How to get your tech start-up off the ground
Launching a new business can be an exciting prospect, but it can also be stressful and challenging. You will need to be resilient and pragmatic to go through this experience.
The technology industry is a rapidly growing space, especially in the UK. Recently, the UK tech industry surpassed a valuation of $1 trillion, making it the third country in the world to reach this milestone. This makes it a crowded market, so it is important to stand out from the crowd.
Once you have a solid idea, it can be hard to know what the next steps to take are. Let’s look at some things you should think about to get your tech start-up off the ground.
Growing an idea into a business
Often, our loved ones can be our harshest critics so turning to them when you first have a spark of an idea can be really helpful. They will give you feedback to take on board and you can start to see whether your idea has legs.
You can then start to expand on this and conduct actual market research on potential consumers. This will further solidify whether your business could be successful.
Use this research to create a business plan. You will need to consider finances, any manufacturing costs, staffing and other things that may hinder your initial growth. Once you have this, you can start to approach investors.
Finding the right investment
You may have heard stories about businesses creating an app, for example, and it becomes an overnight success with loads of customers willing to download and pay for it. Unfortunately, these scenarios are rare.
Approaching venture capital firms for a loan is a common route and one that can help your business to be successful. In return for some money, the firm will take an ownership stake of your business as well as an active interest to help you succeed.
You will likely need to do more than one round of venture capital funding. Initially, you will receive seed funding to develop your business plan as well as a minimum viable product. As your business grows, you will be able to ask for larger amounts of investment because your business will be more credible.
It is important to have a solid legal team on your side throughout the fundraising process. They will be able to guide you and protect your business’s interests.
Managing your business to success
From the start, the way you manage your business will be crucial. Paperwork and financial record keeping may seem time-consuming but keeping them correctly is a legal requirement. If you set yourself up with good habits early on then you are likely to continue this in the future.
Keeping an eye on the market is a good practice to instil as well. This way you can answer any questions from potential investors and customers with confidence, fostering a sense that you are an expert in your field. This also means that you can respond quickly to changes and be ahead of your competition.
