Here’s a fact check for all the entrepreneurs: Each year, over 595,000 businesses fail while those that succeed only sum up at 32,000!
If nothing else, this stat proves one thing- Entrepreneurship is not easy and 95% of the businesses that ‘take the leap, fall flat’. There are various challenges that entrepreneurship throws at your way and only 5% of the people are able to face and overcome these challenges. Whether you’ll succumb to these challenges or emerge victorious depend on how prepared you are!
We all know that today, the biggest challenges for any startup revolve around technology. Tech challenges have drowned the boats of many startups even before they start to sail. In this write-up, we have compiled the 5 biggest tech challenges that startups face and how partnering with a technology company or hiring a technical co-founder like us can help them overcome these challenges.
Keeping Up With The Tech Evolution
One of the biggest technology challenges faced by the startups is the rapid rate at which the technology is evolving. The world of web is ballooning and each day, new technology is born or the existing one gets an upgrade. With such evolution happening, it has become almost impossible for the entrepreneurs, especially those without tech expertise, to keep up with the evolving technologies. Without an understanding of the latest technology, the entrepreneurial software may be missing out on the latest features and functionalities that could make it stand out in the market.
If a startup cannot execute fast on an idea, product or service would not be able to penetrate the market when it is required the most. Emerging technologies like Artificial Intelligence, BlockChain, Internet of Things, Machine Learning, and various others are taking on the world today. But tomorrow, even these might become obsolete.
Instead of wasting your time and energy trying to cope up with the technological evolution, it is advised to partner with an offshore web development company or an IT outsourcing partner to fulfil your technology needs. Outsourcing product development is a successful approach for many startups to make sure the technology for their product is not obsolete.
Inability To Meet Tech Goals
Every business, and especially a startup, has a business plan in mind. This comprises of mini-goals that need to be completed within smaller sprints. As technology changes with each passing day, there are really high chances that you might not be able to achieve your initial tech goals. This is normal in any startup journey but where most of the startups face is when they are unable to accept the failure and work towards improving it.
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Embrace the failure and pivot at the right time to transform your failure into success. It might take efforts and you might even need to partner with an IT company for your web development, product engineering solutions.
Dodging Cyber Security Risks
The digital world is where most of the startups reside. There are various cybersecurity risks and threats that any entrepreneur needs to overcome in order to survive. Whether you are utilizing the online tools or have partnered with an offshore web development company to tackle your IT needs, there would be a hint of security threat to your startup product. Cyber hackers would try to take advantage of any loophole present in your system to hack it and take all your important information.
They might want to hack your sensitive information, access your records, or even leak your employee records if the data is not encrypted and the authorization is not restricted. For startups, understanding the technological advancements is itself a big issue, handling the cybersecurity threats and protecting the IP becomes an even bigger challenge for them.
Join hands with an IT outsourcing company that offers NDA compliance, gives you complete ownership of the product & its codes, and signs IP protection clause with you. A reputed tech company would have all of these agreements mentioned in the outsourcing contract itself. Read it before and protect yourself from cybersecurity threats.
Rising Technology Cost
The biggest challenge for any startup is funding. Whether it is a bootstrapped business, crowdfunded startup or you have investors backing you, still, there is a funding crunch that every startup has to face. Topping that is the increasing cost of technology. Whether you talk about the software or the hardware, the cost of technology is escalating today. Moreover, with new technologies like Smart apps, Internet of Things, Artificial Intelligence, Machine Learning, etc., ruling the digital ecosystem, could be a tough challenge.
Even a report from Ipsos, a research firm, states that many small businesses consider the cost of maintaining and upgrading the technologies as the biggest challenge. In fact, only 46% of the stated companies (small businesses and startups) are able to use the same technology as the larger and established companies. Emails, online collaboration tools, tech support, cloud computing technologies, online storage, etc., are some of the main drivers of technology cost.
Your funding would drain if you try to focus on the technology alone. Find a technology partner that can help you make an informed decision on which technology to use. Many of the companies even let you onboard on their existing technologies and tools to help you cut down the technology cost.
Finding The Right Technology Partner
Now that we know how crucial a technology partner can be for a startup, the challenge is to find the right technology partner. A startup can thrive the evolving and ever-changing digital ecosystem if it has an experienced digital innovation company to hold its hand. But not every company is the same as they pretend to be while advertising.
- Perform extensive research
- Draft proper Request For Proposal
- Go through the reviews and portfolio of the company you are planning to partner
- Do not judge the company or the technology partner by the quote they are offering
- Go for a team that can integrate quickly into your team
- Keep things clear and transparent
- Discuss everything beforehand
In The End
These are just a few of the challenges that you can face when you are starting out in the online ecosystem. At Classic Informatics, we have assisted many startups in their entrepreneurial journey. As their technology partner, we have not just ensured that they are at the top of their technology game but also helped them be in line with the latest technology trends. You can either get a complete end-to-end development of your product or hire dedicated developers from us to work on your project on your terms.