The U.S. Bureau of Labor Statistics reveals that during initial two years, more than 20% of startups go out of business, while 65% of startups fail within the first ten years of their establishment.
For upcoming entrepreneurs planning to establish the next big venture, hearing such statistics can be disheartening. Nevertheless, executives can undertake certain measures to heighten the chances of triumph for their business. A trustworthy IT foundation and tech stack are imperative in getting started. Here are ten frequently observed IT mistakes that should be shunned.
Having comprehensive knowledge of technology can be rewarding, but trying to initiate a business alone is not advisable. While it is achievable to triumph single-handedly, such cases are meagre. To have optimal odds of success, particularly when launching a business starting from scratch, it is crucial to have a partner with essential technical acumen as well as business expertise and other associated proficiencies.
Inadequate Market Research
It is possible that you might have an exceptional product idea, but it is also plausible that someone else may have already had a similar proposition. Conducting adequate market research plays a crucial role in apprehending the customer requirements and preferences, the present products and services in the market, and ways to differentiate your business from competitors.
Implementing market research requires knowledge of marketing, data analysis and technology. To secure the best possible outcome, expert support is recommended.
Hiring Full-Time Staff Too Early
At the initial stages, businesses often prefer part-time or freelance employees to full-time staff due to financial constraints. To reduce expenses, it is feasible to outsource technical requirements to a reliable software development company which is much more economical than employing a full-time worker. However, there are limits to financial flexibility.
Overspending on Low-Quality Equipment
Irrespective of the initial expenses, investing in superior quality technology usually provides a higher return on investment than its cheaper alternatives. It is natural to seek the most cost-effective option when budgetary constraints exist; however, the cost savings may come at the price of compromised quality that is liable to result in a shorter lifespan of the product or service.
Initiating an investment in premium quality technology may bear higher initial costs, but it can offer more long-term value. In the end, it may result in cost savings in the future.
Overreliance on Technology to Solve All Problems
Technology plays a vital role in the effective functioning of an enterprise; however, it is not the sole element. Top-notch hardware and software can augment the efficiency of existing operations and systems, but they cannot supplant them. To guarantee the seamless functioning of your business, an organized operational structure is imperative. Such established procedures bring order and technology can enhance their effectiveness.
Obsession with Technology Neglecting Other Skill Development
Several business owners mistakenly believe that the key to success is exclusively dependent on hiring the most proficient individuals in the technology field. Nevertheless, they overlook the significance of other domains of expertise that may be fundamental for the effective establishment of a business such as marketing, sales, operations, finance and project management. The necessity of these skills may differ depending upon the nature of the enterprise.
It is advisable to hire individuals with solid interpersonal “soft skills” such as the ability to work in a team, communicate proficiently and maintain organizational skills.
Overlooking the Significance of Product Design
You could have an excellent product or a fantastic concept for one. Your favorable outcomes could have paved the way for a solution to a significant problem. It is possible that you are reliant on some form of technological support system. The marketability of a product is pivotal, but it does not sell itself. And that does not just apply to its design.
User Experience (UX) Design has become an essential component of modern product development. A UX Designer has to ensure that the requirements of the intended audience are fulfilled and that the product is visually appealing to provide the finest user experience.
Omitting Quality Assurance Practices
The team members exhibit excellent competency in their respective domains, signifying the successful accomplishment of allocated tasks. As a result, we are certain that the product we are launching in the market will be of superior quality.
Successful business owners must acknowledge the significance of Quality Assurance (QA). In the IT industry, this implies that the product undergoes thorough testing by skilled QA professionals to ensure its functionality, usability and minimum issues. It is not sufficient to hire just any specialist for this assignment; rather, someone with the right blend of comprehension and expertise is imperative.
Neglecting the Requirement for Scalability
A company is likely to expand if it perseveres in its efforts. As a leader, one of your principal objectives should be to aim for progress, and it is imperative to contemplate this aspect in advance.
When creating a technical infrastructure, it is crucial to factor in scalability. Both software and infrastructure must be developed with scalability in perspective. Prior to making any commitments, it is essential to reflect upon the likely financial, temporal and resource consequences, as well as scalability.
Premature Launch of Product
Considering the urgency to start a business, acquire customers and outpace competitors, it is comprehensible that you want to enter the market swiftly. Nonetheless, releasing your product too quickly holds a potential peril.
Before launching a product, it is indispensable to ensure its potential for success. This entails conducting rigorous testing and subjecting the product to thorough scrutiny. Please keep in mind that introducing a product is not just a singular instance; instead, it is an opportunity to create a reputation.
For a business, particularly small ones, ensuring the dependability of their technology is critical for success. Failing to do so could lead to collapse, hence it is vital to be mindful of possible pitfalls.