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How to Start a Tech Company - Founder's Guide

Are you thinking of starting a tech company? The following checklist is a good starting point for taking the first steps towards starting a technology business that can become a permanent and sustainable source of income.

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Found an app startup

How to start your own tech company?

Launching a tech startup is an intimidating process. First-time entrepreneurs often have no idea how to start a tech company; they just have a great idea and a desire to win. Unfortunately, a great startup idea isn't enough.

There are several steps between the ideating stage and the expansion stage. If you aren't clear on those steps, you can easily become overwhelmed with the process and give up too soon.

A tech startup can be a major success of your career, but if launched without covering the right bases, it can also be a major waste of time, money, and effort.

Fortunately, there is a well-defined process to start a tech company and succeed at it. And we are going to show you the way out in this post. So, if you are ready to start a tech company, here's what you need to know. Let's get started!


Step 1 - Ideate

The Idea (vision, problem to solve, product details)

If an idea is not the only element that you need to start a tech company, it's definitely a starting point in your journey towards your app startup. Here's what you need to keep in mind while coming up with awesome tech business ideas for your app company:

  • Your tech startup ideas should solve a concrete problem that customers of your industry might be facing.
  • If you were a customer, would you be willing to pay for a solution to the problem you wish to solve?
  • In order to continue refining your tech startup ideas, formulate a value hypothesis. Think about what value you think you are providing to your customers?
  • Write down a specific growth hypothesis for your tech startup ideas. The more specific, the better. Think about how people will find your product or service?

A fantastic article for further reading on this topic is Current app ideas.

You need to define your company's mission and values. Every step you will take in your startup journey will align with your company's mission and value. Think about “why” you are doing “what” you are doing.

Your vision statement touches on this core "why" behind what you are doing. Your “why” is the one that will keep you and everyone in your team moving towards your goals even in your low times. And your mission statement says more on how to get there and how to achieve your vision.

The Market (competitors, addressable market)

The next step is to do a much deeper evaluation of the market than you have probably done so far to determine whether you should proceed with your idea. Ask yourself:

  • Is the market size big enough?
  • Are there sufficient profit margins available?
  • Who are your competitors?
  • Are there any stopping regulatory or legal issues in your target market's country?
  • What's the urgency of the problem you are solving?
  • Is now the right time for the market launch?


All these questions will ultimately affect your company's bottom line. Hence, it should be an essential set of questions to ask yourself before investing more effort into setting up your own tech startup.

Customer Segments / Profiles / Personas

Now it's time to accelerate your validation process. For that, you should have a picture of your ideal customer in your mind. They are not only the people who can afford your solution but should enjoy using your product.

Your ideal customer profiles will change with time and will rarely end up matching your actual customers. But that's OK. The practice of writing your hypothesis and revising as you go is the most important part.

The real people who make decisions to buy what you are selling will be a complex group. But honing in early on your ideal customer profiles will help you build and market a product that people actually want.


Step 2 - Validate

The team (who takes care of what - in detail)

As the CTO of a tech company, you need not know and perform all the roles required to run the software startup successfully. But what you should be good at is outsourcing the right work to the right people.

While building a team of experts, never stop communicating, as clearly as possible, the role expectations and your company's vision. Here are brief segments of your team:

  • Strategy
  • Product
  • Operations
  • Finance
  • Marketing

The number one reason why investors decide to fund early-stage startups is because of the team.

Surveys, Interviews, Advisors

At this stage, conduct extensive surveys and interviews with people of your target market. The ultimate goal of these surveys and interviews is to discover what feature set and price point you need to launch your product with.

Also, find the people who are willing to stick with you through the inevitable ups and downs of your startup life (your advisors). Such people will remind you of your vision in your low times with which you started.

Experiment (low-cost validation)

Low-cost experiments are meant to validate your startup idea without having to spend time and money writing code or manufacturing your product. To carry out this effectively, you need to collect some data.

  • How many people are responding to your posts on social media about your product?
  • How many visitors are visiting your landing pages? What percentage of them are converted by entering their email address or clicking on the link you wanted them to?
  • Are people joining your community groups and participating in conversations? What are they talking about here?


If you are getting sufficient consumer traction in your early experiment stages, you have your ideal validated and the community to start the hype leading up to your private beta product. Now is the time to execute and build your product!


Step 3 - Create

The Roadmap

Set realistic timelines for yourself and your team to achieve your goals. Assign each task to respective team members and set a due date based on the time you estimated it will take to complete. Now that you have a basic plan ready, it's time to get to work, run your sprints, and regularly check with your team regarding the progress of tasks.

Funnel Stages & KPIs

Now it's time to decide the funnel stages and KPIs because these KPIs will guide all of your product decisions and experiments. So smartly define your funnel stages and KPIs, decide how you will implement these measurements into your product, implement a reporting system to regularly measure your KPIs, and start conducting your test.

UI Specifications

Writing a user interface specification is critical for a tech startup team. Sketch things out on paper or on a whiteboard. Translate these ideas into a written document so the specifications are as precise as possible, and the entire team is on the same page.

Decisions on the Tech Stack

There are five questions that you should be asking when choosing a technology stack for your startup.

  • What is your financial model?
  • What is the minimum amount of code you need to write?
  • What's the strength of your tech team members?
  • Is there a large pool of skilled engineers whom you can hire to roll out your stack?
  • Is there a large community out there to support your stack choices to ensure that the bugs get fixed and things stay reasonably performant as you scale?


Here you will find additional reading material for Native App vs. Progressive Web App vs. Hybrid App

Data Architecture

There will be many more services applicable to your business needs. Make sure that you have a database to avoid the chaotic mess with data. Data should be smartly organized, tracked, and used to conduct experiments in order to better serve customers.

Decide how to coordinate your data flow and storage across all the third-party apps and customer services you have decided to build/use within your company.

UX Flow Chart

Build a UX Flow Chart before writing a line of code. This means that you will be creating a representation of the view-by-view experience of a user (that is, each "node" they will come across) that also gives your team members sufficient data to hook things up correctly and load data appropriately into your application.

Brand foundations (decision on the name, logo)

Now is the time to design the foundation of your brand because your brand is the promise that you will be making to your customers. For that, you will have to deep dive into the core values of your business. Decide the name, logo, color theme of your brand. Remember, all of this will be in alignment with your vision and mission statement.

Legal aspects (corporate structure, team agreements, terms & conditions)

Approach the legal aspects as you near your launch period. Hire a lawyer or recruit one for equity as they will guide you in the most appropriate manner. Get all the contracts, intellectual property, patent, copyright, and trademark issues right.

Financial (financial model, where the initial money comes from).

Your tech startup costs will increase as your product approaches its completion, and you approach the launch period. The tech startup costs do not only include the cost to build your product, but it includes several costs required to run the company. Apps also come with running costs.

It's now time to sort your financial stuff. Calculate the total tech startup costs required to run your company. Then, you might have to find tech startup investors who can fund your startup. Finding the appropriate tech startup investors will solve your financial problems.

Wireframes and Mockups

Start building wireframes and mockups to validate your business idea. The best mockups are always done directly in the digital medium you are working with, such as HTML, CSS, and JavaScript. Your UI developer can then adjust things quickly to save time. Otherwise, the process of creating a complete set of mockups will result in tons of unnecessary repetition.

Prototype (html/css/javascript; pages/views/components)

When you are at the stage where your engineering team is writing code to bring the wireframes and mockups to life for the first time, don't bother them to deploy it live somewhere. Instead, build a prototype of your product that can be used exactly as if you were using the original product.


Step 4 - Grow / Scale

Coming Soon Phase Private Beta

Now it's time to get serious about testing. During the Private Alpha stage, your team gets a chance to try out the functioning product (such as on various devices) and ensure all critical bugs are fixed.

As you gear up for the launch of your company, successfully optimize and leverage your coming soon page to set you up for massive success.

Then comes the private beta stage, a production-ready version of your product that is not yet open for anyone to sign up and use. It is connected to your internal database, where your team members, advisors, and very-early customers can poke around and create fake test accounts.

Public phase beta

Launch the public beta of your product when you and your team feel ready for prime time. You should smartly start inviting users from your coming-soon page queue to use your product and gather feedback. Urge your users to communicate what they liked, what they didn't like, and what they felt was missing in your product.

Exploring Product-Market Fit

Congratulations, you have introduced your product to the world! You have a bunch of new users and customers. Now try to get a detailed understanding of customer acquisition and engagement funnels and make smart decisions about how, when, and where to improve the product.

This step will ensure that your customers are happy, your retention rate is high, and your company's growth is steady.

Don't ever take your customers for granted.

Inexpensive development

Step 5 - Funding

The First Outside Round, navigating accelerators, angel investors, and venture capitalists

You will need tech startup funding in order to grow your company. As you continue matching your product with your customer's needs, you need to get in touch with tech startup investors who can fund your startup. Here are the 8 ways how you can find tech startup investors and raise tech startup funding:

  • Friends and family
  • Small business loans
  • Trade in equity or services
  • Bootstrapping
  • Incubator or accelerator
  • Crowdfunding
  • Grants for small businesses
  • Local contests

The pitch (how/when to use the deck)

The practice of selling anything of significant value in the world of business and startups involves preparing the perfect pitch decks. You require a pitch deck in place, whether it's a "pre-seed" round or a "seed" round of tech startup funding. However, the slides of each round of tech startup funding will be different. Pitch deck is your gate to raising tech startup costs required, so the fewer the slides on your deck, the better it is.

Startup growth curve

Do you have an idea for an app?

Then get in touch with us!

Marc Mueller appleute

Start a tech company - wrapping it up

App startup idea? appleute is at your service!

Now that you have a roadmap to start a tech company, it's time to tie your shoelaces and get started.

As you can see, starting a tech business involves making quite a few decisions and getting things in place. If you need help setting up your tech business, consult startup app development company appleute. Startup app development company appleute.