How to Start a Software Company


The Tech industry is a successfully growing business field and launching the software company could be your lucky ticket to success. If you want to learn how to start a software company, then you’re at the right place and we’ll provide you a complete guideline.

Tech and IT industry is the world’s highest growth and profit-making business in the global market. It would keep on growing in the upcoming years. The emerging demand for the tech industry is attracting the attention of young entrepreneurs. They’re learning how to start a software company and jumping into this field of business. It’s an unsaturated market, but it doesn’t mean that it has an easy entry.

If you’re going to start a software company, it’s much more than just having a big creative idea. Of course, brainstorming and creative idea is a part of it. In fact, launching a software company you need to have a business mindset. A non-tech person could launch and run a tech software company if you understand the problem and you know how to sell the product solution in the market.

What is a Software Company? 

Before jumping into the discussion of how to start a software company, first of all, we should know what a software company really is. Anyways, a software company is a business that focuses on creating products/services by leveraging the latest technology. It often investigates in following areas like software as a service, open-source, system service, and programming.

Some of the main earning sources of software companies are software licensing, support service, maintenance, subscription, and others. They often use cloud technology for the transaction and to offer easy access. Zoom, Microsoft, Apple, Google, Facebook, and others are some of the top names in the IT industry. They faced a lot of ups and downs by becoming the world’s leading companies.

How to start a software company 

Various software companies offer different solutions, so there isn’t any single procedure for starting a software company that would work for all. If you’re launching a software company, then you have to use various techniques and use your own creativity relevant to your field and circumstances. some of the main steps of how to start a software company are as follows;

Diagnose a Problem 

All software companies and businesses offer some type of solution to the customers. For instance, the idea of Steve Job was to make computers affordable to ordinary people, so that they could buy them and use them in their houses. It opened the door for revolutionary discoveries. The competitive companies jumped in and they offered user-friendly operating systems. Apple still holds a pioneer place in the PC revolution and tech industry.

It was a brief historical background, but it doesn’t mean that you have to come up with the same new tech revolutionary idea and launch an entirely new tech industry. In fact, you have an opportunity to creatively use the current technology in new areas. For instance, AI (artificial intelligence) is a growing field with a lot of potentials; you could use it in e-commerce, or other areas.

Write a Business Plan

After diagnosing the problem and finalizing the product/service solution that you’re going to offer. Now, you should work on writing a business plan, it would amplify your success rate. It provides you a guideline in managing your business. Some of the main areas in the business plan are as follows;

Business Summary

It focuses on the company’s operations, employees, leadership detail, mission statement, and highlights other things.

Solution Description

This portion discusses the product/service solution details like customers’ benefits, product functionality, pricing, and other production and manufacturing details.

Target Market

Here you should define your target customer market by studying the industry trends and competitor analysis.

Marketing & Promotion

How the company is going to attract the target customer market and what marketing and promotional strategy it should use.


You should create an estimate that how much money you’re going to need in order to run various operations like marketing, manufacturing, product/service development, staffing, and etc.

Raising Funds for Solution 

After diagnosing the problem, finalizing the product/service solution, and writing a comprehensive business plan. Now, you should utilize the business plan in order to raise funds for your newly established software company.

If you require more money for your company than the credit limit of the bank, then you should raise funds through investors and investment companies. If you want immediate funds, then you should consider angel investors. However, the interesting thing about investors is that they provide you professional guidance along with their funds.

Recruiting People 

The people you hire would play a very important role in the success of your company. They would help you to lay a strong foundation for how your company would operate. Therefore, you should carefully choose your employees. While doing so, you should also consider other questions like how you’re going to recruit employees. You could also do freelancing and outsourcing.  


Creating an MVP (minimum viable product) would allow you to test your product/service and get real feedback from the customers. The initial version of the product would show you how the product would perform in the long term. It would introduce your product in the market.

Launching the Full-Scale Software Company 

If you’re establishing a software company on your own, then it could be very challenging and frustrating. Therefore, either you should find mentorship or you should surround yourself with those people who would compel you to bring out the best version of yourself.

Full Scale is also a software company that offers services to startups so that they could succeed. It provides their services like talent for a specific project (like QA specialists, project managers, programmers, etc), maintenance of the software business, improvement, and development. However, you could also start a full-scale software company.

Conclusion: How to start a software company 

After a careful study of how to start a software company, we’ve concluded that launching a software company isn’t as simple as many entrepreneurs think it is. If you’re determined, committed to the cause, use your creativity, and follow the abovementioned steps, then you could start a software company.

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