Failing to raise capital, having no market need, being crushed by competitors, and having a poor business model are the frequent reasons why startups fail, as per CB Insights’ analysis of 100+ startup failure post-mortems.
Thanks to accessible web and mobile app development solutions, new-age entrepreneurs can start their businesses without requiring a full-fledged infrastructure. Consequently, we can now see tech startups emerging from every corner of the world, regardless of the industry.
With the growing number of new tech-driven enterprises, however, the ratio of startup failures has also increased. The lifecycle of a startup includes many challenges. Oftentimes, founders hurry to knock on the door of investors and come out empty-handed. Because they could not draw stakeholders to their startup idea.
On the other hand, startuppers do not spend enough time understanding their market and competitors or finding a product-market fit. As a result, they end up creating a solution no one needs. Even if companies somehow develop a good product, big companies either acquire their discoveries or outperform with similar but many superior solutions.
But you do not want anyone to label your invention as theirs or squash in competition, do you? That is why you must learn the ropes first. Ace the technology segment in your respective industry. To do so, you may require working day and night or studying day and night. When founding a tech startup, there is a lot to learn to make it failure-proof.
To help the seed of the startup idea germinate appropriately in your mind and then in the world, I have curated 10 elements. Like air, water, and soil, these elements are essential for a tech startup to succeed. So, let’s dive into them straight.
Show more than what you got
Manifestations not only support nurturing yourself but can also help to grow your business. When you start a technology-driven business, be confident and act like a bigger company, whether it’s product development, operating practices, or engineering discipline. Besides, you should never be afraid of leveraging your network or external resources while growing your tech startup.
Nowadays, using social media before launching a tech startup is the latest trend. You can also use social media to increase both the size of your network and your visibility, as well as use it to promote your business and build relationships with your target audience.
You can drive engagement by posting pictures of you and your business and asking your followers to engage with you by liking and commenting on your posts. This way, you can also know more about your audience’s taste and pain points to solve empathetically. Such practices open the doors to growing your partner and customer base, which is an easy way to prune dependencies on investment cycles.
Build a Team of Devotees
Give your venture a dedicated group of people who are passionate and knowledgeable. Having smart-resources at your hand consistently serve your needs and vision. Besides, a team of experienced employees boosts your chances of attracting investors and also fosters internal morale and culture.
Write a smart business plan
A business plan is a written document that describes how your company plans to run its business in the future. It helps investors, lenders, and other decision-makers understand what your business is planning, what risks you are taking, and how they might impact the business. You can create a business plan for any business, regardless of its size or industry type.
You should write a business plan because investors and other decision-makers will need to know this information to evaluate your business plan and decide if they want to invest in it or lend you money. It tells your company’s story and informs investors and other interested parties of your business plan goals, your financial goals, your strategies for growing your company, your potential competition, and more.
Go for the standout pitch
As a tech startup founder, you have thought about and planned your company’s future for months and are now ready to pitch to investors. You’ve got a great product or service, and you know that investors want to see a clear path to revenue.
So, when you are done with market research, learn what other founders have done to raise money, and have a clear plan for how you will achieve your goal. Only then can you create a pitch that will make investors want to invest in your company.
Always ready to hear NO
It might look like you are relying on your founders from the outside, so investors may hesitate to invest. The road to venture capital is also paved with a lot of rejection letters. You might think you are great, but it’s easy to feel let down after a setback.
At this time, instead of losing hope in your newbie business, you should be prepared to attend refusals from investors. In addition, look for stakeholders who would share your vision. Do not approach just 5-10 investors and expect 50% of them to invest. Create a long list of investors through your connections before you start raising funds, and keep adding new ones as you come across them throughout the process.
Focus on Building
You may find well-established businesses or new ones, too, offering similar solutions to yours. It is absolutely possible that your competitors are also using the same technology. In such circumstances, rather than striving to make your solution the best, spending unnecessarily, you should strike on one area. Research and pick an area of improvement and make it 10X better where your competitors cannot beat you.
Many large businesses also adopt the Minimum Viable Product approach to launch a new product. An MVP is a minimal version of your product that lets you deliver your product to customers as soon as possible. It is a great way to test the most critical elements of your product to see if it works.
Your MVP doesn’t need to be pretty or perfect, But it just needs to get the job done. The MVP approach will indeed help you build a strong foundation for your startup company and will help you gain momentum. Hence, a startup should not overlook the power of building an MVP.
The journey of building a successful tech startup isn’t linear. They’re filled with twists and turns, unexpected moments, and unexpected people. Your story is only as good as the experiences you’ve had, the people you’ve met, and the things you’ve done. Therefore, it is recommended to prepare and store necessary documents that help you stay on track, reduce risk from lawsuits and unforeseen events, and define the roles of employees, the Board of Directors, partners, and other company stakeholders.
Set Marketing Objectives
Setting a clear, focused marketing objective is a critical first step in the marketing process. It helps identify the business’ current state and future goals and guides the strategy for the next steps. It also provides direction for the team, providing clarification on what needs to be done, when it needs to be done, and by whom.
Much like a roadmap, it helps the team prioritize the most critical actions and keep them on track. Moreover, you need to figure out the right distribution channels to ensure that you reach your prospects and customers and expand your audience.
See the bigger picture
As you plan to start a tech startup, you’re likely focused on the immediate — how to hire the best engineers, build a product that users love, and grow revenue. But the big picture is just as important as the small one. If you fail to understand the bigger picture, you’ll miss opportunities to grow your company and become a leader in your field.
Find answers to questions, such as where you’d like to be in three years? or how you’d like to be known in the industry? It will help you create a long-term strategy for your business and think about the bigger picture for your business.
Get your tech startup off the ground!
As you start a new tech startup, you’re likely filled with excitement, energy, and a whole lot of questions. You may feel like your head is spinning, but don’t worry—it’s normal to feel a little overwhelmed.
Nonetheless, pondering upon the 10 elements mentioned above will definitely pave the way to success for your tech startup.