Skip to content

A bird in the hand…

Lately I’ve been thinking about different types of software businesses and the strategies they use to make money. You might initially think: well that’s simple – write software, sell software, make money.

In actual fact the manner in which software companies do turn a profit varies incredibly. Some ‘startups’ make all their money out of getting investment for good ideas, and building up enough reputation to the point that they get bought out… before they’ve even made any ‘real’ money. On the other end of the spectrum some web developers work on very simple small projects and turn them over regularly and make money this way.

The problem is that lots of small projects tend not to pay that well and you spend a lot of time chasing jobs around. On the other hand if your plans are for a project that is too elaborate and involved you risk any potential investors losing interst and wasting much more time and money as a result. There’s no one correct business model for a software development company and I guess the answer is to use whatever seems to work for your particular line of work.

From advice I have gleaned I think the best way to proceed in any business is at least start by having simple jobs lined up which may provide repeat custom, and slowly starting out the larger projects which require more time and careful nurturing. That way you can ensure a profit for your business, while developing ideas that may one day help you hit to hit the jackpot…

Leave a Reply