By: Umar Shaikh
Each year, an average of 20 technology startups reach $100 million in revenue (Kedrosky, 2013). Technology is a fast-growing field, with hundreds of new and useful inventions being created every year. From social media applications to new medical technology, every startup makes something different, but what separates those that succeed from those that fail?
Around 1 million tech startups are created worldwide each year. However, around 63% will fail which means that tech startups have the highest failure rate out of all sectors in the startup industry (Kotashev, 2022). The most probable reason is because of the vast amount of people trying to succeed in the sector. (Minaev, 2022) There is so much competition inside the field, so entrepreneurs must stand out in order to receive attention.
Sheikh Sadiq, CEO of ALIS Consulting Services, grew his business by creating a service for a market that didn’t receive adequate attention. In an interview, Mr. Sadiq said, “There was a real need for IT Consulting for small to mid-size businesses.” ALIS Consulting was an accessible service for many smaller business owners which led to its success.
Marketing is another important way businesses attract customers. Varun Nagpal, of Kuiqly, said, “We partnered with product companies like Salesforce and Zoho who transferred all the implementation projects to us.” Mr. Sadiq was able to reach his customers with “targeted online marketing via Google ads and emails.”
Another important factor in creating a successful business is hiring the right people. A strong company requires employees that can collaborate effectively. Varun Nagpal was able to find employees by hiring and working with young graduates; “I trained them on technology, upgraded their skills, and made them ready to be part of the technical delivery teams.”.
As more technology companies form, it's important to understand what separates the ones that succeed and the ones that fail. Technology is our future and it is important for people to know what goes on inside the business world of tech.