The global software products market is currently over $930 billion (as of 2020) and is expected to reach $1493.07 billion by 2025.
The software industry is big business. That’s because more than ever before, software products have become an integral part of any business, so demand is high. This makes it a highly profitable industry to enter.
But as a startup software company, you must take critical steps to ensure you don’t run into pitfalls if you must be successful in the industry.
To get you on the right track, here are five vital things you must prioritize as a startup software company.
1) The Right Team
Whether or not there’s a product, the first thing every tech company needs is the right team. The right team doesn’t mean a group of highly skilled programmers.
The team is right when people with different talents, roles, and ideas work towards the same goal. This facilitates a well-rounded and fully functional product that the target audience will appreciate.
As a startup software company, you may instinctively hire only a few programmers thinking that’s all you need. But you may end up with a feature-packed and very beautiful app, but one that hardly anyone finds useful.
That’s because a programmer is more about using his skills to create impressive products.
It would be best to have product developers, data engineers, HR administrators, and project managers working alongside your software developers.
Such a team comprises people who can understand the target audience’s needs, conceptualize a solution, and implement it strategically. Consider sourcing Software Development Companies in Argentina if hiring an entire in-house team is beyond your budget. A regional workforce can collaborate with your few employees, saving time and money while providing top talent.
Some startups battle with funding, while others fail to use their available assets optimally. As a startup tech entrepreneur, it would be helpful to allow a qualified accountant or financial advisor to handle your finances, as this may not be one of your strong suits.
The professional can help monitor cash inflow and outflow, bookkeeping, make the best possible investment decisions, secure and manage loans, and improve your profit margin. All of these may be out of your skillset, and not hiring a professional because of the cost may have a catastrophic impact on your business growth. Again, having a well-rounded team comprising members of different skill sets is beneficial to your success.
3) Minimum Viable Product
Many startup tech entrepreneurs are in a hurry to develop and release their ideas. But the risk is that they may spend time and money developing features that are not very important to users.
It would help if you didn’t assume to know what your target audience wants. That’s why having a minimum viable product (MVP) is important. An MVP is a version of a product with minimal features, released so that users can test and give feedback.
Their feedback will enlighten you on what changes to make, areas that require improvement/refinement, features to remove or add, or whether to discontinue the product.
An MPV takes you on a trip into your target market’s mind. It helps you avoid having the finished product rejected even after spending so much time on it.
But before working on your MVP, it’s essential to ask yourself these crucial questions:
- What do you think can make life easier for your target audience?
- What are their complaints regarding your competitor’s products?
- What is the market structure?
- What are your competitors doing?
- How do you intend to distinguish yourself from them?
Answering these questions will offer you some clarity on beginning your software development. This will help you develop an MVP with a high probability of acceptance.
4) Build an Impeccable Digital Presence
Hardly can any business thrive globally (or even nationwide) without a robust digital presence. Think about all the top software companies and look into their websites. Whether you’re a startup, it’s best practice to put your best foot forward as an expert in the field. Whether you’re a B2B or B2C company, let users see you as a leader in your industry. Your website is your best marketer.
You see, 81% of customers conduct online research before buying. So you want to prioritize search engine optimization (SEO) to bring your website closer to your audience. It would help not to consider yourself small, even as a startup. Do what your top competitors are doing, even better, and stamp your authority on the Internet.
5) Lower the Entry Barrier
How easy is it for users to learn and implement your new software? If it takes time, you may lose potential customers.
Most users aren’t particularly interested in taking the pain to learn new software. They’ve had their fair share of that, so they’re often looking for something quite simple, user-friendly, and affordable. Use this insight to create a strategy to get customers on board.
As a startup software company, consider giving free trials or free offerings, a free upgrade for beta users, and multiple subscription levels tailored to the needs of every potential user.
What are those things essential to your operations? How can you acquire them with the lowest capital possible?
For startups, funding and time are often limited. This means you have to sacrifice some things for others. This is known as a trade-off, a crucial factor in your tech entrepreneur’s success.
No matter how amazing some features look in your mind, it may be best to do without them initially and focus on the more relevant ones. Stay focused on value, not features. When your target audience accepts the product, you can include several other features in later updates/versions.
Trade-offs also help you focus your effort and resources without distractions.
It wouldn’t be nice to realize you’ve spent so many resources on a product only to get poor feedback when you finish. It can be disheartening. To avoid that, find a team that understands your target customer’s needs, decide what matters most in the earliest stages of your product, and release an MVP.