Widespread digitization has been backed by large-scale software development. Even the business realm is feast transitioning and looking for ways to streamline legacy processes. This is where software development chimes in.
Software development is a world of inspiring profitability and consistent growth if you do it right. It can be a lucrative business that lets entrepreneurs chase their creative pursuits with the help of technology. Since it is a relatively new segment, the growth opportunities are plenty. Even businesses that offer their software products for free make money out of it through various means.
Here we offer a brief guide for potential entrepreneurs who want to venture into software development. This article aims to guide young entrepreneurs on navigating the software development terrains when they are just beginning out.
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Lay Down a Business Plan
If you are building software for individual users, your target set will have a recurring problem. But software businesses that offer specialized services must clearly define their target audience in advance. Without a clear definition of the target market, business development efforts are often misdirected and lead to detrimental returns.
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Pricing
Pricing software can be tricky and is dependent on its internal complexity. Most free apps are offered to users without charge or with pricing restricted to premium features. Talking of B2B entrepreneurial solutions, most of them are pricey and cost thousands of dollars as subscription charges. A little bit of market research can help you set the right price point.
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Revenue Generation
While only a small amount of seed money can be enough for low-cost software development complex business ideas are driven by multi-million dollar investment. Areas like backend software infrastructure, capital for securing intellectual property rights, and even paying the workforce require money.
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Form a Legal Entity
In the world of commerce, businesses can be structured as either sole proprietorship, partnership, or a limited liability company. Register your business as a legal entity to avail legal immunity in case a dispute arises.
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Register Taxes
A software developer with business software can pay taxes in accordance with the existing laws of India. When you start a software business, it’s important to get a Goods and Services Tax (GST certificate) to charge the software product’s total tax.
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Get Finances in Order
It is in the interest of a software business to keep the business and personal finances separate. It will safeguard your assets. Once you have got a business account, the management of files and taxes becomes easy. Often software businesses opt for business credit cards and avail opportunities for raising credit. Also, develop a perspective on the financial well-being of the software company. Seek help from financial professionals with relevant expertise who can assess detailed accounts of the cash flow and keep the balance sheet clean.
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Legal Formalities
The Government of India has laid down specific guidelines for businesses to comply with. Know these formalities first hand and apply for necessary permits and licenses as necessary. Apart from this, business licenses are also needed to operate in building premises. For example, certificates of occupancy and environmental regulations need to be obtained.
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Get Insurance
Along with legal formalities, insurance helps protect all stakeholders’ business interests, should things take a turn for the worse. Markets are flooded with insurance policies that serve different types of businesses prone to multiple types of risks. General Liability Insurance is the most common type of business insurance
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Brand Image
Brand building is an important component of running a business. It’s important to ensure that your brand identity reflects well in your core values, beliefs, and execution. It’s important that as entrepreneurs, you invest time and other resources in brand building through various channels like social media and websites, etc.
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Staff-Up
Software development is not one-man-show and requires a workforce. You need people to focus intricately, and thus, the right choice of the candidates is what matters the most. Seeking the help of HR professionals and a recruitment company is the best way to find the right people.
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Sales and Marketing: The Last Leg
Having a well-planned marketing plan to target potential customers is all the groundwork that is needed. Working with skilled sales professionals who know how to convert qualified leads into customers can bring magnificent ROIs to your business. Even if you are just starting out and hiring full-time sales specialists seems an expensive ordeal, hiring freelancers is always the best recluse.
In the End
Given the fast evolution and simplification of government guidelines, India is gearing up towards becoming a service-based economy. The government encourages entrepreneurial efforts by granting licenses and permits seamlessly. Initiatives like ‘digital India’ encourage online business ideas, especially in the realm of software development. It also offers tax holidays and waivers to software companies.
Looking to outsource software development to India? Get in touch with Optimal Virtual Employee today.
Also Read:
How to Handle Software Development Challenges for the Benefit of your Business?
Running a Software Development Company? 5 Things to Know without an Exception
