Booming startup economy has resulted in many people wanting to become entrepreneurs. And far too often, those same people quickly find themselves a co-founder who would also like to take their chance at the startup gold-rush. However, they quickly realize that starting a tech company is far more complicated than it first seemed and that, in most cases, they’re simply in over their heads. Their dreams of starting a tech company continue to be just that, dreams. To avoid meeting the same fate as many young entrepreneurs, we’ve prepared the following five tips you should consider when launching a tech company.
1. Find your passion
Tech companies are rarely started by those who want to become entrepreneurs. But rather, they are started by individuals who are passionate and sufficiently knowledgeable regarding a specific issue or a problem that needs solving. These are driven people who aren’t afraid to get their hands dirty in order to turn their startup dreams into a reality. You won’t see them attending launch parties or tech conferences and fast acquisition by a larger company is almost never on their agenda. Make sure you have a clear vision and understanding regarding what you want to achieve with your startup and commit to it.
2. Be decisive
Once you start your own company you will be tasked with making important decisions as CEO. However, good decision-making depends on the level of experience you have, which is obtained either through various lessons and even failures in life. Failure is inevitable and instead of focusing on the negative aspects, try to incorporate that experience and learn from it. This will lead to an easier decision-making process and more importantly, let your employees know that you can hold your own when things don’t go according to plan.
3. Avoid getting into the business solely for the money
The sheer number of people who want to start a tech company solely because there a lot of money circulating through the industry is staggering. That said, those looking to get rich by becoming an entrepreneur often have ideas that fail to reflect any real interest or proprietary insight and instead tend to launch a random undifferentiated e-commerce website and sell products that are trending at that moment. These kind of people do not have the necessary drive to go over the bumps on the road to success or enough insight to try and outsmart their competitors. Starting a company has a lot more to do with having a vision and the tenacity to see it through than it does with getting rich.
4. Consider your options for financing
Although entrepreneurship should not revolve around money, you cannot start a company without the appropriate funding. Far too often, young entrepreneurs trade a stake in their company to various venture capitalists and end up being pushed out of the company. Avoid this at all costs and consider alternatives such as Kickstarter or consulting companies such as NSW Mortgage Corp on your mortgage options. If you end up going with backers, try to avoid giving them a piece of the company and instead, offer them discounts on your products or lure them in with manufacturing or shipping rights.
Another important aspect you should consider is marketing. Simply sending an event invite will hardly get you enough coverage with potential investors and future customers. Invest in a good developer and make a website for your company. It doesn’t matter if it’s a single-page contact sheath or a full-blown multi-page website, as long as people have the means of reaching you. Additionally, focus on optimizing your website in order to attract more traffic and increase lead conversion. If you don’t have the necessary knowledge or expertise, then you might want to consider hiring a company which specializes in search engine optimization.