You've got a great idea for a tech business — but how do you go about turning it into a reality? We've put together our 4 essential steps to help you start a successful tech business.
Starting up a tech company boils down to funding, skill, connections, and the right marketing strategy. So, you’ve got the idea, but where do you go from here?
Here are 4 essential steps you should follow as a tech entrepreneur, to ensure the success of your new start-up business.
4 Steps To Starting A Tech Business:
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Funding/ investment
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Network with other tech businesses
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Hire a strong team
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Focus on the right things
1. Funding/ Investment
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 also the life it has.
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 the 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.
Not only is Wales an increasingly attractive base for start-ups, but it’s also home to the technology centres of globally recognised brands such as Aston Martin, Airbus, Thales, BT and Sony.
2. Network With Other Tech Businesses
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 who 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.
3. Hire A Strong Team
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.
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4. Focus On The Important Things
When starting a tech business it can be easy to lose focus and attention on the important things at the beginning.
Avoid constant changes to your product as this will make you lose touch with 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 mean 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.
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And there you have it! Follow these 4 steps and you’ll be on your way to starting a successful tech business.
We are Tramshed Tech: a startup ecosystem home to 50+ companies ranging from pre-revenue start-ups to scaling businesses with 600+ registered members from the digital, creative and tech communities. We’re currently based in Grangetown, Cardiff Central & Newport, as well as Barry and Swansea.
If you’re interested in joining us at any of our locations, please don’t hesitate to get in touch.
Written by Kate, for Tramshed Tech.
