Thanks in no small part to the proliferation of digitization into almost every facet of our lives, there is no shortage of technology startups sweeping the nation. As such, it seems that on an almost-daily basis, there is another new innovation released to market, promising to make our lives easier, better, quicker and more efficient. To the savvy investor, these technologies sound like a dream come true. They’re up-and-coming, not too well-known yet, and are likely to grow by leaps and bounds in the next few years. If you can get in on the cusp of the action, you could stand to make a significant profit if the technology really does take off.

Yet, before you become an early adopter and invest in these new companies, here are five questions you should ask. Taking the time to conduct this simple research can mean the difference between investing in a promising solution that actually delivers and one that still needs some development before it can make good on its promises.

1. Is it future-focused?

One of the most important aspects of a new technology is whether or not it is scalable, meaning whether it can be adapted and transformed as required to keep pace with the changing speed of society. Take CD-ROM software, for instance. When it first debuted, it was undoubtedly a hot commodity. Now that music has primarily shifted to the virtual realm, it is rendered almost obsolete. For a modern technology to avoid this fate, it must not be so concrete and change-averse that it risks being replaced by a more tech-savvy model a few years down the road

Before investing, make sure that the technology is forward and future-focused and will be relevant years down the road. The lowest-priced option might be attractive now, but if it is too dependent on current conditions, it might not be a smart investment in the long run.

2. Is there infrastructure to support it?

More often than not, a technology needs a little bit of time to reach full and total development. The same goes for the startup or company that created it. Before jumping on the bandwagon and pursuing the hottest tech stock just because there is a high degree of buzz around it, make sure the brand behind it has the infrastructure and operations in place to support it. That doesn’t mean it can support it only in the short-term. If this tool becomes a massive success and is being ordered at exorbitant quantities, are there processes in place to support this demand?

Along the same lines, how is development? Is the technology still in its infant stage and full of bugs, or has it passed implementation and is already receiving five-star feedback from satisfied buyers? Take the time to research the history of the company producing the product. Learn about its founders, current C-suite and financial backers. If it feels like a solid deal, this knowledge will back up that claim.

3. Does it pay while it grows?

Some investors are less interested in the current setup of the technology and are more concerned with they payout they will receive as the company and the solution grow. In this case, companies that pay out a solid dividend will be the most ideal. In short, these are companies that pay their investors as they grow. The key to succeeding in this realm is to choose a stock that delivers high yields alongside a high performance. You should also ensure the payouts are consistently delivered and expected to continue as long into the future as possible.

4. Is it a leader in its niche?

The technology umbrella is very broad. Everything from microchips and computers to smart kitchen hardware fits into it. To that end, consider precisely the type of technology you’re most interested in. From there, seek out leaders in that space who have consistently been producing new innovations in that sub-sector and have the means and resources to continue to do so.

This is an ideal way to narrow the playing field down to only those stock options that fit the best within your existing portfolio and are most aligned with your interests. With so many radical technology solutions available today, the key to not becoming overwhelmed by all of the possibilities is to look for ones that are standouts in their individual spaces. That might mean taking a chance on a lesser-known technology brand that might not be a household name, but has delivered strong profits and performance for the past decade. Don’t be afraid to do a little bit of research here and resist the urge to pick stocks solely based on the names you know.

5. Is it consumer-friendly?

At the end of the day, whether a technology is B2B or B2C focused it has to either meet a need or introduce a concept that makes people’s lives either easier or more enjoyable. Anything less and there is a strong chance that it won’t be around very long. This said, consider the products the company is producing. Are they aligned with today’s customer outlook? For instance, as smart home products become more prevalent, companies that provide automation solutions for everyday use are likely to be here for the long run. On the other hand, ones that are ill-aligned with the interests and pursuits of the modern client could lack the bottom line required to maintain relevancy and loyalty.

Ultimately, the technology stocks you choose to invest in will be an entirely personal decision. Before making any choices, consider your current portfolio and which picks would complement it. Also, research the companies at hand to identify top performers. Once you have a longer list created, narrow it down by delving into the brand’s history and current setup. If it’s been delivering customer-friendly products for a while and has an overall upward-ticking performance trend, it may just be the solid bet you’re looking for.