ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Biggest Challenges Faced by Tech Startups

Updated on December 8, 2015

Technology is becoming the industry of choice among today’s aspiring business owners. It’s a fast paced ever-growing field, attracting investors and venture capitalists alike. When executed correctly the potential payout can be enormous.

There are very obvious reasons why individuals decide on launching tech startups, however, few entrepreneurs realize how many risks that are involved in the competitive world of technology. Here are a few challenges you’re sure to stumble upon, and a few tips to overcome them.

Technology is constantly changing at a rapid pace, a great deal more than any other industry. Tech entrepreneurs are under immense pressure to beat the competition to a solution. The window of opportunity to execute on an idea comes and goes in the snap of a finger. “If you feel you have a solution to a problem not addressed yet on the market, don’t be fooled it won’t be long before someone else does, too” said Andrew Van Noy, CEO of e-commerce solutions provider Warp 9.

Being first doesn’t always guarantee that you have won; it’s better to get feedback on your idea from friends and relatives. Speaking with successful founders and leaders allows you to get a sense as to how hard the process was for them. The most depressing sight is seeing a new entrepreneur throw away their idea because they thought it would be easy.

Security, cyber security to be specific is one of the biggest challenges you’ll face, not only in the beginning stages of your company, but continuously throughout, especially if your business becomes successful. While the majority of businesses rely on the web to a certain extent, it’s obvious that startups will face bigger cyber security threats than a retail store. The majority of tech startups deal with the B2B (business to business) market, meaning other companies are relying on yours to make sure everything runs smoothly.

The easiest way to protect your business against a cyber attack is to have an extensive firewall and antivirus software system in order to reduce any type of cyber risk. You should also train your employees to correctly deal with sensitive client information. Using a secure line to access private company data will only insure extra protection.

Partnership in a new business is a difficult, but necessary decision. New business owners presume partnering with a similar company is the best way to grow, however directly attaching your business to another can ruin your operations. “I have seen many companies develop entire product lines and build services and solutions based completely on emerging or popular technologies. When those [fads] go away, everything dissolves.” Said Chris Miles, CEO of business Miles Technologies.

The best companies to partner with are those in your field who have a proved an established track of success and good chances of longevity. Launching policies is which moderate risks in order to guide major decisions can be the difference between success and failure. A startup business is a serious matter, you don’t want to “throw the dice” and hope for the best.

Customer retention continues to be an incredibly important aspect for developing a sustainable business. According to Harvard Business School, “increase customer retention rates by 5 percent increases profits by 25 percent to 95 percent.”

An easy way to get a customer to ignore you is if you don’t stand for anything, 64% of consumers stated that shared values was the primary reason they had a strong relationship with a business. If you want loyal customers it is necessary that they care about you!

Last but not least it is important to surpass customer expectations, the earlier the better. “Under promise and over deliver” is a great phrase to keep in the back of your mind at all times. Setting expectations early on in your business and a tad lower than you can provide enables you to ensure your clients are happy. Oftentimes, companies forget how important going the extra mile for your customer really is. By doing this, you have the opportunity to build serious long-term loyalty.

Launching a tech company is one thing, successfully doing so while grown and expanding that company is an entirely different challenge. The list of complications you’ll face are endless, however with patience, determination, and dedication to your business will ultimately decide your chances of success

Source
Source

What percentage of startups do you think fail in the U.S.?

See results

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)