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Stepping into the world of tech could lead you down the path to entrepreneurial success and much more besides.
Of course for every successful tech startup, there are hundreds more projects which fell by the wayside because their founders didn’t take heed of a few best practices for building a business in this space.
To give you the edge, here are some actionable tips that will transform your tech company concept into an organization which is actually viable.
Make the product your focus
We’ve heard it many times before; tech startups gain huge amounts of hype because of the promise of producing some revolutionary hardware or software product, only to fall well short of expectations and fade into insignificance, or even be revealed as a fraud.
For this reason, you can’t afford to neglect the process of putting together a compelling product which not only functions as intended, but actually fulfills a need that end users have, rather than solving a problem that doesn’t exist.
Rigorous market research and R&D are essential. If you don’t think you’ve got something unique and genuinely useful to bring to market, there’s no point going any further with it.
Understand how to work effectively (and legally!) with independent contractors
Most tech start-ups either have very small teams, or are even one-person schemes that rely entirely on outsourcing work to freelancers and contractors, at least in the short term.
When doing this, you need to make sure that you are leveraging these third party resources in an optimal way.
First, figure out how much to pay on your own self-employment taxes, then ensure that you’ve also completed the correct paperwork to provide payment to contractors, rather than having them taxed as full-time employees.
Next, make use of project management solutions and best practices so that you can oversee the work you do with outsiders, and keep to the deadlines you’ve set.
Last, consider using non-disclosure agreements (NDAs) so that contractors are bound to keep any trade secrets you share with them during your time together. You don’t want them spilling the beans about your game-changing product before you’ve even had a chance to announce it, let alone launch it.
Don’t drag your feet
If you know that you’ve got a great idea for a tech business, the worst thing you can do is sit and stew on it for months or even years.
The longer you twiddle your thumbs, the more likely it will be that some other bright spark will come to the same conclusion and beat you to market.
There’s always going to be an excuse as to why now isn’t the right time to take the plunge and establish a tech company, so don’t let small sticking points get in the way of your broader ambitions.
Study the competition
Learning lessons from your potential competitors is best done before your business is even on their radar. And that doesn’t just mean investigating the most successful brands in the same niche as you, but also those that are a little lower down the pecking order.
Often there are better lessons to take away from the mistakes that other startups have made, because success is a fickle and unpredictable thing. Appreciating potential pitfalls, on the other hand, is always a good tactic.
Harness branding & networking opportunities
Branding is important in the tech space, and it’s also necessary to get your name out there and establish a network of contacts within this industry.
Recognition brings trust along with it, and this works both for engaging clients and for building bridges to potential business partners, investors and others besides.
The bottom line
Starting your own tech business requires a careful balance of boldness and caution, and that’s always going to be a tricky combination to get right.
A major skill that all entrepreneurs develop over time is an acceptance of failure, and the ability to move forward even if things don’t pan out exactly as they’d planned. Growing a thick skin will work wonders for your persistence in this industry.
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