9 Tips for Starting a Software Development Business
Published: 2022-02-09 09:45:06

Starting your own software development business can be an exciting opportunity, but it’s also one that requires careful thought and planning, or you could find yourself falling short of your goals and expectations.

Consider these nine tips to get off on the right foot and give yourself the best possible chance at success.

With them in mind, you should be able to start your own software development business with confidence in its future and hope in its present.

##1) Define your business goals##

Before you can determine what software development services to offer, you need to know your business goals.

Do you want to create a place where developers come together and build on each other’s projects? Or do you want to start an agency that works with specific clients?

Once you have goals in mind, you can focus on them during discussions with potential partners and clients; when choosing people or products to work with.

Knowing your long-term vision for your business makes it easier to make decisions about what direction you should go in as well as who your target audience should be.

It also ensures that whoever you work with will always be working towards that shared goal.

##2) Plan before you build##

An idea can come to you quickly, but it’s best to start by outlining what you want to build.

What will your product do? How does it fit into today’s market? Where is your competition and how will you differentiate yourself from them?

And finally, most importantly: Who are your customers and how many of them are there? Start simple.

When you start out, it doesn’t need to be perfect; just sketch out where it’s going, says Swinford. You can easily adjust along the way.

##3) Connect with others in the industry##

While it may be tempting to keep your plans secret, you’ll have a much better chance of success if you reach out to people.

Attend local meetups, visit forums and find blogs that cover topics related to your business idea.

For example, if you're opening an ice cream shop, look up reviews and see what businesses are doing well in your area.

And consider talking with other entrepreneurs who've opened businesses similar to yours.

Chances are they'll know all sorts of valuable information that can help guide you through tough decisions or cut months off your learning curve.

##4) Do market research before writing a line of code##

When you’re putting together your business plan, don’t start thinking about how to code or build that product or service.

Start by doing some preliminary research on what other businesses are doing in your space.

Consider: What problem is your product solving? How does it differ from similar offerings already on the market? Who is going to buy it and why? Before you’ve even written a line of code, you should have answers to these questions.

The answers will inform all of your future decisions, including which technologies and strategies to pursue and whether it makes sense for you and others to launch a new business venture at all.

##5) Don’t underestimate support costs##

You may want to focus on selling your product or service, but most of your time should be spent developing it.

After all, if you’re not working on it, how are you going to support it? Unless you’re building software that practically sells itself, most SaaS businesses need ongoing maintenance and support.

And who will do that work if not you? Be honest with yourself about whether or not your development skills extend beyond building prototypes.

If they don’t, consider hiring contractors or freelancers (or joining an outsourcing marketplace) in order to save time and maintain quality over the long run.

##6) Write out your whole strategy##

Before you start planning, you need to know what your long-term goals are.

This might take some introspection, but ask yourself: What do I want my life to look like five years from now? And really try to be specific.

Do you want to have 500 clients? Do you want to make $2 million per year? What do your ideal working hours look like? Next, think about how realistic those goals are—and what steps you’ll need to take in order to get there.

If it’s too far out of reach, think about smaller steps that will help you build toward that goal more quickly.

If it seems totally reasonable and reachable (hey, why not?), then set out on creating a plan of action right away.

##7) Leverage your strengths##

Where do you have an unfair advantage? What unique skills can you offer your clients? Part of what makes any business successful is its ability to add value—to solve problems and help customers in a way that other businesses don't.

If you’re able to do that, your business will be more valuable than your competitors'.

Use that knowledge to set yourself apart from other software developers by offering specific services or approaches tailored to each client's needs.

##8) Aim high, but plan low##

It’s tempting to picture yourself as an employee of one of those high-profile start-ups, but there are a lot of things to take into account before you begin. Your first goal should be starting up a small business that meets your needs and lets you do what you love doing.

This way, if you decide it’s not working out after all, at least you haven’t wasted so much time and money that it will set back your career.

After all, being underpaid in an industry giant is better than struggling on as an entrepreneur who isn’t making any money at all.

This is just good planning: when launching anything new, overestimate how long things will take to get off the ground and adjust your estimates as things progress.

##9) Choose franchise or start from scratch##

One of the biggest decisions you'll have to make when you want to start your own business is whether or not to buy an existing [franchise](https://pricesincanada.com/), or whether you should just build your own thing from scratch.

The pros and cons of each option are numerous, but before we dive into them it's important to clarify one important fact: franchises don't necessarily offer something new.

Franchises are still businesses that are in competition with others offering similar products or services, and starting a franchise does require working through lots of bureaucracy and paperwork (since you’re buying into an established system).

While these downsides shouldn't be overlooked, sometimes it might be worth it.