Many entrepreneurs dream of starting a successful technology company. When an entrepreneur has a great idea that could set them apart from the rest of the field, they should sit down and draw up a business plan that will help them succeed.
Mike Ionita, a successful video game developer, describes the areas in which you will need to be knowledgeable in order to build a technology company. He also gives examples of what new tech companies are doing today.
Explore Your Minimum Viable Product
When you are working on an idea for a tech startup, the first thing you should do is to decide on your minimal viable product or MVP. Your MVP should fill a defined niche in the market and address a “pain point” that is common among technology users. If no one needs or wants to use your product, you will have no chance of success.
For example, video game developers may have a difficult time coming up with a minimum viable product because the industry is based on wants and not needs. No one actually needs a new mobile game, but there are definite areas where new games are desired. Focus on creating a product that is unique, innovative, and seamless. When you create a great game and promote it wisely, you will receive public attention and more downloads.
Assemble Your Team
The next crucial step in starting a new business of any kind is selecting your team members. Ideally, you should choose people who have experience and abilities that complement your own. You will need people to handle the finances, legal needs, human resources issues, technical development, and several other areas.
You may be tempted to hire your friends to work with you, but it is not advised unless your friends are already successful within the industry. Putting a friend in a position of responsibility when this person does not know what they are doing could spell serious trouble for your company.
Hone Your Minimum Viable Product
After you have hired your team, it is time to validate your minimum viable product. Your product will see growth if it solves an existing problem and improves users’ lives. This will help you determine whether people are willing to pay for your product and whether investors are willing to take a chance with your company.
Technology companies have an advantage when it comes to looking for funding. They are sometimes attractive to angel investors, or wealthy individuals who make risky investments in new companies in exchange for profits and some level of controlling stake in the company. Angel investors are also good sources of guidance and wisdom in starting your new business.
Research the Competition
The function of competition when you are starting a new business can be positive or negative depending on your attitude. Many companies try to start out in an area where there is little competition, but if there are viable competitors in the area, this helps to underscore the validity of your idea. Focus on your competition and get to know them well.
For example, if you are starting a new video game company, you may have an excellent idea for a puzzle game. There are hundreds of puzzle games in app stores today, but you should research them and see where there is an opening in the market. Your puzzle game should have a new “hook” that makes people want to download and play it.
Decide How Your Business Will Run
The next thing you should do is organize your workflow. You will need to decide which tasks are important for your new company and who should complete them. You will need to assign roles to all of your new employees and decide which functions they will fulfill.
Plan for Everything
Sitting down with your principals, you should plan out what you will do when faced with a number of business challenges. Make sure that you have backup plans for every eventuality. You will also need an exit plan. Even if you don’t want to think about the need for an exit plan, you should think it through.
If you don’t market your product, no one will know that it is available to buy. You should hire a good marketing person to help you with this goal. Focus on what sets your product apart from the competition. Try different avenues of marketing and consider writing articles for different publications to position yourself as an authority in your field.
New Games and Apps on the Market
Today’s new tech companies are coming out with a wide variety of apps and games that attract a wide audience. There are many new RPGs and MMORPGs on the market, some based on popular existing properties like Castlevania and League of Legends while others are based on new ideas. New tech companies like Calm, Instabase, and LeadIQ are innovating what is available in terms of popular apps and industry upgrades.
Unfortunately, most new startups fail. 90 percent of all startups close down before they are making enough money to sustain themselves. The top reasons why startups fail include a lack of market need, a lack of cash, and a poor team composition.
By addressing each of these problems in an innovative way, you may be able to ensure that your new company will succeed. Mike Ionita encourages all tech startups to do their research thoroughly before taking the first steps to make your business a reality.