Ready to start your own tech company? Congratulations! Just as you brace yourself for the rewards, prepare yourself for the challenges ahead.
All tech entrepreneurs hope their startup will grow and join the league of Silicon Valley giants. Even with all the scary statistics (20% of all US-based startups crumble in their first twelve months of operation), many hopefuls set up their companies and work hard. They pretend not to notice all the challenges ahead. They focus on their goals while trying to figure out the best way to build and develop their tech startups.
If you are trying to set up a tech company, it is important to know all the things that can go wrong. This way you will learn how to avoid all the mistakes other unsuspecting entrepreneurs made. You will also learn more about the risks that are worth taking and those that are not. Don’t take story-based publicity for granted. Actively encourage local journalists to run news reports and feature stories about your innovations. For instance, if your headquarters is in a large West African city, you can try to get the attention of journalists in the Nigeria news industry, especially as that might attract the attention of bigger news agencies such as the BBC, CNN or Aljezera.
In this article, I will enumerate the most common mistakes tech founders have made. I will also outline five unbeatable business management tips and tricks that will help you avoid these mistakes.
Mistake #1: Leaving Out Your Story (Or Not Making Your Story Convincing Enough)
Studies have shown that the human brain evolved to learn and remember through stories. This explains why advertising and marketing are different today. If you want to sell a product, wrap it in a convincing story. It’s as simple as that.
Most tech startup founders have made the mistake of assuming that customers will find them and invite others to patronize their products and services too. The world is filled with so many tech products and apps, tech companies are adopting smarter strategies to get the attention of consumers.
Jettison the mentality of letting your quality product speak for itself. Go out of your way to tell your story. You can also hire a digital marketing team to set up a vibrant about us page on your website. You can also publish your profile on and products on Wikipedia and other resource pages. If you can afford it, hire a fantastic PR company to help you the reach people who might need your products and services.
Prioritize external communications. Do what you can to reach your target audience. The blog section on your website must contain only information that will benefit your target audience. That way you’ll get a lot of traffic and new customers as well.
Mistake #2: Failing To Conduct Adequate Market Research
So you’re in your eureka moment and you are itching to share your fantastic invention with the world. That’s understandable. Before you go ahead, it is important to carry out intensive market research.
Don’t get discouraged by this tip. But if your tech product or services aren’t meeting anyone’s needs, it will be dead on arrival. A well-conducted market research can do the following:
- Save you millions of dollars and time. You might have a groundbreaking idea.
- Help you determine if there is enough demand for your products
- Help you forecast demand.
- Help the business plan well.
To learn more about the benefits of market research, click here.
History has witnessed many companies that have flooded the market with products nobody needs. Successful tech entrepreneurs begin by paying attention to their customers’ needs and desires. Not only will this them develop a comprehensive business model; it will help them create more customer-centric products. If you want your tech products to be in demand, then conduct adequate market research.
Mistake #3: Rushing Into Business Expansion
There is a time for everything under the sun. A time to prepare for business expansion and a time to actualize the expansion of your business.
Many tech startup founders have rushed into expansion without establishing the important things needed to protect their companies. Before you commence the business expansion, tick off the items on this important checklist:
- Is cash readily available?
- Do you have access to credit?
- Are your important management staff and workforce dependable?
- Are your supply channels fortified?
- Do you have access to equity? etc.
Tech startup founders who heeded expert advice never expanded at the wrong time. A good CEO understands the benefits of gradual progress. So don’t be in a hurry to expand.
Mistake #4: Ignoring Expert Advice
Resist the temptation to be a know it all. Many startup founders make the mistake of neglecting the advice of business experts. To succeed in business, you must be open to new ideas. Listen to the experts. Surround yourself with certified accountants, lawyers, business strategists, financial forecasters and so on. They’ll tell you when the trends are changing. They can give you advice that will save you a lot of headaches.
Research has shown that some of the most successful tech startups have renowned business experts as board members and adviser. Successful tech startup founders are often eager to learn from experienced business people.
Every successful startup founder has a mentor. If you don’t have a mentor, get one. Not only will a business mentor help you win bigger contracts, they will teach you much more than you’ll learn from books and even an MBA.
Don’t underestimate the power of networking. You’ll never know who you’ll meet and how they can change your life. Go out of your way to attend tech business conferences. Don’t be afraid to contact the right people. The right business connections can give your business the boost it needs.
Mistake #5: Underestimating The Importance Of Task Delegation
Successful tech entrepreneurs are excellent at gauging the strengths and weaknesses of everyone in his company. He/She is smart enough to assign tasks to team members based on their strengths.
As much as possible, resist the urge to work yourself to death. Trust your team members to shoulder some of the responsibilities. If you lack the required skill needed to complete a job, don’t hesitate to delegate the task to a skilled team member.
Business experts often stress the importance of working as a team. Businesses throve when every team member is allowed to put in their best. Such a culture will create a healthier work environment and reduce stress in the workplace.
Select your first ten staff carefully. Don’t hire anyone based on sentiments. According to Steve Jobs, the success of every tech company is dependent on the startup founder’s selection prowess.
Don’t be afraid to delegate tasks to your team members.
Conclusion
Entrepreneurship comes with its fair share of excitement and challenges. As much as you need passion and excellent networking and management skills, you also need long-suffering. All you have to do is keep your eye on the goal.
