5 top tips for starting a successful tech business

What are your top five tips for building a tech startup? originally appeared on Quora: the place to acquire and share knowledge, allowing people to learn from others and better understand the world.

Answer by Hunter Ray Barker, co-founder of Bullfrog Digital Marketing Agency & SEO Company, on Quora:

So you want to step into the lion’s den and start a tech business?

Well, my friend, there’s a lot to think about and it can be hard to know where to start. So taking the time to research and plan ahead can make a huge difference in the success of your next big business.

Tip #1: Know your audience (I mean really know your audience!)

Before you even start thinking about your product or service, it’s important to understand who your target market is. What Needs what market does your product or service have to address? What are their pain points? What keeps them up at night? Where are they hanging out? Once you have a good understanding of your target market, you can start developing a product or service that meets their needs.

There’s a fantastic story from legendary direct-response writer Gary Halbert who once asked a class of hopeful young entrepreneurs:

“Imagine opening a burger stand on the beach and only having ONE THING to help your business succeed, what would that be?”

Students offering all kinds of answers:

  • Quality meat!
  • A killer place!
  • Delicious secret sauce!

Gary told them how wrong they were all…

“You need… A HUNGRY CROWD!”

You might have the best product or service in the world – if there’s not a hungry crowd to consume it, it’s going to be hard to keep the lights on.

Tip #2: Go out and do Mad Scientist, Stalker-Like research

When starting a new business, it’s really important to do your homework. This means researching your industry, your competitors, and your target market. This will give you a better understanding of the landscape you operate in and help you make more informed decisions about your new business.

So many failed businesses are started “inside”. That means founders don’t leave the office, they don’t leave their bubble, and they don’t open their ears to the market. Instead, they create products and services that they think are great, spend a lot of money hoping to make a business out of it, only to realize that nobody wants it. There are no hungry crowds.

Leave the office, go talk to your target market, and build your startup around what They want… What they really want (not the kind of “want” that comes in a basic email survey sent to family and friends telling you what you want to hear!)

Tip #3: Create a Rock-Solid Business Plan

A well-thought-out business plan is essential for any new business, but it’s especially important for tech startups. How are you actually… to do business?

This document should outline your business goals, strategies, and how you plan to achieve them. It should also include financial projections and a marketing plan. Having a solid business plan will give you a roadmap to follow as you launch and grow your new business.

Tip #4: Raise capital (Or not?)

There are several ways to raise the capital needed to start your new business, such as angel investors, venture capitalists, and crowdfunding. Researching the different options and finding the right solution for your business will help you get the financing you need.

But not all tech startups need funding – and some renegade startup founders strive to be profitable from day one.

A great way to do this is to create informational products (such as e-books, video content, virtual events, etc.) around your core business and sell those products to consumers digitally to help raise the necessary funds to move your new business forward.

Tip #5: Build a team better than you

One of the most important things for any startup is to build a strong team. I also believe that the players you have on your team should be light years ahead of you in their respective departments.

It means building a group of people with the skills and experience that share your vision for the business. Having a great team in place will give you a better chance of success as you go to market and grow your tech startup.

That question originally appeared on Quora – the place to acquire and share knowledge, allowing people to learn from others and better understand the world.

Comments are closed.