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I like to build software, should I start a software company?
I like to build software, should I start a software company?
If you are asking this question,
you would be better off not starting a company.
I may sound blunt but the question clearly reflects that you are not prepared.
For the last few weeks, one young guy from Pokhara was constantly pinging me on Facebook and asking me for projects.
I frequently post on a few Facebook groups asking for developers and announcing projects just to gauge the market interest and he might have picked me from there.
I found his pitch very interesting.
They are 5 guys like him with coding skills and they started a company and they need projects.
What a bad position to be in.
You start a company only when you have projects that you are working on that require you to have a company structure.
You don’t start a company because a bunch of guys guffing in a coffee shop thought that’s a cool idea.
Let’s dig into the topic a bit deeper.
So you like building software and have skills.
But do you know what a business is? Do you know how to do business? What it takes?
I can speak from experience of running Semicolon Developers and now Berkeley Computer that a business is not the same as sitting on a fluffy chair in your parent’s house coding software.
Business requires different skills.
Business needs customers.
It’s customers who ask for you to have a company.
It’s not your whim that you need to incorporate a company.
So what do I recommend for guys in similar situations?
Don’t incorporate it yet!
If you have skills, build a product first.
You like to build software right? So build it.
And launch on the internet.
Heck, even make the first few sales.
Then only after validating that your skills turned into your software that brought customers who ask for your company presence, then is the time to incorporate.
Let me tell you why I incorporated Berkeley Computer.
I work with 30+ clients and I have everyone on a yearly retainer.
And they all ask for the original bill yearly to make me a payment.
I didn’t have an option. So I had to register a company.
But if you are more of a developer who doesn’t know a thing about business and who is solely motivated to make money with coding skills I recommend trying freelancing platforms like UpWork or Fiverr.
It’s ok to receive payment individually.
The tax rate in Nepal for freelance income is very low.
When just starting out, you will go far away if you just focus on building products.
And building your portfolio products.
Rather than registering a company and then looking for projects.
You don’t need a company, you need a product and customers!
That’s all on it for now.
Thanks for reading.
-Bhupal
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I like to build software, should I start a software company?
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You are completely right, its the trend these days. Yes, starting a business is a bold and ambitious step but I think it needs a lot of research and planning. What I think most lack is market research, product feasibility, defining customer segment, competition study, strategy and investment. Like you said, in case of software company providing development services, it gradually starts from a team of 1-2 people who are already working on multiple projects and need bigger team to handle incoming projects volume, bigger projects and grow revenue. Or, if its a product based company, market research, strategy, client survery and most importantly investment for sales and marketing. If we just start company without thinking about these, I think we are in for a few years of struggle to learn through experience.