Running a tech startup is not an easy feat. In fact, data shows that the failure rate of tech companies in the US was 63% back in 2018. The leading causes of failure are lack of planning, cash flow problems, and insufficient product demand.
Does this mean there are no successful tech companies? No. There are many successful tech startups, including Stripe, Uber, and Airbnb. What sets successful companies apart is proper planning and actionable strategies. Do you want to succeed where other founders have failed? Here are five tips you should implement.
Develop a Product That People Need
The tech world is booming, but competition for customers is high. If you are to break through the barriers and stand out from the competition, you need to give customers something they need. Create your product with the customer in mind. It should solve a client’s problem in a way that no other product can and make them keep coming back. Carry out market research to determine the viability and scalability of your tech product before investing your time and money in it.
Create a Minimum Viable Product (MVP) First
If there is one thing tech startup founders need to learn from successful founders, it is gradual growth. Jeff Bezos and his team started selling books on Amazon before expanding the company to offer other products. Start your company with the minimum viable product (MVP) and see how well clients receive it. You can gradually expand and improve the product if you get positive feedback and demand for more products.
Heed Clients’ Feedback
“The customer is king” is an age-old quote that emphasizes the importance of clients to every business. Truth be told, you only sell to consumers who like or need your product. So, wouldn’t it be wise to take their feedback seriously?
Suppose you build a website that allows users to download high-quality car images for commercial use. Then they provide feedback based on their experience with your website and how they feel about your images. If one of them leaves a review saying your website loads very slowly, you need to act on that feedback. Let customers’ feedback help shape your product to the best version.
Create a Business Plan
One major cause of tech startup failure is poor planning. Your tech company is a business, and you need a solid business plan to guide you. Create nothing fancy because you are just starting out, but be sure to include basic sections like:
- Financial projections
- Service or product line
- Marketing strategy
- Operational goals
A business plan is the roadmap you need to build a successful tech company.
Hire the Right People
To scale your business fast, you need the right talent by your side. You can hire professionals you already know or experts who share your vision and have the right skills. You don’t need geniuses, but you need people who are good at their work. You can outsource hiring to a hiring firm that will do a better job. Create a team that will propel your business to greater heights.
Are you ready to launch your tech startup? These tips will help you succeed where others failed.