A guide for software developers on how to become a freelancer and start your own business (Part 2)

This article is an adapted translation (condensed) of a chapter from the book The Complete Software Career Guide. Its author, John Sonmez, writes it and posts some chapters on his website A guide for software developers on how to become a freelancer and start your own business (Part 1)

Start your own business

Nowadays, software development is one of the most profitable occupations . Software companies deliver a product that has essentially no additional cost beyond the initial cost of creating it, and the cost is greatly reduced if you can develop it yourself. Let's move away from freelancing to the general idea of ​​starting a business. Starting a business is easy; you simply announce “I am open for cooperation!” and that’s it, you’re in business... Just kidding, it’s not that simple. There are legal issues that need to be sorted out depending on where you live, but overall there is nothing too complicated. It is not easy to create a profitable business, maintain and provide everything that is associated with its successful management. Since you are a software developer, it is easier for you than many others to become an entrepreneur and start your own business. You can write code as a freelancer, and at the same time work on a startup, developing an application or service that you will sell. Or you can do what I do: develop some content and share your knowledge. And here are some tips for starting a business.

1. Don't try everything at once: Most startups fail.

Many inexperienced business owners spend a lot of time setting up a legal entity, creating the perfect logo, setting up accounting software and a bunch of other unnecessary things instead of actually running the business. They no longer have enough time for the most important things. Obvious advice: don't do this. Imagine that the business could fail, and then think about the minimum amount of work and effort that can be put in at the start. I’m not a lawyer and this may not be legitimate advice, so don’t sue me if you do, but my layman’s opinion on this matter is the following: you shouldn’t waste time on registering a legal entity, accounting and everything else that can be associated with a new business until you start making real money and are confident that in a year your business will still exist successfully. By doing this, you will direct your main efforts at the first stage to what is really important and increase the chances of success of your business. Well, if the business fails, you minimize time and costs. I do not encourage you to be careless and never resolve these important issues . Incorrect accounting organization and omission of legal aspects can end very badly for you, but until you are confident in the future of your business, do not invest money in all this. Once your business starts making money, all these issues will be solved much easier: you can hire professionals instead of trying to do everything yourself.

2. Don't quit your job

Many who want to become entrepreneurs make a huge mistake. They try to save more money, quit their regular jobs and open their own business. This sounds good, but in reality it often ends in failure. Given that this is your first experience , you will most likely spend hours sitting at Starbucks over a cup of coffee and indulging in thoughts before actually taking action. In addition, when you move away from the usual eight-hour workday, as I wrote above, you risk not being able to cope with freedom. Believe me, this happened to me twice. My advice is don’t quit your regular job, at least not at the start. Instead, start developing your project as a side business. And think again about what it’s like to be an entrepreneur. This means full time work during the day, plus 4-6 hours on top of that, oh yeah... also weekend work. Believe me, if you are not willing to sacrifice your nights and weekends for work, you will not succeed. This means you are simply not an entrepreneur. It's better to decide now, while you have a "money" job and haven't borrowed money from your family and friends or mortgaged your house a second time. I'm not saying this because I'm evil. I just know from my own experience how difficult it all is and that it’s better to be prepared for it. I failed twice because I couldn't handle myself. And both times I left work, which resulted in problems. So, my advice to you is to start a project as a side business. It may take you a couple of years or even more, working two jobs. But in a sense, your side business can generate so much income that it becomes your full-time job. Notice I didn't say it would completely replace your income ; that's unlikely to happen with a business you don't work full-time on. You can quit when your side income is enough to live on, which will most likely be less than what you earned working full time.

3. Find your audience first

Before you start creating a product, charging a fee, or looking for clients, decide on your audience. You could argue that there are many very successful companies that created their product first and then found their audience, but I believe it is much easier to do the opposite. Let's say a startup has created a great product - great software that's great at solving someone's problems. How to find this “someone” and convince him to buy? Typically, such a startup starts spending money on marketing to sell its product, advertises it to others in every possible way, and does everything in its power to find customers. But often they simply run out of money and fail despite having a great product. It's difficult to get someone to buy something from you without establishing a relationship. Consider an alternative. At Simple Programmer, I have a fairly large target audience of software developers. As I write this book, I have about 70,000 software developers on my email list, another 100,000 subscribed to my YouTube channel, and another 30,000 to 50,000 visitors to my websites or channels daily. If I decide to create a new product, I have hundreds, if not thousands, who are ready to buy it immediately. I don't have to search for clients. I have a target audience that trusts me because I have established contact with them. They want me to create a product that they will buy. This makes the sales process much easier. I also know what my audience wants and likes, which is another huge advantage. Plus, I can make and sell different products to my audience instead of having to start over every time I create something new. Imagine this book (the article from which you are now reading, editor's note): if you bought it, why did you do it? This may well have come from watching my Youtube videos, reading my blog, listening to podcasts, or even reading my previous book. Yes, it takes a lot of effort and time, and you won't make much money while you're building your audience. And one more thing - you need to create a large amount of free content. But once you've built your target audience, you have a business that doesn't depend on any one specific product, even one you might use for the rest of your life.

4. Learn to sell

I don’t know a single successful entrepreneur who would not be a good “salesman.” In fact, even if you never decide to open your own business and become an entrepreneur, weak sales skills will prevent you from achieving success in principle. We are always selling. Everyone sells. Only some are good at it, and some are not very good at it. Whether it's trying to convince your kids to go to bed without a fight, or your boss to give you a promotion, convincing your colleagues that your way of working is the most effective - you are selling something . Yourself, your ideas, your peace of mind... And if you are an entrepreneur, also your product. Although, some believe that the main product of any entrepreneur is himself and his vision of the world. Selling means facing rejection. But you have to do it, especially if you want to start your own business. So, as they say, “wipe your snot and move on, whiner.” Fortunately, you can learn how to sell . There is a lot of literature on this topic. I would recommend any of Grant Cordon's books, especially Sell or Be Sold to You. You should also study books on copywriting, because selling online is actually copywriting. And the only sure way to become a great salesperson is to simply do it. I can recommend finding a job for a few hours a day in telephone sales or direct door-to-door sales. Let money not be the main thing for you, gain real experience in direct sales, facing refusals head-on. Whatever you do, don't neglect the opportunity to hone this skill. If you are running a business, you cannot outsource your sales. You can hire professionals, a sales team, but first you yourself must become an excellent salesperson.

4. Accept help

Simple Programmer wouldn't exist if it weren't for Josh Earl, Darick Bailey, and Charles Max Wood. These guys are also known as the Enterprogrammers . They are part of an initiative group I created several years ago that has turned into a weekly video podcast. What is an initiative group? Essentially, it is a group of people with different skills and experience in different areas, but these people are like-minded in achieving their goals, meeting regularly to help each other succeed. Being an entrepreneur is hard. As the old man from the Zelda game said: “It’s dangerous to go alone!” Having support is critical. This doesn't mean you have to have a support group like I do, but you definitely have to have someone. Someone who will support and encourage you because there will be many times when you just want to give up. Like I said, these guys saved my business because without them, not only would I have given up, but I wouldn't have had that mutually beneficial exchange of ideas that was critical to Simple Programmer. The life of an entrepreneur is a roller coaster. Today you are at the top, and tomorrow at the bottom. Make sure you have a support group to help you cope with these circumstances.

It's difficult, but it's worth it

I know this chapter has given you a scary picture of what it's like to be an entrepreneur and start a business. I did this on purpose. I want you to understand that sometimes it will be very difficult, and so that you are not unpleasantly surprised when something goes wrong. Every morning I wake up and decide what I will do today. Yes, I have a schedule. Yes, I do routine things, and I also have responsibilities. But I chose them myself and decided what they should be. In fact, I am the master of my life, and this feeling is wonderful! I decide how much money I make. I go on a trip to Europe with my family for three months and continue to earn money during this time, I have the opportunity to work. Most importantly, I know that I created something meaningful, something that benefits others. Although this path is difficult, if you dare, I invite you to join me on this exciting journey.