In recent years, there has been a surge in the number of software startups. In fact, if statistics are to be believed, by the time this article is published and you read it, a bunch of new startups might have cropped up. Although starting a software startup might seem easy, but the real struggle is to take it at the zenith of success.
Let’s discuss some of the essentials for every software startup:
Often, we are enchanted by rags to riches or bootstrapped success stories, but what we fail realize is that these stories are true for only 1 in a 100 businesses. The remaining lot can’t do without financial backing. Finance is particularly important for a software startup because they need fund for creating the product, and releasing it online.
If you want to prolong as a software startup, then you must have a business plan and funding to survive the development phase. This is the most critical time for any startup, as it is the make or break interval. Once you finalize the plan and costs for running the business, you need to consider different types of funding available for your perusal. You may decide, for example, that you wish to give away equity as a way of financing your business, in which case you will need a Good 409a Valuation before you are able to offer this. Of course, not everyone will be willing to give up equity, so will seek an alternative form of funding that means they do not have to.
If you want to excel in the long run, then you must choose a team which believes in your vision for the business. A bunch of passionate and self-motivated individuals will drive your business to greater heights. Most software startups fail to understand the importance of finding the right group of people, which affects them in the long run. If people keep coming in and out of a startup during their development phase, then they are doomed. Make sure that your development team has the required experience and expertise for creating the product.
Apart from a development team, every software startup also needs a highly experienced and trained sales team. This team performs relationship management for the business. This team will not only market your business, but also increase its revenue. In simple terms, the sales team increases your audience, thereby increases the possibility of revenue. Perhaps, as a software startup, your credibility in the market holds utmost priority. This is where an efficient sales team comes in handy.
When it comes to setting up a software startup, you would definitely need a legal advisory staff. The moment you have the ‘Eureka moment’ and come across an idea for software creation, you should cross-check it with a legal expert team. In recent years, copyright infringement has become a major cause of concern for most software companies. You might spend a year to create a product, only to find that it has already been patented by someone else.
Fortunately, you can avail the services of a legal company that specializes in dealing with such aspects of software business. In some cases, they mentor the startup and regularly offer suggestions free of cost.
Source Code Escrow
Enterprise customers are extremely particular about their documents so they often enquire about the protections in place, especially if the startup fails. Source code escrow is immensely helpful for software startups, which protects source code, software data, and all sorts of documentations required to deal with the temporary or permanent interruption of the software service provider. If such a situation arises, the Source Code Escrow would permit customers to use the software developed by your company.
This is not an exhaustive list as in some cases you may need to come up with few more successfully functioning your software business. These essentials will go a long way in making your business a success.