You, Too Can Start A Tech Business: Here’s How

Lateet December 4, 2018

Do you dream of starting your own tech business?

Maybe you see yourself sitting at a table with the tech tycoons of our time – Tim Cook, Mark Zuckerberg, Elon Musk, Larry Page, or Larry Ellison.

Startups are cool. They’re sexy.

Yet, there’s a harsh reality to building a tech startup that not many people talk about. They require long hours, the ability to solve problems fast, and being the owner of one can be isolating.

If you want to know how to build the startup of your dreams, keep reading.

There are the top tips you need to know to start your successful business.

What Kind of Tech Business Do You Want to Have?

There are many types of tech businesses. Some are conglomerates like IBM, HP, or Google.

Others are one person repair shows, and still, many businesses fall somewhere in the middle.

Your first decision as a business owner is to decide what kind of business you want.

These are just a few ideas for a tech business:

Phone/computer repair
Software as a Service
Computer security company
Phone accessory manufacturer/reseller
Website developer
Digital marketing consultant
Mobile app creator

The next step is to decide the scale of the company. Do you want to have a large tech business with hundreds of employees, or would you rather be an IT consultant?

There’s no right answer to this question only what’s right for you.

What Problem Are You Solving?

When you know what kind of business and the scale of the business you want, you have to decide on one other crucial detail.

What problem are you solving? The answer to this question will inform your marketing messages and forms the basis of your company’s mission and vision.

Many companies fail out of the gate because they focus on the product or service they offer. They don’t mention how that product helps people.

When you approach your business as a solutions-driven company, it’s easier to give your tech business purpose. That purpose gets employees on board with your mission and drives growth faster than product-driven companies.

Who Do You Want to Serve?

Once you know what problem you’re solving, you have to know who you’re solving that problem for.

Part of that answer is driven by the type of business you want to have. If you want to have a phone accessory business, you’re probably going to target consumers on Amazon.

You may decide to start out as a B2B business and target specific industries.

When you do have a few markets in mind, you have to research each one. You need to make sure the market is big enough and there’s a great need to support your business.

You Need a Business Plan

Do you need a business plan? You have everything in your head. Your competition, your target market, your product & service, and how it’s going to grow.

A thought-out business plan outlines what the company is about. You should know your goals, mission, and vision of the business.

You’ll also need to have a detailed description of your target market and a marketing plan to reach them.

You want to be able to figure out your sales projections, revenue, and operations budget. As a tech business, you’re surely going to need an IT budget. You can read more on how to create a budget for your IT department.

Surround Yourself with Smart People

As a CEO of a tech company, you need to admit one thing. You don’t know everything. That’s why you find people who know more than you.

For example, you can have the best technology in the marketplace, but you decide you want to save some cash and file the patents and trademarks yourself.

You don’t know the legalities and if you make a mistake, you could cost your company thousands of dollars.

Same with other specialized areas like human resources, tax attorneys and accountants.

This is especially important if you plan on scaling your company in a major way. You need to have the right team in place to ensure your company is incorporated properly, and you are taxed at the appropriate amounts. These are all things that can save you from legal headaches down the road.

Hiring Employees

Hiring the right employees is also a part of surrounding yourself with smart people. Your first step in hiring is to decide what positions are mission critical, which ones will help you save time, and which ones can wait.

The best way to prioritize hiring is to focus on the customer experience. Which employees are going to have the most impact on your customers?

It may start with people who build the product but don’t forget about customer service. They’re just as important as the developers.

Getting Financing

You may need capital to start up and grow your business. If that’s the case, you better have your business plan handy. Banks and investors will want to see your plans before they give you money.

There are many options for finding funds. There may be economic grants in your community, venture capitalists, and bank loans are all potential options. You might favor a commercial bridge loan if you need a short-term solution.

You might decide to work with a tech incubator, which has access to these resources, and they can give you the help you need to build a good foundation.

Marketing Your Tech Business

The last piece to starting your tech business is to acquire customers. This requires that you execute your marketing plan.

There are many ways to market your business. You can attend networking meetings, rely on social media, videos, infographics, and paid ads for starters.

The key to great marketing is advertising where your target market is and creating marketing messages that tell them what your product will do for them.