Tech businesses focus on developing and manufacturing tech products or offering technological services. An example is software that allows gamers to play online blackjack or online table games at an online casino.
Many tech entrepreneurs have fantasized about setting up a tech business that could become the Google, Facebook, or Apple of the next generation. However, in most cases, their wild dreams face one large obstacle: lack of capital.
Not to worry, many other people had built thriving businesses without the money to start these enterprises when they started. We’ve come up with actionable steps to starting a successful tech business, even without capital. Let’s get to it.
Only one in ten startups survive enough to grow and sustain themselves globally. According to a report, almost half of startups failed because they produced a product people didn’t need. Others failed because of an ill-equipped team,and some because the founders ran out of cash. Well, away with the not-too-encouraging statistics – knowledge is on your side.
Knowing the most significant traps to avoid and having a concrete business plan to build, market, and sell a product or service people want gives your startup a chance of survival. The following are five basic steps that can guide an intending tech entrepreneur in starting a successful tech company with no capital.
While building the product might seem like an obvious idea, it’s one of the most vital steps that could make or mar your tech business. Most intending tech entrepreneurs would instead focus on marketing their products or services and hiring staff without first building a product the market needs.
As a tech startup, your product should take up to at least 30% of the total effort needed for your business’ long-term survival. The right product or service should not only be unique but also offer value. Creating that form of product will keep you ahead of the market while taking off much stress on other marketing aspects.
You don’t need money to build the tech product. Assuming you’re starting a software tech company, you can code and build your company’s foundation without needing a dime or requesting financial assistance from your co-founders or investors.
One of the most notable ways to build your tech startup without money is to pre-sell your Minimum Viable Product (MVP) to potential users. Contact your target market and inform them about your business idea if you already have it.
Do people seem interested in what you’re building? If yes, you could go ahead to ask for money, promising them bonuses like large discounts for believing in the dream early enough.
While there are different ways to go about this, one of the best is taking pre-orders for your tech offer. If you choose to do this, you’ll soon be out of the class of ‘tech entrepreneurs without money’.
Outsourcing at this stage is perhaps not the best. You could either need to hire talents when you’re initially building your product or might need additional talents as you begin to grow your team and scale up the startup.
There are many options out there to explore. Some places to find co-founders are meetup events or your social network to hire the skills you need.
While building the right product is essential to ensuring that the market needs your product, telling the market it needs your offers is the most challenging part. While having no money to advertise or market the product or service poses some disadvantages, you will learb how to grow an organic audience and guerrilla market.
Identify where your target market is online and join their communities, whether on Facebook groups, following specific Quora topics, or visiting specific websites. Next, utilize free-to-use advertisement websites, like Product Hunt, BetaList, and HackerNews, to publicize your product or service.
Attend meetup events that include your target market and meet people personally. Finally, creating mutually-beneficial partnerships with other companies can help market your business’ product or service.
While your current status says you have no capital to start a tech business, different sources provide equity-free grants and opportunities to tech startups. Look out for these opportunities or pitch competitions around you in your state or nation to take advantage of them.
Starting a successful tech business with no capital can be pretty challenging. But with the right action plan, you can get ahead of the competition and surpass many other intending tech startups with the wrong game plan.
Starting a tech startup without money seems like an impossible task, but it doesn’t have to be. Here are some tips to help get you started.