Posted in Business
How to Become a Startup Tech Business
We hear the word ‘startup’ in relation to tech businesses quite often, but what does that really mean? Most people think of Silicon Valley software geeks who develop an application and then sell it for millions. In some ways this is an accurate description, but in reality it isn’t the norm. Startup tech businesses often begin with a good idea – and it can be as simple as anything from apps for smartphones to web design software and video conference applications – but the creators don’t know the best way to make the most of it. Here is a quick look at the tech startup game and what it could do for you.
What exactly is tech startup?
These type of companies are essentially technology-orientated entities that are looking at rapid growth in a short period of time. They are usually high risk ventures, which reflects the ability for the company to make big profits. They usually involve few employees, limited infrastructure and lower establishment costs.
Startup companies look for investors who are attracted to riskier ventures, which in turn usually have the potential for higher returns on their investment. Often the creators or founders of the company will fund everything themselves, which can result in a huge financial return for them. But the reality is that investment is needed to get the idea to the level where it can earn serious cash for everyone involved. Just think of tech Goliaths such as Facebook and Google to see how it relates.
Where to begin
So you have an idea that you think has potential. But where do you start? The best place is by picking the right market, whether it be business or everyday consumers. Sometimes the market will pick you – meaning your idea has an obvious audience – which will make it that much easier to choose where you will direct your efforts.
Once you have identified this market, you need to work out how you will get your specific demographic to actually purchase your product. Check out the opposition as well. If there are a lot of other companies offering a similar product or service to you then you will have to work a lot harder for profits because of the competition. And if there isn’t an idea such as yours available, then consider the fact that perhaps there isn’t a market for it.
Look at how you will market your product as well. Everything from SEO for maximum presence on Google to social media and traditional advertising needs to be considered to spread the word about your business and what it offers.
You need to look at your plan with ruthless honesty and try to find any holes in it. This is what any potential investors will do, so it pays to plug those holes before putting your hand out for cash. Ask yourself how you stack up against the competition, how you will find buyers and the costs involved with selling your product. Be honest because it will be the difference between success and failure later on.
Make a business plan
This is a basic building block of any business. It helps you look to the future and project your costs and, most importantly, your projected profits. This business plan can then be shown to potential investors who can see how they can benefit from becoming involved in your venture. Don’t look at the short term either – do a plan that takes into account the first 6 months, a year, 3 years and even 5 years. The best thing that can happen is after a short time you need to revise that plan because the profits have exceeded your expectations.