Tech is one of those words that everyone knows, but few can explain. Technological change occurs so rapidly and swiftly that it has been called the silent killer. Technological change is the combination of technological innovations and scientific discoveries that significantly enhance the quality and performance of products or services, including scientific research or in the achievement of specific strategic goals. Technological change encompasses a wide range of activities and areas, including telecommunications, transportation, energy, digital imaging, information systems, medical and health care, communications, manufacturing, retail, and computer technology.
Entrepreneurship in tech companies is becoming increasingly common as individuals learn more about what these companies have to offer. The startup costs for starting a tech company can vary greatly depending on the overall scale of the company, the technical expertise of the principals involved, and the geographic location. The capital costs for a startup are often far less than those required by established businesses. In Silicon Valley, which is the hot spot for start-ups, angel investors, venture capitalists, and other funding sources are eager to provide seed money, which allows new ventures to get started and develop the skills they need to be successful.
However, it must be noted that there is no “tech boom” in any area of the business world. There is, however, an undeniable trend of greater innovation at tech company start-ups relative to the growth of established businesses. Start-ups tend to focus on creating the most marketable technology solution possible at the lowest initial investment. They seek to generate revenue from services and products that can be quickly and easily accessed by consumers. While many large corporations in the past decades focused largely on consumer marketing and distribution, more start-ups today are looking to become vertically integrated. These companies will usually have marketing, product, and support divisions that are completely separate from the electronics manufacturing and design group.
The focus of venture capital funding for tech companies is different than it has been in years past. Traditional venture capital firms have historically focused their financing efforts on high-end technology companies in industries such as software and technology, which generated the vast majority of revenue for their private companies. Venture capitalists are now increasingly offering financing opportunities for smaller and younger companies that are less than two years old on the market. While this trend does not take advantage of the many tech startups that are being created each year, it does provide a much more versatile funding source for smaller companies that are not bringing in revenue that is sustainable over the long term.
The demographics of the population that are fueling the growth of tech companies also make it easier to identify the types of clients that are likely to be inspired to join an upcoming tech company. According to the US Department of Housing and Urban Development, the number of people ages 25 to 34 are currently the largest generation of homeowners in America. Additionally, baby boomers are more likely to own wireless phones (and have them in their households at an older age), are more likely to own smartphones (and have them in their households at an older age), and are more likely to be in their homes when tech companies launch new products. If you are planning on starting a tech company or startup, knowing these demographics can help you determine whether your target market will be receptive to your marketing messages. While not everyone in this demographic is likely to be tech savvy, being able to identify some of their interests could help attract funding from venture capitalists willing to take a risk on a newer, less traditional business.
With many new and upstart companies focusing on both mobile internet usage and social media marketing, it has never been more important to stay on top of current trends. For those who want to be seen as a “go-to” destination for those looking for a place to stay, the addition of the term” Uber” to its name provides proof that the company is committed to staying on top of changing technology trends to ensure it reaches the masses. Just like traditional hotels, some owners of uninviting businesses have taken to renting out rooms in their properties to be used by customers instead of investing in expensive hotels that may not meet all their expectations. Whether the motivation behind using a traditional hotel is to minimize overhead or to save money on rent, investing in a ride share with an established and reliable rideshare company could be the ticket to getting into that first market.