Startups are as rare as diamonds in the rough. However, the ones that are successful shape the tech scenarios as we speak. From basements of Silicon Valley to full-fledged corporate offices employing millions, the journey of a startup is a rollercoaster ride. It’s impossible to build such a journey without having an exceptional, avant-garde idea that when executed nearly perfectly transforms the way its users interact with their environment. New technologies, innovations, and inventions when commercialized into startups become accessible to the masses. Software development for Startups helps achieve this quickly and efficiently.
Popularity of Tech startups
Tech startups and tech entrepreneurs are great market motivators that drive economic growth along with innovation. More and more industries are observing a surge in startups revolving around digital adoption and the digital transformation of existing businesses. The Fintech industry saw the maximum number of startups operating with a 7.1% market share followed by Healthcare at 6.8% and Artificial Intelligence at 5.0%. After looking at these numbers one can easily observe a trend where modern-day startups are gravitating towards the internet. Here are some more interesting facts that relay the importance and popularity of tech startups.
- Bytedance from China is the highest-valued private startup in the world and is valued at a whopping $75 billion.
- Almost 70% of startups are homegrown businesses that start from garages (like Amazon in Jeff Bezos’s garage in Washington).
- A mere 40% of startups generate revenue within their first year.
- According to a survey, 70% of entrepreneurs believe that Artificial Intelligence is the most promising technology for the inception of a Startup.
- There are as many as 1200+ unicorn companies worldwide( i.e valued at 1 billion dollars) and 47 decacorn companies (companies valued at 10 billion dollars)
Steps to Build a Startup
Get a great idea
A great startup starts with a unique idea and building a unique idea usually revolves around identifying a problem and creating an innovative solution for the same. Any successful startup begins with catering to a niche crowd dealing with a problem. For example, Uber started with the idea of easing the process of hailing a taxi or a ride.
Build a business plan
Although startups are unique solutions, there can be competitors in the market who offer similar services and solutions. In this case, the enterprise needs to revamp the existing product/service or offer something exceptional in existing models.
One can start by building a tech startup business plan which is a summary of the company’s vision, goals, and mission. It is an outline of ideas and strategies that act as a roadmap for the company in the future. A business plan usually has the following mentioned within it:
- Type of company, industry, and area of focus
- Target audience and dedicated demographic
- Vision, mission, and company’s core values
- Short-term and long-term objectives of the company
- Sources of revenue and funding models
Once a business plan is in place, it is important to decide the funding model of the startup and how the enterprise is going to secure and spend funding. There are various ways of procuring funds for your startup but the most common are: crowdfunding, investments by venture capitalists, bootstrapping, investments, incubation, grants, etc amongst others.
Socialize with business tech crowds
A startup founder needs to socialize with crowds of business owners and collaborate accordingly. Attending exhibits, seminars, trade shows, and tech events can be significant for understanding the latest advancements in tech market scenarios.
Finish all legalities
It is important to take care of all legalities way before to ensure that the company is well protected in any business threat scenarios. There are certain legalities involved in building a startup. These include:
- Registration is a type of business, be it a partnership, LLP, Private company, or proprietorship.
- Draft a founder’s agreement if there are multiple founders.
- Apply for licenses. For example, food businesses should get food safety, and environmental clearance licenses amongst others.
- Ensure compliance with labor laws and sign NDAs.
These are, but a few, legalities that need to be taken care of before launching the startup and thereafter too. As the business grows so does its legal framework and legal requirements.
Decide on a location (Physical and Online)
For most tech startups the location is online. Even then a small office is required for managing day-to-day logistics, delivery, and more. One can either buy it or lease property and it is better if it’s commercial property for tax benefits.
Invest in marketing
The next step includes investing in marketing rigorously to ensure that the company along with its products and services is heard of and has had maximum exposure to clients.
Build a customer base
The last step is to build a relationship with customers by crafting the best user experience, easy problem resolution, and a healthy company-customer relationship. Community is crucial for any company to grow and their feedback is instrumental to innovation in their products and services.
Innovative Tech Startup Trends for 2023
Having understood the steps involved in building a startup, let us look at tech ideas that are worth giving a shot by entrepreneurs looking to build their very own startup. These tech startup ideas are already gaining momentum and can be innovated endlessly.
Podcasters are modern-day radio stars. Podcasts are essential audio programs accessible over the internet. One can easily listen, download, or stream them live. Podcasts are gaining popularity for many reasons. A few of them are:
- Ease of access to creative content,
- Lesser distracting content engagement
- Huge number of listeners. In the US alone, there are as many as 140 million podcast listeners.
- Great untapped revenue potential
A few popular podcasting startups include ‘How I Built This?’, ‘The 100$ MBA’, ‘HBR Ideacast’, etc., amongst others.
Another startup idea that is moving the markets is cloud kitchens. Cloud kitchens are different from conventional food businesses in the sense that they work purely on a delivery basis and do not have a physical store or seating space to accommodate their customers. The customers, however, can place orders via an app and have them delivered to their doorstep. Such cloud kitchens can run multiple virtual brands and garner revenue accordingly. They also have higher margins as they need not pay for seating arrangements, physical stores, etc. Successful cloud kitchen examples include DoorDash, Starbucks, Swiggy, Faasos, etc.
Customer Relationship Management Systems
A CRM system is yet another amazing tech startup idea that can be very successful. Today’s competitive scenario is driving enterprises to invest much more in maintaining and managing customer relationships. Online CRM systems are great tools to establish a strong company-customer relationship and cater to each and every customer’s needs. Popular CRM systems are Salesforce, Hubspot, Zoho, etc.
The VR industry is expected to reach $13 billion in 2024 representing a 550% growth. Virtual reality refers to the technology that allows users to experience a three-dimensional environment in the real world and has proven to be great technology when it comes to experiencing things. VR is a fully immersive environment artificially constructed through images, sounds, etc. A few great examples of VR startups are PlugXR, VeeRuby Technologies, and GreyKernel.
Healthcare services is yet another avenue ripe for startup ventures. Existing healthcare systems are troublesome, conventional, and laborious. These systems when incorporated with smart technologies of AI, ML, and IoT can help revamp existing healthcare systems to a great extent. Prompt health services, better record-keeping of patient data, and precision surgeries are some of the areas that are actively employing these technologies. Practo, Amwell, and MFine are companies that are proving to be successful telehealth services.
While digital transformation is helping enterprises catapult their growth along with revenue, it is also making businesses vulnerable to cyber attacks. Which is why a cybersecurity startup is not a bad idea. A tech solution that enhances an enterprise’s digital space by providing an extra layer of protection or protecting its assets with an extra layer of security is a great startup idea. Examples of cybersecurity solutions include CrowdStrike, SentinelOne, and Tessian.
Fintech is a portmanteau of the word Finance and technology and refers to digital solutions that deliver financial services in ways that employ the latest technologies. Fintech services are more advantageous, cost-effective, and secure compared to traditional methods of banking. Artificial intelligence, blockchain, cloud computing, and big data are regarded as the ‘ABCD’ of fintech. Adyen, Klarna, and Affirm are some of the successful Fintech startups that are gaining popularity.
Startups when executed with great ideas and perseverance can be revolutionary. These are, but a few ideas, that can be a great avenue to build a startup. Software Development for Startups is in high demand for its high return on investment and digital transformation abilities. People looking to develop their very own startups should research and select a software development company only after thoroughly looking at its portfolio and clients. OpenXcell is a reliable software development company to start with given its rich portfolio of successful projects and happy clients. The company employs experts in technology for most quality solutions.
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