Start A Tech Company - Business Ideas

Updated: September 15th, 2022
Start A Tech Company

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Tech businesses are about the most exciting and potentially lucrative businesses you can start.

The global tech market size is expected to grow from $8,384B in 2021 to $9,326B in 2022.

But don't mistake the excitement for easy street: getting the tech startup off the ground requires a lot of work. There are many important factors, including how much capital you need, your business plan, and equipment needed to get started.

Starting a tech company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell tech company, or selling tech company online, you can use this page as a guide for everything you'll need to know.

Key Stats

revenue (monthly)
$14.9K
starting costs
$30.7K
gross margin
82%
avg product price
$75
time to build
360 days
growth
Organic social media
business model
Subscriptions
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$63

$200

App Creation Costs

$1,099

$20,099

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$0

$2,800

Total Startup Costs

$7,298

$61,160

Successful Businesses

Business URL Rank

Microsoft

microsoft.com

21

YourAverageTechBro

tiktok.com/@youraveragetechbro

31

Adobe

www.adobe.com/in/creativecloud.html

45

Pinterest

pinterest.com

149

Yelp

yelp.com

360

StackShare

stackshare.io

9,326

Qualcomm

qualcomm.com

16,484

HCL

hcltech.com

21,732

Sabre

sabre.com

28,389

Tech Land

techlandbd.com

29,478

Micron

micron.com

39,769

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Rewarding work

Starting a tech company can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Traffic to your website

A tech company gives people a reason to visit your website and to keep coming back to you!

Meaningful business connections

You never know who you will meet as a tech company. This could be the start of an incredible business opportunity!

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A tech company can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

High employee turnover

In the tech company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a tech company, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

High overhead expenses

With starting a tech company, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜