Many startups fail very quickly. By avoiding these 10 technology mistakes, you can help set yourself up for business success.
according to the US Bureau of Labor Statistics (BLS). This is discouraging news for business owners, but even though there is no guarantee that a business will persist long into the future, leaders can take steps to ensure that their efforts are set up for success.
This starts with a solid technological infrastructure and stack. Here are 10 technical mistakes you should avoid.
1. Trying to do it alone and without a proper plan
Even if you are a technology expert, it is a definite mistake to try to venture into the world of startup business alone. While it is true that some individual operations are successful, they are quite rare. You need someone with technical knowledge, as well as business sense and other skills, to be successful – especially when you're launching a startup for the first time.
When you team up with other experts – especially those with different business skill sets and areas of expertise – you will be able to solidify a clear, actionable plan and strategy. This is another critical part of getting your business off the ground.
2. Failing to do adequate market research
You might think you have an amazing idea for a product, and it could very well be great – but it could also be an idea that someone else has already thought of. It is essential to perform market research to discover what consumers are looking for and want, what already exists and how you can stand out in a competitive landscape.
Market research combines marketing expertise, analytical skills, and technology expertise. You should hire a professional to drive it – again, don’t try to do it all yourself.
Market research will also help you establish a brand identity, which is crucial to your current and future success. People need to be able to differentiate you from others in your space, and having a strong, unique identity is an important way to make that happen.
3. Immediate hiring of full-time employees
You can only stretch your budget so far. If you operate on lean finances, like many startups, it will often make more sense to hire part-time workers or freelancers rather than immediately hiring full-time employees. This certainly applies to your organization's technological prowess – you can outsource the work to an external software development company, a reputable company that will do the work for a fraction of the cost of a full-time employee.
When you are starting to build your team, networking is important to build relationships and identify the best talent for your team. Networking is also useful for finding consultants to help you build your brand. These partnerships will be key to solidifying your reputation.
4. Wasting money on cheap technology
It may seem counterintuitive, but it is actually more profitable to invest in cutting-edge technology than in cheaper alternatives. A low price is attractive, especially when you're working on a tight budget, but it can often mean that the tools and systems aren't of high quality and won't stand the test of time.
Think about it: if your systems constantly fail, your team members won't be able to do their jobs. This downtime will reduce productivity and efficiency and frustrate your colleagues.
On the other hand, buying high-quality technology may initially come with a higher price tag, but your investment is more likely to pay off. This way, you will actually save money in the long run.
5. Relying on technology to do all the work
Technology is a critical part of your infrastructure, but it’s not everything. The best tools and systems will augment your processes and procedures, making them more efficient, but they are not substitutes. You still need to establish an operational infrastructure to ensure your business runs smoothly. These business policies will create order and, at best, the technology you implement will increase your effectiveness.
6. Focusing too much on technology and not enough on other skill sets
Many entrepreneurs believe that they only need to form their teams with people with the best technology talent. This means they are ignoring other essential skills and skill sets that are vital to building a business from the ground up. The specific skills your organization requires will vary depending on the nature of the business, but generally speaking, you'll need experts in marketing, sales, operations, finance, and project management.
You should also look for soft skills in the professionals you hire, such as problem solving, communication, collaboration, organization, and more.
7. Ignoring product design
You might have a great product or at least a great vision for one. We hope you are solving an important problem. Most likely, you are using a technological basis to do this. But your product is nothing without its appeal. And this isn't just limited to visual design.
Today, user experience design (UX) has emerged as one of the most important aspects of product conceptualization. A UX designer focuses on understanding what users want, paying close attention to how it looks to ensure they have an optimal experience.
8. Skipping the quality control process
Your team members know what they are doing. They did their job effectively and that means you’ll have a fantastic product to launch – right?
Not so fast. Entrepreneurs whose startups have stood the test of time know the importance of the quality assurance (QA) process. In the world of technology, this means that QA specialists perform a series of rigorous tests, from performance to functionality, to ensure that the product is viable, usable, and as bug-free as possible. No, you can't just task any professional to lead this process – it must be someone equipped with the right skill set.
9. Not considering scalability
Most companies, if they persist, will eventually grow. That's probably one of your main goals: to expand. And that means you, as a leader, must consider this from the beginning.
When establishing a technological infrastructure, it is essential to think about scalability. Your programs and systems must be able to grow with you. When choosing your systems and programs, look at their features, paying attention to scalability aspects and what they will mean in terms of money, efficiency and productivity for your team.
10. Launching very soon
You are eager to get to market quickly. This is natural since you want to launch your startup and establish a customer base, not to mention stay ahead of the competition. But there is an inherent risk in launching your product too early.
Your product needs to be viable before being launched. It needs to have undergone rigorous testing, as we've already mentioned, and must be able to withstand scrutiny. Remember, you're not just introducing a new product – you're establishing a brand, which needs to be trustworthy.
How to measure success
How do you know if you have a solid technological infrastructure? Start by establishing metrics for evaluation. They can be related to productivity, system reliability, performance, security, and so on. It's important to evaluate and reevaluate your systems to ensure they are supporting your business effectively.
Your startup is nothing without solid technology, whether you're creating a technology product or anything else. Avoid these mistakes to ensure you don't fall into the trap that many small businesses do – and don't become another statistic.
