Business Sponsored Technology

Involving Outside Services When Launching A Tech Startup

You have probably heard stories about famous tech startups that began in a garage. They were launched by hard-working, determined entrepreneurs who turned a dream into multibillion-dollar corporations. Most startups do not begin that way. To be successful, hard work and determination also involve taking care of basic corporate operational needs. For most companies, working with outside entities to help manage and grow the company is a given.

Product Creation and Distribution

Whether your product is hardware, software or a service, you have to be able to deliver it to customers. This often involves close coordination with outside providers. For many in the tech field, it involves coordination with manufacturing facilities in other countries and routine visits to keep tabs on the operation.

A startup producing hardware needs to evaluate outsourcing manufacturing as part of creating the business plan for the venture. They must gather information on manufacturing in Mexico and other regions where skilled labor can be found for relatively low-cost. Potential investors will want to know how the price of manufactured items, whether those prices are comparable to what is already on the market, and what the expected profit will be.

Similar issues arise for those who sell software or provide a service. Distributing software online requires resources that a startup may want to outsource instead of investing in the platform early on.


Every little detail for managing the business needs to be addressed. This includes custodial services and other needs related to the offices and shop space the business may require. It’s no surprise Bay Area janitorial services are in high demand; the countless tech startups scattered across the city all need someone to empty the trash, vacuum the floor, and so forth. Take the time to note all of the facility needs the business may have and write them down. Review this list with the property management company used to see what areas may be included with a lease.


Two common marketing mistakes startups make is in not paying enough attention to promotion and not engaging the services of professionals who know how to create brand awareness. With limited budgets and the need for business owners to spend most of their time on product development, marketing may suffer. It does not have to be this way.

Marketing for tech startups offers unique challenges and opportunities. Challenges faced include getting noticed in a very crowded space. Opportunities exist by having many options and platforms available to get your message out. Contracting with a marketing professional will save you time and help increase profits.


Nearly 70 percent of all small businesses fail within ten years of launch. One of the primary reasons cited for this is due to financial mismanagement. For a tech startup, having an accountant is beneficial in several ways.

• The business owner’s time is freed up to work on other issues.

• Accountants are trained in spotting and addressing financial warning signs before they become real problems.

• Accountants have experience in working with businesses and are a great resource for advice on how to manage cash flow and seeking additional funding for the venture.

Launching a tech startup is both exciting and stressful. Entrepreneurs often are independent thinkers who are so focused on their vision that they forget the important details necessary for a successful venture. Stress levels can be lowered significantly by taking the time to speak with the people who can help manage the areas not directly related to the core business.

About the author


David Johnson