Advice on Starting Your Own Software Company

If you are passionate about computers and you want to be your own boss then it is a fantastic idea to start your own software company. All you need in the beginning is a deep knowledge in this field and lots of passion. There are some important steps to follow in order to achieve your goal, but if you have these two qualities, then everything will be a lot easier. Here is some useful advice on how to successfully set up this type of business.

 

Conduct Market Research

Before actually starting a software development company, you need to conduct market research. This involves identifying your major competitors, target audience, everything they need and their preferences. Analyze extremely well the field you are entering, the introduction, maturity, as well as decline. As a result, what you will sell may be either in huge demand or in no demand at all, in case you fail to persuade customers that they need your product. Make sure you create an alternative that will be more affordable and powerful than other similar product on the market.

Decide on How You Are Going to Sell Your Software

The next step is to decide how you are going to sell your product. In case there are many similar offerings available on the market, then what you need to do is to study very well the way your competitors do it. You can either sell your product directly to the end user, or you could  allow users to download it through your website. The second option is less stressful and more affordable for you as a company. If you choose direct sales, then you will most probably be dealing with big companies and SMEs. You may sell various licenses for your product or charge for subscriptions, making the software available for just a limited period of time, while the subscription is actually available. It is also very important to customize your software in order to make it perfectly suit clients’ needs. Keep in mind that your profit will depend on how unique your product is. On the other hand, if you want to sell the software through your website, then you should start by offering a free trial, and meanwhile, you may gain revenue from maintenance and support.

Start-Up

Once you have an idea, it is essential to protect it. You can do that by obtaining the necessary patents and register trademarks. If you have collaborators, then you should make them sign a non-disclosure agreement at the product creation stage. This will help prevent leakage of any project-related information. Then you must draw a very good business plan. State the purpose, product, target audience, competitors, and so on. Keep in mind that a wrong business model will undermine the success. Therefore, create an excellent business plan. Consider legal issues, taxation, as well as insurance, and engage developers. Even though organizing your own software development team seems a difficult job, it is not. All you need to do is to look for some experienced developers that will help your company grow.