A technology-based venture is usually a company that offers a particular computer-based technical product/service, or heavily depends on it, for its main revenue. In contrast, a service-based venture is the one which offers mainly non-technical products, but the primary revenue comes from selling software and/or services. There are also a lot of venture-like businesses that operate solely online – they sell informational products, or services, online to customers all over the world, and their company operates from their own website. They do not have any offline presence, and hence their revenues come mostly from internet-based customers.
While a tech company may start with selling technology products, it will most likely choose to keep its business as customer-facing as possible. That means it should focus more on the design and creation of websites for its customers. The products and services offered by a tech company, however, should always be cutting-edge and available to the widest range of people. A startup often makes the mistake of focusing its attention on selling technology, when it could make much more money by offering consulting services for specific purposes. For instance, a startup may decide to offer consulting services to health-care facilities, schools, or nonprofit groups that have specific needs; in this case, technology would be the selling point and not the product.
A tech startup also has to worry about competition. Many businesses who have already made it big in the business world try to take over smaller companies, and they typically follow their lead when it comes to pricing and marketing their services. This puts the tech company at a real disadvantage, because it has to try to convince customers that its services are better than those offered by competitors, or it will risk its financial survival. If you’re a newbie entrepreneur, you need to look out for these trends. Start building your own network of contacts in the tech industry – and remember that no matter what kind of tech company you start up, competition will always be there.