Getting Started
Setting up a software development business

Are there are many ways in the current climate that independent software developers can quickly turn a part-time gig into a full-time company? This article will provide you with some good insight from different developers who have done it successfully through very different means.

One of the key things to keep in mind if you decide to start a software development business is to make sure there’s a market for what you’re developing according to Al Harlowe of Inamics. iNamics creates and builds Web services and applications as both an application service provider and for its own clients. 

A seasoned and successful veteran of the independent software development world, Harlowe advises, “Choose the platform you want to use and then stick with it. Pick a specialization and do it well. Set up alliances and partnerships with other software vendors, because it’s a small world and you’re going to depend on referrals. You’re going to have to do things you don’t want to do sometimes, like going outside your office and away from your programming to meet other folks, and go to conferences, and make sales pitches.” Harlowe likens the Internet to “the wild, wild, west in that everyone and his brother say they can ’develop‘ and do better programming, but you’ve got to ride that range, carry your six-shooter (your talent) and not only befriend everyone, but more importantly beat the competitors on the range. And because technology is always changing, even if you’re specialized, you’ve still can’t get too comfortable in the saddle.”

Harlowe is a proponent of ISV’s partnerships with Microsoft for instance, because they can be a strong support for developer projects. “Microsoft hosts developer days and it really seeks to keep their developers engaged and working.” He also urges developers to keep in mind, “It’s like real estate -- location, location, location. In this business, it’s sell, sell, sell. Don’t focus on your small universe. Network, call, solicit and send out information on what you do and why they should choose you. Enlarge your universe. And most importantly, USE TECHNOLOGY! Use everything available to you to push your business out to possible customers.”

A software development business is only as strong as its next custom application client. So if you’re developing software that does not meet a need and absolutely no one will use, then your company will not be successful.

 

Keep in mind that a business can have a staff of one or one thousand, and typically starting out, an independent software developer who founds a company is going to have a very small staff of developers. Many independents start out with a staff of one (themselves) and literally build from there. With software development the “range” is wide in how you can best ensure your revenue at the end of the day, so you have to pick what works best for you.

Steve Pavlina, CEO of Dexterity Software , and author of the upcoming book, The Software Self-Publishing Guide: How to Intelligently Develop, Successfully Market, and Profitably Sell Your Own Software, set for release at the end of the year. Pavlina says his company’s success has grown because he changed the focus to direct sales as the way to succeed. Pavlina has partnered with folks in the past and made those affiliate relationships, but for him the space was becoming too crowded and as the royalties diminished so did his bottom line. “Direct sales in my opinion,” states Pavlina, “is the best way to base your business. If you partner, what can happen is that if your partner flounders, then you will flounder. The foundation of my business is direct sales. I still do partnerships with other businesses but I consider them icing on the cake. They’re oftentimes too risky and vulnerable in the long run.” Pavlina is a widely considered industry expert on independent software development and his game applications are widely known.

Launching Your Business

One of the best sites for gathering information about how to launch a small business is the United States Small Business Administration site. The basic planning resource has four core questions to address prior to starting a business, and is a good primer for anyone intent on starting an independent software development firm.

  • What service or product does your business provide and what needs does it fill?
  • Who are the potential customers for your product or service and why will they purchase it from you?
  • How will you reach your potential customers?
  • Where will you get the financial resources to start your business?

How ready are you to launch a software development business? In looking at the questions above, can you answer them in a software development mode? Does the software you intend to develop fill a need? Can you create a custom application for customers successfully? Do you already have customers who want your product, or do you have, as a freelancer, a list of clients that are urging you to make it official and open your own shop? How will you manage the overhead of a business, the budget, time constraints and how will you reach more customers? If you’re unable to answer some of those questions, it doesn’t mean you should give up; it means you need to find the answers so that you start your business out strong.

 

The other issue to consider when you’re considering a software development business is to do it because you will enjoy the struggle. “If you build it, they will come” is not just a metaphor from a baseball movie, it’s how software development companies become multi-million dollar entities. You should view application development and custom software development as a chance for you to put your “code” on the world.

 

Here are additional resources to help you in your software development business:

 

Many larger companies, such as IBM, Microsoft, Oracle and others support independent service vendors and software developers, and have partner resources on their sites, to help those independents profit from their work.

For Freelance jobs and opportunities:

Now, go and code!

9/30/2004

Related Links:

Related stories in this industy