Do you want to know how to launch a tech startup successfully? Let us give you a run down of the fundamental steps in kick-starting your startup journey today.
Like a broken record, we keep hearing the phrase “in this digital age”. Yes, we truly live in an era where technology is taking over different industries. Add to that the digital revolution that many businesses are spearheading to solve various consumer problems.
So with the already saturated arena, how can rookies compete in the big leagues? In this entry, we’ll detail the foundational steps to launching a tech startup in today’s competitive landscape.
Launch a Tech Startup: 10 Actionable Steps
Benjamin Franklin said it best, “If you fail to plan, you’re planning to fail.” So, if you’re en route to building your startup business, it’s best to plan it well. Here are ten actionable steps to successfully launch a tech startup.
1. Start with a tangible idea
You may have planned to launch a new tech startup because you have an idea that you think will sell. That is great. A strong business idea assures growth in the future for any company.
But how do you validate a business idea? First, it needs to answer a problem. It will be more meaningful when you answer a problem that hits close to home.
This awareness will help build a strong technological solution. Thus, the idea will be able to sustain its lifetime in the market because of its strong foundation. Then this brings us to the next step, which is to assess your idea.
2. Research and validate your idea
Now that you have an idea, it’s time to look from the inside out. You can start by performing market research around your product or niche. Check if there are similar existing products in the market.
If yes, execute a comparative analysis. If there is none, see if a market for such a product exists. Why? If there is no market, then there is likely no need for it.
Market research is a fundamental step in ensuring a successful deployment of your tech startup. For one, it will enable you to discover the nature of your business.
Second, it will also help you identify your target audience. This step will then be your guide to making branding and marketing strategies, which we will discuss later on. Skipping this step is a sure way to doom your business.
3. Assemble a team of tech experts
In building a tech startup, the heart of operations lies in the hands of your tech team. Now that you have validated an idea, it’s time to assemble people who can turn that into a reality.
However, finding software developers or any tech talent, in general, is becoming harder to do in the United States. There’s a shortage of tech resources all over the country making it more and more expensive to build a software development team.
In this case, you can start by hiring a well-rounded developer. Then, you can scale up depending on the progression of the project. Or, you could also explore one practical strategy for many businesses today, which is to offshore your software development project. This business model not only offers cost-effective solutions but widens your candidate selection pool.
Read more on the Top 10 Advantages of Offshoring here.
4. Write a Product Requirements Document
A Product Requirements Document (PRD) is a written manifesto about the product and how it’s supposed to work. It answers the product definition, scope and limitations, use cases, user acceptance criteria, and more.
The PRD will be the basis for the design and development of a software product. So, ensure that the documents contain the functional and non-functional requirements. These details will lay out what users can expect from the product.
Jump to this entry as we discuss Technical Documentation in Software Development.
5. Build an MVP
Once you have created a product requirements document, it’s time to finetune it by building an MVP. An MVP or minimum viable product is the threshold of features, functionalities, and design that a product must have at the very least. This concept sets the parameters under which a product can operate. And as its name suggests, it should contain only what it needs to launch.
The MVP should answer the root of the problem. Once it is out in the market, you can start to iterate and attach additional features that users might need. Matt and Matt, Full Scale’s Founders, hosted a Startup Hustle podcast episode on this exact topic. Have a listen here.
You can also read more about MVPs here: What is an MVP? Dos and Don’ts of Building One
6. Create a Business Plan
A business plan is a blueprint for your company to secure revenue and sustainability. This plan includes business goals, timelines, marketing methods, finances, etc. As such, you also need to detail how you will acquire funding and profit. Listen to tips found in this episode of Startup Hustle.
Oftentimes potential investors require access to your business plan as well. A simplified version of your business plan would suffice in creating a pitch deck that contains all relevant business information.
7. Register your business and attend to the legal compliance requirements
After implementing your strategic plan and focusing on sales and operations, you need to comply with the local, state, and national business legalities. First, you must register your company. Then you must abide by the regulations for employment, operations, and procurement of resources.
The requirements will depend on where you live since it varies n the business location. Look into how our friends at Universal Registered Agents can support you.
8. Solidify your brand
When you have the foundational areas in check, it’s time to put additional efforts into building a solid brand that will make a mark on your customers. But, what does this mean?
A brand is an identity, image, voice, or personality that resonates with your market. Launching a brand that is relatable and recognizable is not accidental; Be sure your brand can stand against competitors.
9. Plan your marketing strategies
With a solid brand identity, you can strategically plan your marketing efforts around your brand and its audience. This endeavor allows you to understand your industry, trends, and competitors. With this knowledge, you can carefully and proactively target your total addressable market (TAM).
10. Make an exit strategy
An exit strategy or a fallback plan is common among startup companies. While we always hope for the best, a good exit plan can come in handy in case everything else fails.
On the other hand, it’s also great preparation for future ventures. Exit plans aren’t always bad! In fact, there are multiple kinds of exit strategies.
Start a Tech Startup Today!
Starting a tech company can be intimidating, especially for budding entrepreneurs. But as this article suggests, you don’t have to start big; you just have to start right. With the proper steps and team, you will be well on your way to launching your own tech startup.
However, one daunting challenge for many entrepreneurs today is the shortage of the tech talent market in the United States. Whether you hire directly or tap IT recruiters, it would still mean that you need to burn out some cash.
So, why not try a cost-effective alternative like offshore software development?
Hire Offshore Software Developers at Full Scale
Headquartered right here in Kansas City, Full Scale employs hundreds of offshore software developers for our clients through our offshore arm in the Philippines.
Aside from software developers, our talent pool includes project managers, QA testers, technical writers, content marketers, and graphic designers. Tell us how Full Scale can support your new company launch today.