Nov
9
Identifying an underlying principle helps. Once I know what I really want, I'm able to find more ways to achieve it. I've been thinking on business models of how to earn a living with own software company.
First, there is a Web 2.0 startup. It's been very popular recently. You basically come up with a super-duper idea, implement a prototype while living on ramen, then get some VC funding, then work some more, go online, get more funding, work even more and boom - everybody's using your site and you're a millionaire.
The model is nice and promising but I think success rate is very small. Paul Graham writes that he expects a third of companies he founded to succeed. And he founds only selected ones.
Second, there is a world of MicroISVs. A µISV is a very small, self-funded software company, having only 1 to 3 people. µISV founders usually make a product or two and get a nice living out of them. Or not, if they don't do it right. I couldn't find the credible numbers but it seems there is way more ISVs out there than I supposed in my wildest dreams. What it means is that it can't be that hard and risky...
The third way is Open Source. Write something good and hope it solves problems for people willing to get your support. While it is the most satisfactory in terms of creating software (No one will tell you what feature to add and what to work on), it definitely is very risky way to found a business. If I decided to go Open Source, I would have to keep my day job for who knows how long. Plus, I'm not sure I want to do consulting...
Comments
2 Comments so far
As for MicroISVs - I think that a large part of the software for PalmOS came from single developers. I personally happen to know a few of them although I don’t know if that’s their main source of income. Palm programs tend to be small so maybe that’s why that market has so many single developers.
Talking about Open Source - see User Friendly from Nov 5
Perfect.