Starting any new business venture can be a daunting task, but the tech startup space is particularly competitive. By most estimates, up to 90% of all tech startups fail. The best strategy to avoid this heartbreak is to make sure that you understand your chances of success before setting out. Here are five things you need to ascertain before going all in on your tech startup idea.
What Your Domain Name Will Be
In the tech sector, your domain name will most likely be your brand name. Therefore, you need to find a name that is not only short, catchy, and easy to remember – but one that is available when you search a domain names registrar as well. Finding your domain name gives you your brand name and sets the stage for business registration and trademark applications. It also helps if your domain name is available as a handle on the social media platforms you want to be active on.
Identify The Problem and Understand the Market
Every single product needs to address a problem that potential customers are facing. At the very least, it needs to bring innovation that adds convenience and value to the existing solutions in the market. You need to research your market to understand what your consumers want, and the gaps left by the current solutions. What is your product’s unique selling proposition: affordability, convenience, superior tech…whatever it is, make sure that it is something your target market wants and can afford to pay for.
Understand Your Operational Structure and Personnel Needs
You need to have a very clear understanding of the functions and processes that your startup needs to meet its goals. Do you need an R&D department? What type of engineers do you need for the overall project? What staff size do you need when you start? Understanding your operational structure creates the platform for determining your team size and personal needs. Think about how you want to manage your employee roster to ensure no department is inadequately staffed. For most startups, payroll is the biggest expenditure, so you need to have a rough idea of what this would cost before setting out.
What is Your Source of Funding?
Your operational structure and personnel needs will give you a better understanding of the budget size. Once you have a provisional budget in place that accounts for all phases leading to your product launch, then you need to determine how you will get funding. If you’re lucky, you might have sufficient savings to bootstrap your operation from your savings, maybe with a little assistance from your friends and family. Other funding options include incubators, crowdfunding, government grants, venture capital, and angel investors. Find the available funding model that best suits your needs.
What is Your Launch Strategy
How will your product reach the market? You need to have a rough idea of how you’ll handle production, how you’ll market the product, and how you’ll get consumer feedback to keep iterating and innovating your product. This strategy might change with time, but having a strategy in place is vital.
Conclusion
Before starting your startup journey in the tech space, you need to determine your domain name, research the market, determine operational structure, find funding, and have a product launch strategy. This preparation helps you determine the budget and also ensures that you’re prepared and launching your endeavour from a place of knowledge.
