The entirety of the digital landscape has advanced dramatically due to the pandemic. As a result, businesses across industries have made a dramatic shift to digital software and services – and will continue to do so in the future.
The reason – companies see software integration as a competitive advantage and thus anticipate direct contributions to increased sales.
As McKinsey’s report suggests, almost two-thirds of businesses believe that their future economic viability directly correlates with the digitalization of their core activities. This is, of course, a perfect opportunity for the expansion of companies that provide software services.
In fact, some predictions say that, by 2027, there will be over a million software companies worldwide. And surely, there will be a market for their services. But knowing that one in 12 businesses closes every year, what will be the factors that make or break a software company?
In this article, we discuss four common myths about building a software business to help you – as future software company owners – set up a long-lasting and sustainable firm.
Myth #1: You Should Keep Your Product a Secret Until Ready for Launch
As Jamie Dimon, President and CEO of JPMorgan Chase, said: “I’d rather have a first-rate execution and second-rate strategy any time than a brilliant idea and mediocre management.”
Ideas are probably the most overrated currency in the business world. Everyone has ideas, but other things make the difference in transforming them into reality – finances to invest in, a team of people to pull the idea through, and access to the necessary resources, to name a few.
Your software company’s goal is to spark interest among leads, get the word about your product going, and, ultimately, sell it to the perfect customer. And you won’t do that by making an NDA a standard element of your pitch.
Myth #2: You Software Business Will Scale Through Acquiring Smaller Competitors
Acquiring smaller industry players is a common method for many firms to increase their performance. But for software businesses, this might not always be the case.
Namely, every software business has its own, distinct methodology for building products, running projects, and solving its customers’ problems. Due to these stark differences, such software acquisitions frequently result in integration issues.
Transformations of organizational cultures of both the acquired company and the acquiree are not only necessary – but required – to make the most of your newly purchased assets.
Myth #3: Adding Features Will Make Your Product Better
It is simple for software businesses to fall into the trap of believing that more features equal a more appealing product.
Just take a look at once-industry leaders Facebook and Instagram, which got stuck in the loop of adding features to the point where the platforms’ initial ideas ended up completely lost.
Features do not mean benefits – especially to your product’s end-users. On the other hand, simplicity is a benefit.
Before integrating a new feature into your product, answer the question of why you plan to add that feature. Is there really a necessity, a need, or a benefit, to your customer, or will it only make your product more difficult to use?
If the answer is no – halt the feature integration and think of another way to add value to your product users.
Myth #4: Non-Tech Enterprises Can Easily Shift to Building Software
Software has become the cornerstone of company strategies across industries. Thus, it isn’t uncommon for non-software companies to decide to embark on software development on their own.
For them, entering the software landscape means cutting costs on development, creating a solution fully-customized to their needs, and keeping their ideas within their company.
But software development isn’t as simple as it seems, though.
It’s always best to outsource your software product development to an experienced company that can offer you a team of dedicated professionals.
To Sum Up
The competition in the software development industry is hard – and if predictions are to be believed, businesses will only have a harder time finding their place under the stars.
Building a business is a process always rife with myths, and it’s especially true for starting a software development company.
If you’re a non-tech company owner looking to build a custom software solution and improve business processes, we recommend pitching to an Atlanta software company that can help you build a great digital product that meets all your needs.
