If you go around and ask numerous people in the technology sector, they will usually not have any interest in starting and maintaining businesses. They will end up finding a co-founder who enjoys tackling the challenges of starting an enterprise, as well as finance and marketing. However, the profits the business makes are not split 50-50 in most cases, because the tech expert usually believes that the tech side deserves more income share.
This is among the biggest challenges surrounding the forming of a sustainable business. Many tech experts and investors hold on to the belief that the business experience and expertise does not deserve a share greater than 5 percent of the total partner equities. If you happen to be a technology expert and want to form a competitive business, such as one that competes at the level of the list of best VPNs for Australia, and then read on – you might be propagating some of these myths and hampering the success of your enterprise.
The Priority of the Business is Developing the Technology Side:
Whenever you are dealing with an investor from outside or one that is not familiar with the industry, you must always remember they want to see a business model that works. They will not be looking at the development and research aspects of the company. The main purpose of a business is to make profits, regardless of whether it is in the tech sector or not.
Therefore, it becomes a waste of time and resources if the entrepreneur is searching for an investor before they begin to generate some revenue and a tangible product or service they are working on. Many founders of businesses will bootstrap the development of the product.
If you want a Great Solution, the Tech Side Needs to be Great:
Never underestimate small beginnings – this statement applies to every aspect of life, including the presence of possible solutions using technology. Sometimes, it is the simple solutions that get your business moving and growing, even when you compare them to more complex solutions elsewhere.
For many investors, they will not usually look at the technology behind the product you offer – they only want to see if the solution it gives is exciting. Therefore, it is more important if you keep the tech side simple, then begin with an MVP (minimum viable product), and use early adopters to test if the solution is viable. The best technologies in the world today are not necessarily the most complex ones – rather, they are the low cost options.
New Technology will always Sell Itself because of How Exciting It Is:
Here is a fun fact you might not be aware of – customers and investors are always afraid of new tech developments due to several reasons. It could be due to the side effects it introduces, the learning curve it takes, or the hidden problems that may surface later on.
That fear can easily override any gains you make, no matter how exciting the technology is or the problems it seeks to solve. A good business will know the best method of downplaying the tech side, and increase the value of the solution – that way, it can eventually break even.
Poor Technology is always Masked by Marketing:
Thanks to the continual upgrades of technology, the world of today now has information overload. This has led numerous people to try social media and marketing campaigns to get the best solutions to solve their problems and needs.
If you fail to keep in touch with all the changes occurring, you will still fail in your tech adventures – all because of poor marketing skills. The technology will not sell itself to people; you must have very good marketing skills to match the technology, so that consumers are encouraged to take it up.
You cannot Build a Business until you Finish Building the Tech Side:
All businesses need to make money, as stated before. Tech is lonely a supplement to that goal, not the main one.
For any business out there, it is important to do customer segmentation (know the audience you are trying to target) and market opportunities (are they willing to spend money on the product?). This is the only way you can find out whether you can actually afford to spend on the same technology.
If you cannot sell your innovations at a profit or even appeal to early adopters, then that is not a viable business and you need to scrap it.
You do not Need to Apply for Patents because only Major Companies Get Them:
Patents are a part of intellectual property. Anything that deals with intellectual properties and rights is always a business issue, and is never a technical issue.
In fact, when handled well, a patent can increase the valuation of your businesses by amounts even close to a million dollars, and they will end up attracting acquisitions instead of copycats trying to profit off the idea. These patents can also apply to other areas such as technology algorithms, innovative user processes or user interfaces.
You should only Begin a Business Once you Sort out the Tech Aspects Perfectly:
Owning businesses is all about taking risks. The same applies if you are operating a tech based enterprise. May experts in the business sector actually recommend that an entrepreneur begins their marketing strategy and uses it to confirm that the interest form the consumers exists, then from there they can form an intriguing concept of the product.
The problem of jumping into the implementation of a product that is too elegant or technical will come in when you are trying to market to a non-technical consumer. They will not understand what you are saying, and they will not bother trying out your product or service.
When you are reading all these myths, you may assume that the greatest technologists will never become great entrepreneurs, but that is not necessarily true. What matters is that great businesses skills are equal to great technological skills, and there are people who have both while others have worked with co-founders who can market the business side.