In this article, our guest writer, Luke Hatkinson-Kent, a Freelance Financial Writer, shares on the many issues tech startups tend to overlook, and how they can be overcome. If you like his work, you can reach him at [email protected].
Launching a startup is a great undertaking. It’s a business venture with strong prospects, with London startups projected to have made $2.9 billion in 2015, boasting an impressive result. Enabling a competitive nature in a lucrative market, startup commerce offers a host of rewards that are fuelled by ambition and innovation.
I wrote recently about how tech startups can stand out from the crowd when seeking investment.
However, tech startups face an array of other issues that are often neglected or underestimated. In this sector, ignorance is nowhere near bliss. CEOs and employees can find themselves scratching their heads in confusion, when some common sense and know how might have helped them.
Here are some examples of what a tech startup can overlook.
Exaggerating startup competence is a crippling mistake to make, and can lead to many more problems in the future of a firm. The dreams of success can be big and bold, but they can overwhelm and even overshadow critical thinking, causing a mess from thereon.
Some tech startups focus so much on their larger aspirations that crucial parts of their infrastructure fall to the wayside. Put simply, they think of the end game without ironing out the details. Consequently, a tech startup can make the mistake of forgetting their limitations, with their identity and purpose muddled right from the start.
Success is a build-up of small victories, a list of accomplishments that make up the whole. Occasionally, endeavours for the end game must be temporarily shelved to focus on what’s present or imminently ahead.
Tech startups are made up of small squads, with one member with a mind for digital marketing, another for finance and another for sales. Of course, many prefer to stick to one role, where their familiar skills can be implemented most effectively.
However, many of these roles can mesh together quite easily. Pride can be set aside and even CEOs can find themselves performing some of the more menial tasks. After all, the devil is in the details, and being further involved with the tech startup will create a more well-informed enterprise. Additionally, every employee is essential in a tech startup, and a workforce that is united and multifaceted will produce better results.
If nothing else, this may also cut costs of hiring more employees for the lower tier roles, keeping recruitment tight and controlled.
With so much passion circulating through an up and coming venture, cyber security can be underestimated or flat out neglected. Despite hacking and cybercrime becoming such well-publicised events, tech startups can make the mistake of feeling they are safely secreted away or that they know it all.
However, every business is at risk of cybercrime if they have a digital or online presence. While it can be tempting for techies to handle their own security, it can drain both time and resources. Alternatively, other companies providing cyber security are more than up to task with refined, round the clock assessment and maintenance. Threat detection and analysis is its own sector, and a tech startup cannot be readily equipped for everything themselves. They have a business to run!
Ultimately, there is little to lose by calling in backup, enabling the tech startup to direct its attentions elsewhere.