A startup is not a walk across a field. A startup is not clear sailing in calm waters and not even a bed of roses. It is also not all peaches and cream. You can endlessly list quotes from the book “A Thousand and One Banalities”, but they rather vividly depict work on new business projects, each of which, like our life, has its own risks, difficulties, challenges, and routine.
Every year tens of thousands of startups are developed but, unfortunately about 90% of them fail. As cbinsights.com notes, most new business startups get closed within the first year of work. What leads to this outcome? How to “strengthen the immune system” of a business project so that it grows, develops and produces results? What should be taken care of first when developing a startup? What does IT consulting do and how exactly does it help technical startups? - Answers to all these questions are here.
Causes of startup failures
There are many examples where even promising projects that have gathered large investments did not meet the expectations laid upon them. Among the main causes of startup breakdowns, according to cbinsights.com are: No market need - 42%, Ran out of cash - 29%, Not the right team - 23%, Got outcompeted - 19%, Pricing/Cost issues - 18%, User unfriendly product - 17%, Product without a business model - 17%, Poor marketing - 17%, Ignore customers - 14%, Product mistimed - 13%.
It turns out that there are many reasons for business startups failures, but one of the main ones is the inability to plan strategically. So let's take a closer look at this problem.
Often the cause for the startup loss lies in the “cracked foundation", that is, when founders rushed and did not pay enough attention to the detailed project planning and designing. Without this assessment, planning and recommendations made by IT specialists, a technical startup would unlikely to go.
It is this process that is IT consulting, which is a part of the broader service - the custom software solution. Tech startup consulting is logical, consistent and involves various steps. As you can be convinced throughout the next 11 minutes of reading this text, the neglect of IT consulting afterwards can lead to the main dead ends: lack of product demand in the market, additional costs, issues with the product - flaws, mistimed, outcompeted, user unfriendly product, etc.
Some data to help us
As you can see in the infographics from BCG survey, respondents of 400 deep tech startups point out technological expertise as one of the most important priorities when creating a technology startup.
Practice shows that many startup founders underestimate the need for creating a strategic plan. They rush to create a startup product, quickly test it on the market, and believe that the startup will automatically succeed if its idea is good. Others use the services of IT consulting.
Information technology startup consulting is not just about giving or receiving advice. In fact, everything is much more complicated. Effective and successful tech startup consulting involves a number of processes and services, such as evaluation, analysis, development of an IT strategy implementation system, system management, and more. IT consulting is critical in the very early stages of startup development. You'll hear about this from managers of the startup projects that became the heroes of our article.
Some examples of “successful startup failures” and their causes
The social network Friendster, with 115 million users registered, failed because it was unable to scale. For two years, users had problems with authorization, and the pages were loading incredibly slow. This was because the social network was not designed for such a number of users at the server architecture level.
The YayNay application, which allowed smartphone owners to upload images and compare them, was closed due to the fact that the creators could not control the content that users posted. The service had to be shut down and removed from the app stores due to a problem that was not predicted at launching.
Everest - the US software application, the founders of which raised about $ 2.2 million investments. The startup signed contracts with the largest world-class brands, but within two years after its foundation the project had to be closed. The team made too many mistakes in the startup development. So the product turned out to be very slow and full of bugs. Too much had to be done manually and erratically, many problems in the processes and product have to be corrected, and the company's expenses were too high. All these tech startups were good, but over time they failed for various reasons, most of which are related to insufficient planning and prototyping at the very beginning of the project development. We understand that you are not willing to follow their tracks.
So you value your startup concept and resources, believe that customers will appreciate your product idea, and that it will be needed and useful to them. You don't want to step on the same rake as the founders of failed startups, right? To make your success a reality, even at the earliest stages of creating your technical business project, you should consider using IT consulting. This allows the founders of tech business startups to achieve their goals and prepares them to solve real problems of implementing and operating the system.
IT startup consulting consists of strategic and tactical planning, which are also divided into certain stages. IT consulting helps your company create a business strategy appropriate to your IT goals, develop a detailed plan for creating a startup product step by step, evaluate the project work plan and map out its implementation. In addition, tech startup consulting helps to prevent possible errors and flaws in the product.
Now, let's take a closer look at the main advantages of IT startup consulting and custom software solutions for your future technical business project.
What do you get using IT consulting for tech startup:
1. You remain relevant in the market
One of the main advantages of tech startup consulting is the use of effective methods and models for analyzing the market, the needs and desires of the target audience, as well as a detailed inquiry of your startup business project. Which allows you to determine the feasibility of launching and testing a software service or product.
One of the methods we use during startup consulting is Canvas by Peter Thomson - an effective method to test your business ideas. Using questions on canvas such as desires, fears, and needs, you will be able to explore your target audience, in addition to an analysis of the benefits, features, and experience of your startup product will show whether consumers need it.
All this contributes to the fact that your tech startup product or service will be relevant in the market. In addition, IT consulting will advise the most efficient model of data placement in your particular case - cloud or server.
2. You get advice, assessment, and solutions from IT professionals
Custom software development companies have significant experience in developing non-standard software and use analytical tools that allow you to predict and build a plan of action on how your company can achieve its short and long term goals. So, with IT startup consulting, you get access to knowledge and experience to use more advanced technological solutions and services.
3. You avoid unnecessary costs and reduce risks
Planning allows you to create an architecture in such a way as to get only the necessary functionality in the application, without any extra functions that you would have to pay for. Risks are leveled by the fact that the customer definitely gets exactly what they want, because the software will be developed exclusively according to their goals and needs. IT consulting will not only be able to figure out how to embody the customer’s desire, but also to give valuable advice on how to improve their desires.
During tech startup consulting, software development analysts will examine your project, analyze it, and give you valuable professional advice that will help you not to waste money. One of them, for example, may be that it is better to “build up” capacity as the storage requirements and end-user requirements increase, rather than spending precious startup funds to purchase capacity from the very beginning.
4. You create the basis for growth
A flexible IT environment allows you to quickly expand your IT infrastructure and take advantage of business opportunities. Well thought out IT infrastructure and careful planning will enable you to develop your service or product so that it can be scaled when and how it is needed. Also, an IT consulting company will provide your startup business with access to planned, weighted approaches to ensure ongoing system maintenance, security backup and disaster recovery, which minimizes downtime.
5. You do not spend time on difficult tasks
In consequence of startup consulting as part of a custom software solution, you do not spend time upgrading and maintaining your IT infrastructure. Why must you spend resources on something that can safely be handled by professionals? Let them take care of network connectivity, security, backup, disaster recovery, database administration, program management, and much more. You and your staff during this time are able to focus on core business functions.
6. You reduce overall IT costs
IT startup consulting allows you to effectively manage business cycles by setting up your IT infrastructure and operational processes. Moreover, IT outsourcing will reduce your capital costs and operating budgets. A software development company will help your startup develop a budget and a plan that meets your specific needs, which reduces both the operating and general costs.
7. You increase the value of your business
When you use the advice of an IT company, and also receive an expert consulting in product improvement, the value of a startup business project for future investors increases significantly. That works especially if you focus core resources on products, innovation and marketing, and not on IT planning and infrastructure.
8. You get tech support service
As a result, a tech startup IT consulting company will assist you with planning and creating a quality MVP (minimally viable product) that realizes your business concept as much as possible. Using the first prototype you can test the functionality, demand and performance of the startup idea. The work of an experienced IT team does not end with the strategic and tactical planning, development and proper implementation of your IT systems and networks. It provides your tech startup with further services in the event of any inconvenience in the future, eliminates errors and inaccuracies.
Benjamin Franklin once said: “An ounce of prevention is worth a pound of cure”. He said these words at a meeting with firefighters in Philadelphia back in 1736, but this phrase is very relevant even now, especially in the context of development technical startups and IT consulting services. Therefore, do not neglect the strategic and tactical planning of your tech business project! Even before starting the development of a tech startup, contact the specialists for thorough planning of product development, taking into account possible risks and subtleties, and thinking through all the processes. This way you do not have to put out the "fires" that appear here and there, but moreover, you'll be able to completely prevent their occurrence. Indeed, due to IT consulting, many tech startup projects managed to avoid costly mistakes and time loss, and get valuable advice.
Use the experience and in-depth technical knowledge of the MassMedia Group specialists to create your startup project correctly and without any technical risks.
We wish your business project to succeed. Minimize difficulties and maximize the capabilities of your startup along with IT consulting!
Let's talk about your project!