The process of starting a technology business

Question

I am employed in a fairly secure job currently. I am interested in the area of entreprenuership in technology. I would like to use my spare time to build a business. I have already incorporated a company but haven't had a chance to work on developing it.

Eventually, I would like to create a software product and although I have a few ideas, I would want to initially get started in providing consulting services which will help me get a feel of how things would go before spending time and effort on a product.

Since it takes time to build the company's reputation, I would like to do this in my spare time. Someone suggested that the most efficient way of marketing consulting services is to get noticed in the technology field. Some of the ways I want to go about doing this is by:

• Starting a tech blog
• Writing articles in tech journals
• Attending user groups/seminars to build contacts

Ideally, I would want to associate my name with my company when I write blogs/articles. However, I would rather not have my employer/coworkers know about this until I am ready to quit. Any thoughts on how I would go about this?

My 2nd question is about my approach. I want to test the waters before plunging into them. So the plan is:

• Work part time in building the reputation of the business while working full time to pay my bills
• Once I have enough clients, quit my day job and start working for self full time
• While working on different projects, hopefully gather enough ideas to build a product
• Eventually, in the long run, focus on the product and gradually reduce providing services

Does anyone have any suggestions/comments on my thoughts or any general advice for a first timer?

EDIT:

Thanks for the responses. Can someone give some suggestions on the specific questions that I have:

• How would I build reputation without associating myself with my company
• Would my approach of testing the waters and taking one step at a time practically possible?

Answer 1

First thought: read all the articles on http://www.joelonsoftware.com/ lots of better advice there than I can give on the topic.

Ron

Answer 2

Get involved in or start an open-source project. This will gain you cred and notoriety. Much easier to land consulting work if your name is on something that thousands of programmers or users .. use.

Answer 3

Hi Dave,

I was in the same boat with you... however, I took the chance after it was offered, and jumped ship, and am working on my own for about 2 years now... I've built a pretty decent contact basis that work flows in enough to keep my bills paid, but nothing substantial.

Where I'm at now, I expect the possibility of being to make this year the first real profitable year in the business. Getting ready to aquire a hosted wintel box to hold a few sites, and hopefully, that will start income flowing regularly.

What do I do... whatever I can get my hands on to do that pays. Most of it is Add-in/Add-on development for Point of Sale systems. One of them being a Retail package, and the other being a restaurant package.

What I could give in advice for you... if you are genuinely serious, figure out your gameplan on how you plan on existing, build up your cache of expendable funds, and go head-first into the idea. Get networking (heard of LinkedIn?) If not, by all means get on there, and get cracking. As you meet new people, get 'em on the list. Heard of a possible subcontracting job, then go after it. Build the relationship with the person the Job is for, and the person offering it. Take any advice anyone gives you with about 10lbs of salt, since they probably don't follow through with their advice. Their advice is the one thing that they pretty much suck at. I've proven it about 30 times in 2 years. My first two accountants were the first ones that showed me that... the hard way. :)

All in all, it's better to Jump in and get going... like ripping off the band-aid.

My fear is that you are, for a lack of a better way of stating it... pussy-footing around it, which I will say... I think you will wind up failing. If you're not 100% sure you are ready to do it, then DO NOT START.... again DO NOT START. If you show the slightest amount of doubt in what you are about to embark on, then you won't succeed. I've seen too many friends talk a great talk, but had a doubt, and they lost the drive to work.

Answer 4

Q1: How to build your reputation?

You listed three great actions, but I would assign these prioirites:

1) Attending user groups/seminars to build contacts ... become an avid and active networker, learn how to schmooze if you don't know how, and if you do, find out how to get better. I recommend reading The Tipping Point by Malcolm Gladwell to really understand how this can help.

2) Start a tech blog ... great!

3) Writing articles in tech journals ... if this is open to you, by all means.

... and add these actions too!

4) Use Twitter, Linked In and Facebook effectively for increasing your personal brand. Use Facebook for personal contacts, and Linked In for business. Both help build a personal brand and develop business prospects.

Q2: How to test the waters whilst still working?

If you meet someone who you feel can really benefit from your advice, and you feel the makings of a good relationship, then over invest in that person. Help them to the point where they become a promoter for you. Even better if this person is influential or is one of those people who "knows everyone". This first or first few engagements may be gratis, but make sure they understand you are "more fully available" for a price!

But like all good salesmen, you first need to get out there and find some leads. So get networking and never turn down a coffee with someone. Remember, email is easy and not very effective - the phone is your friend!

Parting Advice

One more thing, avoid falling into the trap of owning a "job" instead of owning a business. I think one of the authors above identified himself as being in this situation, and it is very very common. But not ideal.

I recommend reading the eMyth Revisited by Michael E. Gerber. It goes into detail about how to avoid making key mistakes. It was invaluable for giving me perspective on where I wanted to be.

It is one of the best small business books, and is an easy read. As coders, we read tech docs all the time, but many of us never make time to learn how "that other machine", our business, actually works!

Good luck!