ANIL PILLAI
In the tech industry, start-ups face their own unique hurdles and opportunities, and the road to innovation is guided by goals that some businesses in their early stages struggle to meet.
1) Funding
Perhaps one of the most common and most challenging of the issues that tech start-ups face is funding. Knowing when and how to acquire the correct funds depends on many factors. It certainly impacts a start-up’s ability to fully develop its vision and technology. When it’s time to launch operations, additional resources are needed, and how and what type of investors to seek is a complexity often less understood by founding technologists. This critical element, if not assessed properly, will impact the other challenges that are discussed below.
Overcoming funding issues can seem daunting, and at times impossible, but companies that are shrewd and strategic in getting their message out, are more likely to attract the attention of angel investors and venture capitalists who would be willing to bankroll their innovation.
Seed capital / investing is risky, and most seed investors understand that seven of 10 start-up investments will ultimately fail. They also understand, however, that it only takes one massive start-up success to make you rich.
“Sweat equity shares” means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions,
2) Networking
The discussion of funding is the second challenge. While it’s not always about who you know, it’s crucial that tech start-ups know how to reach out and build network relationships that will boost their brand awareness and help them better navigate within their sector.
Building relationships with experienced members of the tech community provides start-ups with valuable voices that can let them know where they’re struggling and offer advice and support as the business strives to grow. A network provides a myriad of different resources from the concrete to the intellectual. They’re foundational in helping you build your customer base, and magnifying your message.
3) Thinking out of the box
The process of crafting your start-up requires confidence, and a willingness to step outside of your comfort zone. As you work to innovate, you need to be willing to challenge yourself and to grow your vision, to acknowledge when you’ve become complacent, and tweak to make things better. It’s rare that the first version of your idea is going to be the best, and it takes guts to admit to that.
Too many start-ups are trapped in the comfort zones of their founders, unwilling to attempt anything new. As such, their voices get drowned out by those who are more established, and are doing something similar. Innovation requires bravery, and in a crowded field of dynamic businesses, timidity is a property you can’t afford.
4) Human resources
Many start-ups struggle to put together a reliable team to execute and develop its vision. Without the right team, it’s difficult to spread your brand, to craft the right content, and to operate in a way that supports your solutions. Building a committed and creative community within your business is essential, but many start-ups fail to figure out how to find these individuals. All these elements are essential in crafting a perfect team.
5) Creating content
Content creation is crucial to spreading a brand’s message and helping potential clients understand a product or service. This is a time consuming process and it can be tough to create the volume of content needed to gain traction for smaller start-ups.
You want your voice heard, but you also want to put careful thought into how that voice sounds, and what you intend to say. Start-ups that can’t achieve this are likely to go unheard, and suffer lack of presence as a result.
6) Project Management challenges
Time management is essential to success. However, many tech start-ups still struggle with time management. This is because the team focuses too much on one element and neglects others until it is very late. In other situations, founders are less experienced at managing teams or multiple departments.
It’s important that start-ups put careful thought into managing projects and administrative tasks, lest essential work fall by the wayside and derail the organisation.
7) Identifying initial customers
For a start-up it can be difficult to win the trust of businesses or individuals that your product serves. With little brand recognition, potential clients are likely to ignore the company as they often like to work with the firm with familiar names.
The key to combating this is to work hard to shape a brand identity and proliferate it. It’s essential to convey brand identity to people who could become your brand evangelist.
8) Expectations
It’s important that start-ups work to square their hypothetical ideas with concrete reality, and not lose their focus. If they do that it is more likely that issues such as time management or project oversight will fly out of the window. Even though chasing the stars is a wonderful dream, it’s important to get your feet off the ground before you plan where in the galaxy you’ll travel.
9) Dealing with competition
The fierce and intimidating competition can be shocking to some start-ups. In the company’s infancy, the competition can be incredibly frustrating. It’s essential that start-ups treat competition as a learning opportunity. It’s these lessons that help start-ups stand up to their competition, and to ultimately succeed.
10) Explain the USP
If customers don’t understand what makes your solution unique or special, then they’re less likely to find reasons to opt for you than a competitor who has managed to get their message across.
In a packed field of tech solutions, having an identity that allows you to connect with potential customers is essential. If you allow your innovations to simply blend in, it’s far less likely that clients will notice.
11) Sweat equity to the team
Keeping the team under control is essential in a start-up. As the business begins to grow, you’ll be faced with more projects, more people, and more complexity. It’s crucial that start-up founders know how to work with their people and keep an eye on everything.
Ensuring that everyone knows what they need to be doing, how they’re connected to their co-workers, and when certain goals need to be met go a long way towards bringing stability.
The initial start-up team is as important as investors. Reward them with heavy stock options/shares. They will be invested in the success of the start-up to the same extent if not more than the financial investors. The initial team, if built correctly, is the core of a company, and will contribute more than those arriving later.
12) Advice from unsuccessful start-ups
If start-up founders refuse to seek help or advice when needed — simply opting to fight through the problem alone – they are far less likely to achieve what they set out to do. Start-ups are inherently about tackling new challenges and new experiences, and being able to work with others to navigate these challenges when you feel overwhelmed is vital.
Asking for help doesn’t make your business weak or stupid. It’s the very thing that makes you stronger and smarter, and better poised to thrive.
Ceo.anil@vivartasystems.com
