5 Elements of Successful Software Companies
Figuring out how to effectively scale a software business is often best reflected by taking a walk through the graveyard of failed attempts of companies similar to yours. Those big ideas and the software solutions that vendors attempted to bring to the market have just as much of an impact on scale as the steps of their leaders that these failed companies took or didn’t take to execute their vision. Businesses can no longer survive with their software operating in a silo.
They need their business systems to communicate with other platforms across the enterprise so it can deliver meaningful insights and data to a variety of stakeholders. Scalability is the key to the financial success and long-term viability of any software organization. Here’s why: you incur heavy upfront investment costs as you formulate and develop your initial solution. Then, in theory, you replicate that product over and over again with high margins and without hiring huge teams. But actually delivering on the promise of finding gold through scalability is what defines the strong from the weak. Leveraging the 80/20 rule of efficiency is absolutely critical. To uncover blind spots, take a hard look at these five fundamental questions:
- What functions should be sourced outside of the organization?
- Who is on your team?
- How efficiently does the company operate?
- Why are deals lost or won?
- How likely is it that your customers will recommend your solution?
Incredible profits, going public, being acquired or accomplishing world domination is the fuel that keeps thousands of software industry executives working as sleep-deprived maniacs. And yet each and every year, thousands of these software companies fail to grow or worse, fail altogether. That’s why the answers to these questions are so fundamental