With the world economy going through sluggish times and rapid changes in technology impacting on sales and profit margins, how can a small tech company be expected to pull through? The economy has changed drastically, especially in the last few years, with discretionary spending plummeting and the Internet offering an easy alternative way to compare prices and locate alternative sources, thereby dealing the small business sector a severe double whammy. However, blaming it all on the economy and other factors isn’t going to make one iota of difference – making the right changes and taking action are the remedies.
Reinvent the business
The smaller and leaner an existing business is, the easier it is to shift the gears and adopt a new approach. The company’s strengths and weaknesses have to be ruthlessly examined as well as all the possible markets, and some hard questions have to be asked. These will include whether new services and products need to be developed, which aspects of the operation bring in a profit and which are dispensable.
Concentrate on social media
Every business, no matter how small, needs an Internet presence. Studies show that people who use the Internet at all overwhelmingly also use social media. The social media events that attract the business’s type of customers should be identified and a presence set up in these channels. Post comments, start chats and answer queries to raise company awareness and increase custom.
Become mobile friendly
The Internet is now accessed via smartphones and tablets than ever before, so accessibility using these devices is almost essential for conducting a successful business nowadays.
Develop a range of revenue streams
This is an ancient concept and simply means diversification of income sources. Basically, don’t put all your eggs in one basket but explore new territories, take on new skills and learn to juggle between sources of income. A company specializing in web content might, for example, start looking at business brochures, offline publications and user manuals as complementary income streams.
Emulate successful niche companies
Many small tech companies have not only survived but continue to flourish by offering niche products that are distinguished by their high quality. Kaltura, the open-source platform for managing and distributing videos, targets several specific niches such as education and media organizations.
2U has based its phenomenal success in partnering with leading universities to enable the transition online of their degree programs. Prismatic tailors newsfeeds by using unique algorithms to provide readers with the latest information about their specialist interests; the platform suggests relevant news stories based on previous liked content and reading habits. Transducer Techniques manufactures a range of small torque sensors, load cells and similar instrumentation for a specialist clientele.
Building a small tech company and making it a success requires more than just a great idea. Especially in today’s uncertain and increasingly competitive financial climate, an ability to think out of the box and adapt to fast-changing conditions is essential. Only 30 percent of startups, after all, make it to the stage of securing additional seed funding