How to turn a great tech idea into a successful business

• Important characteristics of atech entrepreneur or start-up

Since the 2008 recession, we have seen a surge in the number of tech start-ups and entrepreneurs with great ideas. However, ideas are plenty, but success is seldom, and according to Fortune magazine nine out 10 start-ups fail. 

Why is this?

At Mitra Innovation, we know there is no science or formula for a tech start-up to become successful. However,our experience shows that 10% of the entrepreneurs and start-ups that succeed master three very important characteristics:

a)Commitment and team strength

b)Passion to innovate

c)Early market validation.

Commitment and 

team strength

Entrepreneurs need to be committed and have a strong team. Start-ups are not for the faint-hearted, especially tech startups. Markets move quickly and founders have to dedicate their passion and effort on their ideas, as well as understand what is going on around them and how other market activities affect their offering. 

They need support to get their ideas off the ground and this has to come from a strong team who can help with business planning, idea creation, execution, marketing and operations. While an entrepreneur perfects what the product should offer, the team must look at other areas:

• Who are the customers?
• What is the business plan and revenue model?
• How will we deploy and market the product?
• How can we look after customers and partners?
• How should we drive different sales channels and acquire the right channel partners?
• How will we run operations and support end-customers? 

Launching an idea involves many activities, with strong dependencies that need to be executed in harmony. Hence why entrepreneurs need a dream team that can be depended on. 

The team can be made up of a mixture of direct employees, outside consultants, or a team of people from the investment side. And as long as the team has commitment, drive, passion and stamina, the project is off to a good start.

At MitraInnovation we believe in the importance of a good team for any start-up and we’ve shown this by helping Kraydel (www.kraydel.com) to launcha new ‘Internet of Things’ service, aimed at enabling elderly relatives safe in their own homes. Mitrahas become an integral part of the core Kraydelteam.

A passion to innovate

 

Entreprenuers have a passion for change and create products that are innovative and 'right' for the market, which also simplify or enrich people’s lives.

At Mitra Innovation, we see various types of products and services innovate, however not everyone gets it right first time. With reference to the technology world in particular we see three types of technology innovation amongst entrepreneurs:

1) Entrepreneurs with ideas which provide consumers with new ways of doing things

For example: 

• We bank nowadays via mobile apps, rather than visiting the branches. 
• We watch entire series on Netflix in one sitting, rather than waiting for the TV to air new episodes each week. 
• We don't call cab companies anymore, instead we hail an Uber taxi on 4G.
• When did you last read a printed dictionary? There’s no need when Google provides the answers.

Banking, watching TV, understanding the meaning of/how to spell words, and finding a taxi are not new activities, but tech entrepreneurs have made them seem new by making it possible for us to do things differently, more efficiently, perhaps safer even and without taking much time from our busy calendar. 

2) Entrepreneurs disrupting old ideas, with better, new improved versions

Some entrepreneurs may not have the initial ideas, but their innovation, their drive, and their passion enables them to take old ideas (phones, shopping, holiday accommodation) and improve them to such an extent that they are now seen as innovative. For example:

• Apple did not invent smartphones, but they’ve been innovative in the types of smartphones they’ve launched and the way they have launched them.
• Online shopping also existed long before Amazon did, but Amazon have managed to perfect it, especially with their offerings such as Amazon Prime next day delivery, or even Amazon Now delivery within an hour? (Who would ever have thought you could order something online and have it delivered to your door with 60 minutes on Boxing Day?)
• Holiday accommodation websites have been around for years too, but AirBnB have managed to launch a new version where everyday people can easily make some money by renting their homes out for mini breaks or holidays. This is an innovative approach which has certainly disrupted the traditional idea of booking cottages, holiday homes, or hotels on traditional travel sites.

3) Aggregator entrepreneurs who bundle individual services into much bigger offerings

Aggregator entrepreneurs have a vision because they see the potential in a number of products or services and what can be achieved by bringing it all together. They focus on simplifying our purchasing process within a specific area. Examples include:

• Travel sites such as Booking.com and TripAdvisor have empowered consumers to make the right choices for travelling. Every hotel provides their own reservation system, but Booking.com has made it easier to book many hotels via one single app. It’s very elegant. 
• There are websites available where we can find childcare services, or dog walking services in any location, with many recommendations, all from one place.

When shopping across the web, instead of simply looking at individual luxury clothing websites, we can now visit sites such as Net-a-porter.com where many products from luxury brands have been aggregated into one place and are available to buy.

• For fans of Nando’s and Gourmet Burger, there’s no need to simply stick to an Indian or Chinese if you want your food delivered, as Deliveroo – aLondon start-up founded in 2013 – aims to deliver Nando’s and Gourmet Burger to your door within 40 minutes. (They also now support numerous other restaurants in UK and few other countries.)
• When it comes to product innovation, passionate and innovative entrepreneurs have a head start if they are constantly thinking of these five paramount questions:
• Am I simplifying someone's life? 
• Why would customers buy my product? Am I adding value?
• Will they really 'love' my product? 
• Is the market ready or am I too early?
• Can I raise the funds and assemble the right team?
• They will be successful if their ideas are strong, powerful, innovative and focused on simplicity, solving peoples’ problems and improving lives.

Market first: Get market validation fast

All tech entrepreneurs believe they can sell their product or service. But the entrepreneurs who succeed are the ones who validate their offering amongst potential purchasers very early on. What they also validate is how they will sell their product or service. 

At MitraInnovation we cannot stress just how important this is and our advice to help achieve validation is as follows:

1. Take the Agile approach

Agile helps to breakdown ideas into small manageable execution blocks, that lead to the creation of a planned roadmap, and a product which is built incrementally and fast. 

Agile supports our belief that entrepreneurs should aim to take the prototype to market within 30-45 days. Especially in the tech world where people are innovating at breakneck speed.

We did this with Eagle Boys, one of Australia’s largest pizza chains, until it was recently acquired by Pizza Hut. Mitra Innovation – in partnership with Australian technology company, Delivery Command – helped to launch the Eagle Boys innovative Virtual Drive-Thru app to provide customers with a unique ‘door-to-car’ service which meant they didn’t even have to leave their carwhen driving to collect their pizza.

Time to market is crucial for new ideas and Agile helps to keep the process moving incrementally whilst validating the concept early.

2. Find some early customers - even if it’s just for the pilot stage

Finding a partner or potential customers can be very powerful to help validate an offering, not only in terms of obtaining reviews, improving the offering, and spreading the word, but also because it can help to raise funds.

3. Avoid running user feedback forums

Instead find some target users and observe how they use your prototype or product. Use the findings for further improvement.

4. The validation stage should never be about perfection

Many tech entrepreneurs make the mistake of not launching their product or service until it’s perfect, but we believe perfection takes too long, and could ending costing entrepreneurs their whole idea. It’s important to get the boat in the water, rather than miss it entirely. 

It’s also worth bearing in mind that early adopters are usually happy to take risks using new products, especially if they feel they’ll have a part in forming the future make-up of the offering. 

The timing of market entry is just as important as getting the project right.

If you’re a budding tech entrepreneur, we hope you’ve found this article useful.

Do you have what it takes to be a successful entrepreneur? 

Strive to be the one out of 10 startups that succeeds.

[The writer is CEO and Co-Founder of Mitra Innovation, which commenced operations in 2012. He is a serial entrepreneur who has successfully started several tech companies over his 20-year career. With a passion to innovate using pioneering technology, he has helped over 40 startup clients including edocsInc (part of Oracle), as a founding member of Virtusa Corp (VRTU), a global SI which he helped grow to $280 m in USA, UK and Asia. His clientele included British Telecom, JP Morgan, American Express, Citibank and Siemens.]

[Mitra Innovation (www.mitrai.com) helps smart entrepreneurs, enterprises and public service organisations to accelerate innovative ideas into amazing global businesses or solutions, through product incubation, digital transformation, and integration services. Think Innovation, Incubation, Integration >> THINK MITRA.]