The tech industry is one of the most exciting and fast-paced industries in the UK. Investors currently love tech, and it’s no surprise why. After all, there’s so much untapped potential and a number of markets that we’ve not even begun to explore yet.
But, if you have a ground-breaking idea, and one that’s definitely not been attempted yet, how do you turn an idea into a fast-growing tech business. In this post, we take a look at how you can convert dreams into reality.
Post-Brexit Boom
Although 87% of tech start-ups were against the idea of the UK leaving the EU, the UK’s historic decision doesn’t appear to have hampered investment in the UK’s tech industry.
As such, there are a great number of reasons why UK entrepreneurs should remain positive. Firstly, investment doesn’t show any signs of slowing, which should lead to a buoyant tech start-up market for the next few years at least (more than long enough to get your idea off the ground).
Secondly, the new EU directive on the security of network and information systems means that tech companies will improve their communication with each other, ensuing that these exchanges are co-operative and safe in nature. We may have voted to leave the EU, but we won’t be doing so any time soon – take the most of the advantages while you can.
Make it Lean
Your second consideration should be how lean you can make your start-up. By making your start-up as lean as possible, you’ll save huge amounts of money on costs. If you don’t need another permeant, full-time member of staff, then you shouldn’t be using one.
So think about ways you can condense and implement your tasks. One way that you can do this is by opting for subscriptions, not simply implementing an out of the box product. This way, you’ll simply pay a fixed amount for your subscription, and you’ll never have to worry about maintenance, upgrades or surprises.
Likewise, if you’re getting other people involved, contract in instead of outsourcing. Contracting someone into your business through a site like PeoplePerHour means that they’ll become more invested in your business, with a greater focus on the end product. By outsourcing instead, you’re sending your company out of control. If you have to outsource, add a clause to the contract where the freelancer will only be paid when you’re happy with the quality of the work.
You’ll also need to consider the scalability of your business. If you can start small and lean, you’ll be able to scale your business easily without impacting your profitability.
Consider Competition: it’s Not a Bad Thing
Although large sections of the tech markets are completely untapped, this doesn’t mean they’re the only areas you can explore. After all, some competition is never a bad thing.
You can see what the standard of the work out there is when you have direct competitors, and you know exactly what is required to beat it. For example, when David Lester founded citrusHR, he found a way to differentiate his company, and offer a full service rather than a simplistic employee database service.
Competition shows you that a market is strong and worth investing in. Your challenge (and it’s one that you should relish) is making your business stand out in a crowded market. Don’t see competition as a barrier, see it as an opportunity.
How Do I Finance it?
We’ve saved arguably the most important consideration until last: financing your business. If you don’t work out how to finance your business properly and attract investment, then you’ll struggle to get it off the ground.
Although you can overcome cash flow issues thanks to purchase order financing (you can read this guide by Marketinvoice for more information on what this is), cash flow problems can haunt a business, preventing it from scaling.
So, cut cashflow issues off at source and invest valuable time attracting investment before launching your business. There are several great posts, such as this one that show all the various ways that this is possible for tech companies.
You cannot invest too much time in securing funding. The more you secure, the more you can invest in your tech start-up and the more chance it has of being successful.
