This year has thrown many industries into chaos and led to uncertain business climates across the globe. Yet despite these testing times many entrepreneurs are still pushing ahead with their business plans. And this is something that is being encouraged by experts. Fast Company’s discussion on launching a business this year outlined how the pandemic shouldn’t hold you back as an entrepreneur, as you can still build relationships and develop a long-term strategy.
If you are thinking about setting up a tech business, below are some things that you should think about before you put your plans into action.
Going With The Right Structure
No matter what type of business you’re going to form, its structure will become integral to the way you run it. For tech startups, it’s best to enter as a sole proprietorship, partnership, or LLC. Sole proprietorships and partnerships offer the same easy registration process and cheap filing fees. Those who don’t have an extensive background in tech but would like to start a business in the field should find a co-founder who does (see below). They can form a partnership. On the other hand, forming an LLC grants you all the benefits of a corporation, like separation and protection of assets, without the rigid board structure.
Customer needs are ever changing, as evident in this year’s sudden turn, and your tech product needs to be able to adapt to that. A flexible business structure like these three ensures that you can be agile in times of change.
Choosing The Right State
And just as crucial as what structure you choose is where you choose to setup. While a tech business can thrive anywhere, there are some areas where they flourish the most. For example, tech entrepreneurs in Massachusetts can receive grants from multiple organizations like TechSpring and MassTech if they pitch promising ideas. In fact, there are startups like Ginkgo Bioworks that were able to secure funding from multiple tech investors in the area. Meanwhile, tech LLCs in California enjoy the benefits of a thriving market, including extensive government support, better tax options, and many online resources for startups—all of which will come in handy when you launch your tech business. A lot of the entities mentioned in the latter, like GO-Biz and the California Technology Council, only offer resources to registered businesses in the area. Other states like Texas, Georgia, and North Carolina also have a similar tech supportive environment.
Studying Your Chosen Field
To create software that will appeal to your chosen market, you have to conduct proper research. Business News Daily’s market research guide notes that when developing your buyer persona, you need detailed information on things like their behavioral habits, location, and income level. This information can be gathered using free tools like Google Trends or through outsourced services like GutCheck. You will also need to look at your eventual competitors; aim to replicate the strategies that made their product successful and avoid their errors.
Furthermore, if you don’t have much knowledge of the field that you’re entering—let’s say app development or artificial intelligence—then it’s your responsibility to learn about the process. Even if you’re creating a tech business with a knowledgeable partner, an understanding of how the basics work will eventually give you an idea of what part of your strategy is working and what needs to be improved.
There’s always going to be a market for those aspiring tech business owners—but there’s also a lot of competition. These three things might give you the edge you need down the line.
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