Most of us have used the services of or at least heard of famous tech companies like Microsoft, Grab, or Airbnb. The two do not even have their own taxi fleet or hotel chains but have been accommodating millions of people patronizing their services. Technology is disrupting the way we live now, and it has been since man invented the very first tools. Of course, it has only been highlighted during the Industrial Revolution and today’s Age of the Internet, but technology will keep humankind moving forward.
When thinking of starting a tech company, capital is always a factor, but many get paralyzed into inaction because they do not have the necessary initial investments. That should not be the case. Many companies were started in a garage with very minimal capital. Some examples of them are Amazon, Dell and Apple. All that is needed is a brilliant idea and a persistent attitude.
Think Carefully About the Idea
Yes, it all starts with an idea. Sometimes it is a good idea, and it solves a problem, but sometimes it might be a very bad concept you might not want to start at all. Knowing that the idea will not succeed is a success by itself because you will not be pouring a great degree of effort at something you know will fail. So think of what kind of company you want to set up, align them with your current skills and abilities and that of your business partner. Remember that a good business is one that solves a problem in the society. Find your niche.
Define What Your Product Would Be
Once you have identified what problem you are trying to solve, identify the characteristics of your minimum viable product. The MVP is the most basic functional version of the product you are trying to create. An example is a phone, where the most basic function is to make a call. As technology advances, however, other features are added to it, thus improving a person’s life.
Validate Your Minimum Viable Product
There are a number of ways to do this. The first two steps are actually part of it. The next step is to assess your market. Are people going to be willing to buy your product? Are investors willing to make an investment? Do you think it would be profitable? If something catastrophic happens, will your product survive the ensuing economic crash? These are some questions you would like to answer.
Identify Your Competition
Unless you have a unique product, you will likely have competition. Find out who your competition is and what separates your product from them. While it may be tempting to offer a lower price, that is not always a good strategy. People are willing to pay a premium and swipe their credit cards if a product is good. Know your competition, but do not be stumped by them.
Understand Business Processes Well
At the earliest possible time, define the business process and workflow. It does not have to be that detailed just yet, but assign the tasks and responsibilities for each member of the organization. While at the start you will be the CEO, Chief Technology Officer and even the Financial Advisor or Officer, eventually these roles would have to be delegated. By documenting your business process, it will also be easier to scale up in the future.
Plan for the Future
Imagine both business failure and business success. What will you do if the business does not pan you as you intended? What about if it becomes more successful than you anticipated? Many will plan for the former, but not the latter. Also, know when to exit. Will you be selling the company if it reaches a particular net worth?
Market Your Product
Use all means necessary. Conduct online classes about your product or hire influencers to do it for you. While you are starting, you can do all the marketing by yourself, but eventually, plan for
delegation. It would also be a good idea to give credit or a boost to those who help market your products.
Manage Your Risks
More than 90% of startups fail within the first two years. This is not a very encouraging number but that is the truth. Armed with that knowledge, prepare how you will survive in a very volatile
business environment. Will you need to take a business loan to expand, or will giving equity be a better option. If you know your risks, you can manage them well and have better chances of
surviving.
Hire The Best People
Building your A-team will be a crucial component of your company’s success. Find people who share the same passions and goals as you do. Focus on hiring the most fundamental skills and
aspects. Business operations, marketing and accounting, are key focus areas that should have your attention. There is usually a shortage of software developers in the country, so do not be afraid to
outsource if needed. Make the necessary hard investments on hardware, too.
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