Legends of software startups amaze and inspire. These sparkling success stories often keep flashing from the pages of renowned and authoritative editions such as Forbes, Fast Company, and so on. Key concepts usually associated with software startup ideas are a great solution, a constructive business plan, and impressive revenue multiplied in the future. Indeed it can be so if there is enough knowledge about how to actually begin when one has sole software startup idea and huge ambitions.
The main aim of this article is to show how to start your business effectively. The software area is all about constant rivalry, changes in technology, and risks. Basically, the reason many software startups fail lies not in poor performance or irrelevant approach, but in lack of the expert’s competencies, especially when they are outsourced. This is a major point of the whole recipe of success for software startups: find experts, ensure they are experts, and build long-term constructive cooperation relations with them. Their expertise is the main cornerstone in your future success.
Remember: low quality of the product or undermining legal aspects lead to the destruction of the whole system, despite its excellence in other aspects.
Here is a concise guide on the development of software startups and requirements needed to be met in the process. We describe a realistic and constructive algorithm and proper decision making patterns for software startups not only to survive but to actually thrive. Every stage is backed with essentials on cooperation and service provision.
In order to start, one needs to know what is required for launching a company, especially in a rather challenging area of software startup ideas development.
First and foremost, one needs skills and experience in order to succeed. After all, expertise in the software domain and knowledge of business management are both essential to set a solid background. In case one of these lacks, the overall capacity to monitor, evaluate, and adjust business processes and quality of products will be put at serious risk.
Second, sufficient investment or startup fund is required. Software business may demand huge sums of money, and all the expenses should be taken into consideration before the actual start in order to avoid possible failure.
Third, a highly-qualified, cohesive, and creative team is a must. Nowadays, the sole competence is not enough. An expert should be flexible, strong in terms of analytical evaluation and judgment, creative, as well as oriented on innovative solutions.
Fourth, every startup needs a strict business plan. Moreover, it is better to be based on thorough market research in order to take into account all possible factors that can affect the result.
Legal provision is like an immune system of your business. It is extremely important to select a relevant legal form for business operation. Other essential aspects include proper employment documentation, security laws, and holistic protection of intellectual property. Also, one of the most widespread and justified fears of software startup founders all over the world is the issue of legal guarantees when it comes to IT experts outsourcing.
A high-end, experienced company covers all legal aspects in collaboration with customers. Companies like this usually offer clientele to sign a contract (drawn up by the U.S. sample) with clear and mutually beneficial terms. Moreover, a professional partner will also provide legal guarantees on the product and offer the team of experts experienced in the field of interest.
Stages of Startup Creation and Role of IT-Company in It
Stage 1: Pre-Seed. The first stage is all about the initial creation of a product, its launch, alignment, and building of a consistent customers flow. It is a period of investigation when the effectiveness of the idea is evaluated.
Entering cooperation at this stage gives an opportunity to create a unique product which can lead to long-lasting success or, at least, to a solid basis for further growth. This is an optimal scenario for custom software development which involves the following:
- development of architecture and MVP based on it;
- development of an authentic product with several advantages when compared to the products offered by competitors;
- regular consulting and consequent adjustments applied in the process of development;
- assistance in the development of a business model if needed;
- provision of expert knowledge in the area of IT as well as consulting both
- strategic consulting (business model, Thompson Canvas, PoC)
- tactical consulting (description of the architecture, technology, definition, and estimation of the tasks, budgeting).
Stage 2: Seed. This stage of software startup idea launch is associated with incremental traction. A holistic and detailed conception of orientation within the marketplace, and effective targeting are also included here. Understanding the target audience needs and preferences is the key. During this stage, the company also develops a permanent team.
Basically, the Seed stage requires to start a cooperation with creative agencies, developers, designers, and researchers on a regular basis. This period encompasses revision of MVP, development of MVP into the actual product (which implies bigger team), design, testing, and deployment. Fundraising activities at the given stage comprise starting of cooperation with startup incubators, venture investors, and business angels. Usually, сompanies offer continuation of the mutually beneficial collaboration with a software startup. The added value in this cooperation will be the further development of an authentic product. This product can bring more clientele to the software startup and contribute to its reputation build up. A high-end company will continue providing consultations and guidance as well as developing a personalized product as possible.
Important: make sure that the software belongs exclusively to its owner or the share of investors in it is minimal.
Stage 3: Series A. It includes optimization, entering new markets, escalation of the team’s efficiency, and its growth as a vivid sign of the company’s progress and expansion. Actual results of cooperation with technology partner on Series A stage are:
- the actualization of an individual project;
- development of competitive software based on the needs of the target audience and the latest innovations;
- provision of cybersecurity;
- contribution to scaling of the company.
Proficient companies guarantee regular consulting and maintenance of the currently functioning version of the product.
Stage 4: Series B. A phase of software startup ideas actualization which occurs along with the globalization of the project. Novel acquisitions and/or mergers also happen during the Series B stage. This is a period for continuous growth and gaining authority within the software niche. As a result, the nature of cooperation with developers also obtains new quality and mission, namely:
1) enhanced expertise;
2) further customization;
3) development of the relevant and recognized product.
Minimization of Risks
Many groundless fears exist when it comes to distant collaboration. Still, some of them are quite relevant and should not be neglected as trifles. Cooperation with companies located distantly or foreign ones is often associated with hazards and challenges. Major risks involve holding of rights, financial issues, quality and authenticity of the product, meeting deadlines, and miscommunication which often appears due to cultural and linguistic barriers.
As a rule, starting cooperation on creation and development of a software startup is possible on every stage, from the launch to entering the course on the Series B. Nevertheless, whatever the stage is, experienced high-end company is expected to eliminate possible risks and hazards for their customers. This includes the provision of internationally recognized contract, product rights, as well as the professional workforce. Also, regular communication, timely completion of tasks, and legal provision should be a bottom line of every action in a company. That’s what we believe in, and these simple principles have helped MassMedia Group company to grow and develop over the past 12 years. We will be more than happy to help you do the same while providing an ultimate quality result backed with a lifetime code warranty.