Starting a software development (programming) company - good idea, bad idea or just plain stupid?
 

Let?s say that you have two good programmers and one guy that is pretty good when it comes to running a business, what should they know if they want to start their own company?

I mean, should they look for projects and customers or simply develop software and scripts and try to sell them, or do both?

How easy/difficult it is to do that right now? I mean everybody and their mother knows where to get free software and there's fierce competition from lower-wage countries.

Any ideas, personal experiences, tips, etc. feel free to share.

Thanks

It's a good idea if you have someone to market and push it. Offering a total solution like I am doing with Loch/konrad/prezzz/zuzana/getnaughty and others.

You will have a hard time selling just one piece in the pie. If you sell it via partnerships. You have a better chance of closing deals as you are selling the completed vision and something you can drive away.

Some will buy individually. But when you offer the complete solution, you have better chance of success. I have thought of doing something similar. But basically developing more scripts and tools for my clients. So between hosting, content, design and cms. They also get access to all the tools in the arsenal. They pay a premium for them.

However, it will ALWAYS come down to selling it. If you do not have a front man who can push the volume sales. You are a dead stick no matter how beautiful your shit is. Also keep in mind your price points. In this market you are going to be very conscious of anything big ticket. Those take longer to close out. So you need to adjust your business model accordingly.

While working with others is lovely to close business. It can also be a headache when you are making a lot of paperwork on licensing, and having to project manage between coder, designer, content and so on. I had to move one of my assistants over to do nothing BUT project management now.

If you had a guy that was pretty good at business i would think you would have those questions answered no?
And a properly developed business plan, market research wouldn?t hurt either :)

Any business in any field can be successful if properly run :2 cents:

There are 2 local programmers who have been asking me for work, so I will keep a close eye on this thread.

True dat.

A solid, REALISTIC, business plan will get you success. Including to plan for the worst, which could be realistically running in the red for a period of months often times while you develop your market.

Most people simply do not have the vision and business planning to succeed. Which includes setting realistic expectations, goals and time tables.

So far this is just an idea and I have to decide if I want to get involved or not; and the best thing to do in this situation is to gather as much information as possible and make a decision - I don't believe there is such thing as right or wrong decision, but I would rather hear what other people have to say


Yup, and "selling it" right now doesn't look too easy; it has probably never been, but today I see programmers with years of experience, looking for piece work that pays very little

if you're looking at working in adult I wouldn't bother. just far too many cheap broke people.

I do software development consulting on occasionally. I work mainly with financial companies and other large corps (AT&T, McDonalds, etc). I charge anywhere from $100-150/hr and picking up projects is never an issue. Basically comes down to networking and knowing the right people.

At least here in chicago, its pretty damn rare to see skilled programmers/developers go unemployed for long.

You can do anything that you are determined to do.

the financial sector is what I am looking into as well; what got me excited is a guy that I know, who runs a small company, developing insurance software

btw, according to the statistics a programmer that works in the financial sector can get paid twice as much as a programmer with the same skills and experience, working elsewhere