Nowadays, the high-tech startup market is plagued by huge competition, and, obviously, not every company can become a leader in the business. An international investor, co-founder of an international IT company Rustam Gilfanov shares his opinion on why many promising technological startups fail to achieve success in their niche.
Problem №1. The absence of a holistic approach
Actually, very few first-time entrepreneurs ever think about how to grow up their startup and bring it to the international market. At the same time, most products of high-tech startups are viable due to their scale. “Unfortunately, not all startuppers know how to think globally, settling for only one or two markets. It is important to learn how to develop your business in several directions at once,” says Rustam Gilfanov.
Problem №2. Inability to work with the market
A high-tech startup generally consists of a single technological team. Such a company may have a unique product, but, at the same time, it may not understand the needs of its target audience or know how to manage the sales pipeline. Beginner entrepreneurs often do not fully realize how the industry, in which they are striving to compete, works. Startups are lacking smart development managers with a global understanding of the industry, sales managers, and PR experts.
“I often come across a situation when a product is quite attractive, but its creators do not fully understand how to deal with the target audience and manage the demand, how the market is organized and what mechanisms it uses,” comments Gilfanov.
The investor advises young companies to carefully study the profile of their consumers, otherwise, it may turn out that their product is in little demand at the market.
Problem №3. Neglect of regulatory requirements
As practice shows, startup founders do not always understand what requirements and regulations their product or service must be compliant with for successful launching on the market. In particular, services that work with user data often suffer from cybersecurity issues.
According to Rustam Gilfanov, the chief priority of startup founders must be the understanding of how to work with government authorities and legal restrictions. It is essential to build a company based on the knowledge of what licenses and certificates must be obtained, especially when it comes to medical or technology startups.
To avoid these problems, Rustam Gilfanov recommends finding a partner who is thoroughly enlightened on the global market and knows everything about regulators and certification. A suitable partner can be found at international startup accelerators. In the minds of the investor, when the business has just been established, it is crucial to try to avoid silly mistakes and not rely only on your own strengths.
Short biographical background
Rustam Gilfanov is a co-founder of an IT company, an IT businessman, an international investor.
Rustam Gilfanov was born on January 6, 1983, in Basim (a small town in the Perm Region), in the family of a military officer and an elementary school teacher.
In 2006, together with partners, Gilfanov Rustam established an international IT outsourcing company in Kyiv. Today this company is the top-notch software developer for different industries, including gaming, marketing, and finance.
Several years ago, Gilfanov ceased his operating activities at the IT company and engaged in international investment to support promising IT projects in the sphere of financial technology, gaming, and video streaming.
It is also vital for Rustam Gilfanov to develop charitable projects across the whole territory of Ukraine, the biggest of which are “Lucky Books” and “Libraries of the Future”.
Rustam Gilfanov is married and raises one daughter.