Every year we are seeing more and more people founding their own tech startups. And for good reason too. The tech industry has the most growth potential of any sector on the planet. It is already one of the biggest and most lucrative. And is showing no signs of slowing down.

So it makes sense that people would want a slice of the action. Melbourne has slowly become a hotspot for tech startups in recent years. Spurred on by its diverse communities, first-rate universities, and a strong business culture. Making it an ideal place to begin your own tech startup.

Today we are going to be talking you through the key steps in founding and managing a tech startup. This will cover the broad strokes that you will need to have locked down. We highly recommend that you spend time doing more in-depth research into business management and finances alongside this.

The Idea

The absolute first step in creating a startup is finding that winning idea. The thing that will set you aside from the competition and allow your company to bloom. This is easier said than done. The first step in finding your idea is to locate a problem that needs to be solved. This is the cornerstone of every good innovation ever.

But you need to ensure that the problem you are trying to solve sits within your key abilities. If you’ve spent your life building up your skills in creating AI, you should be looking to that sector. Immerse yourself in the tech industry. Speak to other professionals and find the issues they are facing. Come up with a range of problems and start brainstorming solutions. During this stage no idea is a bad idea.

Once you’ve brainstormed a few ideas you should start working on seeing how practical they are. This will form the bulk of the work of your startup. It is good to use focus groups to see how viable your idea is. And, most importantly, if it is marketable.

Sorting The Finances

In a perfect world we would be able to dedicate ourselves to a project based on passion alone. But passion doesn’t pay the bills. And no startup is going to succeed without having their finances in order.

We will assume that you have already secured the necessary capital to found your business and keep it afloat for a few years at least. The next step is ensuring that the money is flowing to where it needs to go. Ensuring that you aren’t wasting money on unnecessary expenditures. The best way to go about this is to hire an accountant.

There are a huge number of accountants in Melbourne that can help you with all your startup’s financial needs. Internal payments such as wages. Legal and insurance related finances. Ensuring your taxes are all filed and paid correctly. And making sure that there aren’t any major issues with the flow of money through your company. These accountants will also be able to offer expert advice on how to potentially reinvest money to bring in additional revenue.

Finding The Right Staff

The difference between a successful company and a doom-to-fail company is how well they treat their employees. Every company on the planet rises or falls on the backs of their employees. So you need to both ensure you’re finding the right people. While also making sure you can retain them.

For a tech startup to work you need to hire likeminded people who are not only skilled in the specific technical areas you need, but also share your passion for problem solving and improving the technology sector. Your interview process should be thorough and competitive.

You will need to ensure you are offering enticing benefits and pay packets to bring in the best staff. The tech sector is an extremely competitive one. It is the employees who hold a lot of the power here. So you need to be able to offer them enough to get their interest.

Employee retention is something that a lot of modern companies struggle with. Despite it being one of the simplest ideas to effectively put into action. The first step is to respect the importance of money in regards to your employees’ motivations. You are NOT a family here. This is a job. And they should be paid a fair wage for their work. If you try to make your employees give more effort then they are paid for, you are doomed to lose them.

You also need to ensure that your management structure is one that encourages growth and independence within the company. Micromanaging is the killer of startups. You need to put trust in your employees. Trust that they are able to do the job you are paying them for. Avoid punishing mistakes and instead provide adequate learning opportunities and training schemes.