How To Start A Software Business From Scratch

Building the perfect software product is a long and challenging journey. It takes time, patience, and perseverance to develop a successful piece of software. In this guide, we’ll go over the steps you need to take in order to start a business based on your own ideas for new software products.

We’ll also cover some general questions that entrepreneurs may have about starting their own company from scratch—and how it’s possible for someone with no previous experience to make it happen within their first few years as an entrepreneur.

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Come Up With An Idea

Now that you’ve decided to start a software business, the next step is coming up with an idea for what to build. This can be challenging because there are so many different types of software out there; some are very complex and require highly specialized skills, while others are very simple and accessible to most people.

When choosing an idea for your business, think about:

  • What problem will your product solve? Your product should be something that solves a real problem in someone’s life or business (or both). If it doesn’t solve any problems, then why would anyone buy it?
  • How easy will people find it? The more intuitive your solution is to use, the better chance you have of selling it. A great way to test this is by giving a draft version of your product over Skype or Google Hangouts video call sessions—if people get confused by its functionality even though they know nothing about computers (or even technology), then chances are good they won’t be able to figure out how to use your software either!
  • What market do you want customers from? Ideally, you want customers who aren’t just going through the motions but actually care about using whatever products/services you’re selling them because those types tend not only willing to pay higher prices but also recommend others try them out too, which always leads back towards increased sales revenue over time if done properly!

Research Your Competition

The first step to starting a software business is researching your competition. Find out how they’re making money and how you can do it better. Also, learn what your customers want from the market so that you can build something that caters to their needs.

Validate The Idea With Potential Customers Through Early Versions

Before you dive into building a product and making it available to the world, it’s important to validate your idea with potential customers. This doesn’t mean asking for their opinions about what kind of product they’d like to see created, but rather talking with them about the problems your proposed solution will solve.

The best way to do this is through surveys, interviews and focus groups. If you’re looking at a consumer-facing software product idea, this should be relatively straightforward: just put up some ads on Facebook or LinkedIn and ask people if they have any ideas for software products or services that might help them out in some way.

You can also approach potential users directly by creating landing pages where people can drop their emails if they want more information about the product when it becomes available (more on how to do this below).

If you’re targeting businesses instead of consumers, then things get slightly more complicated because there are many different ways in which companies find new solutions from their vendors; however, there are still steps that can be taken during validation that will help guide development decisions later on down the road:

  • Use free trials as part of sales strategy – When selling enterprise-level software products/services companies often use “free trials” as part of their sales strategy because it allows them trial access without committing upfront costs associated with purchasing licenses upfront (and therefore not knowing exactly whether those licenses will provide enough value). In addition, once customers try out an early version of your software product/service over an extended period time (e.,g., 30 days) then they’ll be more likely willing to purchase upgrades because they’ll feel invested in using what works well now.”

Get Feedback From Potential Customers To Improve The Software

The most important thing to remember when developing your software is that you need to get feedback from potential customers. In other words, don’t just write a bunch of code and assume it’s going to sell itself. Get out there and talk with people! There are several ways you can do this:

  • Use a landing page (or “lead magnet“) to collect email addresses from interested people who may be willing to pay for your product when it launches. You can also use this landing page as a survey tool by asking certain questions of each visitor such as how much they’d be willing to spend on the software and what features they’d like included in the final version.
  • Use a beta version with limited functionality or no functionality so users can see how easy it is for them to navigate the interface without being distracted by all its bells and whistles (yet). This will help guide your development process so you know exactly what direction should take toward making sure users enjoy using their software as much as possible.”

Build A Business Around The Software

The next step is to build a business around the software. You need to create a business plan and figure out how to market your product, hire employees and register for tax exemptions.

You can also choose an accountant and lawyer who have expertise in working with small businesses as well as developers who can assist you with building and maintaining your software.

Your company name should be registered with the local government, so make sure you consult with an attorney before making any final decisions about this aspect of your startup. The same goes for deciding on the type of insurance policy that will best fit the needs of your business (you may want general liability insurance or equipment breakdown coverage).

Build Your Business

  • Build your business. When you launch, don’t just focus on building the product. You also need to build a team of people who can help you take care of customers and get paid. You will need at least one developer, as well as customer support and salespeople so that you can market yourself effectively.
  • Create customer value through quality customer support and user education. With great customer support, customers will be more likely to recommend your product to others and less likely to leave for another solution (which means no money for you!). By educating users about how to use the software properly, they will get more value from it—and therefore be more likely to pay for future upgrades or additional services.* Build an excellent product that solves real problems for real users.* Make sure your application has enough features so that users will want more than just basic functionality; add bonus features if necessary!


Keep in mind that starting a software business from scratch is not easy. It requires a lot of hard work and perseverance, but if done properly, it can be very rewarding. By following the tips outlined above you will be able to go from idea to finished product in no time at all.

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If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.