What to consider while starting a Tech startup?

The business world is growing faster than ever before. More companies are registered as compare to previous years.  In the United Kingdom, 608,110 businesses were registered In 2015. In 2016 from January to June 38,872 more businesses are registered as compare to the previous year in 2015. As Kate Palmer of Telegraph “Record 80 new companies being born an hour in 2016”.

Businesses are the power house for the national economy. Hence, Governments of every nation support new startups and help at various stages. Also, various departments of governments run campaigns, educate entrepreneurs, give training and help to launch the business as well as offer support to export the product or service.

If an entrepreneur has an idea about a product or business, the best point is not to jump and launch a business without consulting expert advice. There are government organisations which offer free advice and tests your ideas. If you are UK resident, you can contact to Innovate UK, which is an executive non-departmental public body, sponsored by the Department of Business, Energy & Industrial Strategy. Innovate UK provides guidance for business and academic organizations on how to get funding to test ideas and develop innovative products and services.
Sometimes entrepreneur is more enthusiasts and overconfident about their product and unaware about competition or risks involved. If the idea is well-tested before its launching, the premature demise of a startup can be avoided.

Importance of Business plan:

The UK and other governments give help for a new startup also provide templates to write a business plan. This business plan will help you for brain-storming your business idea and lead you to answer: why will your business succeed when so many others fail?  The business plan will help you to know your market and finance required, also it will make you aware of unknown risks about your business.


What are the lucrative startups to consider?

Please google it about which “business ideas to consider”, you will find many business ideas for startups. However, my suggestion is to consider tech company even if you are not a technical expert for following reasons;

1. No repeat investment to develop – Once you develop an application or software, you can sell your software or apps to as many as clients without repeat investment like in manufacturing.

2. Lower Risk – If it fails for any reason, you can diversify it with adding other features or make it simple and easy to use and faster in operation.

3. Fewer resources – It requires fewer resources to develop a tech product, such as compare to another services such as logistic, where you have to hire a lot of people, get them trained and then get the work done.

4. Less Space – It can run from anywhere even from home and doesn’t need warehouse for storage. Use cloud storage, such as Microsoft Bizpark.

5. Short Time – It can start in less time. Just you have to engage with your software engineers on daily basis.

6. Quick – Faster speed is the key ingredient of any strong economy, the same for a business and a product. Thus faster the speed much can be done in a shorter time.

7. Outsourcing – Resources can easily be outsourced from any other country i.e. hire a graphic designer, script writer, video editor, software engineer or marketer etc.

8. Easy to Export – Can easily be sold globally without any barrier and need of logistic to deliver.

9. Easily scalable – It can easily scale up by upgrading your servers to accommodate a large number of users.

10. Innovation – It is easier to innovate to fulfill the market demand or change in circumstances.

11. Eco-friendly – It isn’t a harmful to the environment. No risk of contamination, expiry or environmental hazard.

12. Security – It is secure and safe.


Important resources for tech startups;

Here are few helpful resources for tech startups

1.. Fiverr – Get professional Services for starting $5 or less: Market Research, Branding Services, Presentations, Business Tips

2. Freelancer.com – This Website Design cost $390 Hire expert freelancers for your job online

3. Microsoft Bizspark – Eligible startups may qualify for up to $120k of free Azure cloud credits . Join BizSpark to receive free software, services, technical support, and Azure cloud

4. Google Cloud Platform – Use Google’s core infrastructure, data analytics and machine learning. check Secure and fully featured for all enterprises. check Committed to open source and industry leading price-performance.

5. AWS Activate – Amazon Web Services provides startups with the low cost, easy to use infrastructure needed to scale and grow any size business.


1. http://www.telegraph.co.uk/business/2016/07/12/record-80-new-companies-being-born-an-hour-in-2016/

2. https://www.gov.uk/government/organisations/innovate-uk

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How to avoid startups failures?

As per Harvard Business School’s Shikhar Ghosh research, all 75% startups fail. That means, every three out of four startups fail and only one out of four survive.  If the risk of failure is so high, then what should be the mantras of success?

LEAN philosophy- a Success behind Toyota Production System
A Japanese engineer Ōno Taiichi developed the LEAN management philosophy. It was applied in Toyota Production System, as Lean manufacturing. 

Lean thinking is a business methodology that aims to provide a new way to think about how to organise human activities to deliver more benefits to society and value to individuals while eliminating waste.

What is LEAN?
Lean is management Philosophy of Ono, which can be simply described as an “elimination of Waste”. Every Lean manufacturing organisation should eliminate following 8 types of wastes;
1. Waste of overproduction (largest waste)

2. Waste of time on hand (waiting)

3. Waste of transportation

4. Waste of processing itself

5. Waste of stock at hand

6. Waste of movement

7. Waste of making defective products

8. Waste of underutilized workers


Formulas of Success

For the success through Lean, Ono has given 10 formulas ‘to think and act to win’.
1. You are a cost. First reduce waste.
2. First say, “I can do it.” And try before everything.
3. The workplace is a teacher. You can find answers only in the workplace.
4. Do anything immediately. Starting something right now is the only way to win.
5. Once you start something, persevere with it. Do not give up until you finish it.
6. Explain difficult things in an easy-to-understand manner. Repeat things that are easy to understand.

7. Waste is hidden. Do not hide it. Make problems visible.
8. Valueless motions are equal to shortening one’s life.
9. Re-improve what was improved for further improvement.
10. Wisdom is given equally to everybody. The point is whether one can exercise it.

Lean for Tech startups

Later, this Lean is developed in sales, marketing, service sectors and in tech-startups.
In 2008 Eric Riesthe proposed a LEAN methodology from the failure of his previous startup and developed a Lean methodology for Tech startups.

He said, there is a misconception about lean and it is not true that it is suited only for manufacturing. Rather, Lean applies in every business and every process. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organisation.

According to him, Lean means creating more value for customers utilising fewer resources. Startups and organisation should understand the customer value and keep focus to increase of its key processes with zero waste.  (Lean Enterprise Institute).


Learn from Failures
The quote of Morihei Ueshiba is well-known; “Failure is the key to success; each mistake teaches us something’. But the question is: Can startups afford to mistake?
Geman Philosopher Friedrich Nietzsche once said, What Doesn’t Kill You Makes You Stronger.

Ries’ said that the failure of his ‘Catalyst Recruiting’ is;
1. Not understanding the wants of target customers by him and his colleagues and
2. waste of time and energy on too much focus on the initial product launch

Be Smarter

As quickly Entrepreneurs grasp the philosophy behind the failure, as quicker, they can lead their startups for success.

The single best piece of advice for entrepreneurs is this: Know what not to do (David Collis).

Following four formulas can be derived from ‘Lean Enterprise Institute’ for the success of Lean Tech startups;
1. Eliminate waste along entire value streams, instead of at isolated points
2. create processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems.
3. The company should be able to respond to change customer desires with high variety, high quality, low cost, and with very fast throughout times.
4. Also, make information management much simpler and more accurate.



Loizos, Connie (26 May 2011). “‘Lean Startup’ evangelist Eric Ries is just getting started”. PeHUB.

https://www.brainyquote.com/quotes/quotes/m/moriheiues183597.htmlthat mistakes make every one perfect.

Ohno, Taiichi (1988). Toyota Production System: Beyond Large-Scale Production (English translation ed.). Portland, Oregon: Productivity Press.


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