How to Start a Business: A Guide to Starting a Software House

This article provides a guide to starting a software house, including how to choose a business idea, conduct market research, and create a roadmap. It also discusses the expected costs of starting a business and possible backups. The article is relevant to students studying business, entrepreneurship, and computer science.

Name: Kamlesh kumar Section: BSCS-10C
CMS: 348395
Submitted to : Sir
Muhammad Yousaf
OOP ASSIGNMENT -2
Kamlesh kumar

TOPIC : How to start any business
Prior to start a business One(Entrepreneur) should decide what to produce or
which services he/she should sell. One must do market research, which will tell
him/her if there’s an opportunity to turn his/her idea into a successful business. It is
always necessary to gather information about potential customers and businesses
already operating in your area. Use that information to find a competitive advantage
for your business. If he think his business can deliver something other companies
don't (or deliver the same thing, only faster and cheaper),
After that Entrepreneur must need to answer the question ‘Why’?: “Why to
start this particular business” In the words of Simon Sinek, 'always start with
why,' It is good to know why you are launching your business. it is always wise to
differentiate between whether your business serves a few persons or a marketplace .
When your ‘why’ is focused on meeting a need in the marketplace, the scope of your
business will always be larger than a business that is designed to serve a personal
need."
Once the Entrepreneur find the room for his idea in the market and he/she
has addressed the question “Why to start this particular business”, Now he is
ready to bring his business idea on real ground or market.
Next step before starting real working Entrepreneur should make a Brainstorm
plan Or road map : Roadmap or Plan which one of the most important thing that all
the successful companies use to design in advance for the next 5-10 years, An
startup should also have a business plan or brainstorming a business name before
nailing down the idea's value.
1. What to produce :
Here I describe my decision process to
choose to open an “Software House”, As
described above in 1st point that before
choosing a business idea we must, consider
the market need for that idea, gather
information about businesses already operating in that area, So as ever growing need
of software, cross-platform applications and websites, this industry has larger scope
than any other industry, It was nearly USD 388.98 billion industry in 2020. Therefore
there is always a need of a promising Software solution in the market. Another
important feature about this business is that we need not to worry a lot about not

having local customers. Because in this age of internet, there are already million of
customers and projects online. This is also the answer for the question “Why to start
this particular business”. All we need is to pick is a project and start building
networks.
The second thing describe above to start business was whether your business
serves a few persons or a marketplace ? So the software house can directly focus
on the marketplace instead of fulfilling a person or certain limited customers.
Another important thing which every entrepreneur demand is Low-financial risk .
If you do not want to invest lot of initial capital then you can start, alone with renting a
place, without hiring people. alone in a single room, And after getting some projects
you can hire some more people and expand (One live example is Elon Musk, who
started within a room and all alone but he is star and roll model of current times).
2. How to produce :
Objective (what to achieve): Is to start with freelancing and end building a
software house such that it become a brand, which can be franchised afterward.
Business name and startup Logo :
As we know name of company must reflect one’s brand and captures
business spirit. One should also make sure that business name has not already being
used by someone else. Let’s start the software house with name “Angel-soft
solutions”, and make the logo first.
**(NOTE : all resources like natural resources, physical resources, human resources
and organization are being discussed in the following road-map)
My Brainstorm strategy Or road map :
One of the major challenge for software-house is that initially due to
competition, it is a little harder to get projects, therefore it not sense able to hire a big
team and rent a working place, So my road-map is to start with freelancing field or
getting some projects companies and organization, may be local or international. After
getting some network in the market and confirm projects, I can make sure to generate
the initial revenues so that I can pay a team , I will start hiring employees online and
Once I get start getting some regular customers, who provide project to my company,
in all season. Before turning into an office, I will start marketing my company on social

media and other platforms as much as possible. Because marketing is the only thing
which can attract the potential customers and turn businesses into brands. This road-
map Up till now, will take a time of 1 year and I will be mentally prepare that I will
make no money or assets in the 1st year of startup, Now at this stage what I have
made is a brand “Angel-soft solutions” , a team of employee, and customer network.
Now I can move toward an Office. I can rent a place to work on (The land required will
depend on the number of employee and the position of the company at that time And
it can be rented easily as it please to our demand). Here I need a capital of nearly 2
Million approximately for buying and computer Systems, furnishing infrastructure,
Networking raw-material, etc. which I would prefer to self-finance instead of running
into debits or offering companies shares to the investors. Here by I own a Software
House. From now I have a responsibility of a team and office which increase a lot of
expenses, So for that I have formulated these three modules :
1. Drop shipping like module: What we will do is that since we have network in the
market, we will take the additional projects which we will be giving to other
freelancers and keep commission margin on these products. (This will be an
additional source of income without any investment)
2. After few years (Nearly in 4th year), we will be stable and since we own a brand,
we will introduce a franchises system, which can be bought by the people doing
the same work, but do not have brand name.
3. We can Work on building our own products parallel with the customer projects,
which in the end or in the time of crisis, can be a very big assets for the
Entrepreneur. (As many of the Software house have made the history with their
side-products).
So this is the 4 years road-map for “how to produce or build” software-house.
And after that comes the company registration and other legal processes as well.
Possible Backups :
1. During the days of establishing a team, One problem which can arise is,
communication barriers over online system, For this I will keep a backup
option of Incubation centers which are very cost effective, provide all the
necessary requirements. And these expenses will be full field with self-
finance plus incomes from customer projects.
2. At the stage when I am turning toward an Office there I need to keep some
money for backup to meet the office expenses and to pay the employee
salary for at least 4 months. In case if we don not get revenues for some

reason (As an example of such crisis could be like Covid pandemic situation
Or like that)
3. What will be the expected Cost of your business for one year.
Since I have explained in the above business plan, that I will be starting from
freelancing and end building a software house such that it become a brand, which a
franchised afterward. According to my road-map In the initial months of startup I will
be bringing project from internet and companies and completing them for very low
prices in order to make them regular customers, who provide project to my company,
in all season. After next few months I will be hiring a team online according to the
need of project and they will be paid from the income of project. ( In case of backup
no 1 if I need to shift them on incubation centers then these expenses will be full field
with self-finance plus incomes from customer projects). Until the 1st year my startup
will be a non-profitable according to the plan and it will work only for marketing itself to
turn into a brand. After 1st year, while shifting for office we will need approximately 2
Million rupees for buying equipment, furnishing office, electricity and power backups
etc. which will be self-financed. At the same time an additional backup amount of 12
Million will be required to meet the office expenses and to pay the employee salary for
at least 4 months, In case if we do not get revenues for some reason, as discussed
above in backups, we need to get financed from Investors by making them share-
holders or from angel-investor(taking money on debit). In the start of 1st year after
setting the office the yearly expenses will be (3*12) = 36 lacs per year. Which will be
increased because of the way we have planned to expand the business.
THE END