Starting a technology company
Thinking about starting a business? Do you want to be an entrepreneur but aren’t sure about what market in which to create your new company? Well, then, how about building a technology startup? Although, slightly different rules apply to those outlined in our section on how to start a new business, technology is a very lucrative area to start a company.
Disrupting an established business model, in today’s digital age, is most popular within the technology market. It is therefore advisable to investigate what kind of opportunities are available in the world of technology and how starting a technology business differs from other industries.
What kind of technology startups can I create?
One of the best things about being a technology entrepreneur and starting a business within this field is the freedom you have. Being creative and innovative is what makes starting a technology company so interesting. Let’s take a look at some recent Startup examples to demonstrate the variety of technology business types. ‘Disrupt 2013 San Francisco‘ was a recent series of conferences in which several technology startups presented their new business models. One company called Hot Mess introduced an app for social disruption, a programme that sends a discrete text message to other people letting them know if they have anything embarrassing on their body such as a bogie or food stuck in their teeth. Another Startup at the event, named Kovert, has created a GPS Tracking system that allows users to get from A to B without taking their phones from their pockets. Kovert prevents would-be-muggers by using vibrations to tell the user which routes to take. Both of these companies, like many technology start-ups, are trying to solve a common problem we face in everyday life and disrupt the way we view these issues.
Disrupt an established business model
Today we have a lot more resources at our fingertips when building a company compared to 10 or 20 years ago. Therefore, it is easier to disrupt a business that is already well-established but is somewhat outdated in the world today. The Amazon Kindle is an example of how technology has disrupted the book market. The iPhone is an example of a way in which even the relatively recent mobile phone market has been disrupted. Lastly, online video classes, with companies such as Khan Academy, are a way in which traditional educational methods have been disrupted.
Taking a technology startup idea and creating a successful business
Slightly different rules apply when starting a technology business to the advice given in the how to be an entrepreneur page. Charlie Pool, founder of UK technology startup Hit Me Up, advises that when creating a tech company, ask yourself what a Venture Capitalist firm might ask. In other words, prepare for a Dragons’ Den type interview for your new business idea. Below is a list of the key questions that Mr. Pool highlights:
What a Venture Capitalist might ask
- What is the problem you are solving?
- And why is that a problem? (try and ask 2 or 3 more times, that might reveal the real problem)
- How are you solving the problem?
- Who has the problem? Describe them.
- Why hasn’t anyone done this before?
- How does it make money?
- Is there a precedent for this model?
- How would you charge? (Business model)
So if you are thinking about starting a technology business, remember this important advice: you can create almost any kind of company, you can disrupt a business model that is already well-established, and there are slightly different questions that you should ask yourself before creating your technology company!
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