When setting up a tech startup, one should start by identifying a problem that needs to be resolved, then offer a solution that surpasses what is in the market at the time. According to Forbes, 70% of startups fail in the initial stages due to the introduction of good products and services that the consumer doesn’t necessarily need. Are you the right entrepreneur to set up a tech startup? Unfortunately, not all entrepreneurs have the expertise on how to make a tech startup successful. Most entrepreneurs who have successfully executed tech startups have:
- A strong network – If you’re 18 years old and thinking of ways how to make a tech startup you might need to put a pause on it. You’ll need to have created connections with the right people to set up a startup successfully. Give yourself a few more years to get those connections, then revisit the idea.
- Funding – Just as with many other businesses, finances are important when setting up a startup. If you don’t have the money yourself, source from friends or money-lending facilities.
- Knowledge of the industry – When you’re conversant with the industry, you not only understand the problem but are in a better position to identify factors that may have led to the problem.
1. Buy and Maintain Good Equipment
A proper working equipment is an integral part of any business. Therefore, it’s important to ensure that all equipment in your business is upgraded and well-maintained. Because of the financial obligation that comes with having dated equipment, some businesses are hesitant to take this risk. However, the first tip on how to make a tech startup grow and become more profitable requires one to take that leap of faith and invest in proper working equipment. This doesn’t necessarily mean you’ve to get brand-new equipment, you could get in touch with a used equipment dealer to get a piece of used equipment that’s in good condition at a significantly lower price.
According to Getac, the number of accidents that occur in the workplace, especially in industries that involve operating heavy machinery or the use of electricity, is in the millions. It’s, therefore, necessary to proactively take all necessary measures to prevent the occurrence of such accidents. You could start by identifying those accident-prone and hazardous areas and installing a current sensor, which is a device that changes electric current to a voltage that’s equivalent to the current and, therefore, reducing the risk of an explosion from high voltage. In the case of portable business equipment such as commercial tablets, the use of an intrinsically safe tablet case ensures that the equipment is both dust and waterproof, making it ideal for use not only indoors, but outdoors as well.
Other benefits that business enjoys as a result of proper equipment include; an increase in efficiency and productivity, allowance for expansion, a reduction in the probability of accidents, and a conducive working environment.
2. Hire Reliable Contractors
A startup is a small business. More often than not, such businesses are in the market for specific skills. This presents the question of whether to hire a permanent employee or a contract-based employee. This isn’t an easy decision to make, since there are pros and cons to each of the two options. You need to understand the difference between contract and permanent employees to make a more informed decision.
A permanent employee is a long-term worker assigned to a different task after completion of the current one. On the other hand, a contract employee is hired to perform a specific task. For example, you could hire an electrical contractor to fix a faulty wire or a building repair contractor to help with the maintenance of your space.
After the completion of a specific task, the contractor isn’t expected to perform other duties within the business. There are both advantages and disadvantages to permanent and contract employees that you’ll need to consider when determining how to make a tech startup.
If you are thinking of how to make a tech startup, having permanent employees will grow your business. Should there be urgent work that needs prompt action, having a permanent employee means you’ll get the work done at no extra cost. Since permanent employees depend on the business for daily living, they are keen to see the business succeed.
There are a few downsides to having permanent employees as well. The company will have to incur an additional cost for frequent training that the employees have to undergo to fully realize their potential. It’s also difficult to determine which employee is the best fit since the only information you’re going off on is what is in their resume.
A decision to work with contract employees has its advantages as well. These are experts who can complete a task within a short time, hence increasing the productivity of a business. Although the hourly rate of a contractor is higher than that of a permanent employee, it’s more cost-effective since the payment doesn’t go beyond the assigned task. Since contractors are not limited to a specific industry, they’re updated on the latest technologies and, therefore, can instigate innovations and emerging trends.
Contract employees also come with a few downsides. When a contractor finishes a task, they usually move on to the next. Hence, if you need their services for a different task, such as building repair, you’ll need to hasten the negotiation process, failure to which they’ll have already taken on a different project elsewhere. Lastly, since contractors have specialized skills, they may not be as effective in projects that require diverse skills.
3. Get Legal Help
Getting legal help should be another consideration when planning on how to build a tech startup. Any process that requires the involvement of lawyers can be nerve-racking, especially for first-timers. However, getting legal advice will give you information on how to make a tech startup that’s in line with the laws of the land.
When selecting a business attorney to work with, it’s important to work with one you can trust; one who has been referred to you is ideal. An experienced lawyer who’s conversant with the tech industry that your business operates in is best suited to give you all the legal advice you need when determining how to make a tech start-up. If the company has more than one founder, a lawyer would help in clarifying and putting in writing the rights of each founder to avoid conflicts in later days. Of course, in the initial stages of determining how to make a tech start-up, no one is forecasting any financial trouble within the company. However, trouble may find its way into the company regardless. If this happens, making a trip to the bankruptcy law offices is your best resolution.
4. Optimize Your Property
Making the most of your space should be among the top considerations when planning how to make a tech startup work. It’s a valuable task within the business that can never be fully completed, hence the need to review this optimization process regularly. Not only does optimization help increase employee productivity and create a good working space, but it also helps to cut back on expenses.
If you don’t know how to optimize your property, getting in touch with local site remediation companies is a great place to start. These companies help one get rid of contaminated elements such as soil and water to minimize the impact on people and the environment. If any of these contaminated elements are ignored, they could be harmful not only to human health but to buildings as well. It’s also important to get commercial waste removal services to ensure all the waste the business produces is disposed of in the right way. To create more working space for the employees, you could utilize storage units by storing old files or equipment that’s no longer being used. All these are great ways for how to make a tech startup more effective and efficient.
5. Have a Business Plan
Turning a great idea into a sustainable business isn’t a walk in the park. Don’t be in a hurry to start paying rent for office space or legal fees. In fact, the first step to how to make a tech startup should be putting down all your ideas in writing. Doing this makes it easy to share your idea with others who can, in turn, give you valuable feedback.
Statistics indicate that having a formal business plan increases the probability of your business succeeding by 16%. Having a solid business plan also increases your chances of getting financing from money-lending institutions. No institution will take your business seriously if it’s not backed by a solid business plan. Other benefits of having a business plan include:
- Better Clarity – A business plan will help you make more informed decisions that align with the key aspects of the business. It will shine a light on areas that need to be prioritized.
- Helps Attract a Good Team – Talented workers are an integral part of the success of any business. Having a business plan helps you communicate your vision better, and the strategies you wish to execute to achieve set goals.
- Acts as A Marketing Roadmap – Marketing is one of the ways for how to make a tech startup successful. Your business plan should clearly identify the target markets and marketing strategies for promoting the services and (or) products offered.
- Gives Structure – Outlining business objectives, sales targets, and other operational strategies in the business plan gives the business structure.
A business plan acts as a road map to help you navigate your way throughout the entire journey and finally get you to your set destination, achieving your goals. Marius Mihalec, CEO and founder of Pulseway, recommends keeping the plan simple while clearly indicating the company’s financial and operational objectives.
6. Get Feedback
Customer feedback helps in choosing a strategy on how to make a tech startup resonate with consumers. Not all businesses hit the ground running. You may introduce a product or service into the market space and not get the reception you hoped for. Instead of throwing in the towel, take this as a learning opportunity and make the necessary changes in accordance with the customers’ needs.
If this second chance works in your favor, try to fully redeem yourself by offering effective and efficient solutions to real consumer needs. Customer feedback also helps the startup increase customer satisfaction. Ensuring that the customers are satisfied is key when strategizing on how to make a tech startup get repeat business. It also improves customer experience.
The customer service team in your tech startup is the first point of contact for customers wishing to interact with your company. How the team handles the clients directly impacts the business. It’s therefore important to monitor these interactions to ensure the team is behaving in accordance with the brand.
Customer feedback also boosts loyalty by helping the startup identify reasons a customer may not be inclined to come back. Consequently, the brand can make the necessary changes to ensure customer loyalty expressed in repeat business. Loyal customers will not only bring repeat business to the company, but they will also market the company to their networks.
It’s critical to have the right team if you want to actualize your idea into a successful tech startup. This is the team that will help you overcome all the hurdles that may come your way. It includes advisors who will point you in the right direction, investors who double up as mentors, and all other staff.
At the end of the day, a successful tech startup hinges on a great business idea, products or services designed around the idea, a coherent business plan with a clear path for implementation, and a customer service team that understands the importance of keeping customers and clients satisfied. The goal should be to brand your business around a need, expressed or perceived, or a solution to a problem or challenge that people are prepared to pay for.