From the entertainment industry to the corporate sector, the importance of technology has increased manifold in recent years. Whether it is your social media accounts or the internal working of your mobile devices, technology has made its mark. Due to the all-encompassing features, the demand for a tech start-up has increased.
The Reason Behind the Rapid Creation of Tech Start-Ups
Several factors have caused an upsurge in such ventures. Some of these are the following:
Revolutionizing the Communication
If your business has a combination of an in-house and offshore outsourced team, then technology has done wonders when it comes to their communication. From sharing live updates to collaborating on different projects, the benefits of technology are multi-dimensional.
The COVID-19 pandemic was a litmus test for the tech industry.
Improved Graph of Customer Service Relations
A customer can now access the required information about a specific product from the ease of his home through technology. This will reduce your duties and stress level so you can focus on other aspects of business for increased productivity.
Saving time and effort
Technology can help formulate data plans with increased efficiency. . One such example is that of the technological defense security systems. The tools used for cybersecurity protect both your consumers and business from hazardous threats. Hence, the mushroom growth of technology start-ups can be attributed to its time-saving feature.
Have you ever wondered why the success rate of start-ups is so miserable that almost 90% of them fail? Is there any formula to avoid such a disaster? If you are new to the tech industry, you must keep in mind the mistakes committed by some promising ventures.
Let’s look at some of the most common blunders by tech start-ups.
Not doing Your Homework with Your Tech Start-Up
If you think that your brilliant idea alone will help you sail to the shore of success, then you are in a big delusion. You will likely put your start-up in dire straits if you neglect to give due attention to researching the facts. Also, if you do not keep a keen eye on your competitors, you may find yourself in a disadvantaged position with an eye toward failure. If you fail to give due attention without doing proper research regarding the market, you cannot transform your business vision into a successful business venture. Hence, keep that thing in mind “The dog ate it” excuse is never going to work.
Keep the below-mentioned points in mind to nip that evil in the bud.
- Define your potential clients.
- Identify your market.
- Chalk out your go-to-market strategy.
Thinking You Don’t Need Anyone else
If you desire to be the sole owner of your start-up, this dream is achievable. Around 69% of start-ups claim that they started with the idea of only one entrepreneur running the entire setup. Hence, this testifies that it is not something unusual. However, you must remember that you cannot become a Jack of all trades.
If you are a beginner, the initial stages of tech start-ups may seem challenging. It entails the planning phase of all your future projects. In this case, your social contacts can come to the rescue. You need to make the most of other people’s expertise.
According to Mike Jackowski from ASPER BROTHERS, a company that serves startups from around the world, – “The most common challenge we see with our clients is building the right team. Every company is about people. But a young company is almost just people, and it’s the right team that makes the difference between success or failure.
Financial mismanagement with your Tech Start-Up
Under-estimating the capital requirements
Start-up leaders mostly imagine the best-case scenario regarding finances. Positivity has its place, but those leaders must not overlook the challenges that come along the way. When it comes to capital, few entrepreneurs think that they can maximize profit through small investments. This effort of minimizing equity dilution sometimes acts as a forerunner of their failure.
Being Irresponsible with the Cashflow
If you have not specified the budget for different departments, you may land yourself in trouble. Handling money without planning is a death sentence for your start-up if you have limited financial resources.
Therefore, if you plan to hire developers and build a team, be sure that you are not facing financial constraints. Otherwise, you may end up in a half-finished project in the market along with shattered nerves.
Effective budget management with appropriate and planned investment at the beginning is the lifeblood of any tech start-up.
Too Rigid In Your Brand
If you are not flexible in adapting your start-up to the latest trends in technology, you’re doomed to fail. You must be prepared to pivot your business as per the demands and requirements of technology. When dealing with your competitors, you can turn this adaptability into one of your assets.
Nokia’s transformational journey can be testified by its initial years as a rubber boots manufacturer to a reputed telecommunication company.
Odeo started its journey as a podcast publishing website. With the changing trends of the tech market, it transformed itself into the famous social media network known as Twitter.
Waiting too long to launch the product
Is the wish of your software to become error-free acting as a stumbling block in its launch? The truth is that your software cannot be completely flawless. By delaying the launch, you are under-estimating the most precious asset of all start-ups named the user feedback. Instead of waiting, launch immediately with an effective feedback mechanism. All you need is to shun the fears of failure. How you learn from your mistakes and pick up after failing determines your success.
The following points may come in handy:
● Set up an email address. Customers will give their feedback via email.
● For an improved customer service experience, phone calls or a live chatbox should also be provided.
● The interface needs to be user-friendly so that the user can state the problem without any hassle.
● Your developers must be competent enough to fix the bugs and respond to customers accordingly.
Putting Too Much Faith In Consumer Feedback With Your Tech Start-Up
For becoming a successful entrepreneur, you need to differentiate negative feedback from a positive one. It requires a lot of confidence. Prepare yourself for setbacks. Do not pay heed to the reviews saying that you won’t be able to make it.
However, you may also experience positive feedback from your customers. You may hear exaggerated praise for your products. If what people say in their feedback is not reflected in the sales of your product, then you must not overlook that all that glitters is not gold.
Do not over-value or underestimate your product. It is better to maintain a balance between the two extremes.
Not meeting Customer’s Expectations
If your business has not come up to the expectation of customers, there is a high chance of your customers parting ways. The percentage of the indifference of staff and management with poor customer service is about 64 %. By anticipating the customer’s needs, you can strengthen your customer relationship.
To Wrap it All Up on Your Tech Start-Up
Technology has become an essential component of every business. It has the potential of increasing the success rate of a business exponentially. But, make sure you do not fall prey to the most common mistakes while taking your business to the heights of productivity.