With the boom in the start-up economy, the entrepreneur stride has flooded the market space. Many young aspiring entrepreneurs want to try their hands at a tech-based business.
Being tech native, every newly minted MBA wants to try their luck on a mobile app or a cloud-based service or a social media platform. But setting up a startup from starch is far from easy. Further, the situation gets worse if you are not a software developer or a network architect.
Let’s face it, starting from scratch is not easy, you have to master the art of managing with shoestring budgets. The basic question in pipeline remains as to where to start from. Commercial real estates are out of reach. Finding an affordable office space becomes tedious.
From a practical standpoint, know the cheapest way to kick-start your tech start-up:
1. Get The Right Structure
There are many forms of business entities which are available to initiate your start-up, keeping in mind various criteria’s like the tax structure, minimum investment, number of people, legal obligations etc. the most convenient structure opts. You have the following options :
- Private limited company
- Limited liability partnership
- One person company
- Sole proprietorship
The cheapest of the lot is a sole proprietorship. But in case you wish to look out for investors, you need to opt for a private limited company where you can lend your equity.
Once the type of entity is selected, select a business name and register your domain name.
2. Hire – Fire Smart
Keep the team small, crisp and precise. Too many minds won’t do any good rather will end up making a hole in your bleak finances. Instead of going for an expensive source, you can always hire from a talented pool of interns or campus placements.
While recruiting, be a true hacker. Apart from focusing on the core competency, lay due importance on soft skills and the vigour to learn and grow.
The quickly you hire, even more quickly should you fire. Never delay or hold back the weak links in your start-ups. It’s any day better to fire before your next hire as it adds no pressure to hit the financial milestone.
For the ones who prove themselves, offer them equity to make them motivated and committed.
3. Opt for Co-working spaces
On the basis of your team size, evaluate your space needs and the budget. Co-working spaces which are apparently blooming in every hook and corner have provided a cost-effective way to procure premises without getting into the expensive real estate.
Determine a suitable location in line with your customer base and accessibility. Once the location is specified, you need to select a suitable co-working space in line with the following:
- The cultural differences in the coworking space
- Work environment, is it still traditional?
- Essential Amenities
- Work Quality: Good lighting, Air Quality, Comfort and Impressiveness.
- Networking Opportunities
- Marketing aided facilities.
Starting a business can be risky especially when the finances are less. But with three points you can surely put yourself on the path to entrepreneurship.