Biggest Challenges Faced by Tech Startups
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