Technology has played an incredible role in the development of startups, especially in the 21st century. Technology allows for rapid scaling for startups, who are attempting to compete for the dwindling attention-spans of their respective consumer markets. Being in business has never been an easy undertaking, but we might have the best toolset in human history for making it happen.
The internet has been around long enough now that it can’t really be said to be a new technology, and plenty has already been said about its transformative effect. Still, that effect really can’t be overstated, and the subject of this article demands we pay the internet its dues. Built from a communications network developed in the 60’s and 70’s, and made available for public access in the late 80’s, this massive computer network has fundamentally transformed the way we access information and communicate with one another. In particular, the World Wide Web (the websites and web pages that exist on the internet) became a boon to businesses – especially new ones.
The application of internet technology in business is beginning to mature. One of the most useful impacts of the internet has been its transformative effect on marketing and advertising. Nowhere is this easier to see than in the explosion of network marketing brands such as Mary Kay, Cutco, or doTERRA. These brands rely on interpersonal networks to distribute their products, and the advent of social networking has increased the flow of communication with these networks. Even brands that don’t rely on personal selling have found new life in permission-advertising – which has been a welcome change from traditional experience-interrupting strategies.
One of the most incredible advances in scaling can be seen with tech startups. Since tech startups don’t have to manufacture or provide a physical product or service, they can usually increase the scaling of their digital product or service through the use of the cloud. For example, services like Instagram started out relatively small, but they were able to expand rapidly through the use of cloud computing services.
Outsourced manufacturing allows companies to avoid manufacturing products at a facility that they own. Instead of manufacturing products themselves, a third party manufacturing service is used alternatively. White-label manufacturing has some benefits and disadvantages. While it’s possible to scale manufacturing processes as needed, there usually are some costs associated with increasing product manufacturing above a certain level. Particularly expensive is the cost of retooling machines used for production, which can vary greatly.
New technologies such as VoIP make it easy to outsource some aspects of a workforce to third parties. According to Lifewire, “VoIP stands for Voice over Internet Protocol. It is also referred to as IP Telephony, Internet Telephony, and Internet Calling. It is an alternative way of making phone calls that can be very cheap or completely free.” This can be an excellent way for a company to reduce labor costs since some outsourced labor can be obtained for lower costs than domestic labor. As internet speeds and connectivity reliability increase, it is likely that we’ll see most or all interpersonal and B2B communication run over the internet in the coming years.
Increasingly, businesses are interacting with clients and potential clients via mobile apps. Custom app development solutions now exist for deploying your business model via the most-used information technology platform in human history.
New businesses are the heart and soul of a vibrant economy. They bring new jobs and new prosperity to their industries and their communities. They provide us with products and services that drastically transform our quality of life. And in the technology age, the barriers to entry have never been lower. We live in an entrepreneur’s paradise. It will be fascinating to see what we do with the technology we’ve developed, and what new technology we’ll add to our societal arsenal in the next decade.
For more about how custom business and technology solutions can benefit your business, contact us.