6 Tips for Building a Successful, Scalable Software Company Here are six valuable tips for building a software company that succeeds.
By Oleksandr Andrieiev Edited by Chelsea Brown
Opinions expressed by Entrepreneur contributors are their own.
The company I founded as a startup ten years ago has over the years evolved into an international software company that receives orders starting at $100,000. Now our offices are located in six different countries, and the number of my employees has gone beyond one hundred. How did I accomplish this? I'll share the six tips I learned along the way and I will leave it up to you to use or ignore them.
1. Start with a well-thought-out plan
Before creating a software company, I did thorough research on the industry and target market and earnestly evaluated my financial abilities. And while "learning-by-doing" supporters call for improvisation and change, my past entrepreneurial experience persuaded me that nothing would come out of it without a concrete, accurate and prudent business plan. Therefore, I thought over the strategy and rigorously calculated the income, turnover and expected profit for several years to come.
Related: 4 Things Every Entrepreneur Must Consider Before Starting a Software Startup
2. Delegate authority
As the company expanded, we came to the realization that it was high time we started to scale up. The "everyone can do anything" approach is reasonable, especially when starting a software company. I believe multitasking is relevant and works well for startups, but it significantly reduces the productivity of medium and large companies.
I came to the conclusion that there was no need to make this supreme effort to control everything; what I actually needed was to make sure that the workload was competently delegated. Now, my company exceeds hundred people, and every one of them does an incredible job.
3. Overcome the urge to quit
Have you ever heard the expression "survival of the fittest"? This also applies to building a software business. It is morally difficult to withstand the most tricky period — the birth and evolution of a business, and it can easily lead to burnout. At some point, I also had to fight the urge to quit. How did I manage to deal with it? I tried to sleep for at least eight hours, had small vacations with my family and read a lot. I strongly believe that productivity is driven by small things that make us genuinely happy.
4. Constantly develop your team's skills and techniques
One of my main goals was to create a work environment that supports high individual and team productivity. So in my opinion, talent is to be valued more than skills. You can easily teach to be competent, but it's impossible to make someone talented.
That's why I'm always searching for talented people. However, relying only on talent is definitely not enough to form a team of qualified specialists. The main value is the constant updating of skills and methods. The focus of technology changes every year, and we have to adapt quickly to these changes. As a result, we are proud to be a company that provides innovative products to our customers.
Related: All Entrepreneurs Face Failure But the Successful Ones Didn't Quit
5. Trust is more important than money
Creating a software business is not only about making money. This is a long game, which makes it clear that financial profit cannot be the only measure of a company's value. The trust between employees, customers and the community also holds a lot of importance in a successful software business. So, I do my best to be open, honest and consistent in all aspects of my business, from products and corporate culture to partnerships.
6. Invest in business growth
Additional investment, in my opinion, should be an essential step for business growth. What do I mean by that, you ask? I began to invest more in projects and departments in the business that were producing great results. However, this did not mean neglecting other units. In the long run, this method turned out to keep my company from getting into trouble in the future. Keep balance, but tilt the board if needed.
Related: 6 Tips to Drive Sustainable Business Growth
Although the possibilities are almost endless, creating a software company requires a lot of effort. But if you develop a sound business strategy, attract the right people and build a responsive corporate culture, you are deemed to succeed.
Looking back, I realize that I did everything right by following the tips listed above. As a result of my decisions and choices, we managed not to lose momentum during the pandemic and were able to withstand the severe test with dignity.
I'm not sure I have sage advice for other entrepreneurs, but from my experience, I've learned one important truth: You don't have to be an Ivy League alumni or have deep pockets. You just need to believe in yourself against all reasonable logic, no matter how trite it may sound. And never give up, even if there are seemingly insurmountable obstacles in the way. We all face them, but those who believe in themselves stay at the top.
