
Consider the Competition
People often think of competition as something negative. However, they tend to miss out on the fact that having competitors is vital for building a tech start-up. Not only does it help you validate your product, but it also helps you determine the market’s size and the demand for your creation.
You can also use competitors’ mistakes as valuable lessons for what not to do.
Understand the Basic Workflow of Any Business
You may be extremely tech-savvy, but that will hardly help you manage a business. Part of the hustle of being an entrepreneur is learning how to manage your company effectively. Establishing a basic workflow is a quick way to get stuff done. You can use it to assign tasks to different people and then track whether or not they got done.
As time goes by, you will be able to find a workflow that fits your organization and the people you work with. But keep in mind that it will take more than a month or two before that happens.
Have a Plan at All Times
Make sure you always have a plan, even a plan B if possible. Things might go wrong at any turn, and it’s vital that you have something to fall back on.
Know Your Market
Understanding your market and industry is critical. Without that knowledge, you want to be able to market your brand and its products successfully. In order to have real knowledge, our advice is to start interacting with people who have already gone down the path of creating a tech company.
Be Prepared to Fight Against Adversity
This journey won’t be easy, and you have to be prepared to withstand quite a bit of adversity. It’s good to have someone that lists all the risks of every critical decision and manages these risks. That’s how you will be able to bounce back from failures quickly, and it will also help you keep up the pace and not lose focus.
Hire the Best Team Members You Can Find
You might have heard this before, but having a great team is vital. Finding great developers is the first critical step in the process. But after you have that in the bag, you have to focus on the other three pillars of the business: marketing, accounting, and operations. Having solid team members in each department will ensure that the company runs smoothly and that it’s able to go through challenging periods.
With that said, finding great employees is no easy task, and our advice is to pay special attention throughout the entire hiring process. That’s the only way to ensure you’ve found the best people to work with.
Whenever people ask us how to start a tech company, we always find it challenging to give a short answer. This is where this article comes in handy. Hopefully, you will refer to it when you wonder where to begin or how to continue moving forwards.