Startup company's benefit greatly when they work with people who have been through what they are planning to go through.
Online PR News – 27-January-2015 – Sparta, New Jersey – SPARTA, New Jersey-December 12, 2014-KENOVA Technologies is recognized by Idea Cafe recognizes as a Top Business providing specialized software development services for high tech startups and other new business ventures.
It seems everyone these days can “code as there seems to be so many codeathons, hackathons, “soldering” sessions, hackerspace and so on for inspired creators to collaborate and share. As a result we're experiencing an explosion of software applications (web-desktop, tablet and phone), from Silicon Alley to Silicon Valley. Some of these apps will be wildly successful with the founder exiting for millions, but most will evaporate and disappear without a trace, because they solved a problem too few people cared about.
In fact this phenomenon has become all too common in the high tech arena, with numbers like 9 out of 10 startups failing being quoted everywhere on the internet. Although these numbers are in question, they can be supported by early stage investors referring to the “tenfer”, in that one in ten investments are considered successful. Although government statistics do not confirm these numbers, which range from 36% to 51% failure, it’s not clear if they include early stage high tech companies as they’re so hard to identify.
“The problem is there's truth in all of these numbers,” says James Naylor, President and CEO of KENOVA Technologies. “The question 'what is the starting point of the metrics'?. That is to say, the earlier the clock starts the greater the percentage of failure. Thus, an angel investor will have a higher failure percentage than a venture capitalist, or SBA loan.”
“With a lot of the high tech failures formed from someone with an idea and a buddy who can code failure is inevitably high because of the lack of experience, knowledge and understanding of how important marketing is to achieve success,” James continues. “To avoid total company failure the verb Pivot was born in the high tech arena to describe a change in the business model while sticking with the same technology. This has been a marketing strategy for eons, but it’s a perfect term. We've also seen the concept of the minimum viable product, which is also a marketing activity for working with pioneers and early adopter customers.”
“In addition there’s a ton of ridiculous debating about whether the entrepreneur should write a business plan or not. It’s ridiculous because of course they should. The question is not whether, the question is what form it should be in, which is dictated by the target audience.” James said emphatically. “For example, if it’s just the entrepreneur herself, then some notes on a page to record the idea and the target market would be the first form of the business plan. They would then want to research the size of the target market to make sure there’s enough of a market to support a business. The next step would be to use the One Page Business Hypothesis (opbh.kenovatech.com) to create a business model around the idea that can be shared with partners, investors and other stakeholders.”
"We are thrilled to receive the honor," said James about the Top Business pick by Idea Café. "We hope this gets the word out about what we're trying to do for people looking to begin a startup. You see, we help the startup build a business and marketing strategy and then build and adapt the software to achieve these strategies. We also often assume the position as the ‘anchor investor’."
James explained that most companies that build software for startups don't understand the life cycle of a product or concepts of targeting the early adopter with the minimum viable product. What ends up happening is too much money and time is spent building the wrong product before finding out what the mainstream market really wants.” “Unfortunately”, says James “usually the startup CEO doesn't realize this until it's too late.”