Starting and running a successful tech company (or any at all) is not as easy as it seems; it requires motivation as well as dedication. So whatever it was — a spark, an idea, or a thought, every founder definitely has a story to tell.
The troubles, the milestones that were faced along the way, right from start to becoming profitable or filing for an IPO, all makes part of the whole success story.
Although every story is unique, it is good to note that they are some pivotal steps that are common to all. In this post, I would be sharing with you 5 of those steps.
You have the idea, the spark, the motivation; what are you waiting for? Just start. Many tech startups get held back by continually seeking better information. Many get stuck with several analysis–is the product complete? Where should I make my headquarters? What if no one really likes my product/service? There is no perfect startup, so start early!
While it is very important for startups to always gather the best information they can, they also need to value execution more than perfect information. After all, some successful startups started out in the garage.
Focus on a Product
I think a majority of “startup” entrepreneurs have no clue of what they’re getting into. They resemble 8-10 yr boys who want to be firefighters or pilots. Most of them get shattered when they find out the truth – starting up wasn’t fun or sexy or romantic or profitable at all…
— Alok Kejriwal (@rodinhood) April 21, 2018
Don’t dry out your startup with too many products/services at once. Be focused on a product/service and build it. In fact, focus on your simplest most important idea and carve a niche for you and your team in that space.
Successful startups clearly choose just one product or service for their vision. For example, Google is just a ‘search engine‘. So if you are starting a tech company for software, focus on building just that. Once your product is solid, you can shift the focus to the other areas such as sales, marketing and support.
It is very important to note that companies don’t become giants overnight, so be prepared to get through the scary years of not knowing if your product will matter.
Set your Goals
You will need a long-term vision for how your company will run 3-5 years to come. Ensure you start by doing exactly what you hope to achieve, then specify your goals also be ready to make changes when needed to get the desired outcomes.
In order to get this right, you would need to have the right advising and operating team. Possibly, former operators in that field that share the same views as you.
Have Plans to Make your Business Profitable
Yes, you need to have plans to ensure your startup gets returns. While you will need to plan your seed funding to get you through your first few years, you also need to have plans in place for your company to be profitable.
Investors won’t definitely be interested in your startup if they see no way of getting returns on their investments. It’s one thing to have an idea, or a service but you still have to make sure you have plans for profits in the long run (except of course, your company is charity-based). Absence of such plans have crumbled several startups. But you also have to note that it may take you years to achieve significant profit, so be ready!
Be Ready to Utilize Partners
While your startup’s vision is basically for it alone, there are several emerging high-growth companies doing something peripheral to yours, so you should be ready to form partnerships.
New companies tend to miss out on opportunities to scale if they don’t form partnerships with other companies. But while doing this, ensure your product is also scalable.
Finally, every successful business is built with investments in the future, but be careful what you invest in. Also, reflect on your past errors and lessons that were learned and avoid them moving forward. Good luck on your newly-established company!
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