Starting a business idea in the form of a Tech Company is thrilling but faces a major huddle of lack of funds. Frankly, you require funds to establish a tech company. However, if the money is not available, it’s not excuse not to start up the idea and to actualize the dream.
Equally, if you believe in your dream and you have the confidence to pursue its purpose to offer the product or the service.
Reportedly, it’s possible to start a tech company with no funds. Importantly, you need to understand what these technological business entities provide.
How to start a tech company with no money
This discussion focuses on how one can start tech services and products even without the financial strength.
1# Draft the vision
Firstly, it’s important to understand that tech establishments mainly deal with the development and production of tech products or offering tech services. There is a wide range of technology products that one can opt to offer, like digital electronics, internet services, ecommerce, and software.
Afterward, chose what you feel you can offer best than what is available in the market today. This is where you put your vision on paper. The idea behind starting a technology company should offer solutions to consumers.
Subsequently, you need to conduct interviews that engage the prospective customers. Their responses from the interviews assist you in revising your canvas and put it in line with your vision. Advisably, pay close attention to patterns of responses consumers portray.
Eventually, have a systematic blueprint and consumers again and share what they think about the idea. The essence of this process is to understand the consumers and to know the type of product or service they want. Remember, you got to do this without cash.
Further, you also need to have a suitable domain with the help of a domain generator while setting social media and branding. Also, settle on the best marketing strategy to help you implement your awareness.
Read: Founder vs co founder
2# Get started
There is no fund required to create a product. For instance, a software technology company demands you to write code and create a company’s foundation at zero cost.
Notably, in advance of having a tech product, consumers or revenue, refrain from registering the company as either C Corporation or Limited Liability Company.
When you file your company as C-Corp or LLC, you will have to incur a cost, and also, you will have to fulfill your tax obligation notwithstanding it a start-up.
Therefore, it advisable to first create your product. Besides, an entrepreneur with a vision of a tech company needs to have a technical background or have a partner who can help you actualize your vision.
3# Build and Sell the Product
Before you spend time building your product, it’s possible to sell potential consumers on the solution you have. The process goes along with building MVP (minimum viable product). MVP is a new product version that gives leeway for validation and learning the consumers with ease.
Tangible steps include contacting the target market and offer a compelling pitch that sells confidence and the idea like it is already built.
Weigh out whether the target consumers have interests in what you are in the process of building, if at all they are, it’s a prime opportunity, and don’t be hesitant in asking for funding.
For instance, you can ask them to buy an account, and any customer with an account will enjoy discounts and incentives by the time your tech company launches.
According to entrepreneurs who dared to start without cash, like Venturestorm, various strategies go about this process. One of the best approaches is accepting pre-orders for your built product. Do it well and surely; even with no money in the early stage, your tech company will grow. Noteworthy, the pre-orders approach offers some validation and flexibility.
Additionally, building MVP and offering it to the target market should precede the official launching of the product. Although MVP the simple version of the actual product, it should meet the customer’s needs. MVP is not a bad approach since cost affects and suits all those with financial strains.
Finally, by building the tech product and analyzing customer reviews on the product, you understand them better than subjecting potential consumers to poll.
4# Finding help and Gathering Talents
At first, you require talent to build a product for your tech company, and late as you advance, you require additional talent. There is a lot of talent available. Therefore, you can attend events or leverage your wireframes to get the skills that you want.
Even with no funds, it not recommendable to outsource, but you can still recruit relevant talent.
Alternatively, it advisable to compromise and give the people you have identified to have a skill that can push your product to earn through part-time jobs. The act helps you win their trust. The way out to this is through Venture capital.
However, many start-up companies in San Francisco and New York have survived through VC funding. Many admin assistants, programmers, and designers prefer equity to paybacks.
With talented and skilled partners, assist you to actualize your vision. For instance, there many secretaries who worked for Microsoft in the early days who become successful.
An example of a reputable tech company that support start-ups is Grand Central Tech. This tech company offered free rent intending to attract the attention of Silicon Valley. Therefore, you need to sell your vision to get aid without offering any equity.
5# Marketing your product after building it
Notably, building a product is the easiest thing to do. However, this is just the beginning. Now you have to get your product to the people and ensure that they know it.
Many start-up tech companies make millions of money before the official launch of the product. Sadly some end up pouring the earnings into advertisement campaigns.
The best approach is to turn into a guerrilla market and organically grows your audience. Apply grit techniques to get to the consumers and become an expert of your own without spending cash.
The following are some of the techniques to use:
- Assimilate yourself in the online communities that you feel are your target market. These online hangouts include;
- Slack channels
- Specific topics, particularly Quora
- Facebook groups
- subreddits on the Reddit
- Web pages with specifically your target market
- Launching your built product on free sites and with high user growth or online cloud publicity. They include hacker news, product hunt, beta list, etc.
- Attend festivals or events with your target consumers and create connections.
- Create partnerships with organizations or companies with mutual benefits.
Over and above, for a start, create a compelling blog on your company’s web page. Ensure that you create content about the tech product do massive sharing on professional platforms like LinkedIn and social media like Twitter and Facebook.
After that, create content for another website with organic traffic and make sure you link with them. Through that, you will make your product known.
6# Take Advantages of Opportunities Generating Money
There is a lot of money available for free in the tech industry. For instance, most universities in the USA have opportunities like receiving equity-free grants. The grants help them apply for various grants, and most of the winning pitches courtesy of these grants.
Therefore, if you are a college or university student intending to establish a tech company, worry not.
Apart from college campuses, many organizations are willing to boost starters to actualize their vision out there. Therefore, the most sensible thing to do is to participate in pitch completions that happened across the US.
Thus, depending on your entrepreneur aspiration and presentation, you could get grants or even outsource funds.
7# Using a variety of Search Engine
Your tech business gets exposure if your content is SEO optimized. However, Bing, Yahoo, and Google are not the only search engines available. Make use of the other available search engines that can also give you quality consumers that you are targeting.
Advisably, Pinterest can be a better option. Even though it has many elements in social platforms like Instagram and Facebook, you can find prospective customers there. Notably, the majority of Pinterest users, search for purchase information or ideas on this search engine.
Pinterest is a reputable search engine, and it boasts over 250m users monthly. Hence, stay assured that you would give your website or blog massive organic traffic, which is where you find your customers.
Besides, one can opt to utilize the potential that YouTube has. As a start-up, a tech company can market your product. What is need of you is only to publish content videos about the company and the product. Also, you get to interact with potentials customers in the comment section.
8# Start with offering a service that doesn’t require capital investment
If you intend to have a tech product, sometimes it isn’t easy to push it because it is capital intensive. Remember, a technology company can either be product-based like apple or service-based. Therefore, before you build the product, you can commence by offering service at a fee at the start.
The advantage of offering a service is that it will require less or zero capita. What you need are the experts in your field of interest.
That notwithstanding, the funds you get, you should channel them into the business to build the infrastructure for your tech start-up.
Further, invest in growing your knowledge, skills, and expertise. Business and technical know-how are important for you and your cofounder for your success.
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- How much do startups spend on marketing
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The problem that we have with some people is the fear of not making the first step because of one limiting factor fund. As an aspiring tech enthusiast, that should not be the cause of you starting up a tech company. What needs creativity, hard work, and the ability to differentiate what you are offering and what your potential competitors have failed to solve for your target consumers.
Remember, while in business, always plan to source grants or funding from companies who believe in your and share a similar vision that they would want to support. Again avoid, bête testing any of your products early. It’s risky as it can get products on-site for free downloads without you getting a coin.
Finally, it has happened before, and it’s happening today. Therefore, it’s possible to establish a tech company from scratch without money and finally get successful.
Bijay is an entrepreneur and start-up founder having more than 14 years of IT industry experience. He is the co-founder of TSInfo Technologies, a SharePoint development company.
A dedicated professional and very passionate about public speaking and also wrote thousands of technical blogs in various technologies. He also wrote a lots of blogs on entrepreneurship, investment, startup, business, manage money tips, etc.