9 Steps to Start a Tech Company
Decades of innovation have led many industries to take advantage of technology and integrating it into business processes. With the great demand for the most innovative solutions available in the market, entrepreneurs are exploring a new business venture—tech solutions. Because of this, many entrepreneurs wanted to start a tech company. Thus, the emergence of the startup trend in the IT industry—small tech startup companies providing disruptive solutions or creating software for their clients to use.
At Full Scale, we help startup companies grow their businesses. We provide software developers quickly and affordably to our clients so they can scale up and succeed.
We’ve done that before and getting to where we are now has not been easy. There are so many factors to be considered: budget, looking for clients, hiring developers, and making sure to provide exceptional service.
To help you avoid all the challenges we’ve been through, we would just like to share some tips on how to create a tech startup company.
9 Steps to Start a Tech Company
Not all tech startup companies start the same. Some came out of epiphanies and some are results of pure serendipity. Regardless of how a company started, its lifespan heavily relies on how it is planned and executed. For this one, let’s start by saying that there is no perfect formula; it’s not a “one size fits all” kind of thing. But there are some guidelines to note when starting your own tech startup company.
1. Think about it.
Take some time to think about starting a tech company. Why? Sometimes, not starting might be better for you. One reader of our Amazon best seller Million Dollar Bedroom mentioned that it helped him assess his decision of not starting a company.
Generating ideas on building a software product or a business can get very exciting. But once you break it down into parts and see that it’s not viable or the market for it is impenetrable for newcomers, then why carry on?
On the other side, your idea could also be a product of one great epiphany that will help people solve their problems. So if your idea solves a problem and improves people’s lives, you’re on to step number 2!
2. Define a minimum viable product.
What does a minimum viable product mean? We’ve defined it in a separate article about building an MVP as “the most basic functional version of your product”. Your minimum viable product should possess all the basic features it should have for the problem you’re trying to solve.
The most basic example is a candle. It illuminates any dark space when electricity wasn’t available yet. But as innovation continues, we have moved on to LED lights, that’s not only more powerful than its predecessors but also saves more energy.
This leads us to the next step: validating your MVP.
3. Validate your MVP.
There are many ways to validate your MVP. As mentioned in the first 2 steps, you’ll know that your product is valid if (1) it solves a problem and (2) it improves people’s lives. One reason why these factors matter is to determine the value of your product.
Are people willing to pay? Are investors willing to invest? Do you see yourself profiting off of the product in a few years? Another thing to consider with your product’s validity is competition.
Listen to the Startup Hustle podcast Ep. 4 – Competition
4. Consider your competition.
Competition is often perceived negatively. However, competition plays a huge part in building your tech startup. It helps you validate your product. If you find competition in the industry you want to penetrate, then that makes your product valid. Market size and competition means that there is demand.
You could also learn from what they do or what they did not do.
Now don’t get cocky. Ask yourself how far along these businesses are. If they’re already a thousand notches far from where you are, you might have to reconsider entering the specific market or go back to step 1.
5. Understand the basic business workflow.
Part of the hustle is knowing how to handle a business. At this point, focus on organizing your workflow to manage your business.
Workflows are the ways people get things done. You’ll have to define tasks and assign people to do them. No matter how much effort you put into your business to cut costs, you can only do so much. Eventually, you’ll have to get people to work for you.
Through this, you’ll be able to determine the flow that best works for you and your people. You’ll then be able to identify your scope and limitations as a business.
6. Always have a plan.
Benjamin Franklin once said, “If you fail to plan, you are planning to fail.” Make sure that you always have a plan to execute whenever needed. Therefore, you have to make sure that you always have something to fall back on.
Now, it might be too early to do this but in building a tech startup company, have yourself an exit plan. Not that you are led to misery but just in case anything happens.
To avoid failure, market your company or product. This starts by understanding your industry and then marketing strategically.
Many startup communities exist nowadays. There could be one in your area. We recommend that you interact with people within the community not only to learn but also to get potential clients or business partners.
8. Fight adversity.
Younger companies are volatile and more prone to failure. To avoid this, know how to manage risks or have someone in your team to do this. By carefully assessing failures, you’d know when it’s time to put the exit plan on the deck or play the game with much more drive. Know that there are failures you can still bounce back from.
From there, pick up the pace and never lose focus. Lead the vision of your product. Get all the help you need and spend within your capacity. Again, having a master plan for everything always helps. And speaking of help, you can lead your product to success when you hire the best team.
9. Hire the best team.
We’ve been saying this in the previous items: building the best development team is a key component of your company’s success. Focusing on the most fundamental trio in business organizations—marketing, accounting, and operations—really helps.
However, hiring can be a tough job, especially for companies in the tech industry. Aside from the shortage of software developers in the United States, the salary for the available remaining developers may not be as affordable as you wished they could be—so unaffordable that at the starting point, it’s already a risk in sustaining your business.
Where can I hire software development teams?
You have come to the right place. We at Full Scale help tech startup companies grow by providing software developers quickly and affordably. How do we do this? We do this through offshoring.
Offshoring is an industry practice that allows a company to extend its processes to a different territory. This is mostly done because of a major advantage in costs. To put it simply, software developers in other countries offer the same services at a much lower cost. This is explained by the economic difference among the territories. Besides, it offers opportunities in countries that have a surplus of software developers.
We have a pool of talented and experienced software developers in Cebu City, Philippines. We can help you kick off your startup tech company by providing software developers to be a part of your team.
Our Guided Development process allows you to extend your operations here in the Philippines while still having the leadership and control for your product.
Get a free consultation when you contact us or get additional info on offshoring and startups when you listen to the Startup Hustle—a podcast for entrepreneurs. For more information, you can visit our website now.