Running a successful tech company requires an understanding of the latest of the latest trends. Unfortunately, many entrepreneurs take the wrong approach with their tech business, increasing the risk of failure. According to Entrepreneur, fewer than three in 10 startups are still alive after 10 years. If you’re the owner of a tech company, you can increase your chances of success by avoiding the following five mistakes.
#1) Storing Sensitive Data on a Public Cloud
According to RightScale’s 2017 State of the Cloud survey, 85 percent of information technology (IT) professionals use both private and public clouds. Some tech companies, however, only use public clouds to store data. When sensitive data is stored on a public cloud, there’s a greater risk for breach and intrusion. This is because public clouds are accessible to multiple clients whereas private clouds are dedicated to a single client.
#2) Poorly Designed Website
Even if a tech company sells goods or services locally, it should still invest in a high-quality, professionally made website. Prospects often judge tech companies on their website’s design. In fact, one study found that 75 percent of consumers base a business’s credibility on its website design.
A professional website design is particularly important for tech companies because of the way in which consumers perceive them. Consumers expect tech companies to have a professional, fully functional website. If a tech company’s website contains broken elements or an otherwise poor design, consumers will think twice before purchasing its products or services.
#3) CPU Databases
What’s wrong with using central processing unit (CPU) databases? For starters, they lack of the speed and performance of their graphical processing unit (GPU) counterpart. A typical GPU database is between 10 and 100 times faster than a CPU database. This makes them better equipped to handle large amounts of data while also minimizing resource consumption.
Furthermore, GPUs are up to 20 times smaller than CPUs, allowing for a more efficient use of hardware space. Tech companies should take advantage of these benefits by switching from CPU to GPU databases.
#4) Missed Project Deadlines
Another common mistake that can ruin tech companies is missed project deadlines. If a software company is developing a new product, for instance, a missed deadline will push back its release date. Consumers and stakeholders may then view company as being unreliable.
It’s nearly impossible to meet all project deadlines, but tech companies should put forth the effort to achieve them. This includes setting reasonable deadlines, asking for help when needed and tracking progress with milestone.
#5) Using Outdated Software
Finally, some tech companies neglect to update their software and operating systems. In doing so, they place themselves at risk for cyber attacks. According to SmallBizTrends, 60 percent of companies that sustain a cyber attack are forced to shut down within six months.
The first line of defense against cyber attacks is running up-to-date software. Cyber criminals often target companies running outdated software because they are easier to infiltrate than their counterparts running up-to-date software. Windows XP, for instance, is a common target among cyber criminals simply because Microsoft no longer supports it. Without new updates, security vulnerabilities remain unfixed.
Of course, there are other steps tech companies can take to strengthen their cybersecurity, including the use of network monitoring services, anti-malware software, two-factor authentication and encryption.
Tech companies big and small can increase their chances of success by avoiding the five mistakes mentioned here. While some of these mistakes may sound harmless enough, they all pose a serious risk to a tech company’s future.