I really want to quit my job...

[codingforfreedom]

Hello,

Some time ago I decided that I want to quit my job as software engineer and make my living on my own... it really sucks to work long days at the office with a pay that basically never makes me wealthy by any standard. So my plan is to make my living by running my own small software business and break free from losing >40 hours of my time each week.

I feel that I'm not the only software engineer (or expert at any other technical field of expertise) that feel the same, so I'd like to tell my story to others. Tell me what you think and also check out my recently started blog, Coding for freedom

The stuff on this website Personal Development for Smart People - Steve Pavlina has also been really helpful. Lots of articles that have helped me define what I really want of my life. It seems that getting started to run a profitable business involves huge amounts of work... (if you are reading this Steve, thanks for writing all those articles, they have really helped me build a motivation to go through all the work to make my dream come true.)

[ellie]

Well I am not a software developer but I am a web designer, and I'm doing a similar thing. Yes it is a lot of work, especially to get the momentum up of your idea, and get other people to embrace it online.

I would suggest reading and watching material on startup businesses, I have found it invaluable.

Will be interested in following your progression.

[jacare]

I'm also a software engineer, and have created a software company, 4.5 years old, and with about 5000 customers globally.

Here is my advice in a nutshell:

****Create a recurring revenue model. Make sure you build a business model that involves service contracts or subscription. If there is no recurring revenue model, don't build a software company, it is that simple.

There are 2 types of software companies that will succeed financially, and for the long haul
1) SAAS applications
2) Enterprise applications that go out at 100K or more, plus service contracts and upgrade fees

There you have it. Now do what you want or argue, but I've just given you the straight dope on software companies.

Plus, my preference is not to even think about Angel Investors, or Venture Capital. If your sales won't support a revenue model, injection of additional capital won't help. Use outside capital purely for expansion if you can't expand on current cashflow, or as a strategic partner for sale of company.

[SnerpGoodWord]

I'm not so sure I agree with jacare's list of what kind of businesses can be profitable, but I think he has hit on a key point for nearly any kind of start up - generate revenue right away, and expand using that revenue rather than investors. It's better down the road to own 100% of a $700,000 company than it is to own 5% of a $10 million company.

Recurring revenue is a good thing, but at the beginning trading some of your time for money may be sensible too. I would start your business by looking for one initial project/product that you KNOW will make enough money to cover your monthly costs with some padding. Until you have something in hand where you can be confident of that, you don't really have a business.

[trinaming]

Just my suggestion, I think you should consider twice before quiting your job as it is very risky to do so. However, starting own business is more challenging.

[codingforfreedom]

Thanks guys for your ideas.

I completely agree with you guys about the constant and recurring income idea. I'm trying to build my business based on software products, avoiding, if possible, contract development gigs that basically bring money in once, based on the amount of hours worked...

It seems that the most difficult thing in starting my business is to find customers and market need, writing software is not that hard. Also, after the >40 hours spent at my job each week, it takes so damn long to get my own stuff done, having just a few hours available each evening. I'd need to find something to focus and build business on, and I'm not good at that.

and trinaming, quitting my job is an option when i) my company gets, on average, enough cash each month to pay for my living ii) my company or myself has enough cash reserves to support developing and marketing stuff for a few months without any additional income.

[free spirit]

Originally Posted by codingforfreedom

Hello,


It seems that getting started to run a profitable business involves huge amounts of work...

It can be and setting realistic timescales is useful to keep you motivated. A support network of friends and family can be very useful. Do you have people around you who will help and support you?

Have you done any reading around setting up your own business?

What's your background - apart from the obvious!

[catalyst]

Congrats on the move - I hope it works out for you!

I am also in the IT industry (ERP), working for a consulting outfit. I would be considered highly paid by most standards, but I would really love the feeling of being out on my own.

So are you basically a one man shop (freelancing)? Or are you looking to be more than that?