5 Challenges Of A Tech Startup And How To Overcome Them

A tech startup isn’t any different. You have the idea and the basic concept in mind but you have to face many challenges before you can say: I did it! Along the way, problems are going to ambush you and jump out when you least expect them. You’ll have some struggles on your road to bringing new technology to the market. But, don’t despair. We’re going to deal with the challenges you’re about to face together. Here’s how to overcome the challenges of a tech startup.

#1 Putting Together A Winning Team

You are aware that you are not alone on this journey. There are many more people to come on board, and you have to make sure they’re up for the challenge.
Here are the crucial startup positions you need to have covered:

• CEO
• Marketing
• Engineering
• Design
• PR
• Managing
• Data Analysis

It’s a lot of people to handle and it often happens you can’t seem to put together a team of people who function together as one. That is your first challenge, and you need to overcome it in order to move forward.

So, what can you do to ensure a winning team? Hire people based on their knowledge and experience, but don’t forget to aim for finding these shared qualities:

• passion for the job
• commitment
• responsibility
• vision

You need enthusiastic employees who are eager to contribute to the tech market and see the job as an opportunity to learn, improve their skills and be a part of the winning team. You need to get to know the people you’re hiring and make sure they are willing to work hard and perhaps sacrifice their time and comfort, in order to achieve greatness.

Find them, and you’re good to go.

#2 Your Product Story

As a technology expert, you are in charge of developing a product people all around the world are going to use. However, that’s not enough. You’re going to face the challenge of building the story behind your brand, in order to bring it closer to potential customers. In other words, you’re dealing with brand identity and a vision behind the product.

Here’s how some of the leading tech companies define the purpose behind their product:

• Apple Watch Series 4
  “All new. For a better you. Fundamentally redesigned and re-engineered to help you stay even more active, healthy, and connected.”
• Galaxy Note9
  “Powerful enough to keep up with you.”
• Tesla Model S
  “Sets an industry standard for performance and safety.”

You see? Everything revolves around the customers.

How to overcome this challenge? In order for you to achieve the same effect, you need to put yourself in your customer’s shoes. Come up with a product story that points out how it:

• brings something new to the customers
• improves their experience in a certain area
• makes their life better

You have to believe in the story and so will your customers. You are defining your dream and putting it out there for others to see.

#3 Funding

Money is always a question for startups. Somebody’s got to make the risk and invest their money in a tech startup. But, nobody knows whether or not it’s going to be a success.

There’s a couple of ways you can deal with this:

• Invest your own money: If you have it, you can opt for taking your chances. It’s your vision after all. The good thing is, you don’t have to struggle to find the money. The bad thing is, if you fail, you lost it and that’s that.
• Find an investor: There are people out there who want to invest money in your startup. You’ll have to offer something they’ll believe will succeed and bring profit. It could be hard finding an investor, and the key is offering a unique idea.
• Taking a loan: If you don’t have your own money and you can’t find an investor, taking a loan is your only option. You can find a business loan, a loan from nonprofits, grants etc.

There’s not much to add here. You’re aware of the risk, but you’ve got to make one.

#4 Changes In The Market

Times are changing faster than ever and innovation is flourishing. People adopt new habits in the blink of an eye and get rid of the old ones. As a tech startup, you can be caught up in the middle of rapid changes in the market, which dictate your success.

Here’s what to do, in order to prevent being pushed out of the tech market:

• Keep an eye on the competition: Like Apple vs. Microsoft, you know who your biggest tech rival is. Follow their every step and be prepared to fight back if they strike you.
• Global market: Don’t think locally, but globally. Test the world market finding a spot for your product. Once you find it, go for it. If you don’t speak the language, hire a translator or choose one from lists such as Pick Writers largest translation companies. Be the first one to get there, so work quickly.
• Flexibility: If your product tested out badly, do not throw it in the garbage and abandon the ship. Find out what the market needs and improve your idea. Build around your former mistakes and come out as a winner.

In order to surpass these obstacles, you need to be alert and ready to adapt. Keep your eyes wide open and your team prepared to take on some serious tasks.

#5 Reaching Profitability

The whole point behind tech startups is to reach profitability, bring back what’s invested and start earning money. Sometimes it’s hard to survive long enough to reach this point and many startups struggle with it. Of course, how profitable your product is going to be depends on how well it does on the market. But, don’t leave everything else to faith.

Take precaution measures to:

• Increase efficiency
• Manage your finances
• Reduce the costs
• Be more productive

Give all you’ve got to secure doing business wisely and you’ll have nothing to regret.

Conclusion

If you’re about to enter the world of tech startups, or you’re already a part of it, we’re not going to wish you luck. Luck is not going to solve your problems. Instead, we wish you to make smart choices and not be afraid to face all the challenges.

We hope we’ve helped you prepare for what’s coming or deal with what’s already on the table. Remember: there’s a solution to every problem, you just need to find it.

 

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