Choosing a right path to start own IT Company?
I am a web developer working for a normal IT company.
My dream,my goal to start my own IT company.
AS i have observed lot, many small private organizations in my locality are still using paper data to manage their daily needs(like taking attendance of students in a school,salaries and bill payments,no computers nothing).
I want build an application (desktop or web i.e eCommerce app) which can computerize and manage all their data.
Below is my root map to start my company.
- i will analyze the IT needs of the individual organizations by analyzing their growth in market(for example analyzing the growth of a private school organization comparing to other schools in that locality).
- Then i will go to them, will explain about my project and get contracts from the organizations explaining them, why Information Technology is a need to maintain their data.
- Once i got the contracts,I will recruit people who can work with me to create application.
- Then i will release the application to end users.
- And also recruit people for computerizing the old paper data of organizations and to maintaining application.
Once i successfully release the application, i think i can also get projects from other people.
Budget, licencing etc things, i will concentrate once my root path is good approach to reach my goal.
Please please advise me in this. Am i correct??
Thank you very much.
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This plan, which is a common one, will only work if the clients already have computers on which to run your software, or have sufficient budget to cover the additional costs. For example, may hairdressing salons use a paper book to manage everything. It seems obvious that they should "upgrade" to a computerised system, but the book costs $10 a year and it doesn't need a PC, laptop, iPad, etc. – Steve Jones 11 years ago
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@SteveJones: Thanks for the quick reply. Yes, but my plan is for the organizations(having employees 1-100) which needs upgrade like a super market. A small school of 50 students can buy a laptop or pc to maintain their students data, it is not a big issue i think. – Bhargava Katta 11 years ago
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"Not a big issue" is your subjective opinion. Schools, for example, have centralized buying groups that require intensive review processes before approving a purchase. You need to do some market research to validate your idea (and its demand / worth) with real customers first. – Jim Galley 11 years ago
3 Answers
I would advise you to change your road map to the following;
1. Complete Market Research on a broad range of businesses from multiple sectors that you would like to work with. This will ensure you have a good working knowledge of the types of organisations you wish to work with and also may identify what software related companies use. For instance; when I conducted market research in my local area i found that most sole employe start-ups used excel to manage their finances where as business partnership start-ups used quickbooks or sage.
2. Analyze the IT needs of those organisations and what they require from your software. Identify the common requirements you identified as part of your Market Research This will ensure you have a good idea of what functionality your program must have. Also if you identify common requirements you can build a one-size fits concept application that can be marketed to a larger group of organisations.
3. Develop Beta or Concept software. Most of the organisations I have worked with have requested demonstration and often have put little stock in on-paper concepts. The only exception to this that I have identified is with websites as they are intended to be unique.
4. Arrange a demonstration and promote your software with specific emphasis on what their issues are, how your software helps them and how your software is better than alternatives. Organisations are generally resistant to spending money unless it is 100% necessary. Identifying what grinds their gears and offering a viable solution is always a good place to start.
5. Poll the client to find any missed required functionality. If you are using generic Beta code it is likely that the client will want some added functionality, or in some cases, reduced functionality depending on your clients requirements.
6. Enter the Production stage. 7. Release the application to end users. 8 Provide training and migration support to the client. As your software will be very new to your clients, and they may not be experienced with computer systems, you may need to be on hand to provide support until they become familiarized.
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Thank you very much Liam. This is very usefull for me. I am thinking to spend 6months time for 1 & 2 steps. Is this time enough? And now i am in the stage of preparing paper presentations,demo application and other usefull stuff which will be usefull for me in research. can u give me some usefull links, where i can find some theories related to my project.? – Bhargava Katta 11 years ago
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I would say for your initial Market Research will only take about 1 month if it is taking up all of your time but only you will know when you have enough information to continue along the cycle. You should also keep in mind that Market Research never really ends it just enters into a background hypothesis and test cycle based on the feedback you receive. – Liam Dolman 11 years ago
Building a high-tech company is not easy. Honestly, I don't know the right path (I also believe that there is no such thing as the "right path"). My experience so far in building a high-tech company failed. I pitched my idea to a local competition expecting the project to be noticed and secure the funding/resource it require. The plan failed.
What I learned so far;
1. Focus on the idea and what it can do to solve problems/frustrations. Believe in it.
2. Get going. Build the prototype as fast as you can. Test it. Ship it to end users. Get feed back. Learn. Improve the idea.
3. If you failed, don't worry you are not alone. And if you have the "entrepreneur curse" giving up is not an option. The next thing you know you are onto another idea.
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hi. i am not dreaming of building a HIGH-TECH company!! i am trying to build my own team/company(starts with very small no of resources) which will create/develop applications with my own ideas. Once my above questioned project got succeeded, i will continue with it, expanding to other areas. If not succeeded??? as you told i will move to another idea. thanks. – Bhargava Katta 11 years ago
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Are you not trying to build a higher technology (most cutting edge) than what is presently available to your target market? :). If yes, then you are trying to build a high-tech company. – Bronson 11 years ago
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my answer is NO. I have clearly mentioned that my targeted market is those who are not using computer application/methods to manage their data. – Bhargava Katta 11 years ago
The answer to your question has to start with clearly defining your ideal client. When I read You question it seems to me that you are focused on what you think are the needs of your potential client. I would work hard to clearly understand that clients needs wants and desires, test my assumptions in the market by trying to sell the service and then adjust to the result.
That strategy will help ensure your success.
