Start a tech startup with an invention or a good idea: information, tips and tricks
What steps should you take when thinking about starting your own business with an invention or a good idea? For someone with a brilliant business idea or a fantastic invention, it is often challenging to get a clear picture of what exactly needs to be done and in what order. After all, you want to maximize the chances that the invention or idea becomes a great commercial success and that serious money can be made from it. And it is not unimportant that you are the one who makes serious money from it.
Even though you may feel a strong connection to the newly developed technology and want to share it with the world and humanity, it probably doesn't feel right if everyone else benefits financially except you. That can’t be the intention. How can you solve this challenge? Nearly every tech startup faces the same kind of questions and challenges. It doesn't matter much in which industry you are active.
Every tech startup needs to launch its business en start for real. How do you do that, and what are the main things to pay attention to when it comes to a company that aims to market a new technology? After the actual start of your new enterprise, the new technology usually needs further development before it can be introduced to the market.
Besides technology, other things are important for a tech startup. To successfully navigate the adventure of starting a business with a good idea or invention, you cannot afford to focus solely on the technology, as tempting as that may be. Therefore, on this site, you can find information about the following startup challenges:
The journey from tech startup to a successful tech company
Starting a tech startup requires much more than just formalizing your company at the legal and administrative authorities. While these steps are important, the process also involves developing an innovative product or groundbreaking technology, attracting talented employees, securing investors, building a customer base after finding your first client, and navigating the challenging and rapidly changing technological landscape. It requires a combination of technical expertise, entrepreneurship, perseverance, and the ability to quickly learn and adapt to changing circumstances. Building a successful tech startup is a complex and demanding journey, but it can also be very rewarding when successful.
The importance of patents for a tech startup
Startups are playing an increasingly important role in the world of innovation, and obtaining patents is often vital for their success. For many startups, patents serve as a protection mechanism for their innovative ideas and technologies, allowing them to maintain a competitive edge and attract investors. Patenting can not only help protect intellectual property but also ensures the long-term rights and exclusivity needed to capture market share and grow. It is a strategic step that is often essential for the survival and success of startups in competitive markets.
Finding funding for your tech startup
Finding capital for the further build-up and expansion of a tech startup is often a crucial and challenging step. Startups can utilize various sources of funding, such as personal funds (for example, savings and investments from the founders), debt capital (usually loans from banks but also government support and crowdfunding), and so-called equity capital from angel investors and venture capitalists. The process begins with developing a compelling business case and pitch that appeals to investors and financiers. Building a solid network in the startup and investor community can also be invaluable in finding the right funding. It is important to choose the source of funding that best fits the needs and growth plans of your startup.
Good to know if you want to attract investors: what is your company actually worth?
For a startup, understanding the value of your company and how it can be determined is an important step in attracting investors. There are several methods available to determine the value of a startup. One approach is the income method, where the future expected income and cash flow of the company are analyzed to estimate the current value. Another method is the market value approach, where similar companies and transactions in the sector are analyzed to create a reference point for the value. Additionally, valuation can be based on the company's assets, such as patents, technology, or intellectual property. It is important to understand that valuing a startup is often a complex process, and it can be helpful to consult financial experts or advisors to determine the most appropriate method for your specific situation and obtain an accurate valuation. On this site, we provide an introduction to the various valuation methods.
Invention or a good idea?
The idea is that with the help of this site you can better shape your plans and take more targeted first steps. When you think you have a good idea or a brilliant invention, you might need to apply for a patent to protect your invention. And how do you apply for a grant for your invention to further develop your idea? How do you arrange the financing of your company and startup capital? And how do you start a startup? And what should be the legal status of the company? And of course, you will deal with the tax authorities, even though you haven't earned anything yet. There are already many sites about starting your own business. However, there are almost no sites about what you need to do when you have an invention or a good idea but no money. Technoventure.eu therefore offers you some knowledge you need to structure the journey from idea to market. A significant part of the information is about the financial aspects of that journey: for example, how do I obtain funding or grants? And not unimportant if you are already a bit further along: what is my idea worth?
Starting Your Own Business with an Invention or a Good Idea?
Many people have a good idea or spend a lot of time on the technical development of their idea. They dream of making a lot of money with their idea in their own business. Starting for yourself, launching a startup, and earning your own money. No longer making your boss rich with your good ideas. Being your own boss, having more freedom, and more creative possibilities are important arguments. In practice, only a few people actually take action and make the first steps. The rest keep it as a dream for the time being.
The Odyssey
Often, this leads to a true search journey along various civil servants, investors, advisors, even more advisors, grant providers, patent agents, lawyers, accountants, other entrepreneurs, and so on. The picture does not become clearer because all these often very helpful advisors can only tell part of the story and naturally have their own interests. On Technoventure.eu, you will find useful and interesting information about topics related to entrepreneurship in a tech startup based on an idea or invention.
How to Begin?
How do you turn your idea into a tech startup? The start of every innovative company is the brilliant idea. This idea can be an invention or technology that needs to be developed into a new product, or it can also be an idea for a service. Naturally, a tech startup is the first step towards a successful technology company. In practice, most successful business ideas are developed by people who have acquired the necessary relevant skills and experience. They knew what technology the customer needed and had enough market knowledge to develop a successful concept and expand the concept into a real business. However, there are also examples of revolutionary concepts developed by absolute newcomers to the field. It is certainly fun and educational to read about successful entrepreneurs and to dream about such great success.
Two important takeaway lessons for tech startup entrepreneurs
- Think like an investor when setting up your tech startup. From the very beginning, it is very important to think about your technology from an investor's perspective. This means that you must be able to explain clearly, concisely, and convincingly what your market is, how you will reach your customers, and how the money will be made from your idea. Of course, your technology "works," but do not make the mistake of giving the impression that you are in love with it, or worse: that you are actually looking for another grant or subsidy to be able to do more research!
- Focus on an MVP, Not Perfection One of the most important lessons from Bill Gates' story is the value of a Minimum Viable Product (MVP). When IBM approached Microsoft in 1980 looking for an operating system for their upcoming personal computer, Microsoft didn't have a finished product. However, Gates and his team quickly acquired an existing system, QDOS, and adapted it into what became MS-DOS. Rather than spending time perfecting the software, Microsoft delivered a functional product that met IBM's needs. It wasn't flawless, far from that, but it worked—and that was enough to secure Microsoft's place as a key partner for IBM. By launching early, Microsoft could start generating revenue and improve the product over time. The lesson for tech startups? Focus on building and launching an MVP—a version of your product that addresses the core needs of your target market. By entering the market early, you can gather feedback, iterate, and refine your product while already generating income. Striving for perfection can slow you down and lead to the "graveyard of improvement infinity," where many startups fail before even launching. Progress, not perfection, is the key. For tech startups, the lesson is unequivocal: once your technology reaches a functional state, it's ready. Aim for continual progress rather than perfection. Begin generating revenue as early as possible to steer clear of the endless loop of constant refinement and avoid falling into the trap of perpetual improvement. About this, there is an important lesson to be learned from Bill Gates of Microsoft
The Idea Alone Is Worth Nothing!
Remember that from an investor's perspective, the great idea, no matter how brilliant it may be, is worth nothing! Therefore, invest enough time to further develop your technology into a fully worked-out business idea packaged in a business model. This will become the basis for your company. A business plan comes later. In other words, stop dreaming because there is a lot of work to be done! Do not start too complicated. Begin with a test of the feasibility of the business idea. Initially, focus on the product. How viable is it? How innovative is the technology and the product? Does more technology need to be developed, or is it good enough as it is? Are you able to protect the technology? Are there competing products on the market? What will your team look like? How much money do you need, and what are the estimated costs and price of your product? In short, many questions will arise in a very short time. With the best answers for now, your idea will be further developed step by step, and feasibility will be mapped out. Do not be afraid to discuss your idea with friends, experts, and potential customers. Often, it is possible to give an abstract description of the idea without going into too much detail. Moreover, people are often too busy with their own business and/or work to drop everything to chase your ideas. Just start. You could begin by answering the list of questions to test your business idea
The beginnings of Hewlett-Packard (HP)
The vast majority of technostarters start small. Hewlett-Packard also started small, namely in the rented garage which you can see below (1939). This wooden garage is considered the beginning of Silicon Valley.
