The first year is crucial for any business, but if you’re running a tech startup, there are certain things to avoid at all times.
The number of projects that are born, are presented all over the world, and fail in a few months, is enormous, and there are already many documented reasons why this happens. Let’s see some:
– Lack of a solid and well thought out business strategy. First, you need to clearly identify the problem or need the startup is trying to solve, as well as its target market and competitors. Next, you need to set concrete, measurable goals and define a detailed plan to achieve them. In addition, the strategy should include a detailed roadmap for the development and launch of the product or service, as well as a marketing and sales plan to attract and retain customers. It is also important to consider aspects such as time management, financial resources and the work team, as well as a contingency plan in case of obstacles or unforeseen problems. In short, a solid business strategy for a technology startup should be a detailed and well thought out document that guides decision making and the growth of the company.
– Lack of sufficient financial resources to cover start-up and operating costs. One option is to seek financing through investors, either through a round of financing. Another option is to request loans or credits from financial institutions, although this may require guarantees or guarantees. You can also seek government subsidies or aid or from organizations specialized in supporting startups. Another option is to use personal savings or seek support from friends and family. In any case, it is important to have a detailed plan of how the financial resources will be invested and how long-term value will be generated for the company and its investors.
– Lack of an expert and committed team. The first thing to do is clearly define the company’s needs in terms of skills and knowledge. Various tools and channels can then be used to search for suitable candidates. For example, job offers can be published on portals specialized in startups, use social networks and professional platforms to disseminate the offer, or directly contact professionals with experience in the sector. It is also important to develop a rigorous selection process that allows you to assess the skills and commitment of the candidates, and offer an attractive compensation package that includes salary, benefits and development opportunities. Nobody works for the love of art, keep that in mind (it is your project, not theirs).
– Lack of good time and task management. Here we come to a crucial point. Our time, and that of our team, is precious. Meetings must be fair, the time invested in tasks must be measured and possible management errors must be found. Being productive begins with an important level of self-awareness.
– Lack of effective communication with customers and the market in general. Thinking that we are working on a good idea, without verifying a thousand times that clients also believe so, is a mistake. We have to listen to the market, talk to it, use measurement tools, read online, do surveys… it’s a job that requires patience, just as necessary as programming an app (if that’s the business model). .
– Lack of a long-term vision and a proper growth plan. Betting on the boom of the first year for a viral idea is great, but you have to start thinking about the second year, when the virality deflates. Wordle was the most searched word in 2022 on Google, but it surely won’t even be in the top 100 in 2023.
– Lack of innovation and a product or service that meets the needs of the market. To be successful you have to be original. You cannot compete with thousands of products on the market if you only offer a beautiful design and better usability, you have to go further. For someone to delete an app to install another similar one, they must have a very important reason behind it.
– Lack of adaptation to market changes and competition. The market changes, because fashion issues are like the wind. Social concentration is very low, and what seems to be a good idea today may not be such a good idea in a few months. Monitor the movements of the competition, and analyze consumer trends.
– Lack of a good marketing strategy and a strong online presence. If there isn’t a video on tiktok, an instagram reel or an effective communication on Twitter, you don’t exist. Ok, maybe it is not 100% like that, but the presence in networks is everything, and it must be defined from the beginning.
– Lack of good risk management and a contingency plan in case of obstacles or unforeseen problems. Not only do you have to have a plan B, you have to have a C and a D. The risks come out like mushrooms, and on many occasions the plan we had for the year must change in February. The strongest do not survive, the most flexible survive.
