Start an independent software development company, or start a group within an established company?

Question

From the perspective of a software developer, given both opportunities, what are the benefits to either of the following:

1: Start a new software development company with like-minded programmers

or

2: Start a new group within an established software company

Assume that both would involve work in the same technical domain, and that Option 1 means a significant ownership stake in the company (e.g. not a wholly-owned subsidiary or something).

I imagine Option 1 would involve more non-technical (business, marketing, etc) work, but then you probably get more freedom to do things your way? Option 2 probably involves less risk, but then do you really get do to things the way you want to? And there's the motivation of actually owning what you work on.

Anybody have experience with both?

Answer 1

I have experience with this. My answers are succinct.

1. You own the technology and get the money. If things go south, you're out of a job.
2. Your employer owns the technology and get the money. If things go south, you're possibly out of a job.

This assumes an understanding of the ratio of financial reward : work involved.

Answer 2

I've got experience with both and I would say it depends on a few factors. For me personally, my drive is technical, I enjoy programming and I enjoy relating to other programmers. My wife now handles the day to day affairs of my company (thank the lord). I personally can't stand being bogged down with finance, accounting, payroll, taxes, legalities and other such rubbish - it is all very necessary for a company to function but unless you've got someone to handle this all for you it's very easy for it to become a full time job which stops you doing what you really wanted to by going out on your own in the first place.

If you've got someone that knows their stuff when it comes to business and is going in on this with you, or even if this is you and that's what your ambition leans towards, great, go it alone. If you're technical and don't want to become bogged down with all the business aspects of your business and want to remain technical I have two suggestions:

• Go it alone, but get someone good to handle your business and legal affairs to leave you to do what you're good at and aspire towards - and it sounds like that is development.
• Stick inside a company that handles all the business end for you.

Running your own company is a lot of hard work that won't necessarily be as lucrative as you might hope to start with, there will likely be many unpaid hours at first as you get set up. However, watching your baby grow and develop is the most satisfying and fulfilling experience you could ask for and will likely be a lot more profitable for you in the long run as much more of the profit from your hard work will come your way. It also opens many more doors as far as licensing your software and possibilities for multiple income streams are as endless as your imagination.

Answer 3

If you want more of the risk, and more of the reward, it's option 1. If you want less of the risk, and less of the reward, option 2.

Running your own company becomes a journey of building a relationship with failure. Business owners deal with their own shortcomings constantly. They were experts, not always managers or entrepreneurs.

You will end up spending as much time learning about yourself, and business as you have with coding. Often this learning will be reactive. That will teach you to learn pro-actively. It's very rewarding.

The quicker you can get to making the mistakes and learning from them and not getting hung up on yourself, the better you will get through learning what you need to learn about business. You will be able to apply the problem solving of coding to life.

Business will make you face most of your own personal Achilles heels'. Its a high investment and high return department in that reward if you can get and stay committed to yourself. You're basically re-factoring yourself for business. That being said, it's doable, as long as you remain an innocent beginner always learning.

Last, but not least, you will own a business the day it runs with out you. Until then you will own a job that will get harder and harder to quit (due to investment, etc) until then. It has it's great points, and tough points. I haven't looked back in 10 years.

Take the leap. It's good to be aware of what you'll face so you can overcome it.

Answer 4

well i think software company providies lots of services so thats means need experianced programmers http://www.synicsoft.com