In the current business climate, a tech start-up has the potential to be one of the most lucrative and successful businesses you can build from the ground-up. So many aspects of the business of yesteryear have been digitized and moved to the online space, that small companies are reaping the benefits of the tech giants wading in and purchasing their start-ups.
Take, for example, Snapchat; a mobile video-sharing platform which turned down a nearly $3 billion purchase offer from social media king Facebook. There are many more where that came from, which goes to show that tech companies have an almost limitless potential.
Starting Out on the Right Foot
Although a well-formed idea is crucial to the eventual success of a tech start-up, there are less scientific considerations that take into account the relatively high failure-rate of tech start-ups in their formative few years. Forbes estimates that up to 60 percent of new ventures tank within a couple of years, with a variety of causes.
Building a sustainable in-office culture is instrumental to long-term success, so that rivalries, a lack of focus and unresolved personal issues don’t serve as final brake to your company’s acceleration. Little things like a dress code, expected work schedules, expectations and more should be hashed out in the first few months, so that the members of the company can smoothly go about the business of building.
Do You Know Who’s Working For You?
No matter how great or novel the idea, a company’s soul is the personnel. As you unleash your big idea and start positioning the pieces to help you land investors and capital, the people working with you – and for you – must be fully on board. It’s always better to pay more for talent than to save money and waste time on incompetent programmers (for example) – the latter almost always represents a drain on resources in the long run.
As long as it is within your capability, secure enthusiastic and skilled talent that can thrive in the less restrictive environment of a start-up. Don’t be afraid to recruit from large companies; if you’ve got a good idea, the talent there will be able to see it right away and join the team.
Financial Details of the Tech Start-Up
As the company becomes successful enough to render services to multiple clients, an accounts-receivable arm is a virtual necessity. Very large corporations are capable of handling the brunt of these duties in-office; but small business ventures are much better at keeping up with dependable accounts receivable factoring company like New Century Financial. They handle the business of contacting clients regarding invoices, following up on payments, and many other aspects that it would require an entire in-company division to oversee.
New Century doesn’t charge you any application fees for document reviews, processing fees for your own payments from clients or termination fees. Additionally, they are not industry-specific, and can handle accounts-receivable duties in industries ranging from manufacturing and distribution, to technology, staffing and energy.
In sum, the early days of a tech start-up are often exhilarating and productive if you’ve got the right pieces in place. It takes a bit of planning to ensure that it stays that way as your product or service reaches fruition and you start to see the expected return on investment.