Software business is an entrepreneurial activity encompassing buying, developing and selling various forms of softwares as well as offering associated services.
Investment of your own savings is one way of funding the launch of a software business; however, venture capital funds should also be explored as potential funding options.
Market research
Market research is an integral component of software businesses. It offers invaluable information about customers and competitors that can assist in making better business decisions; but for optimal results it must be conducted appropriately to achieve maximum effectiveness.
Exploratory market research is less structured and uses open-ended questions to uncover any issues that need addressing by the company. Specific market research delves deeper into those identified through exploratory research through focus groups, telephone interviews or questionnaires.
There are various software business models, depending on how a company wants to distribute its products and services. These models include distribution, licensing and target audience models. Distribution determines whether software will be sold directly to consumers or distributed among businesses.
Business plan
A business plan is a document that details a company’s strategies and goals, outlining them against industry analysis, target market, competition, marketing/sales strategies, operations procedures and financial projections.
An effective business plan for software businesses is key to attracting investors and securing loans from financial institutions, while keeping your management team focused on meeting specific goals and strategic objectives, communicating progress with external stakeholders, communicating progress to investors and making informed decisions regarding hiring or firing employees.
VC funding
Venture capital funding gives start-up software businesses access to the funding necessary to bring their ideas into fruition, filling a void left by capital markets and bank debt which tend not to fund businesses with limited operating histories or unproven business models. Furthermore, these investors provide invaluable expertise which enables startups to develop and market their products successfully.
Successfully pitching for venture capital funding takes time and perseverance. First you will need to write and practice a compelling business plan before searching for investors that would best complement your company. Be prepared for rejection but don’t let that discourage you – instead keep going until someone accepts.
PROfounders Capital is an entrepreneur-oriented venture capital firm dedicated to funding SaaS technology companies. PROfounders Capital has worked with several SaaS providers such as Iceye – an imaging software provider; Vulog – customizable SaaS for mobile operators; and Dealflo – agreement automation services in finance – among others.
Website development
Websites are one of the best marketing tools available to any business, as they make them visible worldwide and help connect with potential customers while simultaneously increasing credibility of a brand. But website development is no simple process and takes plenty of patience and consideration before being finished successfully.
At first, website development begins by creating a vision. This helps developers understand what the website will look like and its purpose, before writing any code. After this step is taken, developers can start writing code. Typically, back-end website development involves storing and managing user login details, user-entered content, website settings as well as server side languages coding; businesses often opt for full stack web developers who can handle both front-end and back-end development simultaneously.
Marketing
Marketing is an essential component of any software business model. It engages potential customers, introduces new products and services, monitors customer feedback and keeps companies ahead of customer service needs.
One way of doing this is by creating a community of customers and partners through Facebook groups or subreddits, helping software businesses establish strong brand images while making customers feel part of a team so they’re less likely to churn.
Email marketing is another effective form of promotion. Email can be used to share software updates, case studies and success stories as well as offer free trials or demos – as well as reaching out to influential figures in your industry.
