Seasonality in software?
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What is the best time to find contracts, is there seasonality in software? Have you noticed that in a certain period of time, like in the beginning of the year, after companies decide what's their strategy for the next year, there is a higher demand for software applications or this does not applies to software development where contracts can be found in any period of the year :^)
I guess it depends on how you find work. All my work comes from word of mouth and I have more work than I can handle, any time of year.
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
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When you say contracts, what exactly do you mean? Do you mean for contract development work? If so, there is some seasonality - but it tends to be based on holiday periods, e.g. it's harder to find work over the Christmas or in the summber break period. If you mean in terms of applications, then it really depends on the application. For industrial LOB applications there tends to be a real spending splurge coming up to company year ends, as departments race to spend their budgets.
Deja View - the feeling that you've seen this post before.
Sorry my question wasn't clear enough. I was interested in terms of application development, as I'm thinking to start my own business. I believe it would be wise to start gathering as much information as I can. My targeting clients are located in US and Canada, do you think this is a wise decision having in mind that the American economy is not doing that well. Do you have some tips on how to start a business?
drinking beer is fun :)
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I guess it depends on how you find work. All my work comes from word of mouth and I have more work than I can handle, any time of year.
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
That's because you clients are very satisfied with your work and they give you good referrals to others, but how did you got your first client in the first place? What's the best way to attract clients and how?
drinking beer is fun :)
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Sorry my question wasn't clear enough. I was interested in terms of application development, as I'm thinking to start my own business. I believe it would be wise to start gathering as much information as I can. My targeting clients are located in US and Canada, do you think this is a wise decision having in mind that the American economy is not doing that well. Do you have some tips on how to start a business?
drinking beer is fun :)
razvan_dme wrote:
Do you have some tips on how to start a business?
Ironically, I do. Have a look at my articles.
Deja View - the feeling that you've seen this post before.
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Sorry my question wasn't clear enough. I was interested in terms of application development, as I'm thinking to start my own business. I believe it would be wise to start gathering as much information as I can. My targeting clients are located in US and Canada, do you think this is a wise decision having in mind that the American economy is not doing that well. Do you have some tips on how to start a business?
drinking beer is fun :)
razvan_dme wrote:
I believe it would be wise to start gathering as much information as I can
Not just wise, but essential.
razvan_dme wrote:
American economy is not doing that well
An important factor that you should weigh accordingly.
razvan_dme wrote:
how to start a business?
Don't jump before you are ready. Be truthful in your assessments and assumptions thus you make sure your Business Plan is honest. Follow the advice in Pete O'hanlon's articles.
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Sorry my question wasn't clear enough. I was interested in terms of application development, as I'm thinking to start my own business. I believe it would be wise to start gathering as much information as I can. My targeting clients are located in US and Canada, do you think this is a wise decision having in mind that the American economy is not doing that well. Do you have some tips on how to start a business?
drinking beer is fun :)
Following on from Richard's excellent comments, I should really add a caveat for you. If you are planning to go solo, especially when entering a period of economic uncertainty worldwide, you should really try to have a very healthy bank balance behind you before you make the leap, to cope with those periods where the money isn't going to be flowing in. But, as Richard said, you should really have a solid business plan in place before you make the leap. Pull your plan together and then run it past a specialist business advisor to see how feasible it is. If you aren't 300% certain then don't do it. Running a business is a hugely stressful undertaking - when it goes well, it's an amazing feeling, and when things are going badly; well you have to shoulder the responsibility - ultimately the buck does stop with you.
Deja View - the feeling that you've seen this post before.
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That's because you clients are very satisfied with your work and they give you good referrals to others, but how did you got your first client in the first place? What's the best way to attract clients and how?
drinking beer is fun :)
My first clients were people who approached me after reading my code project articles.
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
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Following on from Richard's excellent comments, I should really add a caveat for you. If you are planning to go solo, especially when entering a period of economic uncertainty worldwide, you should really try to have a very healthy bank balance behind you before you make the leap, to cope with those periods where the money isn't going to be flowing in. But, as Richard said, you should really have a solid business plan in place before you make the leap. Pull your plan together and then run it past a specialist business advisor to see how feasible it is. If you aren't 300% certain then don't do it. Running a business is a hugely stressful undertaking - when it goes well, it's an amazing feeling, and when things are going badly; well you have to shoulder the responsibility - ultimately the buck does stop with you.
Deja View - the feeling that you've seen this post before.
Not only that in 1st paragraph, but all start-up businesses suffer from the same problem. Namely, not enough sales to cover the first few months business outgoings. Consequently a well written Business Plan expertly delivered to your Business Bankers should give you sufficient leeway to survive until your sales expectation bares fruit. And yes, I'm talking about short-term business finance. Just do a simple calculation and graph and plot your break-even point and how soon in the business year that break-even point occurs. Too late in the year and you run the risk of a loss. Too early in the year and your figures might be too optimistic.
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Not only that in 1st paragraph, but all start-up businesses suffer from the same problem. Namely, not enough sales to cover the first few months business outgoings. Consequently a well written Business Plan expertly delivered to your Business Bankers should give you sufficient leeway to survive until your sales expectation bares fruit. And yes, I'm talking about short-term business finance. Just do a simple calculation and graph and plot your break-even point and how soon in the business year that break-even point occurs. Too late in the year and you run the risk of a loss. Too early in the year and your figures might be too optimistic.
Richard A. Abbott wrote:
Not only that in 1st paragraph, but all start-up businesses suffer from the same problem. Namely, not enough sales to cover the first few months business outgoings. Consequently a well written Business Plan expertly delivered to your Business Bankers should give you sufficient leeway to survive until your sales expectation bares fruit. And yes, I'm talking about short-term business finance.
Ah - it's been a long time since I had to create a business plan from scratch. "I love the smell of burning business in the morning."
Deja View - the feeling that you've seen this post before.
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Not only that in 1st paragraph, but all start-up businesses suffer from the same problem. Namely, not enough sales to cover the first few months business outgoings. Consequently a well written Business Plan expertly delivered to your Business Bankers should give you sufficient leeway to survive until your sales expectation bares fruit. And yes, I'm talking about short-term business finance. Just do a simple calculation and graph and plot your break-even point and how soon in the business year that break-even point occurs. Too late in the year and you run the risk of a loss. Too early in the year and your figures might be too optimistic.
Richard A. Abbott wrote:
Namely, not enough sales to cover the first few months business outgoings
I own 25% of a company, and we did not have that problem :-)
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
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Sorry my question wasn't clear enough. I was interested in terms of application development, as I'm thinking to start my own business. I believe it would be wise to start gathering as much information as I can. My targeting clients are located in US and Canada, do you think this is a wise decision having in mind that the American economy is not doing that well. Do you have some tips on how to start a business?
drinking beer is fun :)
If you're in the UK, why are you targetting the US and Canada ?
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
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razvan_dme wrote:
Do you have some tips on how to start a business?
Ironically, I do. Have a look at my articles.
Deja View - the feeling that you've seen this post before.
Wow, thanks a lot Pete, it seems I asked the right question to the right person. I read your articles which I find to be very true and realistic, I also believe that certain things have to change. I already "warned" my girlfriend that "darker" days might come, but I don't think she took it easily, though. The thing is that I truly believe I can make it and I have to try this out.
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If you're in the UK, why are you targetting the US and Canada ?
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
Oh, oops, it seems after code project changed to asp.net my profile got messed up, sorry about that.
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Not only that in 1st paragraph, but all start-up businesses suffer from the same problem. Namely, not enough sales to cover the first few months business outgoings. Consequently a well written Business Plan expertly delivered to your Business Bankers should give you sufficient leeway to survive until your sales expectation bares fruit. And yes, I'm talking about short-term business finance. Just do a simple calculation and graph and plot your break-even point and how soon in the business year that break-even point occurs. Too late in the year and you run the risk of a loss. Too early in the year and your figures might be too optimistic.
I'm starting a partnership with some business people from Canada, I'll own 25% from the newly founded company, I guess for the first year my expenses can be covered, but what would happen after that? That's why I'm asking for tips from as many people as possible. I have to ensure a continuity in order to grow the business.
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Richard A. Abbott wrote:
Namely, not enough sales to cover the first few months business outgoings
I own 25% of a company, and we did not have that problem :-)
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
The raw facts are that many new business start-ups just don't have sufficient capital. By that I mean, here you are working for an employer and you hanker to go solo, then ... Yes you can do some "on-the-side" stuff if your employer permits that kind of activity. Yes you can attempt (and succeed) to find customers to sell your wares to. In the software development business, yes you can expect to be drip-fed monies from your customers according to the terms of the contracts. So if your selling skills are good enough before and after yo decide to go solo, you might have sufficient funds coming in, thus your outgoings - yes wages included there - will be satisfied. But what if the business your in requires you to sell hardware as well as software. What if you manufacture your own hardware. The drip-feeding principle no longer applies. Therefore you are looking at financial figures from a different perspective and short-term financial borrowing from your bank is not just usual, but is to be expected. Yes, in a business where you provide software solutions, you are, to some extent, insulated from business borrowing needs, but not all the time. There are times when sales business is slow and more expenditure than incomes. If you are a one-man business, you might need to borrow monies to remain liquid. If you run a company with several staff, you could indeed put a number on short-term hours thus reducing your outgoings. So to say "we did not have that problem" is not a universal statement applicable to all business types.
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Richard A. Abbott wrote:
Not only that in 1st paragraph, but all start-up businesses suffer from the same problem. Namely, not enough sales to cover the first few months business outgoings. Consequently a well written Business Plan expertly delivered to your Business Bankers should give you sufficient leeway to survive until your sales expectation bares fruit. And yes, I'm talking about short-term business finance.
Ah - it's been a long time since I had to create a business plan from scratch. "I love the smell of burning business in the morning."
Deja View - the feeling that you've seen this post before.
Going solo means create a business plan from scratch. And it is a hard thing to do for anybody first time around. And if you enquire with your local Chamber of Commerce, they will tell you that even when there is a Business Boom, the number of casualties (businesses of all shapes and sizes going bust) is high, and more so in economic downturns. So businesses can and do burn, especially during their first 2 years of existence.
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The raw facts are that many new business start-ups just don't have sufficient capital. By that I mean, here you are working for an employer and you hanker to go solo, then ... Yes you can do some "on-the-side" stuff if your employer permits that kind of activity. Yes you can attempt (and succeed) to find customers to sell your wares to. In the software development business, yes you can expect to be drip-fed monies from your customers according to the terms of the contracts. So if your selling skills are good enough before and after yo decide to go solo, you might have sufficient funds coming in, thus your outgoings - yes wages included there - will be satisfied. But what if the business your in requires you to sell hardware as well as software. What if you manufacture your own hardware. The drip-feeding principle no longer applies. Therefore you are looking at financial figures from a different perspective and short-term financial borrowing from your bank is not just usual, but is to be expected. Yes, in a business where you provide software solutions, you are, to some extent, insulated from business borrowing needs, but not all the time. There are times when sales business is slow and more expenditure than incomes. If you are a one-man business, you might need to borrow monies to remain liquid. If you run a company with several staff, you could indeed put a number on short-term hours thus reducing your outgoings. So to say "we did not have that problem" is not a universal statement applicable to all business types.
Richard A. Abbott wrote:
So to say "we did not have that problem" is not a universal statement applicable to all business types.
*grin* that was not my intention at all. Quite the reverse, I felt proud that, knowing what you are saying is true, we sold so much software out of the gate that we were flush from day one.
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
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I'm starting a partnership with some business people from Canada, I'll own 25% from the newly founded company, I guess for the first year my expenses can be covered, but what would happen after that? That's why I'm asking for tips from as many people as possible. I have to ensure a continuity in order to grow the business.
If you're not making money after 12 months, you should probably look for other options. If I were you, if you're going to work remotely, I'd look for local work too, even if it's half time, and resign myself to working weekends for the first year. I spent the last year doing that, to get my company off the ground.
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
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If you're not making money after 12 months, you should probably look for other options. If I were you, if you're going to work remotely, I'd look for local work too, even if it's half time, and resign myself to working weekends for the first year. I spent the last year doing that, to get my company off the ground.
Christian Graus - Microsoft MVP - C++ "also I don't think "TranslateOneToTwoBillion OneHundredAndFortySevenMillion FourHundredAndEightyThreeThousand SixHundredAndFortySeven()" is a very good choice for a function name" - SpacixOne ( offering help to someone who really needed it ) ( spaces added for the benefit of people running at < 1280x1024 )
Christian Graus wrote:
f you're not making money after 12 months
That is where the beauty of a break-even chart plays its part. The further into the business year the break-even point is the more likely you will make a loss. Make use of this particular tool as often as you assess the business actual figures from those business budgeted figures. And if you have your finger on the pulse, nothing but nothing will come as a total shock/surprise.
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I'm starting a partnership with some business people from Canada, I'll own 25% from the newly founded company, I guess for the first year my expenses can be covered, but what would happen after that? That's why I'm asking for tips from as many people as possible. I have to ensure a continuity in order to grow the business.
razvan_dme wrote:
partnership
I can't comment on Canadian rules, but in the UK, the term "partnership" has special legal meaning. So make absolutely certain of your commitments in any partnership by seeking legal advice before you agree partnership status. The legal meaning in UK include ... Partners need to register as self-employed. It is wise to seek the advice of a solicitor and form a 'deed of partnership'. If the business fails, then the owners are fully responsible for all the business' debts, and where a partner vanishes, the remaining partners are liable for that absent partner's debts.