How to Start a Tech Startup: 10 Important Steps

What is a tech startup?

A tech startup is a company focused on delivering innovation — solutions in the technology sector. Many successful startup stories began as tech startups and grew into industry giants. Usually, in a couple of years from the start, these businesses bloomed into successful international businesses.

 Some of the companies that went from small tech startups to giants:

• Uber: What began as a simple idea to solve the problem of finding a ride in San Francisco, has revolutionized the transportation industry, creating a new market for ride-sharing services.
• Airbnb: This platform provided a way for people to rent out their spare rooms but has since transformed the hospitality industry, offering a global marketplace for unique accommodations.
• Instagram: Initially a simple photo-sharing app for whiskey lovers (the app was called Burbn back then), Instagram has grown into one of the most influential social media platforms, reshaping the way people share their lives online.
• Pinterest: From a digital pinboard to a discovery engine for ideas, Pinterest has changed the way people find and curate inspiration for everything from home décor to recipes.

These examples of successful tech startups demonstrate that the right business model and market research can turn a startup into a technology company that dominates the market. A tech startup focuses on creating new technology or remaking an existing one with a strong value proposition. One example of a startup that was made from scratch is Pixshare. It's an app that allows you to share pictures with your loved ones. To repeat the success of these companies, you would need to hire mobile app developer, who is the pillar of the projects succes. 

Steps to start a tech startup

1. Identify the business idea

The foundation of any successful tech startup is a strong tech business idea. Your business idea should target emerging technologies, solve customer pain points, or offer an innovative solution. 

Passion-driven ideas with a clear value proposition often have the potential to become successful businesses. Analyzing market trends and identifying a promising business niche can accelerate business growth.

Long brainstorms about your business idea also prevents the situation when you already spent months or even years developing an unsuccessful product. All that was was to find out that someone had already done it before you.

2. Research the market and competitors

The average startup failure rate is currently 90% based on the latest data. At the same time, 10% of newly launched startups will likely not survive within their first year, so conducting market research to stay competitive is important

Understand your target audience, analyze market trends, and identify potential competitors within the competitive market. Market research aims to provide insights into your target customer and the market system, ensuring your tech startup company is well-positioned for success. If you hire a technical professional, they will perform Discovery and Validation to identify any information gaps and provide you with thorough material as a starting point.

3. Develop a strategy

A business plan plays a critical role in the success of a startup. Your business plan should outline your business model, go-to-market strategy, and the entire product development life cycle. 

A well-crafted plan helps you secure money from crowdfunding or angel investors and provides a roadmap for your tech startup’s growth. A strategy that includes marketing methodologies and a strong focus on customer feedback saves time and resources in the long run. Consider the possibility of increasing the staff you have. You can either do it using your of resources or consider staff augmentation. 

Consumers tend to change their behavior during different seasons of the year, different economic regimes, new legislation, and social issues. A proper strategy with the possibility of force majeure in mind protects your business from drowning in issues you can’t control. Plan ahead and be ready for anything.

4. Hire a tech team

A great tech team is essential for turning your tech startup idea into reality. Many successful startups rely on skilled professionals to execute their vision and take the burden of software development off their shoulders, this type of cooperation is called software development outsourcing. Consider partnering with experts like Empat, a leading tech startup company, to build your product. We can help you hire full-stack developer in case you need an all-around expert.

An efficient team can handle everything from the basic version of your product to the advanced stages of development, ensuring a successful startup launch. 

Having a tech team also protects you from accidental damage to your product because of malfunctions. No one wants their product to fail on the first day because someone forgot to pay a subscription to the payroll service. Or because of a bugged contact form that someone forgot to troubleshoot before launch.

Sometimes companies can't find a perfect fit for a person to oversee technical processes. The reasons for it can be different for different companies: lacking funds, not enough resources to create a tech department. That`s why the market offers CTO as a service — another type of tech outsourcing that is available to the public.

5. Find investors

Securing funding is a critical aspect of starting a tech startup. If you want to fund your startup yourself, then do so. With proper risk assessment, you will be able to build a proper strategy of fallback to secure your money. If you lack the necessary capital, explore options such as:

• Venture Capital: Venture capitalists (VCs) are interested in funding early-stage startups with growth potential in exchange for some equity. VCs usually provide not only funding but also guidance and connections. However, they often require significant ownership and a high level of control over your startup.
• Angel investors: They usually invest their own money in startups asking in exchange for some equity or convertible debt. They are much more flexible than VCs and may be willing to take on more risk.
• Crowdfunding: Crowdfunding is a popular way to raise small amounts of money from a large number of people, typically through online platforms like Kickstarter or Indiegogo. This way of collecting funds is a great opportunity to raise some noise in your local community or even land in the national news.
• Government grants: Many governments offer grants and incentives to support innovation in tier economy. These grants can require repayment or some set of rules for getting them, like hiring 15–20 employees in the first year or creating a set number of workplaces.

Having a solid financial foundation allows you to experiment and innovate without the constant pressure of funding constraints. Early-stage startups often attract VCs who believe in the potential of an innovative idea.

Investors may control some portion of your testing process but it’s sure better than risking your capital on a new idea.

6. Build MVP or a prototype

Creating a Minimum Viable Product (MVP) is a crucial step in the product development life cycle. An MVP allows you to collect feedback from potential customers and refine your tech startup’s offering before a full-scale launch.

MVP development is also useful as an object of presentation: you can showcase it to your team, investors, and colleagues or make some noise among your competitors in the field. MVP can be anything: depending on your needs a tech team can provide various services like building a website or app.

Creating an MVP is a very time-consuming process that requires expertise, lots of testing, and focus group meetings. You can make the process of creating an MVP easier for yourself by hiring a technical team to develop it for you. This will remove a significant burden from you and free up resources for other stages of your product development.

Empat can assist in building a robust MVP that fits your business model, ensuring your product resonates with your target audience and satisfies their needs. In the tech field, MVP is a crucial step to ensure years of success that will come or give you an idea of what to change before the launch. There are many cases of companies that used a helping hand of a tech team to build MVP.

7. Register your startup and get acquainted with legislation

Registering your tech startup and navigating the legal landscape are important steps that can significantly impact your company's success and longevity.

These processes ensure that your business operates within the legal framework of the country in which it is based, safeguarding your interests and laying a solid foundation for growth.

Proper registration of your company is essential for several reasons:

• Legal Protection: Proper registration of your business provides you with legal protection in the future. It also defines your legal business structure which (depending on the country) provides you an opportunity to use governmental perks, land into specific tax brackets, and overall make your legal situation easier.
• Credibility and Trust: When you register your business it automatically receives credibility among customers (no one wants to buy anything from a firm that evades the law). A registered business is much safer to work with, therefore stakeholders would be much more agreeable to working with you.
• Access to Funding: If you plan to work with investors the registration of your business is a must. No investor will cooperate with unregistered businesses. That can be said about banks — receiving a loan in your name or receiving a loan in the name of your business is two different stories.
• Intellectual Property Protection: If the name of your business is significant to you, you better register it. All-side legal protection prevents others from stealing your ideas and branding to be used against you in court. Register your name, and register patents on technology and inventions. Keep yourself protected.
• Compliance with Local Laws: Every country has its own regulations managing business operations, taxation, labor laws, and industry-specific requirements. Failing to keep up with these laws can result in fines, legal action, or shutdown of your business.

8. Launch your startup

Launching your tech startup is a pivotal moment in the startup business journey. A successful launch depends on meticulous planning and execution.

The first steps can be successful and easy (with proper long preparation) or fail completely due to a variety of different issues scaling from coding mistakes to miscommunication between your business and, for example, a company that provides a server for you.

Partnering with professionals like Empat can help you navigate this critical phase, providing ongoing support to ensure your product’s success thanks to unique IT solutions. One of the most popular concepts of software development outsourcing is called Tech for Growth. Launching strategically can help you generate early leads and position your startup as a leader in the technology sector. Hiring a professional who will perform your tech development for you is a great way to ensure the continuous growth of your business.

9. Develop marketing strategy

After your launch, developing effective marketing strategies is key to reaching your target audience. Use a mix of organic growth tactics, paid advertising, and collaborations with industry trends leaders to maximize visibility. Who knows, maybe your product will be as popular as Obimy, a product that reached 5 million users recently.

• Market strategically to attract early leads and build a loyal customer base. 
• Ensure ongoing multichannel contact to secure your customer's loyalty. 
• Build emotional connections and associations with your business: keeping consumers emotionally invested in your product secures you years of sales.
• Consider leveraging data analytics to refine and optimize your marketing strategies continuously. 

By closely monitoring key performance indicators (KPIs) such as customer engagement, conversion rates, and user demographics, you can identify which tactics are most effective and adjust your approach accordingly.

10. Keep an eye on the growth for points of improvement

Once your tech startup is live, monitoring growth is essential. Customer feedback is invaluable for identifying areas of improvement.

Regularly collect feedback, analyze market trends, and stay attuned to upcoming trends in the tech industry. This continuous improvement cycle is what separates successful startups from those that fail.

Empat provides ongoing support to help you optimize your product and ensure long-term success. It’s safe to say that working with a team like Empat and their Ignition Studio will make things much easier for you: with professionals who are dedicated solely to your project, you can secure regular statistics, metrics, and troubleshooting.

How can Empat help in your tech startup development?

Empat can play a pivotal role in helping your tech startup get off the ground and thrive. As a software development company that truly understands the importance of empathy, Empat focuses on creating solutions that align with your vision and resonate with your users. Whether you need a mobile app, a website, a sleek product design, or a Minimum Viable Product (MVP) to test the waters, Empat has the expertise to bring your tech ideas to life.

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Since 2013, Empat has completed over 300 projects in industries like healthcare, fintech, and education. They've worked with everyone from Y Combinator alumni to Fortune 500 companies, showing they know how to deliver solutions that really meet customer needs through their services.

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Empat is known for their rapid growth and impactful projects, making them a great partner for any tech startup looking to innovate and stand out. By working with Empat, you’ll benefit from their wealth of experience and industry know-how, helping your tech startup succeed in today's competitive landscape.

Conclusion

Starting a tech startup is a complex yet rewarding journey. By following these 10 steps, you can navigate the tech industry with confidence. Whether you choose to go it alone or hire professionals like Empat, this guide will equip you with the knowledge needed to thrive in the competitive market of technology startups.

Remember, successful business lies in thorough planning, strong execution, and continuous adaptation to market changes. We hope this guide helps you build a successful tech startup and inspires your journey into the world of innovative technology companies.

FAQ

How much does it cost to start a tech startup?

The starting cost of a tech startup varies significantly depending on your resources, team size, and the nature of your business. It can range anywhere from $100 to $100,000 or more.

Key expenses include salaries, equipment, software, legal fees, and advertising. For instance, if you’re developing a software product, you’ll need to budget for development tools, hosting services, and possibly licensing fees. On the other hand, if you’re creating a hardware product, the costs of prototyping, manufacturing, and distribution can be substantial.

How do I start a tech startup?

Starting a tech startup involves careful planning and execution. By following the 10 steps outlined above, you can ensure a safe and structured start for your tech project.

These steps include identifying a strong business idea, conducting market research, developing a business strategy, building a tech team, and securing funding. Each step is crucial in laying the groundwork for a successful startup.

However, the path to starting a tech startup isn’t one-size-fits-all. Some entrepreneurs may choose to work independently, relying on their own skills and knowledge, while others may prefer to build a team of professionals to help execute their vision.

Can you start a tech startup with no experience?

Yes, you can. Many successful tech founders started with little to no experience in the tech industry. What they lacked in technical expertise, they made up for with strong managerial skills, a clear vision, and the ability to assemble and lead a capable team. Your role as a founder is to bring together the right people, resources, and strategies to bring your idea to life.

If you lack technical experience, partnering with or hiring skilled professionals can be a strategic move. For instance, you can collaborate with a tech development team to handle the technical aspects of your startup, allowing you to focus on business development, marketing, and scaling the company.

How do I become a tech startup founder?

Becoming a tech startup founder starts with a simple idea that addresses a specific problem or needs in the market. It’s both a simple and complex journey.

On one hand, the moment you conceive a viable business idea, you’ve taken your first step towards becoming a founder. On the other hand, the process of turning that idea into a registered and operational business involves several stages, including planning, research, team building, and funding.

To officially become a founder, you need to take actionable steps to bring your idea to life. This includes validating your idea through research, developing a business plan, registering your company, and eventually launching your product or service.

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