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What Does it Take to Start a Tech Business in 2018?

jason-kulpa-office

With technological advances becoming more prevalent in society, more and more businesses have been cropping up to deliver new or better technology products and services to the consumer market. Flourishing tech businesses address growing demands within targeted demographics and find their success in efficiently solving real-life problems in ways that haven’t been addressed, or that are better than solutions the current market offers. Thinking of delving into the industry? Here are five pieces of advice to help you launch your tech business in 2018.

 

Choose a Location

If you’re currently living in the U.S. or have aspirations to move, Silicon Valley may pose an appealing location for establishing your tech business. However, you might want to refrain from buying into the hype too early in the game. Silicon Valley is already saturated with larger, more established tech companies and the cost of living may prove too expensive for business businesses to sustain themselves. Instead, look to other places that boast good soil for high-tech startups and industry talent and that will set your business on a greater trajectory to success.

 

Develop Your Product

While it may appear obvious, among the most important steps in starting a tech business is to actually develop a product that interests people. In the case of most business software tech companies, coding is free, so establishing the foundation of your business is a crucial step that won’t put a dent in your pockets. A product can be an entirely new and innovative product, or one that improves an already existing product or process. Regardless, it’s important to actually begin building up your business before your ambition carries things too far out of your hands.

 

Establish and Source Talent

To supplement your product, ensure you or a partner has the technical knowledge or background to appropriately sustain your business. In the same vein, refrain from outsourcing work and focus your efforts on finding apt talent who will help grow your company.

 

Start Small

When first establishing your business, don’t immediately file to become an LLC or C-Corp if you don’t have a product, customers, or revenue. This will cost you valuable money you might not have or can put to better use to grow your company, such as licensing and hiring quality talent.

 

Advertise

Once you have a finished product, don’t forget to advertise. Starting off, you may not have much money to put toward an advertising campaign, but you can always host your own website using free-to-use sites, or advertise on social media sites such as Facebook or Reddit. If possible, launch your product. While launching your product free-to-use may appear counterintuitive, it may earn you the publicity to begin catching the eyes of organizations or investors.

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Starting a Business During a Recession: Five Questions with UE.co CEO Jason Kulpa

UE.co was established in 2008’s recession. Forbes once suggested that economic downturns can actually be great opportunities for startups — would you say this was the case for UE?

Charlie Munger said, “My idea of shooting a fish in a barrel is draining the barrel first.” My interpretation of that is that when others leave a market, there is opportunity.  In 2008 there was a panic in the market, and capital left the ad-tech space. This created an opening to step-in and pick-up all the fish out of the barrel.

 

With the previous question in mind, what kind of setbacks did the recession present for UE (if any)? How did it impact UE’s progress as an up-and-coming entity, and how were these challenges addressed at the time?  

It was challenging raising startup capital, and the debt markets were bone dry.  This meant that the only way to get the company started was to fund it with my savings. Having to write the check yourself as an entrepreneur makes you reflect on if the business idea is really thought out and ready for market.  That doesn’t mean that entrepreneurs discount the value of outside investment, but it hits close to home when the founder’s signature is on the check. This pressure drove me to long hours, and work-filled weekends when I might have pushed it a bit less knowing there was a safety net if things didn’t go as planned.

 

Innovation is a huge part of starting a new business, regardless of economic stability. What would you say allowed UE to innovate in a time as turbulent as the recession, and how has it continued to innovate today?

When economic stability is disrupted there is a consolidation in most markets.  This created sizeable competition and economies of scale we were not prepared as a start-up.  The only way to compete was by building a more efficient mousetrap than fighting a war of attrition.  Tough times bring out the most creative and innovative parts of the human brain, and we were fortunate to face this adversity early in our business cycle.

 

UE started as a small business, but has clearly grown into a full-fledged staple of the San Diego business community. As the company’s CEO, what are the biggest lessons you have gleaned during this growth process — especially during UE’s early phases?

The biggest lesson we learned was that the company culture has to mature along with the business cycle.  This is difficult when you launch a start-up from your garage with friends. That same casual attitude can create cultural challenges when you take the next step in growing the business.  The best way to manage this is to self reflect along the way and take in consideration the larger picture.

 

In turn, what advice would you give new entrepreneurs — especially those facing unforeseen obstacles right out of the gate?

The best advice is to learn to really enjoy working — and then spend lots of time doing what you like to do. Believing in your idea and business, with enough time and pressure, just about anything can be solved.  The difference is that you have the ability to stick it out until that happens. Good luck!

 

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