Knowing what pitfalls to avoid is just as important to building a startup as your product or service is. Plenty of startups fail because the team was ill-prepared or they sold products people didn’t need or want. But knowing what product to sell or who to work with is only half the battle. Here are some other tips for starting a tech startup.
1. Information Technology
When you think about how to start a tech startup, one of the first things you should consider is information technology. IT is integral to most businesses and startups nowadays and getting your IT system in order can really maximize your startup’s efficiency. IT encompasses almost every aspect of tech startups, from employee communications to security and protection to reaching customers quickly and efficiently. Having a robust IT structure can be incredibly cost-effective and resource-effective for your startup. You can also set up your IT framework to be flexible when you’re scaling your business up.
2. Find the Right Market
Not everyone has the money to spend on flashy, polished ad campaigns. With a tech startup, it’s important to figure out your core market and branch out to that community. You can use social media to learn who would be interested in your product and how best to reach those possible customers. You can also try partnering with an established company for more publicity.
Additionally, you can try pre-selling a minimum viable product (MVP). Pre-selling is a way to get potential investors and customers on board before you’re really ready to sell anything. You’re basically accepting pre-orders based on a prototype. It’s a bit risky but it can really pay off.
3. Be Lean and Agile
Basically, start out with only essential team members and resources, and build iteratively. You only use what you absolutely need so you can get your startup off the ground at a lower cost. At the same time, incorporate agile software development. An agile framework has the organization working in short sprints, constantly evaluating performance as you build. With agile, you also incorporate user feedback continuously to inform and improve the product and you have to be prepared to nix products or features that users don’t respond to. Lean and Agile are perfect frameworks for startups because they use resources so efficiently.
4. Seek out Funding
Grants are a big source of startup funding, both on and off college campuses. You can apply for them or enter pitch competitions. Depending on the startup, you could also find an accelerator, seek out angel investors or try crowdfunding. Accelerators offer a double benefit of investment and mentorship. Through an accelerator, you can often make more connections and find opportunities to showcase your product. An angel investor is someone with startup experience, so they both have money to back you and an understanding of your situation. Crowdfunding is great for pre-selling and MVPs.
If you put together the right plan of action and design an organizational structure suited to your finances and product, you’ll be a step ahead of the competition.