When starting your own tech company what are some potential setbacks one would face?
Thinking about starting a tech company. #technology #entrepreneurship
4 answers
Todd’s Answer
The key to building a valuable tech company is identifying and solving a problem that customers are willing to pay for. If you’re able to find product/market fit and customers are willing purchase your solution, other competitors will rush to take a piece of the pie. While many entrepreneurs may view the challenge from competitors as a setback, you should see them as validation. In the tech industry, companies compete and partner at the same time, all the time. As tech consolidation continues and as companies expand their services, co-opetition is only going to increase, so instead of seeing your competitors as a potential setback — see them as an opportunity.
Ryan’s Answer
Nearly all companies are tech companies so it really depends on the industry or vertical and the customer segment. But once you have that figured out the real challenges begin.
The first is the ideation stage and that can take some time especially if you're solo. Market research and talking to your customers is the best way to ensure that there's a market for your product or service and the customer is willing to pay for it. The next biggest challenge is getting funding. You will have to be an expert in your product or service and be able to communicate it flawlessly as it goes through rigorous scrutiny.
Once you're out of the ideation stage you have the following obstacles to overcome:
1. Technical Challenges: Starting a tech company requires technical knowledge, expertise, and resources. Technical challenges can arise during the development of the product or service, which can lead to delays, additional costs, and frustration.
2. Funding: Starting a tech company requires a significant amount of funding, which can be difficult to obtain. Investors may be hesitant to invest in a new company, particularly if the product or service is unproven.
3. Competition: The tech industry is highly competitive, and there may be many other companies offering similar products or services. Standing out in the crowded market can be challenging, and it may take time and effort to establish a strong foothold.
4. Hiring: Hiring the right talent is critical to the success of any tech company. Finding skilled workers with the necessary expertise and experience can be difficult, particularly if the company is just starting out and does not have an established reputation.
5. Regulatory Issues: Tech companies may face regulatory hurdles, particularly if they are developing products or services in heavily regulated industries such as healthcare or finance. Complying with regulations can be time-consuming and expensive.
6. Scaling: As a tech company grows, it may face challenges related to scaling. Scaling a product or service requires significant resources and expertise, and the company may need to adapt its processes and infrastructure to accommodate growth.
7. Intellectual Property: Protecting intellectual property is critical for any tech company. Without adequate protection, competitors may be able to steal ideas, designs, or code, which can be devastating for a startup.
Gabe’s Answer
Hi Devetra,
I agree with Ken that planning is of the utmost importance when starting a business.
Off the top of my head, these would be the items on my checklist before going ahead with a new venture. Kind of like a new business inventory:
Do I have the right values?
More than anything, I think to have the right values for your crucial. You want to build a culture that enables success. Take a look at my company's blog post about our core values to get an idea of how important these are to a successful business. http://blogs.workday.com/the-value-of-values-at-workday/Is what I'm offering unique?
If it isn't unique, why would people want it? If it is unique, how hard would it be for another company to copy your idea and do it better?Do I have funding? Or a plan to get funding?
Without funding, you're dead in the water. A great idea without backers is not going to go very far. If you have a plan, that's great! But be cautious, devoting your money, time, and energy into an uncertain project could end up being incredibly rewarding, or it could be a bad gamble.What skill sets do I have, what skill sets am I missing?
If you've built the next Facebook but have no legal or financial background you would be wise to find partners who could take on other aspects of the business. Make sure your team is well balanced, and you have all your bases covered.Am I in the right place?
Your network can be vital to the success of your product. Naturally, being located in a tech hub (SF, NYC, Seattle, etc.) would make networking much easier for you. Easier to find funding, easier to attend meetups about the tech you're using, easier to recruit employees and so on.Is it the right time?
By the time your product is ready for market are there hundreds of others just like it? Or maybe the market isn't ready for your product yet and you'll fare much better if you try to pursue it in a few years.Do I have long term and short term plans and goals?
This should be self-explanatory, but you want to set yourself up for success as much as possible. Setting actionable plans in motion and having both achievable and stretch goals will put you on the right track.
Hope this is useful.
Gabe
Jord Arjen’s Answer
So you need to be doing book keeping, you need to pay your taxes and there are probably a lot of other regulations you will need to attend (depending on where you are starting your company).