Business Idea

Start A Tech Company

About

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.

Want to learn more? You can check out our full guide on how to start a tech company ➜

Key stats

market size
$9.1B
revenue (monthly)
$12.5K
starting costs
$37.9K
gross margin
82%
avg product price
$75
time to build
12 months
growth
Organic social media
time investment
Side project
work from home?
Yes

About

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.

Want to learn more? You can check out our full guide on how to start a tech company ➜

Key stats

market size
$9.1B
revenue (monthly)
$12.5K
starting costs
$37.9K
gross margin
82%
avg product price
$75

 

time to build
12 months
growth
Organic social media
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
App Creation Costs $1,099 $20,099
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,800
Other Expenses $0 $800
Total Startup Costs $8,628 $66,960

Successful Businesses

Business URL Rank
Microsoft microsoft.com #21
Adobe adobe.com #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
government technology govtech.com #42,738

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.

  • 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.

  • 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.