Remember when being called a nerd was far from a compliment? Thick glasses and a penchant for “Star Wars” or coding didn’t earn one a seat at the cool table. Fast forward to the rise of the dot-com era in the ’90s, and suddenly those “nerdy” interests were the gateway to innovation and immense wealth. Tech luminaries like Bill Gates and Steve Jobs demonstrated that launching a tech company could be a golden ticket to success.
My fellow tech aficionados and I saw a shift: nerdiness was suddenly en vogue. Businesses no longer treated technology as merely a tool for success but as a cornerstone of their identity. So, what defines a tech company in this evolving landscape? Is Uber fundamentally a tech firm or a transportation service? What about Peloton or Netflix?
Understanding one’s corporate identity affects everything from raising capital to hiring talent. A misalignment in how a company perceives itself can have dire ramifications. Look at WeWork’s infamous blunder. It sold itself as a tech company, securing billions in investment, only to crash when investors realized it was essentially a real estate operation. That misidentification cost them significantly.
It’s not just large enterprises that face these challenges. Small and medium businesses with limited resources have even more at stake. Knowing whether technology is your core business or just a tool you use can make all the difference between thriving and merely surviving.
Characteristics of a True Tech Company
How do you know if you’re running a true tech company? Consider these characteristics:
- Revenue primarily from tech products or services. Think Microsoft or IBM—they don’t just use tech; they sell it.
- Customer-facing technology. Firms like Netflix make tech a central part of the customer experience.
- Technology as a competitive differentiator. Tesla stands out because its technology sets it apart.
- Scalability through tech. Platforms like Facebook and Amazon can expand without hefty increases in cost, thanks to their tech infrastructures.
While being labeled a tech company may seem alluring, it’s essential to discern whether that label fits. Make sure you’re comfortable in the nerd seat before you claim it—it can be more demanding than it’s cracked up to be.
JJ Rosen is the founder of Atiba, a Nashville-based IT consulting, programming, networking, and web development firm.
