According to Statista, global market spending on technology reached $3,360 billion in 2019. CompTIA reports emerging technologies such as AR, VR, AI and the cloud account for half of all tech growth and according to the Spiceworks State of IT report for 2019, 52% of businesses are investing in tech for the purpose of expansion.
It’s safe to say that tech is one of the best industries to start a business in, whether it’s to tend to consumers’ insatiable appetite for the latest gadgets or to meet the ever-increasing demand for technology that helps businesses grow. Six of the ten fastest-growing companies in the world this year are in the tech industry, including Netflix and Nvidia.
But the proliferation of overnight success stories and soon-to-be Silicon Valley overlords shouldn’t blind you from the fact that starting a tech company is no less challenging than starting any other type of business. Too many aspiring entrepreneurs dive in without a proper plan, the result of which need not be mentioned.
That said, having a clear understanding of some of the most important steps required to start a tech company will go a long way in creating a solid foundation upon which you can build a thriving business. Read on to learn more about what you should be doing moving forward.
Name it and Domain it
There are three main points to consider when naming your company. It needs to be memorable, spellable and engaging. Uber, Google, Twitter, and Mint are great examples of company names that are short, thus making them easy to remember, spellable, easy to search for, and engaging in the sense that they evoke positive feelings.
Coming up with a unique name is, of course, more difficult than ever now that there are so many other companies out there. It can be even more challenging to try sticking to as few syllables as possible but restricting your options can force you to be more creative.
You can use websites such as Startup Company Name Generator for some inspiration. You can also use it to check for domain name availability. This is important, as you’ll want to secure a domain that’s as close to your company name as possible. Google Domains is another website where you can check for domains and register your own.
Design a Logo
Similar to your company name, your logo should be simple and representative of what you offer. Unless you’re a graphic designer, you’d be better off employing someone else to create your logo. Having a professionally-made logo will help you stand out from the competition. Fiverr and 99Designs are good places to start.
Focus on Building Your Product
It’s easy to get caught up with the countless priorities that stream into your to-do list when first starting off. This often leads tech companies to lose focus on their product and spend too much time on other tasks. As a result, their product doesn’t get enough attention and that trend continues when it hits the market.
This is why it’s important to focus on building your product first. In the long term, your product will account for around 30 percent of your total work. Once you have this out of the way, you can focus on the other 70 percent, which is service, sales, marketing, and support. This will also help you have something more tangible to present to investors.
Create a List of Freelancers
In the near future, you’re going to need a helping hand with a few tasks. This can include enlisting the expertise of a copywriter, web designer, programmer, marketing agency… the list goes on. Outsourcing this type of work to freelancers will naturally be your best bet and will save you thousands of dollars in capital.
Start building a list of reputable freelancers for each task you foresee your company might need in the next few months. You can use websites such as Upwork, Freelancer, and Fiverr to make this happen. Consider asking friends for recommendations.
Learn How to Run a Business
Knowing how to run a business before you do it will equip you with the knowledge that would otherwise require making some costly mistakes later down the line to learn. Being educated on the fundamentals of running a business will also help you make better decisions from the get-go and ultimately build a more successful company.
There are many ways that you can do this and thanks to the internet, you don’t even have to leave your desk. For instance, you can take an mba program online through an established university. This is a great way to learn about many core aspects of running a business, including accounting, marketing, and management of people and finances.
Launch Your Website
A website is the most affordable and effective way to get your company on the map and start some conversation around your brand. It will help you inform your target audience about your product and what it will do for them. Using an email opt-in form and social media links, you can start capturing an engaged pool of potential customers.
You can keep your audience updated on the progress of your product and inform them of the release date. Do it right and you could create some social media buzz around your brand and even get the media’s attention. This can serve as valuable free advertising that in turn will develop a keen list of buyers before your product even launches.
Create a Blog
A blog helps your company look more professional and is a great way to provide value to your audience, which should be the main focus of your content. Good content brings traffic to your website and establishes your brand as a thought leader in your industry. Be sure to optimize your blog so that it brings people to sign up for your newsletter.
These steps, while extremely important, make up just a small portion of the entire process that is starting a tech company. It will take time, it will cost money, and you will inevitably make a few mistakes along the way. But with enough passion and persistence, success will follow.