SPI 775: What You Need to Know Before Creating Software For Your Audience
Apr 10, 2024
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Dave Chesson and Bhanuka Harischandra from Surge Global join to discuss software development for entrepreneurs. They cover topics like assessing idea viability, hidden costs, attracting users, and collaboration with development teams. Learn insights on building efficient software, navigating partnerships, and the entrepreneurial journey into software creation.
Validate software idea by building an audience for product-market fit.
Leverage partnerships to share costs, risks, and tap into existing audiences.
Consider hidden costs of software development like third-party services and licensing technologies to avoid financial surprises.
Deep dives
Understanding Market Needs for Software Development
Identifying the importance of understanding market needs before developing software, the podcast discusses the significance of having a clear understanding of the problem the software aims to solve. Through examples of prior experiences, the speaker emphasizes the importance of building an audience to validate the software idea and reduce speculative risks. The Lean Product Playbook by Dan Olson is recommended as a resource for guiding entrepreneurs in defining their minimum viable product and navigating product-market fit.
Financial Considerations in Software Development Partnerships
Delving into the financial aspects of software development partnerships, the podcast highlights the value of building an audience prior to software creation to ensure product-market fit. Partnerships with individuals possessing a robust market presence are discussed, where equity stakes and cost coverage for software development are negotiated. The strategy of leveraging existing market audiences to enhance software success and explore partnerships to optimize resource allocation is presented.
Optimizing Software Development through Equity Agreements
Exploring strategies for optimizing software development through equity arrangements, the podcast showcases the benefits of partnerships to launch successful software products. By collaborating with individuals having established market credibility, equity agreements are utilized to share costs and risks. The podcast underscores the importance of leveraging existing audiences to validate software ideas and enhance market adoption, ultimately streamlining software development processes for increased success.
Understanding Hidden Costs in Developing Software
Developing software entails hidden costs that are often overlooked. The first hidden cost involves paying for third-party services like hosting, SSL certificates, and third-party tools and libraries. Additionally, licensing technologies can lead to unexpected costs based on usage. It is crucial to plan and understand these costs during the software's design phase to avoid financial surprises.
Challenges of Developing Software as a Business
Developing software is not just about creating a tool but also building a business. Time is a significant cost that is often underestimated; effective communication and continuous adaptation are essential. Technology and market changes require consistent innovation to remain competitive. Over-communicating with the team and stakeholders is crucial to align visions and ensure the product's success amid evolving market needs.
#775 Selling a piece of software you've created and grown can be a massive windfall. But where do you start if you have an idea for a tool or service but can't write any code? What do you need to know upfront, and what would working with a programmer or development team cost? In episode 772, I offered you a sneak peek at my newest software venture. Now, Dave Chesson and Bhanuka Harischandra of Surge Global are joining me to reveal even more about this project and process. Together with their incredible team in Sri Lanka, Dave and Bhanuka are helping me bring my vision to life. So, how do you decide if your idea is worth building and investing in? What are the hidden costs of developing and maintaining software? How do you build something that actually works and attracts users? Tune in to find out! Show notes and more at SmartPassiveIncome.com/session775.