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Things to consider with a thorough knowledge before starting a Startup IT company

Bonus, travel allowances, sales commission, incentives all were the talk of the town in the job market. Today, the story has completely changed, and the focus has shifted from the monetary viewpoint to complete engagement of the employees in the improvement and development of the employees and the organisation. So, this has become a key driver of innovation for most of the Start-up IT Company. 

Things to consider with a thorough knowledge before starting a Startup IT company

Friday July 06, 2018,

6 min Read

Before starting an IT company, we need to know what an IT company is.

IT Company is an umbrella with many sub-sections

It Company can be decided by nature of work, services, technology etc.


By technology, the IT company could be:-

• Software Firm: If the company provides software, web development and design solutions then it will fall under the category of 'IT Company'. They are specialised in Software, Applications and websites. Their skill or technology may vary. The most common programming languages are HTML PHP .NET JAVA JS etc.

• Network Company: these companies provide Network support to other companies. Setting up Routers, Switches, and Ethernet. They are responsible for the fulfilment of a hassle-free network within an organisation.

• Server hosting and Domain: the server companies provides Hosting for parking the websites. The domain registration and maintenance is also a form of IT services.


Based on the kind of work, IT Company can be decided as:

Product Based: the product based company are the one who builds a service and makes money out of that. Example: Twilio, Facebook, WVO, QuickBooks, Dropbox. They don't work for clients websites. They built software or site that can be used by others.

SAAS: SAAS or Software as a Service is a service-based approach where the IT Company built custom software for the client based on the customer requirements.

Consultant: the big fishes like TCS, IBM provides IT consultation to various companies for improvement and maintenance of IT.

After knowing what an IT company is is the next question arise is How to start an IT company?

Starting a successful IT company requires finding an underserved market or creating a new technology product. The information technology industry can be highly competing, so it is essential to have a strong foundation established through the proper credentials, a robust business plan, sufficient funding and an innovative product or service. The vital components are your internal drive and desire to succeed. Provide a quality product and exceed your customer expectations and you will create a progressive as well as prosperous IT company.

Research and analyse your market-Determine what IT services are available in your community and what areas are underserved.

Perfect your services and skills-Whenever feasible, obtain certifications and educational credentials that back up your knowledge.

Draft a business plan- Include information about your credentials, experience and how your services will fill a need in the market.

Obtain funding-Whether you plan to launch a service-based IT company, or a product-based company; you need sufficient funding.

• Launch your IT company through incorporating, or setting up an alternative legal framework.

Specific pros and cons envelop the IT start-up companies


Start-ups are generally more flexible and manoeuvrable, allowing them to quickly approach problems in non-traditional ways and deliver more polished products faster. This agility is rooted in several factors:-

Enhancements of Skills-You are not bound to bygone disciplines of traditional job culture. Start-ups are flexible. You get hell lot of experience by working with any startup. Because it’s fun and you get to do miscellaneous things while you are in a startup

Real ownership & Results: If you have an idea, execute it, and come up with the results. There is no need to follow a hierarchy and take multiple approvals.

Experience: Start-up gives you ample opportunities to take decisions and that too quickly. This not just help you learn but also assist in gaining experience in case you have plans to initiate your start-up.

A sense of Accomplishment: The sense of accomplishment one gets by being an integral part of a system is something that money can't buy.

• Startups, and especially startup professionals, have a lot less to lose than their corporate counterparts, allowing them to take more significant risks with higher rewards.

• Decision-making processes in start-ups are generally much quicker (and more importantly - reversible when needed) than in large companies.


Lack of Infrastructure-Due to the inexperience of leadership, if management loses sight of team/cost/communication of strategy with investment, then one has to face the consequences and bear the burden.

Perk-less salaries: Yes, start-ups have fundraising issues. So, do not expect a big salary package in the beginning. There is even no scope of any perks or monetary benefits in the initial years of the Startup.

Lack of work-life balance: Startup also means a lot of work, which demands extended work hours. You might enjoy flexibility in work style. However, it would inevitably require more time from you. So, be prepared to give extended working hours to your job and compromise with work-life balance at an initial stage of a startup.

Diverse Work Day: Workday at start-up is not like the 9-5 corporate job. You do not have to go to the office to do the defined tasks & come back home. Instead every day, in fact, every minute can be unpredictable about work

Job insecurity: Your career is directly proportional to the growth of the company. If its future at stake, so is your career. Chances of instability are thus high with startup companies.

According to my point of view, the future prospects for Startup IT company is good because individuals have been setting up their own business since Independence, though only lately have we started calling them start-ups. Prime Minister Narendra Modi launched the Make in India initiative with the primary goal of encouraging young entrepreneurs of India.

Entrepreneurs will always be there. Start-ups sometimes reduce in number due to funding shortage in the market or a general slowdown in the economy. Though there will still be a lot of start-ups that do not raise fund and grow slowly and organically.

Every start-up may not become the next Facebook or Google, but it can be a good company that provides well for the founders and its owners and delivers excellent value to its customers.

Directionally, yes, I think the number of Start-up IT Company will continue to grow shortly. This growth will be driven by the general growth in the economy, the increase in the quality of life and internet access globally, and the success of existing and future startups. Well, it is the same survival of the fittest that will then apply.

Out of all the startups founded, a few will work, a few won't. In this case, competition will again find the best start-up company, and only that will work, the others won't. So though there will be a time when startups are found in every nook and corner, they will again reduce in number, as the startup with the most innovative ideas will flourish. This will also lead to a decline in its value, but again, as the winner emerges, things will fall back into place.


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