Tech Startups: A Step-by-step Guide

Date: October 21, 2020
Author: FAL Lawyers
Posted in: Insights

Practice/s: ,

The tech startups idea

You’ve got to have one of these. We can’t give advice about how to get one; this you will have to do on your own. But once you have one, we can help you from there.

The tech startups business plan

Now you need to turn your idea into a viable business plan. A formal business plan helps you define for yourself what your goals are and how you want to get there. A business plan is also crucial to be able to articulate to investors and early employees what your startup is all about. A business plan should include, amongst others:

  • Why your product or service is desired or needed by the market
  • Who will buy your product or service
  • How much capital is needed
  • What profits are projected
  • How the product or service will be developed
  • Which people, with which technical skills, need to come on board
  • A marketing strategy

The tech startups business structure

There are several choices for the structure of your business:

  • Sole Trader
  • Partnership
  • Company
  • Trust
  • Incorporated Association
  • Indigenous Corporation

The right choice for your startup will depend on several concerns, such as tax, protection from liability, and costs.

The tech startups product

Developing a product or service will require technical skill and expertise. If you’re investing money, time, and energy into a product, you want to ensure that resources don’t go to waste. To protect your product, you should ensure that your product:

  • Complies with all the regulatory or licencing requirements, relating to issues such as privacy, product safety, and capital raising
  • Has the necessary intellectual property protections, such as a patent, trademark, or design registration
  • Is protected by licencing agreements for when the product is used by customers

The tech startups team

A key element of any startup is its team. For a team to work effectively together, and to avoid future conflicts, it is crucial that all team members have clearly defined roles. It also essential that you have clearly written contractual agreements setting out the division of equity and the remuneration for work performed.

The tech startups launch

Once everything is in place, you are ready to launch the product! Make sure you have a clear marketing strategy and have the resources available to respond to market demand. If you chose to make your company public, you will also have to go through the process of an IPO, which requires professional legal advice.

At any stage during the process, feel free to get in touch with our startups expert to guide you along the way. Good luck!

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