Everywhere in Singapore, there is an increasing demand for quick and innovative solutions. Many of which are met through different tech startups.
In Singapore alone, there are about 4,000 tech startups. This figure is understandably much higher in the global scene - a testament to the tremendous demand for tech startups all over.
Starting a business is not at all easy; tech companies are no different. There are many considerations, including planning and legal aspects.
Therefore, to give you a head start about launching a tech startup, here are some practical steps to consider.
What is a tech startup?
A tech startup is a company that aims to provide products and services to their clients with the use of technology. These products and services are usually new to the market. However, some tech startups serve their clients with existing technology in new and innovative ways.
How to start a tech startup?
To start a successful tech startup, there are some fundamental approaches that are non-negotiable. In this section, we break down the steps on how to start a tech startup in the most simplified manner.
1. Incubating the tech startup ideas
The prospect of launching a tech company begins with great ideas. However, translating these exhilarating ideas into reality can be challenging. Therefore, before you dive headfirst into the startup, here are some critical aspects to consider.
- Is your tech service or product going to excite the target customers as well as potential investors?
- How about the viability of the tech and the condition of the market?
- Will your tech company have the freedom to operate (FTO) in Singapore?
Despite your initial excitement, seriously pondering on the above questions will shed new perspectives on your ideas. After assessing these questions, if you feel confident, then comes the next step.
2. Competitor research
You cannot start a tech startup successfully without sizing up your competitors. Researching your competitors is a step that can give you invaluable insight. This includes the market size, the demand for your product and of course, the level of competition.
Even the most ambitious entrepreneur view competitors in a negative way. However, objectively gauging and understanding the position, the success and failures of your competitors can be a great way to begin.
3. Find market fit for your tech startup idea
After conducting competitor research, finding the market fit for your tech startup is another step you cannot ignore.
One of the best ways to learn about the market for tech startups in Singapore is to get involved with startup communities. Through this ecosystem, you can interact with the community members who can become potential clients and even business partners.
In this phase, you should be able to identify gaps in the market that your startup can solve.
4. Develop and validate Minimum Viable Product (MVP)
Developing an MVP is critical for tech startups. Before spending most of your money developing and marketing the actual product, you should develop an MVP to test your assumptions and understand market fit.
Your minimum viable product should possess and reflect the solutions to the problem you aim to solve, and this should be done with the least possible capital.
How do you validate your MVP?
Get users to test out your MVP and ask them for their feedback. Does your MVP solve problems and improve the lives of these testers? How much are they willing to pay for a full-fledged product?
Determining these about your minimum viable product will let you know if there’s an actual market fit before developing your product further. This saves you capital from working on something that has no real demand.
5. Patent landscaping and freedom to operate
Now you need to focus on the legal aspects of starting a tech startup. For this step, intellectual property (IP) lawyers are your best bet. IP lawyers have the expertise to cover everything from the legal right of products to patent landscaping.
Covering the legal aspects is not only a helpful step for starting a tech startup. It is a requirement by law in Singapore.
Along the same lines, establishing freedom to operate makes sure that you alone have the rights to your MVP.
If you’re worried that your idea might be stolen at this point of time, sign a non-disclosure agreement with the parties involved here. IP lawyers in Singapore are under the law to maintain client confidentiality.
6. Incorporate your tech startup
After you are all set with the steps mentioned above, you are ready to incorporate your tech startup. Incorporation is a necessary step for tech startups as it makes your business official.
Incorporating a new tech venture in Singapore is relatively easy. This is due to the availability of online registration options. Moreover, the cost of initial capital for business incorporation is very reasonable.
For a step-by-step guide on how to incorporate your tech startup, visit this link.
7. Open a business account for your tech startup
To seal the deal on your tech startup, the last step is to open a business account.
In Singapore, you will be spoilt for choice when it comes to choosing a platform for opening a business account. However, before you open the business account, you need to make a thorough comparison to get the best deal.
Platforms such as the Aspire’s Business Account only require your business to be registered, which make it fantastic for tech startup entrepreneurs.
Psst... You can now incorporate and open a business account online on the same day
Consider Aspire's feature in partnership with Osome, it is 100% online and 20% cheaper than doing it yourself. Find out more here.
Conclusion
Working on the idea of a tech startup can be thrilling as it is challenging. However, if you understand the steps to follow, such as the ones in our post, it becomes quite feasible.
The above-suggested steps to start a tech startup in Singapore are by no means exhaustive. We are committed to helping entrepreneurs achieve their tech and business goals by highlighting the most important steps. Therefore, keeping the steps practical and straightforward.
So are you ready to start your tech startup in Singapore yet?
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