Working in a high tech startup is exciting and hard work.
The stats against a high tech startup are stacked against them right from the start.
90% of startups fail. Thatís a scary fact. If you are a startup owner, it should make you worry. Nobody wants to be a part of that majority, but making yourself the minority is incredibly difficult.
The 10% that succeed have the resources to grow. And sales revenue takes care of a lot of management issues if done right. Startup marketing is not like a small business or enterprise marketing. You must be able to growth hack and get leads with limited resources.
Running your tech startup is a lot like scaling new heights. From the very beginning, the odds are against you Ė 95% of businesses fail to reach $1 million in revenue; only .001% makes it to $5 million. As owners, we face adversity and the unknown.
It can be a lonely climb, and determination is just the beginning. Moreover, all too often weíre wearing many hats. You canít do it all alone.
There has been a lot of study on what sets that 5% out of all the rest.
Historically, in assembling this team, the CMO is the last one hired. This final key hire should be the clearest fit with the companyís charter and goals.
So why, by the time these companies go-to-market and get serious about the selling process, are so many startups on their second ó sometimes third ó CMO?
But too many marketers arenít delivering.
We see a wide gap that exists between the importance of strategic marketing activities such as gathering customer and market insights, and how well companies believe they are executing on them.
Our clients have three clear needs:
- A deeper understanding of their customers (and their customersí customers)
- Reliable market intelligence to identify where to compete, particularly across digital channels where thereís lots of growth
- Methods for defining a productís value and credibly communicating that to customers
Our clients donít want a digital marketing agency that can just run social media campaigns or roll out ad programs. Our clients want a partner who can drive business value and more sales.
Read on for some key tips.
10 Things You Need to Make Your Tech Startup to Work
Here are 10 tips every high tech business startup needs to do to have a shot at succeeding.
1. Be a problem solver in your high tech startup.
Donít follow the old adage, ďgive a man a fish ÖĒ When it comes to their technology, businesses do not want to be Ďtaught to fish.í They have a lot on their plate as it is.
What they want from your tech company is to be given a fish so they donít have to worry about it themselves.
Think like engineers and customers. While ďuser-centered designĒ has become an increasingly popular term, a startup lives and breathes it in a way that senior executives elsewhere canít imagine.
Startup companies all levels of the business, from the CEO to software coders to cross-functional teams, are hard-wired to look at problems from the perspective of the user in order to figure out what sets of processes would create the richest experience.
They obsess about the customer; everyone is expected to solve customer and user problems whenever and wherever they find them.
In an article for Entrepreneur, Ben Rosenberg points out that very thing. To make it in the high tech industry, your product needs to solve problems, not give your customers the tools to solve their own.
ďThey want solutions, not technologies,Ē Ben states.
2. Make something people actually want.
If you want to be a success, you need to make something businesses actually want. Seemingly obvious, but a recent survey indicates 42% of polled, failed startups cited a lack of market need as the main cause for going under.
You shouldnít have to convince your audience that they need your product or service.
The approach outlined in this post can ensure success to any company with decent (i.e., not necessarily exceptional) product offerings in a relevant product or service category (i.e., not necessarily a recognized hot category).
Furthermore, I will make the following assertion: Unless your company is a bona fide leader in an established, growing product taxonomy, every time you lead with your product (as most software vendors still do), I can assure you that you are likely to fail in todayís market. Learn moreÖ
3. Create a name for yourself and your high tech startup.
Create a brand for your business and the people in it. Networking is always important. Businesses tend to gravitate towards names they know. If you want to get their attention, you need to make a name for yourself.
- Go to local networking events and immerse yourself in your community.
- Have booths at industry conferences. And if a booth isnít in the budget, send a salesperson to the event and pre-schedule their meetings. Find a partner to share the cost.
- Network on social media. Build relationships with those in your industry, including thought leaders, prospects, and customers. If someone likes or follows you, send a personal note to engage with them.
4. Have a strong business model.
The strategy is always the key to success. If you want to succeed, you need to plan to succeed. But that will only take you so far. There are tons of marketing strategies but few that can make it happen.
Execution is the key here. Creating a strong business model helps you with this.
There are inexpensive online tools that can help, like Strategyzer, which guides you through the building of your plan.
And if thatís not comprehensive enough, work with a services firm like Matrix Marketing Group, who can help you build a revenue growth plan based on your goals.
5. Market like a pro with GTM strategies that work.
Just creating a website and expecting people to find it will not happen without a good SEO strategy. Your tech startup needs to understand somethings about digital marketing to gain traction.
It goes without saying that you have to market your product or service. But the question is, can you do it with a shoestring budget and limited resources?
The answer is yes, and this blog post talks about how you can implement the fundamentals to start growing your business.
And when youíre strapped for bandwidth, donít forget you can outsource some or all strategy and execution. Here are some pointers for the marketing leader:
- One element is steeped in the product to the point that the CMO is welcomed in engineering and product management discussions and is active in shaping the product roadmap.
- The second element is strong in traditional product marketing ó steeped in customer needs, technology, trends and issues, and able to drill down on specific use cases or applications to help translate customer needs to product management/engineering.
- And the third element strong in both traditional ďcorporate marketingĒ and it’s derivative, ďdigital marketing,Ē with its proliferation of tools, channels, content marketing, and metrics.
If there is a candidate out there equally proficient in all three areas, get them ó or theyíre well on their way to being a CEO.
6. Stand out from the competition.
I read a great book a few years ago called ďGetting to WhyĒ by Simon Sinek.
This is a must-read for any leader of a startup or marketer. There are so many companies competing with you in the high tech industry that you can get lost in the pack.
So figure out what makes you different and embrace it. Define your businessís personality, and capitalize on the strengths of your collective team. Then tell your target market. Include your differences in your value prop, your messaging and your content.
7. Focus on the customer experience.
How you engage with current and potential customers will determine your success. Your customers have a lot going on, so when they have questions, they need answers. If you want to get their business, you have to be able to reach them throughout the buyerís journey.
And the buyerís journey never ends. In Rosenbergís Entrepreneur article, he says that one happy client can be worth 100 paid ads. When you have happy customers, you have advocates selling your product.
8. Donít underestimate the importance of teamwork.
When you are first starting out, you cannot fully segregate job roles. The marketing leader cannot stick fully to marketing, finance cannot stick fully to finances, etc.
In the real business world, job functions overlap. Teamwork becomes vital because of this.
You have to be able to see the full picture, and if you only focus on your role, you will not be able to get that in-depth look.
Learning to function cross-departmentally will go a long way towards success.
9. Be prepared for setbacks.
In business, as in life, the unexpected happens. You have to be able to deal with those setbacks, respond appropriately and pivot if needed.
Knowing how to recover from setbacks will allow you to keep going even when things get hard.
Successful startups are not the ones who had no problems. They are the ones who had a problem, dealt with it, and kept going.
10. Your startup team is critical in a high tech startup.
Strong leadership to enable true collaboration.
Tech startup leaders who are shaking things up combine a focused vision with tenacity and the ability to build an organization that attracts other top thinkers and people that can execute. They have a single-minded determination to make their vision happen.
Yet while that kind of leadership is crucial, itís the ability to tap the collective minds of the organization that drives the business.
ďCollaborationĒ is a term thatís been in vogue for years, but the best startups make it happen by investing in an environment that fosters collaboration.
Itís more than open office plans and Friday beer parties ó itís a culture where teams self-organize; people from various functions come together to work on specific projects by habit, not by exception; and good ideas gain momentum by attracting talent from around the business.
As projects advance, new teams form to gather the skills and priorities needed. Managers act more as enablers and connectors, providing regular feedback and tracking progress.
Working towards success for the tech startup
New technologies, products, and services are flooding into the market all the time. How do you stand out? Then how do you engage throughout the customerís journey?
There is a lot to consider when youíre first starting out. If you need more help, check out companies that specialize in High Tech Business Startups, like Matrix Marketing Group.
Have something to say about your thoughts on high tech startups?†
Are you not getting the results you had hoped for with your current marketing agency? Let the experts at†this Denver marketing agency†help you generate more web traffic, converts more leads, and close more sales. Our team knows just what it takes to build and maintain a proven marketing strategy that drives high-quality leads. For more information, check out our†marketing services†or†contact us†to schedule a free consultation to discuss your needs and our services.
This is a†high tech startup. It’s a risky application of†technology†to a novel area, and it usually requires an R&D phase, several rounds of prototyping, and then slow adoption in an uncertain market.
What is a SaaS startup?
Software as a service (SaaS) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. The†SaaS†platform has been incorporated into the strategy of nearly all leading enterprise software companies.
Which industry is best for a startup?
1. Business-to-Business (B2B) Software and Services.
3. Consumer Goods and Services.
4. Financial Technology (FinTech).
5. Consumer Media.
Do most startups fail?
Up to 70% of†startups†scale up too early, according to the†Startup†Genome Project. They even go as far as saying it can explain up to 90% of†failed startups. Premature scaling means too much, too soon. The main goal of a†startup†is not to be a†startup†anymore.