5 Steps To Building A Tech Startup

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5 Steps To Building A Tech Startup
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In an effort to achieve success for their tech
startup, most entrepreneurs search for top
startup business software that can help them
achieve that purpose. To run a successful tech
startup, you need to understand some important
issues. Issues like financing, legal, marketing
and sales, human resources, liability protection,
and more all come into play.
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Is The Tech Industry a Good Business For Startups
To Venture Into?
The number of people who go into entrepreneurship
is constantly rising. Early stage startups like
Facebook, Uber, Airbnb, WatsApp among others are
now multi-billion-dollar companies. Tech
industry has many prospects and is always
booming. People and companies are as a result of
necessity taking advantage of the latest
technology they can lay hands on. The aim is to
enhance their businesses. It then means that
there is high demand for tech solutions. And you
are in the right profession. And you should not
worry about needing so much money as a report
shows that a third of businesses started with not
more than 5,000. 58 started with a little less
than 25,000. (Source Small Business Trends).
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To Help You Build a Successful Tech Startup, Here
Are 5 Important Steps To Follow
1. Understand the challenges and demands
of starting a business
One thing that every business demands is
commitment. Some entrepreneurs fail to succeed in
their business because they never took into the
consideration the amount of resources, time, and
energy that goes into starting and maintaining a
business. You need to put in some effort to come
up with a unique and great product or service.
There is need to also have a strong vision and
plan for the business. Most businesses call for
sufficient cash and capital to start off. If you
need to hire people right away, its important
that you find the right people. And if you need
to put in more hours than necessary, you must be
willing to do so. There are times you will be
discouraged because of the number of rejections
you get. But keep at it and with consistency and
persistence, you just might become the next big
tech startup.
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2. Study Your Competition
Regardless of the type of business you want to
venture into, there is always someone or some
people already doing something similar. These
people are your competition. While having
competition may be perceived to mean lesser
business for your company, however it can help
validate the business you want to go into. If the
competition and market size is much, it means
that a lot of people are in demand of such
products or services. Take your time to learn
what you can about your competition so that you
can have an edge over them. But you also have to
be honest with yourself. If after studying your
competition and you cant find a loophole that
you can use as an advantage, you may want to
reconsider your plans of joining the league.
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3. Protect Your Business From Day One
If you have made up your mind to start a tech
startup, you should think about protecting your
assets by forming an LLC or corporation for the
business. Its risky to start your business
using the term sole proprietorship. This could
put your personal assets in danger in the event
that the business runs into debts or
liabilities. You should consider starting the
business as a S or C corporation, or you can make
it a limited liability company. If you start with
an S corporation, you get to gain favorable tax
treatment. It is also easy for you to convert it
to C corporation from S corporation. But that
will only be needed when you start bringing in
investors and issuing stocks. But dont be under
the delusion that because you filed for a
certificate of incorporation that your business
is totally protected from personal liability.
Its important that you have this knowledge
before doing any business that will put your
personal assets in danger.
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Conclusion
Building a successful tech startup can be
demanding. But if handled properly, its reward is
enormous. In all your business dealings, you
need to hire the services of an attorney,
especially one that specializes in startups and
entrepreneurs. When you eventually start getting
customers, dont forget to go all out for them.
They will in turn be happy to give you referrals
and rave about your business to their friends and
families. If at any point you feel like giving
up or feel the need to take a break, take the
break. But bounce right back as soon as you can.
And remember entrepreneurs who have failed
before have a 20 chance of attaining success
than first timers who only have 18. (Source
SSRN)