The technology field is a competitive and volatile one, with many companies succumbing to the financial dangers of the market every year. With about 50% of companies closing up shop permanently within 5-years, it’s easy to see why planning the growth of your business is so important.
When it comes to functioning as a technology company in the modern day, there are an unsettling amount of variables you must prepare for, or at least consider, to ensure your tech company is successful in the way you envision it to be. From initial startup to international conglomerate, there are guidelines on some of the actions you should be taking to grow your technology company the right way.
Plan Way Before the Beginning
No great tech giant was planned and concocted overnight. Big names like Microsoft and Samsung were likely thought of a fair while before the company was actually registered. Regardless of the fine details, the main advice remains; don’t be rash and build a shaky tech business foundation, plan out your vision carefully first.
Some great questions to ask yourself, and your team, before going ahead and doing anything are as follows:
- What will be the company’s main product and/or service?
- How are you going to get the funding necessary to begin day-to-day activities?
- Who is going to be carrying out what work?
- How are you going to make an impression on investors and eventually pay them dividends?
- What is the company’s main objective and its mission statement?
The above are just some important questions of many; however, the point we’re trying to illustrate is that if you fail to prepare, you can prepare to fail.
Do One Main Thing Better Than Your Competitors
Too many tech startups, and even long-established corporations, try to get a piece of the action in everything within their reach. Trying to make a quick buck by pushing out a product or service prematurely can break a company, whether it’s because the product or service flops or because too much capital gets tied up in assets. Either way, we would argue that this tactic is not the right way to go.
Instead of taking a shotgun approach on trying to do as many things to make money as possible, a good tech company will grow by choosing one thing and doing that thing really well.
Using Microsoft as an example again; they created today’s most popular operating system, Windows, and once they saw Apple dominating the music market with the iPod, Microsoft came out with their own attempt with Zune. Zune ultimately flopped due to its inferior design and functionality compared to Apple’s products – they should have stuck with what they were good at during the time.
Lesson learned, at least in the early years of business actions; identify your core strength and push that as far it will go. Only then should you push onto other markets.
Learn from Both Experts & Competitors
Unfortunately, there are many entrepreneurs and startups who decide they want to plough ahead with their own vision without paying any attention to the biggest influencers around them, experts and competitors.
Experts are those that people pay for guidance and counsel on making successful business decisions. In the tech field, there are all kinds of experts who can be used to your advantage, from legal counsel providers, like Goodwin, to accountants, like CPA, who can advise on all elements of business finance. While most of these types of services are not supplied on a pro-bono basis, their management skills and the opportunity they provide for learning are invaluable.
Competitors are perhaps a tech company’s biggest resource; the most successful technology companies have always been the ones who use their competitors to better themselves.
Copyright and patent lawsuits aside, no idea is original; just about everything which has come out of the modern tech field has drawn upon ideas that already existed. With this in mind, of course it is a positive thing to come up with something unique that fills a gap but you should always look to see if your competitors are doing something superior already.
Success in the Tech Field Requires Both Skill & Luck
While we’ve taken a good in-depth look at some of the important guidelines to keep in mind while trying to get a technology company off the ground and into the green, it’s usually not a straight line of exponential growth. There are plenty of issues and obstacles to overcome, and some businesses are lucky with timing than others.
Despite some of the more unavoidable problems that your tech business may encounter as it climbs the ladder, we think that by keeping some of these core tenets we discussed in mind, you are setting up your company for a higher chance of doing well. Whichever route you decide to take, good luck in your ventures.