Building a Tech Startup From Scratch: 5 Steps You Must Take
Having a great business idea doesn’t necessarily equate to running a great business. There are many steps that you need to take in order to even start, let alone become the new Bill Gates. However, thanks to just how quickly technology is developing, creating, maintaining, and profiting out of your tech startup is much closer than it used to be.
If you are looking into building a tech startup from scratch, there are 5 clear steps that you need to take. In this article, we take a look at how you can start with a good idea, and turn your business into an exciting new venture.
Step 1: Start with a Good Idea
The first step is to always think carefully about what you want to do. With the failure rate of startups being around 90%, many take a step back when considering their options. If there is so much risk in this venture, then why try to tackle it?
This is an important question to ask - and one that you must answer before diving deep into the process. In the long run, spending time to work on your idea will be more beneficial than diving headfirst and trying to figure things out as you go.
The reason for this is simple - thinking about your idea will let you assess all the risks, costs, and possibilities. Then, it will help you figure out just how far you can take your business - and whether you want to even do it.
All of this can be very exciting, but you should not let the excitement trick you. Carefully consider all options and do thorough research before you go further into the process. Research the market and see how your idea fits into it.
Then, edit and modify your business idea as you see fit. You are setting up the foundation for the whole process - and how you set it up will influence every other decision you make throughout it.
Step 2: Know What you are Working With
The next step to running a fantastic tech startup is to know exactly what resources you have at your disposal. Even when building a tech startup, you will need other technology to plan it out, maintain it, keep track of your funding, etc.
For starters, you will want to get the best business planning software possible. Having a business plan is - as we already mentioned - setting up the foundation. With a good idea and a plan to realize it, you will be unstoppable.
However, there are so many amazing tools you can choose from - and this is where trouble can happen. You will need to spend some time researching different tools, pouring over every business plan software review you can find, or just testing trial versions of tools already on offer.
Just like there are many different types of businesses, so there are tools for helping you run them. Make sure you know your business and your needs so that you can find the right tool.
Keep in mind - this might take some time to figure out. When you are just starting out, you might not even know what you want to do. The process will consist of a lot of trial and error, but it is an important step to take. In the end, you will be much better off in the long run - and your business will not suffer because of it.
The same will really apply to all tools you will use. Their purpose doesn’t matter - we recommend you do a regular audit of every tool. That way, you will know what works, and what needs to be replaced. This is important early on because not having the right tools can run your business into the ground just as easily as not having a good plan.
Step 2: Surround Yourself with a Good Team
However weird it may sound, the people in your business team will also count towards your resources. Therefore, make sure you surround yourself with people you can rely on - but who are also experts in their field.
Pay attention - this might mean that you will say “no” to some of your friends. If choosing the right people is a problem for you, then you will need to sit down and think about your qualities. What are you good at and what skills are you lacking?
Answering these questions honestly will give you a clear picture of who you want in your team. For example, at the start, you do not need people with the same skill set you have. You will simply do this job yourself. Instead, find people who will “fill in the gaps” and help you with things you are not too apt with.
For example, if you are not too keen on marketing, or you do not know any good practices to keep your social media presence active, you might employ people who do. Delegating tasks like this will not only give you expert help and advice. It will also serve to help you put in all your effort and time into your tasks and expanding your operations, instead of fighting a battle on every front.
Step 4: Location, Location, Location
Another step that you will need to take early on is the location - both physical and online. First, depending on the country where you live, your business will usually require a brick and mortar headquarters. This might be a place where employees come to work, or it may be your home office you use for legal reasons. Make sure you research the law requirements well before venturing any further.
When it comes to the offices, you will want to make sure you are not losing any money. A lot of people try to go big and end up going home. Instead of splurging all your hard-earned money on the location, try to start small and take baby steps. As you get the feel for the market you are working in, you will figure out just how to be closer to clients - and which offices to get.
Something similar applies to the internet too. However, here, everyone has the same chance to be close to their clients. All you need to do is a person who knows exactly how to help boost your website traffic, and how to keep the levels up day-in and day-out.
Again, if you do not know much about this, getting an expert on your team will be the best bet. An online presence is a great way to gain new clients - if you utilize it right.
Step 5: Expect the Unexpected
Usually, when a person is planning a business, they are encouraged to make the plan as short as possible. This is often known as a “business model canvas” in the industry. However, it is also not a bad idea to think about some roadblocks along the way.
First, understand that things will eventually go wrong. No one can build a tech startup from scratch without at least something going awry. However, it is how you respond to this crisis that sets you up for success.
It’s important not to be discouraged by setbacks. Make sure you push through them, and your business will oscillate on an upward climb. To better bounce back for them, create a plan that will take into account setbacks and roadblocks. This way, you might not be able to stop them, but you will be ready for them.
To summarize, building a tech startup will not come easy. However, if you have a good idea and you surround yourself with the right tech and the right people, you should be able to persevere. Take it step by step, day by day, and soon you will see your business develop and thrive.