.svg)
Building a tech company can be an exciting yet daunting venture. Take the case of Facebook. In 2004, it started from humble beginnings in a dorm room at Harvard and has now become a global giant. Such stories show that this journey—from a small start-up idea to a global firm—can take off right with the proper steps and vision. If you want to know how to start a tech company, you are in the right place.
The tech startup environment is humongous, with over 500,000 new tech startups launching every year. The global tech startup market stands at nearly $3 trillion in value—a powerful demonstration of the massive potential and interest that rests in tech innovations.
According to Crunchbase, the average time to maturity for a tech startup is around 2-7 years, with seed funding averages of $2.5 to $3.7 million. However, to be honest, 90% of startups fail, and many get piled in what's called the "startup graveyard." So how to start a tech company that doesn’t fail is the million-dollar question today. Keep reading for our helpful advice.
First, identify a problem to solve. Where real needs are met is where successful startups begin and thrive. Research the market to ensure there's demand for your solution. The Lean Startup by Eric Ries talks about starting with an MVP, or minimum viable product so that you don’t spend a lot of time and money building something nobody wants. That’s good advice. Only after you've validated your concept is when you should delve into logistics and growth logistics.
Pick the right name. You want a company name that is memorable and reflects your brand. A strong name may help entrepreneurs greatly. The best tech company names can improve brand memorability and slash your marketing costs. Abstract names (like Google), descriptive names (like PayPal), or evocative ones (like Amazon) are some examples of tech company name ideas to consider. Just make sure it is unique and not trademarked.
A good business plan for a tech startup details, among other things, your vision, target market, revenue model, and growth strategy—it is your blueprint for success. Clearly, tech startup costs can differ according to the geography and industry. You do need to set down a budget that can cover for the launch, development, marketing, and salaries. According to Bankrate, the average amount of money required by any tech startup ranges from $12,000 to $40,000 just to get it off the ground.
Knowing your costs is fundamental when starting a tech startup. Business registration can take up to $800. The cost of app development will range from $10,000 to $150,000 per year, depending on the complexity of your product.Office space and rent may range from $1000 to $3000. Permits, licenses, and insurance can require up to $1500 per year. You must also plan for human resources, marketing, and legal expenses. 10% of your startup budget should be put aside for unexpected expenses.
Acquisition of funds is one of the biggest challenges, whether it be in the form of bootstrapping, angel investors, venture capital, or crowdfunding. We recommend that you read Venture Deals by Brad Feld and Jason Mendelson, which deals with everything, from finding investors to negotiating terms. Fundraising platforms like GoFundMe and CrowdCube are a must-try.
Tech startups typically go through 4 startup funding stages that include seed funding, Series A, Series B, and Series C. Seed funding is the first financing and might be from personal savings or angel investors, but the others include primarily venture capital. Series A is the hardest funding to acquire, but after your startup has shown promise through the years, the other funding stages are easier to sail through.
The greatest team is the backbone of any successful startup. See people who share your vision with complementary skills. Steve Jobs once said, "Great things in business are never done by one person. They're done by a team of people." Your first employees will set the cultural and growth tone for your company.
Effective marketing can make or break your startup. Attract users by developing a well-thought-out online and offline marketing strategy. Leverage social media, SEO, content marketing, and PR to create buzz. McKinsey reports show that companies that grow faster get 40% of their growth from personalized approaches in marketing.
Starting a tech company involves careful planning, strategic fundraising, and building a dedicated team. Be flexible, keep learning, and be open to this whole experience. Use the resources available at your disposal to accelerate growth and survive.
Building a tech company can be an exciting yet daunting venture. Take the case of Facebook. In 2004, it started from humble beginnings in a dorm room at Harvard and has now become a global giant. Such stories show that this journey—from a small start-up idea to a global firm—can take off right with the proper steps and vision. If you want to know how to start a tech company, you are in the right place.
The tech startup environment is humongous, with over 500,000 new tech startups launching every year. The global tech startup market stands at nearly $3 trillion in value—a powerful demonstration of the massive potential and interest that rests in tech innovations.
According to Crunchbase, the average time to maturity for a tech startup is around 2-7 years, with seed funding averages of $2.5 to $3.7 million. However, to be honest, 90% of startups fail, and many get piled in what's called the "startup graveyard." So how to start a tech company that doesn’t fail is the million-dollar question today. Keep reading for our helpful advice.
First, identify a problem to solve. Where real needs are met is where successful startups begin and thrive. Research the market to ensure there's demand for your solution. The Lean Startup by Eric Ries talks about starting with an MVP, or minimum viable product so that you don’t spend a lot of time and money building something nobody wants. That’s good advice. Only after you've validated your concept is when you should delve into logistics and growth logistics.
Pick the right name. You want a company name that is memorable and reflects your brand. A strong name may help entrepreneurs greatly. The best tech company names can improve brand memorability and slash your marketing costs. Abstract names (like Google), descriptive names (like PayPal), or evocative ones (like Amazon) are some examples of tech company name ideas to consider. Just make sure it is unique and not trademarked.
A good business plan for a tech startup details, among other things, your vision, target market, revenue model, and growth strategy—it is your blueprint for success. Clearly, tech startup costs can differ according to the geography and industry. You do need to set down a budget that can cover for the launch, development, marketing, and salaries. According to Bankrate, the average amount of money required by any tech startup ranges from $12,000 to $40,000 just to get it off the ground.
Knowing your costs is fundamental when starting a tech startup. Business registration can take up to $800. The cost of app development will range from $10,000 to $150,000 per year, depending on the complexity of your product.Office space and rent may range from $1000 to $3000. Permits, licenses, and insurance can require up to $1500 per year. You must also plan for human resources, marketing, and legal expenses. 10% of your startup budget should be put aside for unexpected expenses.
Acquisition of funds is one of the biggest challenges, whether it be in the form of bootstrapping, angel investors, venture capital, or crowdfunding. We recommend that you read Venture Deals by Brad Feld and Jason Mendelson, which deals with everything, from finding investors to negotiating terms. Fundraising platforms like GoFundMe and CrowdCube are a must-try.
Tech startups typically go through 4 startup funding stages that include seed funding, Series A, Series B, and Series C. Seed funding is the first financing and might be from personal savings or angel investors, but the others include primarily venture capital. Series A is the hardest funding to acquire, but after your startup has shown promise through the years, the other funding stages are easier to sail through.
The greatest team is the backbone of any successful startup. See people who share your vision with complementary skills. Steve Jobs once said, "Great things in business are never done by one person. They're done by a team of people." Your first employees will set the cultural and growth tone for your company.
Effective marketing can make or break your startup. Attract users by developing a well-thought-out online and offline marketing strategy. Leverage social media, SEO, content marketing, and PR to create buzz. McKinsey reports show that companies that grow faster get 40% of their growth from personalized approaches in marketing.
Starting a tech company involves careful planning, strategic fundraising, and building a dedicated team. Be flexible, keep learning, and be open to this whole experience. Use the resources available at your disposal to accelerate growth and survive.
