The evolution of technology today occurs at an alarmingly fast rate. Just within the last ten years, technology has grown, transformed, and is almost unrecognizable to what it was before.
Many would attribute that growth to the boom in the business, a technological gold rush if you will. With more and more tech startups on the market, more entrepreneurs are vying for their slice of the pie. Indeed, running a tech startup involves innovation and keeping your business a cut above the rest.
Entrepreneurs looking to build or even grow their tech startup are likely to come across challenges on the road to success. Managing a business often means juggling marketing, sales, and just about everything else at the same time. A lack of understanding on how to handle issues as they arise can send your startup to an early grave. Here are five challenges that tech entrepreneurs could face and how to overcome them.
A Faulty First Step
Trends shift rapidly, especially in the world of technology. If your startup isn’t able to reach its objectives in time, you can lose out on a lot of profit. In a tech startup, the best thing to do is get back on your feet and try, try again.
“A faulty first step can cause entrepreneurs to remain idle too long or stop work altogether because they took that loss far too seriously. Doing this may only exacerbate the already negative situation. Therefore, entrepreneurs should know how to learn from their mistakes, adapt their business to the new circumstances, and move forward.” — Jeremy Pendercki, Marketing Specialist at WoWGrade writing service.
Solution: The only way to recover from a faulty first step is to be tenacious. You must continue to try and not throw in the towel until your business succeeds. Consider startups like Google and Facebook that failed and then restarted again after which the company finally took off. Know how to recover from failure and don’t give up.
The Startup’s Ecosystem
When your startup finally takes off and starts to grow, it will all happen so quickly that you might get whiplash. To ensure the long-term success of your startup, you need to create a stable ecosystem for everyone to thrive within. That ecosystem includes infrastructure management, the company culture, employee requirements, and executive decision-making.
“Tech entrepreneurs should have well-defined goals for their startup and a clearly outlined company culture. They should also have a way to measure employee performance, as well as a plan to maximize and optimize employee skills.” — Maria Hernandez, Marketing Strategist at Supreme Dissertations.
Solution: Managing a startup’s ecosystem can be one of the biggest issues for an entrepreneur. One of the best solutions would be to find a mentor or partner who can guide the way. Entrepreneurs should also create a business and governance plan that addresses goals, company culture, decision-making procedures, and expectations of employee performance.
Entering the Marketplace
For your product or service to succeed, there needs to be a place for it in the market. Fortune listed the top reason for startups failing is that they developed products no one wanted. Tech startups will often struggle to incorporate their product into the market when it lacks tangibility. Consider that tech developments such as voice control and artificial intelligence still only have a minimal impact on the market. While they have plenty of investment and development, they aren’t entirely tangible yet, and that stunts their advancement.
Solution: Ensure that your product or service can incorporate itself well into the market. Conduct plenty of research and then conduct more research after that. Guarantee your product’s success by highlighting a need for it in the market. Avoid the intangible technology limbo by providing a product or service that people need and can use now.
Managing Cash Flow
Don’t think that it won’t happen to your startup, because bad money management runs rampant in the tech world. Perhaps you’re finally starting to see some profit from your product or service, the market looks good, and then all of the sudden crash. Starting strong in the marketplace doesn’t assure that your startup is in the clear. As income increases, expenses do, too. Tech entrepreneurs looking to stay in the black should keep an eagle eye on their money before it’s too late.
Solution: Avoid your startup going kaput by carefully managing your finances. Keep track of your profits and losses, don’t ignore your taxes, and always have a backup plan. If you aren’t confident in your ability to manage your finances alone, hire a financial consulting firm. Great ideas won’t save you from a loss of funding or bankruptcy.
In a startup, finding the right candidate for a job can be quite an obstacle. With all of the competition out there and the globalized nature of tech, hiring isn’t always easy. The reality is that finding the right personnel for the job helps the startup deliver on their promise.
Talent also helps with innovation, which is vital to the product and the startup’s overall success. More and more businesses are learning that sometimes the best person for the job is on the other side of the country or globe.
It is also imperative to identify the right situations to delegate projects such as content creation and marketing materials, rather that hiring an entire in-house team. There are now many products and services like Studicus and Grammarly that can assist you with writing and editing your marketing material.
Solution: Define your hiring process to ensure that your candidates can meet expectations and uphold the company culture. Don’t ignore what other tech startups are offering. Provide a competitive offer to any prospective employees. Last but not least, embrace the idea of working with a remote team. Startups that have a strong company culture and effective remote teams are more likely to succeed.
Useful Tools For Efficient Marketing
Tech entrepreneurs should also know how valuable writing and marketing is for their startup. Whether you’re writing a letter to possible investors or typing up a job listing, good writing makes a world of difference. Here are a few tools that can help you with the task at hand.
This editor app goes beyond spellchecker to check your style. With Hemingway you can organize your thoughts better and get your idea across more clearly and efficiently. Ensure that your writing is readable and easy to follow with the Hemingway app. While the desktop version costs $19.99, you can snag the app version for free.
If you’re a solo entrepreneur, this marketing app will be valuable to you. This app helps define your market niche, analyze competitors, find your target market, and explore advertising options. Marketing Plan App takes all of your information and creates a comprehensive, executive summary that you can digitally export
Back To You
There are plenty of possible pitfalls that come with the territory of being an entrepreneur. Although being aware and prepared for them can help you solve the problem when it arises. Even though startup success statistics are relatively gloomy, that doesn’t mean that your startup can’t be the exception to the rule.