Many young budding entrepreneurs dream of starting a tech startup.
Being your own boss, charting your own course, and leaving your footprint on your industry are just some of the motivating factors behind launching a tech startup.
But, like any journey, the road to starting a tech startup requires several critical components.
1. Broad Market Research
The best startups complete research to ensure that there’s a market for their products or services. Market research can also help you learn from your competitors and develop a better product.
2. Frugality
The product development stage of starting a tech startup can be pretty challenging when you lack funds and are bootstrapping. Here, avoid unnecessary expenditures and concentrate on developing a minimum viable product (MVP) at the lowest possible cost. Your startup could also start as a side project until you attract investment.
3. The Right Product
Safe Product
Countless successful startups in the wild with perfectly acceptable products fill a market need without being disruptive. You just have to take one glance at your mobile app store to see profitable startups generating revenue from mobile app clones.
Developing a safe product may not be exciting, but it can pay the bills and help your team gain invaluable experience for more creative endeavors in the future.
Disruptive Product
Some of the most impactful startups like Uber, Airbnb, Netflix, and Tesla disrupted their respective sectors by finding new and innovative ways to do things.
Of course, launching a disruptive product isn’t a straightforward task. You may find it harder to secure funding because some investors favor startups that play it safe. Additionally, you may face opposition from industry leaders who are content with the status quo. But the rewards of launching disruptive products speak for themselves.
Empowering Product
The philosophy behind customer empowerment is that you put your clients in the driver’s seat. For example, the disruptive marketplace Nobul, founded by Regan McGee, empowers home buyers and sellers by allowing them to choose from verified real estate agents with their commissions, histories, and reviews out in the open.
“It’s all about what’s right for the consumer,” Regan McGee shared with Cheddar News. “Do you want the most value-added services, or do you want the cheapest?” It’s all about being honest and open and consumer-centric.”
Usability plays a significant role in consumer-centric products. For example, if you’re launching a cryptocurrency app, offer more investment options than your competitors with detailed market insights. Additionally, provide multiple exchange rate options instead of forcing users to buy or withdraw crypto assets in only one currency. Finally, be completely transparent about your fees.
4. A Realistic Roadmap
Develop a realistic roadmap of your startup’s future based on your market research and your product’s potential. But stay flexible and don’t lose heart. Find ways to adapt if you’re not hitting your key performance indicators. Just surviving can also be a significant achievement for a startup in certain circumstances.
5. Hitting Funding Goals
After you have your product demo and business plan in hand, you can approach multiple funding sources to reach the next stage of your expansion. When just starting, you can pitch to an angel investor, family member, or crowdfunding platform to get going.
Use the initial funds carefully to expand your business and polish your product. With a strong team, metrics, and a product gaining traction, you can start building a relationship with a venture capitalist that matches your startup.
Set a strong foundation for your startup by focusing on your product and pacing your company’s growth. With the right ingredients in place, you may have what it takes to be a tech startup success story.