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According to a survey, it is estimated that 90% of the new startups fail within the initial five-year mark. And only 5% of selected few make it past the 15-year milestone. Add the coronavirus pandemic to the mix, and you get an extremely competitive marketplace for budding startups.
But this shouldn't stop you from going out there and giving all-in. Instead, it should serve as an anchor of motivation to get past the "scary" starting phase of a startup. LinkedIn, Uber, and Snapchat are some of the most successful tech startups in the world right now. And yet, their initial phases were not glorifying at all.
That's why we're here to help you!
In this article, we’re going to explain the necessary steps to take on how to start a tech startup company. Unlike most articles on the internet, which provide a theoretical backing of the topic, we have used proven case studies and practical examples to prove our point.
So without further ado, let's get started.
Getting the tag of a "unicorn" startup may seem appealing, but before jumping onto the boat, you need a definitive reason for starting your venture. It can be money or recognition. Or you want to make some difference with your work in society.
Just like Elon Musk, when he dreamt of space exploration and his passion for electric cars, in 2003, he started Tesla Inc, and now he is the second richest man in the world. Other successful entrepreneurs like Jeff Bezos, Bill Gates, and Steve Jobs followed the same pattern.
Their undisputable thirst for their goal is what made them successful. And that's precisely what you should be aiming towards. Whether it's just earning blind profits or working towards a purpose, your journey should be full of passion and value.
If you are also finding your answer on how to start a tech startup from scratch, then these two traits will primarily be a deciding factor in your journey. For better clarity, we have explained these two aspects below:
📚Recommended reading: Successful business owner: 3 key traits
Passion is the fuel of your startup. And to build a successful venture, you need a passionate workforce that can accompany you in this rather challenging journey.
You can find a lot of evidence on how workers who are passionate about what they do are far more productive and happier. Their passion stems from profoundly caring about their work and being personally invested in and motivated by its mission.
Values are something that's going to benefit in the long run. A startup with a robust set of values will always have a better chance of succeeding. It helps in developing better communication and empathy within the team, as well as setting the code of ethics for the company.
From a personal point of view, you can help your clients understand what your company stands for.
Starting a tech startup company from scratch is probably the most formidable task that young entrepreneurs have to face. But on paper, you don't need a revolutionary idea to build and start a unicorn tech startup company.
There are two methods of getting an idea:
#1: Solving an old problem with a unique solution
#2: Deciphering new issues with a tried-and-tested technique
Let’s dive deeper:
Old Problem - New Solution
A prime example of this would be the rise of Tesla automobiles. Depleting fossil fuel levels have always worried our scientists, but few brave-hearts at Tesla motors decided to ditch regular fuel-powered engines and go for all-electric cars. And the resulting spike in the company's growth clearly states the success of this decision.
With the help of technology, we have the power to find a solution to any prevailing problem. So if you haven't got any ideas for your startup, you know where to look for them.
New Problem - Old Solution
Ever heard of the quote "new problems require new solutions"? Well, that's not exactly right. Sometimes, you have to go the old way. The most relevant case study of this would be meditation centers.
Meditation centers allow candidates to have an online meditation session to fight several health ailments such as anxiety and depression. According to reports, these centers have experienced a 127% rise after the recent coronavirus pandemic.
Meditation is something that has been around in our society for thousands of years but creating a dedicated center for this is a perfect example of an old solution to a new problem.
What is the most important skill on how to start a tech startup company? Ask any successful entrepreneur, and they will state that it's budgeting. Cash crunches in the initial stages of a startup are typical unless you find an investor willing to spend a fortune on your company.
Coming back to real life, when you have an idea and want to validate it, and you also need some financial backing to get it done. This double-edged sword is most likely to be your first enemy. But to make the job easier for you, we have mentioned the three-step process that can help you validate your idea at a low cost.
The foremost step of validating your idea is creating an offer for your customers. To start with, study your competitors and conduct research. Depending on your business model (B2B, marketplace or consumer-facing), the easiest way of acquiring your very first customer is through surveys and social media ads. You can also use the old-school method of obtaining references in the commencing stages. Once you'll get things on track, you can shift your operations to normal.
📚Recommended reading: 11 Sales tips that separate successful sales people from the rest
The landing page provides an aesthetic appeal to your customers. For the initial stages, we suggest you ditch the idea of creating a top-notch landing page. Instead, go for a functional one that is going to cost less comparatively. These landing pages are used to create a data pool of interested customers. You can also use the following techniques on your landing pages:
Probably the most convenient way of driving initial traffic is through ads. While PPC can help, it's also costly. I doubt you'd want to blow your entire treasure on marketing as well.
Posting useful content regularly with relevant keywords on your website can also boost your ranking and drive your website's valuable and organic traffic.
Just make sure that you don't copy the content. This may work in the short term, but it will hamper your website's ranking in the long run.
You hear all these great names of tech-titans, making it big in the industry. But little do we know that Steve Jobs had Steve Wozniak and Mike Markulla by his side. Even techie-turner-business magnet Mark Zuckerberg had a team working for him in the basement.
But hiring a team with little to no money is a real challenge, but it's not impossible. And there are several different ways that you can achieve it.
However, you should also pay attention to your employee attendance and health to make the most out of your startup. Thus, put choosing the right staff clock employee software for your startup on the list. Take the time to choose an application that will take care of data privacy and prevent your startup from leaking information.
The most crucial part of any company is its development department, which is responsible for creating leads and taking the business ahead. But hiring seasoned salespeople can rig a massive hole in your pocket. That's why we suggest employing interns and hiring part-time employers, as it is far more cost-effective.
The development department is also the company's backbone. It handles all finances and the majority of operations. So if you are the CEO or the founder of your company, you will be directly heading this department.
However, you also can go solo in the initial stages and handle all the sales and development stuff by yourself. Just be aware that it's going to be far more exhausting.
You will need to hire a marketing team for your tech startup company. Begin with aligning your project goals first.
Boasting your digital presence on various social media platforms and generating leads through it should be your initial goals. You can even utilize different marketing ways like SEO, pay-per-click, blogs, and ebooks. These methods can be used to market your content to the audience, thus, building your online marketing organization structure.
Then again, you can become a solopreneur and handle these responsibilities by yourself.
With the coronavirus pandemic unsettling the entire world, it's time for you to shine and get started with your startup. However, you should also pay attention to your employee attendance and health to make the most out of your startup. Thus, put choosing the right staff clock employee software for your startup on the list.
Moreover, we have explained all the necessary steps on how to start a tech startup company. But at the end of the day, it's your will to keep going forward. All the big names we mentioned in the article, like Elon Musk and Steve Jobs, gave their sweat and heart to their startups. And built a legacy like no other.
So what are you waiting for? If you have an idea and a road map to successfully turn it into a full-fledged company, then the sky is your limit.
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