Tips for Becoming a Successful Technopreneur
Nine out of ten startups fail, so it’s important to start off right, especially if you’re starting a technology business. Successful technopreneurs know how to convert small opportunities into commercial realities. They leverage technology to reshape the society around them—think Jeff Bezos and Bill Gates.
But as with every other business, there is no predetermined recipe for success. While you may know how to identify problems and come up with great solutions, applying the knowledge in the real world isn’t easy. If you’re about to launch a technology business, follow these tips to become a successful technopreneur.
Hire the Right People
A successful startup is agile and innovative, and it can only achieve these qualities if the staff have them. Ensure your core team has what it takes to make your startup a success. As you work hard to grow the business, there will be times of uncertainty and self-doubt, so the people you hire must also have the ability to survive in tough times.
Great employees have extraordinary drive and a lot of knowledge, so don’t be in a rush to hire. Get the right ones on board so they grow with you. You’ll do away with the need to hire again for each new leadership position.
Don’t Design Your Business Around Venture Capital
Too many startups depend on venture capital. Don’t make the mistake of building your business around venture capital. Take time to figure out stuff and then borrow venture capital. There are many successful companies that started with almost no funding.
Craig Newmark, the founder of Craigslist, ran his classified platform using his own money until 2004, when eBay invested $32 million for a 28% stake. By 2016 the platform had made over $690 million in revenue.
You can start your business with your own money (seed capital). If you don’t have enough, you can borrow money from family or friends or apply for pink slip loans. These short-term loans have a low-interest rate and are easier to pay off. Only raise money from VCs after proving that your product is a success.
Create a Minimum Viable Product (MVP)
If Facebook and Twitter did it, so can you. By creating a Minimum Viable Product, you don’t waste a lot of time and effort testing how the market will react to your product before building it. For example, the original Twitter prototype was a tool used by employees to send messages to each other and view them on a group level.
Minimize your concept and add just one or two core features – those that will help users solve their most important problem. Remember, people won’t use every feature of your software, so focus on those they will actually use. Build the extra features after validating the user requirements.
Be Agile
If you discover that users aren’t responding to your software as you expected, adapt. Find out the solution your ideal customer is looking for and provide it. Run tests based on real data to ensure you build software with the potential to succeed.