Industry voice: Top ten tips every tech startup should know about

Aspiring tech entrepreneurs may well think there has never been a better time to start their own business. In 2009, I co-founded Manchester-based mobile app developer Apadmi. In this article, I'll share my top ten tips every startup should know about.

1. Ensure you have a viable proposition

70% of businesses fail within their first twelve months of operation. Whilst this can be down to a combination of factors, it is essential you spend time planning and establishing a strategy to avoid risk and uncertainty.

By defining a plan, you will be better prepared and have an understanding of what direction you want your business to take and whether your ideas are plausible or not.

What are your plans and how are you going to make them happen? Once you have a clear focus, you can start working towards goals to get the business off the ground.

The initial stages of starting a business are always the most difficult so look for solutions that will simplify problems and also save money. For example, set up a corporate cloud computing account such as Dropbox or Google Drive instead of buying your own servers to host your data. Everyone on your team will be able to access the data and it will free up some money that can be used for other aspects of your business.

2. Relationships are important

Go into business with people you like and trust.

It is important for members of a team to have respect and understanding for one another so that they can all work together on achieving success for the business.

You will be far less productive if your business partner is someone who you don't particularly get along with compared to someone who complements and enhances your talents. You will also find that you don't open up to them as much as you would if your relationship was stronger and this could result in a breakdown in communication or reluctance to share ideas.

3. Focus

Do one thing very well rather than lots of things poorly.

Slowly enhance your offering. By focusing on one aspect of your business, you can ensure that you are applying all of your attention and concentration to this one area and consequently, the task will be completed efficiently and effectively.

In the initial stages, avoid working on a series of tasks at the same time as this may cause distractions and lengthen the amount of time it takes to complete a job.

4. Pick the right location

Surround yourself with similar people and businesses as this will allow you to join a network of likeminded business owners who already know the industry.

One way of ensuring you're setting up in the right location is to look into tech hubs in your area such as MediaCityUK in Salford and Tech City in London. These are clusters of tech businesses situated in one area. You'll be at the centre of the tech news with access to a wealth of knowledge and contacts.

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5. Don't be emotional

Take the emotion out of business and stay calm!

You will encounter many situations – some will be tougher than others and you may find yourself in positions that you have never dealt with before, but you need to remain in control at all times. The ability to control your emotions is key to success.

A small level of stress can keep you alert and helps increase attention but the problems occur when these levels rise or the stress becomes prolonged. If you feel like your emotions are taking over then try and put together a coping strategy. This may include steps such as thinking positively and taking time off from the work that's making you stressed.

6. Value continual professional development

Get yourself a mentor that is right for you and absorb as much information as possible from other business leaders.

Don't be fooled into thinking that it is easy to find a mentor who can really help your business grow. It takes time, and ideally they need to really understand your offering to the tech industry.

As previously mentioned, developing relationships with key business professionals is also extremely important as it allows you to tap into their expert knowledge. Again, you need to invest time in developing these connections with successful people in your industry, but it will be worth it.

7. Network, network, network!

Building up connections is vital to the success of any business.

You need to start communicating with relevant contacts as it will help to get your company known to the public and generate a reputation. This could be connecting with your target clientele or other industry professionals. The more people you know, the more business opportunities will start coming your way.

Successful networking will allow you to construct strong relationships with highly influential people who will have a wealth of expertise that you can benefit from.

8. What's your recruitment strategy?

Put a disproportionate amount of time aside to find the right people.

Seek complementary skills and those with the right attitude, as building up a competent team will ensure that you have a strong, talented workforce that will help to drive your business forward. Creating the right workforce is essential and can be described as a type of investment.

You can't run the business on your own and you need people who are skilled and competent in the tasks that you require them to complete. If you put the effort in to get it right, you'll save yourself a lot of money and time in the long term.

9. Grow cautiously

Build up cash reserves to give stability for the rainy days.

When you're starting up, your cash flow may not follow a steady trend but your expenses may be high, and at this early stage you need to plan for unforeseen financial problems such as changes in market trends. It can be tempting to buy the latest technology especially when you're starting up a tech business – but ask yourself whether it's something you really need.

For example, why spend hundreds of pounds on Adobe Creative Suite if you only need the most basic image resizing tools? A free open source image editor like GIMP will do everything you need it to.

10. Ask for help

Don't be afraid to ask for help and advice from those around you.

Starting up your own tech business is not an easy task to take on and there will be hurdles along the way. By asking for advice from others around you who have already been in your position, you can pick up a range of useful tips and hints based on their experiences. This can help you deal with problems that you may encounter or can even guide you away from mistakes that others have made.

What's more, you can also ask for help with funding – there are a wide array of funding options available to help tech businesses start up and grow. Look into this and see what you can tap into. The government, for example, provides funding and programmes to make loans available to more small businesses, so take advantage of this.

• Howard Simms is the co-founder and operations director at Apadmi

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