The 5 habits of successful high-tech start-ups
‘To Boldly Go Where No One Has Gone Before’
This famous Star Trek motto was valid for Captains Kirk and Picard, but it also applies to technological start-ups. Often the development and marketing of innovative technology is like a leap in the dark with uncertain results, particularly for young, small-scale businesses. But there are ways of enhancing the chances of success. If we look at successful high-tech start-ups (and we’ve supported many of them on their road to success), it turns out they all used the same methods and habits.
1. High-tech innovation is always multidisciplinary
So put together a diverse team
New businesses are often really good at one specific thing. Embedded software, for instance, or high-speed electronics. But it takes more to realize a working end product. Knowledge of physics, for example, or experience with producibility. Very few start-ups have enough know-how and experience in all these fields. A new product is always the result of multidisciplinary cooperation. Successful start-ups therefore seek multiple partners, preferably from various disciplines and backgrounds. The great advantage of this is that it saves you from tunnel vision.
2. Research the feasibility
But then move on
It always starts with a brilliant idea. But how feasible is this idea really? Are the underlying technological principles sound? A thorough feasibility study is absolutely crucial, certainly for technologies that are totally new. Successful technological start-ups team up for this with universities or other scientific institutes, who use tested research methods and deliver valuable results. But beware: there are always more things to research. Has the feasibility been established? Congratulations! Time to move on to the next step.
3. Look for a launching customer
And start prototyping
Every start-up does market research. Successful start-ups go one step further: they look for a launching customer. There are many advantages to having one. The launching customer is actively involved in the development of the product and can give valuable feedback during prototyping about usefulness, pricing and functionality. This helps your start-up to keep both feet on the ground. And a launching customer means there will be some useful pressure on the development process.
4. Give testing and producibility the attention they deserve
Once you have a working, fully functional prototype, it’s time to party. It is a real milestone, which feels like the finish line for many start-ups. But it is far too early to relax. Successful start-ups spend a lot of energy and time on the next phase: thorough testing of their new product and preparations for the production phase.
Producibility is crucial, but most start-ups don’t have that expertise themselves. An experienced production partner is priceless in this phase.
5. Define a Minimum Viable Product that meets all the requirements
Once you have a working, tested prototype and a good production plan, you’ve come to the last phase: the go-to-market of the new product. Successful start-ups do this by defining a Minimum Viable Product (MVP).
What is your MVP? It simply is the version of your product that meets the minimum requirement: it suits your launching customer’s business case. The MVP is certified and complies with all applicable standards, and successful life cycle and supply chain management can be provided for it. The MVP is the beginning of a roadmap for further product development for your start-up.
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Want to find out more about the five habits of successful high-tech start-ups? Watch the webinar by business developer Gerard Rauwerda, which includes interesting cases that Technolution has encountered in practice.
For instance, development of a new generation of digital signal processing chips for aerospace applications, or of a rapid, innovative multi-bundle electron microscope.