Learn how to start a tech startup with a 10-step guide covering business ideas, market research, MVPs, and more.
Starting a tech startup is one of the most exciting but also risky paths a tech entrepreneur can take. The world is built around technology, and new solutions appear every day to make our lives faster, easier, and more connected. Some of the world’s largest companies—Airbnb, Uber, Spotify—began as small startups with a simple idea that solved a real problem.
But here’s the reality: only about 10% of startups survive in the long run. Many fail not because of poor execution but because they created something nobody truly needed. This step-by-step guide will walk you through every step of building a successful tech startup in 2025. From finding your idea and researching the market, to building a team, attracting investors, implementing software development solutions, and finally launching your product—we’ll cover it all in clear, practical steps.
By the end, you’ll understand how to start a tech startup and avoid the mistakes that shut down almost half of all startups before they take off.
A tech startup is a young company that uses technology to solve problems. It’s not just any new business—it’s a business designed to grow fast and scale. Instead of focusing only on profit from day one, startups aim to build something unique, test it quickly, and expand to thousands or millions of users if it works.
The seed of a startup product development idea often comes from noticing a gap: a daily frustration, an outdated process, or a need people have that isn’t being met. Successful startups make people’s lives easier and become part of their routine.
Starting a tech startup is like building a house. You don’t begin with the roof; you start with a strong foundation and add step by step. Here are the 10 steps you need to follow to give your startup the best chance of success.
The foundation of any successful tech startup is a strong tech business idea. Your business idea should target emerging technologies, solve potential customer pain points, or offer an innovative solution.
Passion-driven ideas with a clear value proposition often have the potential to become successful businesses. Analyzing market trends and identifying a promising business niche can accelerate business growth.
Long brainstorms about your business idea also prevent the situation when you have already spent months or even years developing an unsuccessful product. All that was to find out that someone had already done it before you.
The average startup failure rate is currently 90% based on the latest data. At the same time, 10% of newly launched startups will likely not survive within their first year, so conducting market research to stay competitive is important
Understand your target audience, analyze market trends, and identify potential competitors within the competitive market. Market research aims to gain valuable insights into your target customer and the market system, ensuring your tech startup company is well-positioned for success. If you hire a technical professional, they will perform Discovery and Validation to identify any information gaps and provide you with thorough material as a starting point.
A business plan plays a critical role in the success of a startup. Your business plan should outline your business model canvas, go-to-market strategy, and the entire product development life cycle.
A well-crafted plan helps you secure money from crowdfunding or angel investors and provides a roadmap for your tech startup’s growth. A strategy that includes marketing methodologies and a strong focus on customer feedback saves time and resources in the long run. Consider the possibility of increasing the staff you have. You can either do it using your of resources or consider staff augmentation.
Consumers tend to change their behavior during different seasons of the year, different economic regimes, new legislation, and social issues. A proper strategy with the possibility of force majeure in mind protects your business from drowning in issues you can’t control. Plan ahead and be ready for anything.
A great tech team is essential for turning your tech startup idea into reality. Many successful startups rely on skilled professionals to execute their vision and take the burden of software development off their shoulders. This type of cooperation is called software development outsourcing.
Consider finding a tech partner like Empat to build your product. We can help you hire developers for startups, in case you need an all-around expert. An efficient team can handle everything from the basic version of your product to the advanced stages of development, ensuring a successful startup launch.
In case you are working in the fintech sphere, we can also provide fintech app development or fintech software development services with a deep understanding of the security, compliance, and user experience challenges of this industry. Fintech products demand a high level of trust, and having the right developers on board is critical to gaining customer confidence.
If your startup is more focused on mobile-first solutions, you can also hire mobile app developers through Empat. From mobile app design and development to scaling an existing product, our team makes sure your app is fast, user-friendly, and ready to compete in the market.
Sometimes companies can't find a perfect fit for a person to oversee technical processes. The reasons for it can be different for different companies: a lack of funds, not enough resources to create a tech department. That`s why the market offers CTO as a service or fractional CTO — other types of tech outsourcing that are available to the public.
Securing funding is a critical aspect of starting a tech startup. If you want to fund your startup yourself, then do so. With proper risk assessment, you will be able to build a proper strategy of fallback to secure your money. If you lack the necessary capital, explore options such as:
Having a solid financial foundation allows you to experiment and innovate without the constant pressure of funding constraints. Early-stage startups often attract VCs who believe in the potential of an innovative idea during the development process.
Investors may control some portion of your testing process but it’s sure better than risking your capital on a new idea.
Creating a Minimum Viable Product (MVP) is a crucial step in the product development life cycle. An MVP allows you to collect valuable feedback from potential customers and refine your tech startup’s offering before a full-scale launch, applying the lean startup methodology.
MVP development is also useful as an object of presentation: you can showcase it to your team, investors, and colleagues, or make some noise among your competitors in the field. MVP can be anything: depending on your needs, a tech team can provide various services like building a website or app.
Creating an MVP is a very time-consuming process that requires expertise, lots of testing, and focus group meetings. You can make the process of creating an MVP easier for yourself by hiring a technical team to develop it for you. This will remove a significant burden from you and free up resources for other stages of your product development.
Empat can assist in building a robust MVP that fits your business model, ensuring your product resonates with your target audience and satisfies their needs. In the tech field, MVP is a crucial step to ensure years of success that will come, or give you an idea of what to change before the launch. There are many cases of companies that used the help of a tech team to build an MVP, ensuring it meets the needs of potential users and attracts potential customers.
Registering your tech startup and navigating the legal landscape are important steps that can significantly impact your company's success and longevity.
These processes ensure that your business operates within the legal framework of the country in which it is based, safeguarding your interests and laying a solid foundation for growth.
Proper business registration is essential for several reasons:
Launching your tech startup is a pivotal moment in the startup journey. A successful launch depends on meticulous planning and execution.
The first steps can be successful and easy (with proper long preparation) or fail due to a variety of different issues scaling from coding mistakes to miscommunication between your business and, for example, a company that provides a server for you.
Partnering with professionals like Empat can help you navigate this critical phase, providing ongoing support to ensure your product’s success thanks to unique IT solutions. One of the most popular concepts of software development outsourcing is called Tech for Growth. Launching strategically can help you generate early leads and position your startup as a leader in the technology sector. Hiring a professional who will perform your tech development for you is a great way to ensure the continuous growth of your business.
After your launch, developing effective marketing strategies is key to reaching your target audience. Use a mix of organic growth tactics, paid advertising, and collaborations with industry trends leaders to maximize visibility.
By closely monitoring key performance indicators (KPIs) such as customer engagement, conversion rates, and user demographics, you can identify which tactics are most effective and adjust your approach accordingly.
Once your tech startup is live, monitoring growth is essential. User feedback is invaluable for identifying areas of improvement.
Regularly collect user feedback, analyze market trends, and stay attuned to upcoming trends in the tech industry. This continuous improvement cycle is what separates successful startups from those that fail.
Empat provides ongoing support to help you optimize your product and ensure long-term success. It’s safe to say that working with a team like Empat will make things much easier for you: with professionals who are dedicated solely to your project, you can secure regular statistics, metrics, and troubleshooting.
Starting a tech company sounds exciting, but there are a few realities you need to understand before jumping in. Many founders fail not because they lacked motivation, but because they didn’t prepare for the challenges that come with building and running a startup. Here are the key things you should know before taking the leap:
The majority of startups fail within the first five years. This doesn’t mean you shouldn’t try—it means you need to prepare, plan, and adapt quickly.
Almost half of failed startups close because they built something people didn’t actually need. A good idea is not enough. You must validate your product with real users, test assumptions, and make sure you are solving an actual problem. Successful startups are those that make people’s lives easier.
Many strong startup ideas don’t appear out of thin air. They come from observing problems in daily life or in industries where existing solutions don’t work well. Look around you. Where are people struggling? What tasks feel complicated? Identifying these can help you attract early adopters. That’s often where opportunities lie.
A strong company culture is not something you build later—it starts from day one. The way you hire, communicate, and set expectations shapes your future team. A positive culture also attracts better talent, which is crucial for a startup’s success.
A common mistake is trying to sell to everyone. Instead, clearly identify your target audience. Who needs your product the most? What are their pain points? Focusing on a specific group makes your product more useful and your marketing more effective.
Many founders now use no-code tools to create prototypes and test ideas before committing to full product development. This saves money, reduces risk, and helps you validate your concept before seeking investors.
If you want funding, you need more than an idea. Investors look for a solid business plan, proof of market demand, and a strategy for growth. A clear plan shows you are serious and increases your chances of attracting the right investors.
Your MVP (Minimum Viable Product) should include only the core features that solve your users’ biggest problem. Adding too many features too soon is a common mistake—it slows you down and makes it harder to test whether people really want your product. At the same time, to succeed, a startup must focus on building an MVP that addresses real user needs and continuously iterate until it can achieve product-market fit.
Angel investors typically put in around $150,000 for startups valued at about $3 million, while venture capital firms expect much larger and faster returns. This means if you accept outside funding, you must be ready to grow quickly and meet investor expectations.
The short answer is yes—anyone can start a tech company. You don’t need to be a programmer, have an MBA, or come from Silicon Valley to become a founder. What you do need is a clear problem to solve, persistence, and the ability to bring the right people on board.
Many successful founders had little or no technical background. What they had was vision. They understood a problem, spotted a gap in the particular market, and worked with developers or tech teams to turn their idea into reality. If you aren’t technical, you can still build a startup by hiring developers or partnering with a Chief Technology Officer. Services like CTO as a Service for startups also make it easier for non-technical founders to get expert guidance without committing to a full-time executive hire.
Instead of asking “Can I start a tech company?” or "Can I launch a SaaS startup?", a better question is “Am I willing to learn, adapt, and lead?” A founder’s job isn’t to code or design. It’s to:
If you can stay committed to solving a problem and are open to learning along the way, you can start a tech company.
In the past, starting a tech business required heavy upfront investment and advanced technical knowledge. Today, you can test an idea with no-code tools, build an MVP with outsourced developers, and launch a prototype without needing millions in funding. The tools, platforms, and services available now have lowered the entry barrier for founders around the world.
While anyone can start a tech company, not everyone will succeed. Success requires more than a good idea. It demands execution, timing, customer validation, and resilience. Many tech startup founders fail on their first attempt, but persistence often leads to success in future ventures.
Yes, anyone can start a tech company. You don’t need to be a technical genius or have huge capital on day one. What you need is a clear vision, a focus on solving real problems, and the ability to build a team around your idea. With these in place, the next step is finding the right partner to bring your vision to life. That’s where Empat’s startup development services come in.
Starting a tech company isn’t just about having a good idea. Founders wear many hats, especially in the early stages. You may not need to be an expert in every field, but you must have a core tech stack of skills to lead your startup toward success.
At its heart, a startup exists to solve a problem. As a founder, you must learn to look at challenges from different angles, find creative solutions, and make decisions even when the answer isn’t clear.
A startup won’t survive without a strong team, and your role is to inspire and guide them. Leadership isn’t about giving orders—it’s about building trust, creating a shared vision, and helping people do their best work. Good leaders also shape company culture from day one, which is crucial for attracting and retaining talent.
You will need to pitch your idea to investors, explain your vision to your team, and convince customers why your product matters. Clear communication builds confidence and helps you avoid misunderstandings that could slow you down.
You don’t have to be an accountant, but you should understand how money flows in your business. Budgeting, forecasting, and tracking expenses help you avoid running out of cash—a common reason why startups fail.
Startups move fast, and plans rarely go perfectly. Markets change, competitors appear, and user needs evolve. Founders who adapt quickly are more likely to survive. Flexibility allows you to pivot when something isn’t working without losing sight of your bigger vision.
Who you know often matters as much as what you know. Building a network of mentors, investors, and industry experts can open doors to opportunities you wouldn’t find on your own. Strong connections can also help you find the right hires when your team needs to grow.
Even if you aren’t technical, you should understand your product deeply. What problem does it solve? Why is it different from competitors? What features matter most to users? This business knowledge helps you make informed decisions and communicate effectively with developers, designers, and customers.
As a founder, you’ll juggle many responsibilities. Knowing how to prioritize tasks, delegate effectively, and focus on what moves the business forward will keep you from burning out and help your software startup progress faster.
Building a startup is tough. There will be rejections, failed experiments, and moments of doubt. Resilience keeps you moving forward when things get difficult and helps you learn from mistakes instead of giving up.
Finally, you must have a clear vision for where your company is going. Vision helps you stay focused when challenges arise, inspires your team, and gives investors confidence in your long-term plan.
The startup world is always changing, and 2025 is no different. New technologies, shifting consumer needs, and global events are shaping how founders build and grow their companies. Here are the top trends every startup founder should know this year.
Artificial intelligence is no longer a buzzword—it’s a daily tool for businesses and consumers. In 2025, startups are using AI for:
Founders who hire AI developers and artificial intelegence solutions into their products have a competitive advantage, but they also face the challenge of proving real value instead of just adding AI for hype. By
The barrier to building tech products keeps getting lower. No-code platforms allow non-technical founders to create prototypes, test ideas, and even launch full products without hiring a web development team right away. This speeds up time-to-market and makes technical startups more agile. Many founders still bring in expert developers later, but no-code is becoming a critical first step.
Customers and investors are more conscious about environmental and social impact. In 2025, startups that build eco-friendly solutions, reduce carbon footprints, or support circular economies are gaining attention. Green startups are not only good for the planet but also for business, as sustainable practices attract loyal users and new funding opportunities.
Remote work is here to stay. Startups are building global teams from day one, hiring talent across borders instead of limiting themselves to local hires. This makes it easier to find specialists at lower costs and to scale quickly. Many technical co founders are also relying on outsourcing models and services like CTO as a Service to manage tech leadership without needing a full-time executive.
As businesses rely more on digital tools, security threats are also rising. Startups that provide smarter, faster, and easier-to-use cybersecurity solutions are in high demand. From protecting small businesses to securing large enterprises, cybersecurity is now a core part of the tech world.
Users no longer want one-size-fits-all products. They expect apps and services to adapt to their preferences, behaviors, and goals. Whether it’s e-commerce, education, or fitness, personalization is a key driver of customer loyalty. Startups that can deliver unique, user-centered experiences are standing out in crowded markets.
In the past, startups focused first on local target markets, then expanded. In 2025, many founders build their companies with a global audience in mind right away. This is possible thanks to digital platforms, global payment solutions, and remote teams that allow businesses to operate across countries from the very beginning.
Investors in 2025 are more cautious than before. They want proof of traction, customer demand, and sustainable business models. Angel investors still provide early funding (often around $150,000 for startups with $3 million valuations), while venture capital expects faster growth and clear paths to return within three to four years. Startups that show they can survive and grow responsibly are more likely to secure funding.
Starting a tech startup is a complex yet rewarding journey. By following these 10 steps, you can navigate the tech industry with confidence and make your tech startup successful . Whether you choose to go it alone or hire professionals like Empat, this guide will equip you with the knowledge needed to thrive in the competitive market of technology startups.
Remember, a successful business lies in thorough planning, strong execution, and continuous adaptation to market changes. We hope this guide helps you build a successful tech startup and inspires your journey into the world of innovative technology companies.
The cost depends on your product, team, and location. Some founders build a basic MVP with no-code tools for less than $10,000, while others spend over $100,000 if they hire a full development team from the start. On average, many tech startups begin with around $30,000–$50,000 to cover product development, marketing efforts, and operations. Keep in mind, you don’t need to build everything at once. Start small, test your idea, and scale as you grow.
The process usually includes these steps:
Yes, but it helps to be prepared to learn quickly. Many successful technical co-founders had no business or tech background at the start. What matters most is solving a real problem, building the right team, and staying adaptable. You can also rely on tools like no-code platforms or outsourcing website development to partners such as Empat if you don’t have technical expertise.
To become a founder, you need an idea and the drive to bring it to life. Start by identifying a challenge you want to solve, research the demand, and plan your approach. You don’t have to do everything alone—many technical co founders succeed by building strong teams and collaborating with experts. Having key skills like problem-solving, leadership, and adaptability will also give you an advantage.
