Are you looking to start your tech business?
Whether you are trying hands in IT managed support, online marketing, or as a software development firm, running a tech business is rewarding due to the ever-increasing demand for websites, digital content, and more.
But that doesn’t mean you get overnight success as soon as you open your doors. You are not alone as there are many tech startups out there.
It requires you to follow a systematic approach to getting success in the tech sector. Work over your business plan, funding, branding, services, and hiring to start on the right foot. Here’s how…
Create a Business Plan:
A tech startup business plan is a roadmap for your startup that includes objectives and details on how you plan to accomplish those.
Besides, a business plan is also useful to convince investors and lenders to support your startup.
Generally, a business plan covers elements given below:
- Company Description Market Research
- Details of Products and/or Services
- Management Structure
- Marketing Plan
- Financial Plan
You can arrange each element into a PPT slide for an attractive presentation.
Make the Right Hiring:
Choose the right people to work with.
After all, the performance of your venture depends on the work of your dream team. Hiring your first people is an overwhelming and thrilling process. However, it is also a stressful time. If you hire the right people, you will get the skills and experience needed to develop your startup; but if end up with the wrong resources, the success of your venture is at risk.
As your startup is budding, every new hire fundamentally changes the DNA of your establishment, and it becomes downright essential to opt for a strategic approach to hiring.
Apart from expertise and experience, make sure their goals align with your business objectives.
Take Care of Your Company Culture:
Building a positive company culture is as important as making the right hiring. A positive company culture encourages people to work for longer.
Having a positive culture is one of the fundamental steps to keep your workers happy and productive at work.
Here are some tips to promote a positive workplace culture:
- Give them rewards for their great achievements. Even praising them in front of others can do the trick. It will keep them motivated to exceed their expectations.
- Build trustworthy relationships with your employees. When your people trust you, they believe in your actions.
- Listen to their worries and concerns at the work.
- Be honest with your feedback and motivate them to improve themselves.
- Invest in the development of employees.
- Focus on employee engagement.
Decide on Your Products and Services:
Keep in mind that your products and services are a key selling point for prospective clients. When deciding your services, commit to ones you have expertise in. It can be luring to provide services outside of your skillset in hopes that you will get more customers. But handing an IT project you have not expertise in can backfire.
Work Over Branding:
For many startups, creating a successful startup starts with an idea for offerings like product/services. You are less likely to turn your focus to a name and logo until weeks or months later, and when you take on that responsibility, you are not sure about how to go ahead. Therefore, the creation of a name or logo shouldn’t be an afterthought. Your startup’s name and logo can impact how people perceive your business. Make sure to choose a name for your tech business which is easy to remember and spell. The same thing can be said for your logo. Both branding elements should be simple and recalling.
Here are some tips to name your startups:
- Conduct research to make sure your preferred name is not already used by someone else. Look for a simple yet memorable name.
- Avoid using the names being easily misspelled or mispronounced.
- Test the names with your family, colleagues, and friends. Researching with your team is great, but getting approval from the general public is efficient.
Here are some tips to choose a logo for your startups:
- Whether you want to get it done from in-house designers or an outside contractor.
- The logo should be vector so that it can be resized without cutting on its quality.
- Take note of all different media that your logo will be printed on, including email signatures, envelopes, letterheads, and websites.
- Take care of coloring and gradients. A logo might not be printed in full color at all times, therefore, try testing it in grayscale.
- Achieve balance with detail and simplicity.
Identify Your Market and Competitors:
Once you decide on your offerings, figure out what type of clients you will be approaching. You might look for clients by business size. Or you look for companies in sectors belonging to your genre.
Some locations are more challenging to start a business than others in terms of expenses, competition, and customers. Therefore, market research is always recommended to know the opportunities and challenges better.
Figuring out their offerings is comparatively simple, but explore deeper to learn how much they charge. A competitive analysis is a great aid in determining opportunities in your tech services market. You can use the market study to find out which areas can be rewarding for your venture.
Decide on a Business Structure:
Finding the right business structure is also important for your tech startup.
And there are many options to choose from, from a sole proprietorship, a partnership, LLC, or an S corp.
Keep in mind that the structure you choose will affect your taxes and personal liability as well.
For example, a sole proprietorship is the simplest business structure for the organization being run by a single person. It requires little to no paperwork to file your business with your state. But there is a catch—there is no difference between business and personal assets in the event of a lawsuit.
However, LLC can protect your personal assets in the event of a legal case. S corps and partnerships each need their certain paperwork and filing process. Besides, they come with their tax structures and restrictions as well. Make sure to consult your accountant or tax professional to choose the right business structure for your tech startup.
Ponder Over Your Workplace:
You can choose a traditional office, a co-working space, or simply work from home. It all depends on the nature of your business. If you are handling big clients with IT support services, it is better to work from a traditional office to accommodate your staff and equipment. If you are single-handedly handling online marketing services, it can be done from home. Again, it depends on the nature of your tech business.
Building industry connections can help you find new clients as well as get expert tips. For example, you can attend certain events related to your tech industry to meet both objectives.
Identifying Your Funding Source:
Even running a small business requires funding to meet specific needs. If you don’t have sufficient funds or personal monies, you have several options. You can raise money from venture capital firms. It requires you a solid business plan as well as a compelling pitch. The funding can also be secured through the SBA. The National Association for the Self-Employed also provides business funds for purchasing equipment and other aids.
So these are some tips to start their tech venture off the ground. What do you think? Let us know by commenting below!
About the Author:
Athar Majeed is a co-founder of Savah, a product that helps teams with all-in-one platform for prototyping, design collaboration and workflow. Athar has a background in design and developing SaaS-based products. He’s learning tennis, photography and prefers audio books.