Starting a technology business can be both exciting and nerve wracking, but with the right knowledge, planning and execution, it can also be immensely rewarding and lucrative. If you’re thinking about setting up your own technology business in the UK, you’ve probably got some big questions on your mind, like: how do I register my company? How do I build my website? How do I find my first customers?
We’ve written this guide to answer all of these questions and more, covering everything from taxation to virtual assistants and everything in between. No matter if you are just thinking about starting your own company or have already made the leap, our guide will help you succeed. Let’s start at the very beginning.
What is an online technology business?
An online technology business provides technology-based products and services. Some examples are: web hosting, tech consulting, software development, or SEO management.
The term online technology business is sometimes used interchangeably with internet technology business, which is slightly different because it also includes businesses that provide services via websites but don't necessarily provide any physical products. Online technology businesses have become more popular in recent years as they are able to reach customers who live all over the world.
The main benefits of starting an online technology business
Starting an online technology business might be a good option if you're looking for a business with low initial costs and an easy setup process. The main benefits of starting an online technology business are that it's relatively low-cost, has a lower start-up time than other businesses, and requires less expertise.
However, there are also some disadvantages, including needing more self-discipline for marketing your business. Online technology businesses are becoming increasingly popular because they can be scalable. Many also provide a unique opportunity for aspiring entrepreneurs looking for a challenge and a way to build their businesses.
Here are 10 great reasons why you should start an online technology business today:
There is no need for large amounts of capital investment, with many online businesses being able to get started with as little as £100
The barriers to entry are low, meaning anyone can get started
It is easy and quick to set up your own business online with the right tools
You have more control over your schedule, so you have more time for yourself
There is greater freedom and flexibility
It is cheaper than starting a traditional brick-and-mortar business
There are fewer regulations to comply with
You can work from anywhere
Companies often outsource work online, meaning there are ample opportunities for freelancers
Working from home reduces commuting costs and allows you to spend more time at home with family and friends. But not all jobs will allow remote working. If possible, try to negotiate this when discussing your new role.
Conduct market research
Conducting market research is important for a variety of reasons. First, it helps you identify what people want from your product. Second, it will help you identify the problems that need solving. Third, it helps you evaluate your competitors and understand their strengths and weaknesses. Lastly, conducting market research will help you understand how much money you should be expecting to earn from your business.
First, conduct some preliminary research: Gather all of the information that you can about your target customer. For example: demographics, psychographics, company size and number of employees, current financial standing etc.
Secondly, do some competitive analysis: Get familiar with your competitors by researching who they are and understanding their offerings.
Finally, analyze the market: Identify trends within the industry by studying new products as well as changes in legislation that may impact your sector or customers’ needs/desires
Carry out a competitor analysis
Carrying out a competitor analysis is a good way of figuring out how your competitors are performing. You can then use this data to figure out what you need to do differently with your business.
For example, if you notice that their prices are much lower than yours, consider lowering your prices too. If they offer free shipping and you don't, then add free shipping to your offer. If they provide extensive customer support and you only provide email support, think about adding phone support or live chat features to your site as well.
Define your target audience
Your target audience is your ideal customer. You need to know who your customer is and what they want before you can create your product. Ask yourself questions like: What are their interests, values, motivations and demographics?
Define your target audience as precisely as possible. Make a list of traits that describe them and make sure those traits align with your business goals. Once you have a well-defined picture of your customer, it's much easier to figure out how to market and sell your products or services.
Seek feedback on your idea
You should get feedback on your idea before investing any time or money into it. You can do this by creating a test product and sharing it with potential customers. You can find people who would be interested in your idea by asking friends and family, or posting on social media sites like Facebook groups, forums, or subreddits. You could also use services like UserTesting which will let you know what people think of your idea before you invest any more time or money into it.
Choose your online business model
In order to start your online technology business, you will need a business model. There are four main types of online business models: e-commerce, information products, lead generation and affiliate marketing. If you are just starting out, we recommend that you choose one of these models as it is easy for beginners and has a low investment threshold.
If you have chosen an e-commerce model, then decide what goods or services you want to offer and create your website with a payment processor. Consider whether you want to sell items on Amazon Marketplace or whether you want to set up your own website. If you are choosing the information products business model then consider what type of product or service that would best suit this type of business (e.g., books).
For lead generation, create content with high quality resources that attracts leads who need your services; this can be done through articles or webinars on niche topics related to your product/service area. Affiliate marketing involves promoting other people's goods and services for commissions based on sales generated from traffic coming from visitors on your site.
Once you have your idea and know what your business is about, it's time to start building your website. Your website is a representation of your company and should accurately represent the services or products that you provide.
The first step is coming up with a domain name, which will be where people find you on the internet. Decide on a domain name that reflects what you do best and get it registered.
Next, find a hosting provider that offers enough space for your site and get set up. If you're not sure how to go about this then look at WordPress as they offer tutorials and support.
Once you're ready, just download their software onto your computer or use their online editor if you want to build the site yourself.
Once all your content has been uploaded into WordPress, head over to Google Search Console (or any other preferred analytics tool) and add Google Analytics code into your website’s header template so that all visitors are tracked.
Fill your site with optimised copy
A technology business will have a lot of technical language, so you should make sure your copy is optimized for search engines. You can do this by including plenty of keywords and making sure your site reads well.
With Google favouring mobile-friendly sites, it's worth considering how your site looks on a mobile device before you publish it for all to see. Is there room for the user to scroll down without having to constantly zoom in and out or does everything come up as one big block? Mobile users are often more likely to be searching for something specific rather than browsing, so if they can't find what they're looking for quickly, they'll give up.
One way around this is creating short 'snippets' of information that can be easily accessed from a smaller screen. If you're selling a product that needs demonstration videos or instructions, try embedding them within your page rather than linking out to another site where content isn't likely to be optimised for smaller screens too.
Comply with online business legal regulations
When starting a business online, it is important that you are aware of all legal regulations. The following steps will help you create your business and comply with these regulations:
Register your name as a trademark with the Office of TradeMarks (OTM) if necessary and register it at Companies House if it's already registered.
Register your company name as a domain name.
Create an account on Amazon Web Services for storing data or use other cloud services for storage purposes.
Get in touch with your local authority for setting up telecommunications requirements or broadband connection, or buy one from different providers.
Make sure you choose a reliable service provider so that there is no interruption of service to customers, especially when you are expanding rapidly.
Launch social media channels
Launching social media channels is a great way to start building your online presence. The good news is that it's easier than ever before. With a little time and effort, you'll be able to create an account on all of these popular sites: Facebook, Twitter, LinkedIn, Pinterest.
To save time, use one service (like Hootsuite) to manage all of your social media accounts at once. That way you won't have to log into multiple websites every day. Be sure to upload a profile photo for each site so people know who they're connecting with!
Attract traffic to your online business through SEO
If you are looking to build a business online, there are many factors that need to be considered. SEO is one of the most important pieces. Search Engine Optimization can help your website rank higher and have more traffic to your site.
This means more people will come across your site and you can sell your products or services. It’s also relatively easy for businesses to manage their own SEO through tools like Google Webmaster Tools and Google Analytics.
It’s worth noting that SEO is not just about ranking higher on search engines like Google; it also helps with conversion rates as well by providing potential customers with what they are searching for without them having to go anywhere else!
Consider outsourcing to save time and cost
One of the benefits of outsourcing is that it saves you time and money. You can spend your time on other aspects of your business, like marketing and sales. Plus, you won't have to invest as much money into hiring new employees or buying expensive equipment for your business.
Another benefit is that you'll have more flexibility with who does what work for your company, which means you could potentially find better talent than what's available locally. For example, if you're looking for a technical writer but don't know anyone nearby, you may be able to hire someone from India or another country with lower rates.
This will help your bottom line since their wages are usually lower than those in Western countries. Other benefits include being able to scale up quickly if needed (say after landing a big client) and having full control over how things get done within your company.
Be consistent with your efforts
The most important aspect of starting a business is consistency. If you are not consistent with your efforts, nothing will ever get done. You should always be networking and marketing. Every time someone interacts with your company, they should have a positive experience; this will lead them back to your website or social media page where they can post their good experience with your company.
This will help bring more customers through your door. You should also be consistent with your efforts when it comes to advertising your product or service. Whether you decide to use Google Adwords, Facebook Ads or something else, find a platform that works for your budget.
Advertising takes time but if you are consistent with your campaigns, eventually you will start seeing results. Be persistent and stay focused on what makes your company successful: whether that's quality customer service, the best price on an item or anything else that matters to your target audience.
I hope this guide has been of some help. If you're interested in starting your own online technology business, it's a good idea to hire an app development company in the UK with experience building and maintaining software like yours. For example, if you have a project management app, it might be better to look for a company that has experience building apps like this. If you have any questions or need more advice, please contact us. I'll be happy to help you get your business off on the right foot.
