Did you know that, according to Forbes, eight out of every 10 start-up businesses fail within their first year? While there are a number of reasons for this high attrition rate, one of the most crippling is technology. Consider, as eMarketer statistics show, web users are expected to funnel $1.5 trillion into goods and services purchased online by the end of 2014. Without a keen understanding of technology, young businesses are doomed to failure before they ever get started. Here are three of the most common mistakes, ranging from poor choices for server rack cabinets to outsourcing, that are forcing so many start-ups to close their doors.
Three Common Technology Mistakes Your Start-up Needs to Avoid
- Trying to Do Everything for Yourself
- Choosing Mass Market Rack Computers Over Business Versions
- Failing to Maintain Relationships with Software Providers
For Entrepreneur, the biggest mistake start-ups make when trying to manage their tech is failing to outsource. Unless you are extremely tech savvy, trying to manage your own rack enclosures, network, and other tech needs is going to bleed you of money, while simultaneously keeping you from getting connected to the world of eCommerce. Know when to outsource to a managed services firm to save your company money and improve its chances of survival.
Not all computers are made for the same purposes. Just as there are computers built specifically for gamers, there are also rack enclosures that have been designed with the start-up business in mind. These systems are built to be expanded as your business grows, and they’re built to handle the seemingly endless strain of having to be connected to the web at all times of the day, as Tech Republic suggests. If you’re operating on a single MacBook or consumer Windows laptop, chances are it’s only a matter of time before your server goes down. Hard.
As Mashable suggests, you need to make maintaining relationships with software vendors a priority. The reason is simple: if you encounter a problem that you can’t overcome alone, the vendor is more likely to work with you — quickly — if they have a relationship with you. Maintaining relationships can be as simple as sending an email every now and then letting the vendor know how much you enjoy their rack enclosures or other products. This is essential, but it doesn’t need to be rocket science.
Are you a business technologist? What are some of the mistakes you see a lot of young companies making when it comes to technology? Let us know in the comments below. Refernce materials.