12 Oct 2021
It goes without saying that for any start up to work, it must have sufficient funds. In fact, funding is the second largest reason why start ups fail as they simply run out of cash. Making sure your tech business has sufficient funding is therefore crucial in determining not only the growth of your business, but the life of it.
If you’re a tech start up, Wales is where you want to be right now. The Economic Intelligence Wales 2020/21 annual report illustrates Wales’s resilience and agility over the past eighteen months in the face of Brexit and COVID-19. In Q1 2021, business starts in Wales were up 31% on Q1 2020 (14% in UK) with business closures down 1% in the same period compared to an increase of 7% across the UK.
The tech sector in Wales contributes an estimated £8.5b to the economy, employing over 40,000 people and housing 3600 tech businesses across its six cities. With £100 million of venture capital investments in 2019 alone, it’s not surprising that Wales is now considered one of the best bases for tech start ups in the UK.
In the world of tech, there is always something you can learn from someone else. Don’t underestimate the incredible support available from the entrepreneurial ecosystem.
Start networking with other tech experts and those that have been in the industry longer than you. You will be pleasantly surprised at the valuable lessons you will get from their experience. Always be on the lookout for partnerships, as this will help you keep up with the ever-changing business environment.
A great way to build a reliable network is through startup programmes. One of the many business support schemes we run here at Tramshed is the Startup Academy. The twelve-week programme covers all aspects of building a successful business from idea generation and planning to finance, product development and team building.
Human resources play a significant role in your tech business. You want to hire professionals in your field who not only understand the specifics of your company but also share your vision. In addition to this, you will also need to build up a robust customer success team that will ensure your customers always get value for their money.
Many companies fall short because they have underinvested in customer success. Sales and customer success headcount should be hired and matched at a one-to-one ratio. Large businesses have hit big lows after a year or two because they continue to invest in sales without building a corresponding customer-success team.
When starting a tech business it can be easy to lose focus of the important things at the beginning.
Avoid constant changes to your product as this will make you lose touch of your product’s Initial focus and value.
The tech business is an ever dynamic industry and you must expect change along the way. Rapid technological change and advancements means you must be on your toes to keep up with every development and respond to feedback.
Starting a tech business can be easy, but the strategies adopted in the process will determine the success of the business. With the right focus, undeterred vision, and good partnerships, your tech business could be well on its way to success.
Written by Kate, for Tramshed Tech.