How To Start A Tech Business

Starting up a tech company boils down to funding, skill, connections, and the right marketing strategy. So, you’ve got the idea, but where do you go from here?

Here are some essential steps you should follow as a tech entrepreneur, to ensure the success of your new start-up business. ‍

First Steps To Starting A Tech Business:

1. Funding/ investment 

2. Network with other tech businesses 

3. Hire a strong team

4. Focus on the right things 

5. Prepare to manage 

1. Funding/ Investment

It goes without saying that for any start-up to work, it must have sufficient funds. In fact, funding is the second largest reason why start-ups fail as they simply run out of cash. Making sure your tech business has sufficient funding is therefore crucial in determining not only the growth of your business but also the life it has.

Google Investment In The Welsh Tech Ecosystem

If you’re a tech start-up, Wales is where you want to be right now. The Economic Intelligence Wales 2020/21 annual report illustrates Wales’s resilience and agility in the face of Brexit and the disruption caused in 2020. In Q1 2021, business starts in Wales were up 31% on Q1 2020 (14% in the UK) with business closures down 1% in the same period compared to an increase of 7% across the UK.

The tech sector in Wales contributes an estimated £8.5b to the economy, employing over 40,000 people and housing 3600 tech businesses across its six cities. With £100 million of venture capital investments in 2019 alone, it’s not surprising that Wales is now considered one of the best bases for tech start-ups in the UK.

Not only is Wales an increasingly attractive base for start-ups, but it’s also home to the technology centres of globally recognised brands such as Aston Martin, Airbus, Thales, BT and Sony.

Putting yourself out there and networking with like-minded people is crucial to starting a business.

2. Network With Other Tech Businesses

In the world of tech, there is always something you can learn from other businesses. Don’t underestimate the incredible support available from the entrepreneurial ecosystem. 

Start networking with other tech experts and those who have been in the industry longer than you. You will be pleasantly surprised at the valuable lessons you will get from their experience. Always be on the lookout for partnerships, as this will help you keep up with the ever-changing business environment.

Tramshed Tech Startup Academy 

A great way to build a reliable network is through startup programmes. One of the many business support schemes we run here at Tramshed is the Startup Academy. The twelve-week programme covers all aspects of building a successful business from idea generation and planning to finance, product development and team building. 

3. Hire A Strong Team

Human resources play a significant role in your tech business. You want to hire professionals in your field who not only understand the specifics of your company but also share your vision.

In addition to this, you will also need to build up a robust customer success team that will ensure your customers always get value for their money. 

Many companies fall short because they have underinvested in customer success. Sales and customer success headcount should be hired and matched at a one-to-one ratio.

Large businesses have hit big lows after a year or two because they continue to invest in sales without building a corresponding customer-success team.  

Funding is the second largest reason why start-ups fail.

4. Focus On The Important Things

When starting a tech business it can be easy to lose focus and attention on the important things at the beginning. 

Avoid constant changes to your product as this will make you lose touch with your product’s Initial focus and value. 

The tech business is an ever-dynamic industry and you must expect change along the way. Rapid technological change and advancements mean you must be on your toes to keep up with every development and respond to feedback. 

Starting a tech business can be easy, but the strategies adopted in the process will determine the success of the business. With the right focus, undeterred vision, and good partnerships, your tech business could be well on its way to success.

Wales is an increasingly attractive base for start-ups.

5. Prepare To Manage

Lastly, prepare to manage, but don't micromanage.

Although you might have been able to tackle everything yourself, as your team grows, failing to delegate will overload your own schedule and will result in worse quality management.

As a leader, it's your responsibility to ensure everything is on track and your whole team communicates effectively and efficiently.

However, you can't do this to the best of your ability without delegation and fostering trust in your team. Refusing to delegate leads to a culture of micromanagement.

The Importance Of Avoiding Micromanagement

Micromanagement is important to avoid as it can limit growth and innovation, decrease productivity and trust, and foster a negative work environment.

This can demoralise your team and even damage staff retention if it remains unchecked.

As a manager, you will play a vital role in fostering trust in your startup, so lead by example. Being authentic in your leadership will help you create a culture of accountability in your team as you work together to the same end.

And there you have it! Follow these steps and you’ll be on your way to starting a successful tech business. 

We are Tramshed Tech: a startup ecosystem home to 50+ companies ranging from pre-revenue start-ups to scaling businesses with 600+ registered members from the digital, creative and tech communities. We’re currently based in Grangetown, Cardiff Central & Newport, as well as Barry and Swansea. 

If you’re interested in joining us at any of our locations, please don’t hesitate to get in touch. 

Written by Kate, for Tramshed Tech.