Starting a tech business means understanding and dealing with finance, legal, sales, and marketing issues. As you are interested in starting a tech business, you have taken the leap of faith to become a doer.
According to stats, more than 500,000 startups are launching every month in the US, where every entrepreneur dreams big and aims to become the next Snapchat or Facebook.
But there’s something you should know:
More than 90% of startups fail because they don’t make a product people need.
While the stats paint a bleak picture, knowledge is on your side. By having a solid idea to build, market, and sell, your tech startup can survive.
This brings you to the question:
How to start?
Don’t worry; that is exactly why we are here.
Learn 10 practical steps guide to launch your tech startup faster.
10 Steps to Start a Tech Business
1. The Idea
The key to every successful business lies in a unique and strong idea. Now, how can you get an idea about beginning a startup? Getting caught up in the glamour of successful startup stories is easy.
However, because of the proliferation of overnight success stories, too many dive into entrepreneurship without a proper idea or plan, limiting their chances of fortune and glory. So if you’re hoping to hit it big in the technology sector, you need to start with a strong tech business idea.
How to identify a great idea for your Tech Startup?
- Look for problems
- Find a problem that interests you more
- Find an innovative solution
Look at the 10 Easiest Ways to Find Winning Product Ideas Every Time.
2. Thorough Planning & Market Research
So, now you have a great idea for your tech business. Now, it’s time to do a bit of research, which actually means doing extensive research.
Here’s a bitter truth:
Not doing your market research is a sure way to doom your business before getting it off the ground.
This helps you know the nature of your tech business and also can figure out who your target demographic is. Market research aims to validate the business idea regarding the strategy, target customer, product, and marketing communications, etc.
For a startup to be truly market-driven, it must observe, engage, and continuously listen to the market system.
3. Go-to-Market Strategy
The go-to-market strategy is marketing your product before reaching a product-market fit. Many people think marketing or sales is a black box. But with analytics and several new technologies, entrepreneurs can optimize their products from a very early stage to accelerate business.
A go-to-market strategy starts with a strong value proposition, so once you are clear on your value proposition, bring clarity on what the offering is, who the customers are, and how the customers can be reached.
4. Build a Technical Team
Building a technical team to start your tech business is inevitable. Finding an efficient team to implement the project is one of the major problems most start-ups face.
With tight budgets and tighter deadlines, try to grab the experts from the market. Choose professionals based on your business niche, project scope, and specifics, etc.
Refer to our Startup Guide: Things To Consider When Bringing On Early Team Members.
5. Create a Product Requirements Document (PRD)
PRD describes the product you want to build. It drives the efforts of the entire team that includes design, development, marketing, and customer support. The purpose of this document is to clearly identify the product’s objective, its features, and functionalities.
6. Build a Minimum Viable Product (MVP)
Finally, this is the process where you will be working on your product development life cycle. MVP is the most basic version of your product (built quickly and cheaply), which aims to validate if people are interested in your business and are willing to pay for it.
This phase includes product design and development, which is an essential part of the entire software development process where the team gathers, defines the app requirements, creates the prototype and tests the solution with end-users.
Why is MVP required?
- Generate early leads
- Know Customer feedback
- Saves time and money
Read the step-by-step guide to Building a Minimum Viable Product (MVP).
7. Formulate a Business Plan
A business plan plays an indispensable role when starting a start-up. The business plan includes all the necessary aspects of a business, including the business goals, strategies, the time frame of goals, details about profit and loss, finances, marketing methodologies, etc.
Even the most efficient and cheapest tech start-up idea is going to require money to get off the ground and that’s why it’s important to secure money to fund your business as soon as possible.
8. Name your Start-up & Understand the Legalities
Naming your start-up may seem like an easy thing, but it is actually not. Make sure to choose a name that resonates with your business idea; keep it simple and easy to understand.
Understanding the legalities of starting a tech company should start right from the concept stage. Some do not take these considerations, which later make legal mistakes that affect the company badly.
9. Branding, Website & Launch
- Branding: Once the funding is done, begin the actual work of building your organization on different levels. Branding your tech startup essentially means establishing an identity creating its own voice, image, and personality that makes it recognizable to your customers.
- Website: Creating a business website is another crucial factor because it is the best platform that helps you to stay active in this competitive market and easily interact with your customers.
- Launch: After completing all the above-listed factors, your tech startup is now set to launch. Before launching your startup, be prepared to launch campaigns that will help you launch better in the market.
Also, check out the Types of Research Methods to Launch a Successful Startup.
10. Marketing Strategies
To avoid failure, market your business. For this, you need to understand the industry, the competitor, the upcoming trends, and the market strategically.
The whole process of starting your own tech business might sound daunting and hard, but a perfect idea, the right action plan, a clear goal to solve problems using technology, and a great tech team, will surely position you ahead in the competitive market.
NeoITO is one of the leading custom web & mobile app development companies in Utah, Salt Lake City. We create custom product development for tech startups. Our process of excellence, digital and technological capabilities, and domain knowledge have helped us drive growth for startups, scale-ups, and enterprises. We have a pool of talented and experienced techies who can help you kick off your startup product development process to be well on its way to success.