Have you innovated dynamic, compelling tech and are now wondering what the next steps maybe? Tech is part of every product made in today’s fast-moving markets, but some things remain the same. Starting your own company requires structure, imagination and a drive to succeed. Some of us have been in this same place; here are the steps we’ve used to start a tech company and watch it grow from the ground up.
Steps to Start and Grow Your Tech Company: From Assessing Your Idea to Securing Funding
When it comes to starting a tech company, having a strong idea for a product is just the first step. It’s essential to assess the viability of your tech solution and determine if it has the potential to meet market needs and achieve user adoption. In this article, we will outline the essential steps you need to take to start and grow your tech company, from examining your tech and researching the market to evaluating competitors, building a business plan, and securing funding. Let’s dive into the first step: examining your tech to determine if you have the objectives to support it.
Step 1: Examine your Tech to Determine if You Have the Objectives to Support It.
Consider the tech you believe is viable for the market. It may still be in testing, but the first step is to determine whether or not the market audience will receive it, use it and recommend it. The tech industry succeeds when reviewers rate tech and spread the word. Determine whether or not your tech solution or concept is viable for the big game ahead. Further, examine the objectives in your mind that will take your tech to the next level of user adoption.
Step 2: Research the Market.
After confirming your intention to move into the tech market, you’ll need to research the market to discover if users will want this tech and, if so, how many users are in your intended market. You’ll need enough users to adopt the tech and drive profitability to your company. Research users to create a demographic image of those who have a need to solve or a want to fulfil; either way, your tech will need to address a valid need with an immediate solution.
Step 3: Evaluate Competitors.
Conduct research on any known competitors or those who may be in concert with a similar tech product in the process. This may be difficult to determine; however, you can use various websites and company affiliations to research tech in development. Also, search the U.S. Patent and Trademark Office (USPTO) to search for any recent patents related to the tech you’ve created. This search will reveal potential competitors or those who are already actively building a plan to launch tech. The way in which you build differentiation into your tech will assist in creating definitive and valuable tech with specific attributes that your competition will not be able to emulate.
Step 4: Build your Business Plan.
At this point, it’s all about the Plan. A tech company is not an inexpensive one to launch. Several high-cost initiatives need to be completed before tech is ready to market and funding is a large part of the picture. The good news is that building a business plan will position your company to solicit large resources for funding that propel your company toward the launch and operation of your company. The business plan has several components, beginning with an executive summary and ending with an operational plan; each has worth and will require time and attention to complete it. This is an expenditure of your time; however, consider the major source of funding just around the corner. Use this template business plan to start placing the details into the plan, as your tech company moves closer to the launch date.
Step 5: Evaluate the strengths and weaknesses of your plan
After you’ve completed the business plan, stop to review and assess the areas of strength within it and the weaknesses you’ve found. This plan will need to carry strengths without allowing weaknesses to fall into place at any point. Revise any weak sections and begin composing the executive summary that ties all of the elements together. Compile your market research into a succinct statement and add operational details. Further, after building a financial plan and forecast, it is essential to review it and detail any needed improvements. Lenders and investors will typically first review the executive summary and the financial plan; be prepared to defend the specifics they contain.
Step 6: Prepare for the Presentation of the Plan.
Investors have the goal of buying into a percentage ownership position within your company IF the business plan is attractive to them. Be aware that the funding offered may not need to be repaid; however, the investor will want a stake in your company. Lenders will offer funding, as well, with the proviso that it is paid off with interest on a detailed scheduled plan. No further requirement is added once the debt is repaid. Both offers of funding should be considered and examined to determine if the funding requirements are in line with your goals and objectives for your tech company.
The business plan is your calling card to major lenders and investors, announcing that your tech is viable and positioned to become extremely valuable. Choosing the right investor or lender will be a critical next step toward launch, growth and long-term success.
Conclusion:
Starting and growing a tech company can be a challenging yet rewarding journey. By following the steps outlined in this article, you can evaluate your tech idea, research the market, evaluate competitors, build a solid business plan, and secure funding. Remember that building a successful tech company requires determination, creativity, and a willingness to adapt and learn from challenges along the way. With the right mindset, resources, and a clear understanding of your market, you can turn your tech idea into a thriving business. Best of luck on your entrepreneurial journey!
A computer engineer by day, gamer by night. He grew up playing Mario and contra, and just like every other 90s kid, he got passionate about mobile gaming. He had done bachelors in computer science and played fps and MOBA games for years.
