Chapter 1: Starting a Tech Company on a Budget

In today’s landscape, launching and expanding a tech business can be done with minimal funds. It requires investment in time, effort, and a brilliant business concept, as well as a touch of fortune.

In my previous article, I discussed the fundamentals, including how to establish your digital identity and initial product offerings. This pivotal choice can be approached through varying levels of technical complexity:

1. A basic website template with significant service-to-product automation, like WordPress.
2. A comprehensive no-code solution that integrates with other low-code technologies, such as Bubble.
3. A low-code web/mobile hybrid for immediate native mobile functionality, like Flutter.
4. A complete AWS setup utilizing low-code tools from the start.

Ultimately, the direction you take—what you build and how—is entirely up to you.

Now, let’s delve into a practical overview of the essential operations and infrastructure components of your startup that can be automated efficiently and affordably through third-party platforms. This encompasses everything from billing to marketing and customer support. These services are crucial from day one; they don’t need to be top-tier, but they should be reliable as you scale.

As a reminder, you are only as good as the tools you invest in.

Section 1.1: The Importance of Paid Software Solutions

While free software options can be beneficial for getting started and understanding your needs, I strongly advocate for transitioning to paid versions as soon as feasible. Before committing to any third-party tool, familiarize yourself with the limitations of their free and entry-level paid tiers. If your business flourishes, you may quickly encounter these restrictions, and getting locked into a provider's system can lead to complications.

Ensure that your chosen provider can accommodate your growth and allows for easy data export.

Billing Solutions: Stripe

Once you have established your digital presence—creating a platform for customers to purchase your offerings—setting up a payment processing system becomes paramount.

Numerous solutions exist for credit card transactions, but many lack flexibility and customization beyond basic processing, such as managing customer types, refunds, and fraud protection. Costs can escalate quickly, leading to fees of 10% or more per transaction.

Don’t cut corners here; this is critical for your revenue stream. Stripe strikes a balance between user-friendliness and comprehensive features at a reasonable cost. You can begin with a straightforward web page or app interface and later expand to include subscriptions, webhooks, and APIs.

Stripe is free to set up, with transaction fees around 5-6%. It scales well, supporting revenue growth into millions while providing solid reporting.

Customer Relationship Management: MailChimp

You might find it unusual to consider MailChimp as a CRM tool, given its reputation for email marketing. However, I prioritize email marketing from day one, as it enables direct engagement with customers. Initially, I manage customer data using spreadsheets to understand the flow and touchpoints in my customer journey.

Once I determine essential data to collect, I can import this information into MailChimp to create segmented campaigns, automated messaging, and professional communication.

In my current startup, I utilized MailChimp for email marketing, CRM, and even aspects of my ERP, eventually transitioning to Bubble for more complex needs but retaining MailChimp for its marketing capabilities.

MailChimp offers a free tier, with pricing around $40-$50 per month as customer volumes grow. Regularly clean your email list to manage costs effectively.

Product Development Management: Trello

Often overlooked, product development is crucial for startups. Entrepreneurs tend to focus heavily on their digital presence and customer acquisition, leaving little time to plan subsequent steps effectively. Having a product roadmap is essential, even for solo founders.

Trello serves as an excellent tool for outlining your product strategy, featuring a Kanban-style interface for managing tasks and initiatives. Its free version is adequate for getting started, with costs rising only as your team expands.

Communication Tools: Google Workspace

Although Google Workspace may appear costly, it sets the standard for professional communication. Email remains vital for business correspondence that requires documentation. Investing in a reliable system is wise, especially considering Gmail’s exceptional spam filtering and overall efficiency.

Opt for the lowest tier, which, as of this writing, is $6 per user per month, to enhance your professional image right away.

Instant Messaging and Automation: Slack

Slack serves dual purposes within organizations: as an instant messaging platform and as a process automation tool. While not essential at the outset unless working with a remote team, it can significantly streamline operations.

Employ Slack to automate notifications between platforms, ensuring that key actions (like order processing or customer support inquiries) are efficiently addressed. Begin with the free tier to manage early operations without overwhelming yourself.

Data Analytics: Google Analytics

Setting up Google Analytics can be a challenge, but when configured correctly, it provides invaluable insights into user engagement and conversion metrics. Starting with the free version often suffices until your needs grow.

Integrating Everything: Zapier

Zapier allows for simple automation between various platforms, making it a valuable tool for beginners. Its user-friendly interface enables you to connect different software solutions effortlessly.

While I recommend using Zapier judiciously, as dependency can lead to increased costs, it remains a useful resource for automating processes. Keep in mind that usage can escalate, resulting in higher monthly fees.

In summary, by utilizing free and entry-level software solutions, you can establish a robust infrastructure for under $100 per month. With an excellent idea and efficient execution, you might even achieve profitability at this cost. As your business grows, you'll be able to allocate resources toward expansion, confident that your infrastructure can scale alongside you.

This article was originally published behind a paywall at Inc. Magazine, where I contribute to a startup advice column. For access to my public writings, feel free to join my email list at joeprocopio.com.

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Chapter 2: Learning from Experts

In this video, discover how to generate $10,000 per month using just three digital products while spending less than $100.

This video showcases how to earn your first $100 with digital products and Google in 2024.