Beginning as a new startup on the block of the tech scene isn’t easy. You’ll be entering one of the most competitive areas of business on the planet, no matter whether you’re in the USA, Asia, or Europe.
However, if the volatility of the market and the threat of competitors don’t scare you off, you do have the power to create something amazing. By keeping in mind some critical elements central to the success of a technology startup, you might just make it in the industry, providing you have a viable product.
Below we’re going to touch upon 6 important elements that all technology companies need to consider in order to do well.
Where You Plan on Establishing Yourself
It’s a total no-brainer that starting a technology company in the UK will be less competitive and unforgiving that trying to make it among all the blue-chip leaders crowding Silicon Valley. At the same time though, you may not have access to the expertise and resources you require to succeed if you’re not getting your company going in the right location.
Consider what it is that your tech startup is trying to accomplish and then consider where the best place is for such a success would be in the long-term.
What Assets Do You Need to Get Started?
When it comes to a company who are looking to break into the technology field, they are naturally going to need their own tools and tech to get started. Whether that just means getting your average office full of computers set up or procuring specialist engineering equipment to create something complex, you’ll need to think about the setup costs of doing business.
This goes hand-in-hand with rigorous pre-planning, but ensure you tally up the costs of the software and tools you’re going to need to begin day-to-day business activities. Make sure you have the right budget to guarantee you have what you need without putting too much money in assets.
Are You Going Nationwide or Worldwide?
Of course, just about every tech startup is going to want to ship their gadgets all around the globe – extending their reach to anyone and everyone. One thing to consider though is where you want to begin. While you might think your startup will make more money by branching out to the world market as soon as humanly possible, providing and catering to this audience can be a headache when trying to avoid red tape.
Starting country-wide, instead of worldwide, to begin with may be the optimum way forward until you gain what you need to take a bigger step.
What Market is there for Your Idea(s)?
You might have the best idea ever for a groundbreaking piece of technology – at least in your eyes. The problem is, however, that many interesting gadgets never see the light of day because they are not a good idea in a business sense. As useful as your product or service idea is in theory, it has to be viable from a financial perspective or there’s simply no room for it.
Have a product that does something really great, can be produced cheaply, and can be sold at a consumer–friendly price? You could certainly be onto something.
What Assistance Might You Need for Growth?
It’s simply not viable these days, and in our ever-connected world, to go it all alone in business ventures – sometimes you will need to take onboard an expert’s perception and abilities. Whether it’s a corporate entity providing tech company legal counsel or a professional financial business planner,you often cannot handle everything that comes your way by yourself.
Consider what kinds of professionals you may require the assistance of throughout the lifetime of your business and plan accordingly.
How Will You Deal with the Competition?
As we mentioned in the introduction, competition is one of the biggest and most important factors when it comes to operating as a technology company. No other field yearns out louder for innovation and improvement like the tech industry does. With that in mind, companies are constantly looking to their competitors for ideas, inspiration, and new approaches.
As a startup, the new guy amongst the regulars, competitors will be sizing you up to see what they can extract from you. Keep your cards close to your chest and ensure you get a good idea of the types of things they are putting their resources towards.
Keep All These Aspects in Mind for Success
While there are an uncountable volume of different variables to consider when setting up a tech business, it helps to keep a few core tenets in mind as well as some important questions.
Failing to consider critical issues will manifest as blind spots later on in the process and this can really hurt a company during its fragile early years.
James Moore is a business technology expert working with legal issues in this area at Goodwin. His main interest is dealing with issues that many startups encounter in their first year, like taxation and patents. In his spare time, James enjoys spending time with his kids and sampling the best coffee in cafes in New York.