There has never been a better time to build a software startup — whether it is SaaS or custom software. Technology and software are becoming an integral part of our lives.
The reasons are almost infinite. Either they do not have the financial capability or do not know how to proceed.
The landscape is wide open for new startups. But there is still a high failure rate for software startups. We have experienced the ups and downs of the software companies we have helped startup.
Some Practical Tips to Establish a Software Startup
We have learned a few things about what moves software companies forward. Here are our tips.
Be ready for failure the first time around
Starting a business is not a game. Quitting your job is not an excuse to party all day or travel. You can do those things if you want. But then you are not making much progress with your business.
It is a fact that most businesses fail. Yet most people think they are the exception.
Your business may not take off, and you may be running out money. If this is the case after two years, it is time to find another job.
Start again, do it right this time
- Your team may consist of two people. Then you cannot possibly compete against companies with 100,000 employees. I mean, nothing is impossible. But the odds are really, really against you.
- You should get customers first, then build the product.
- We learned it is easier to sell to businesses than to consumers. This is because companies have more money to spend. They are easier to target. They have more defined “needs”as opposed to fuzzy “wants.”
Get a customer first. Then build the product
Find out if someone wants to buy what you want to create. After validating this hypothesis, you can proceed and develop the product.
Once you discover this unmet need, spend a couple of hours to create a landing page.
Start a small Google AdWords campaign A few people will see the ads and click on the start trial button. When they do that, they will see a message saying the software is in development. They will get the option to join a waiting list.
You will get some evidence that some people were willing to try your prototype software.
Now do not forget what you have learned so far
Validate that there were people out there who wanted your software. Then start building the product.
NutriAdmin has been growing gradually and organically.
Their annual revenue is above £85,000 ($110,000). This is opposed to all at once with a single big event.
The software is better and better every day. They are happy to provide a valuable service to nutrition professionals.
The way they prioritize new features is almost the same as the way they got started.
They ask users and aggregate their feedback. Then they work on the highest demand suggestions as long as they are feasible.
Most articles, books, and media will emphasize the most dramatic paths people have followed, like Steve Jobs or Mark Zuckerberg.
But they will not show the most common or practical methods.
You can start an online business by following some simple steps. You can save up and give yourself plenty of room and time. Rather than the whole world, aim at a niche market.
It is still hard, but not as challenging as creating the next Google.
If you are looking for funding, evaluate your business on 40 parameters and get access to 5K global investors. Alcor private equity and Venture capital firm also empowers founders and businesses to grow their companies at all stages.