What I've learned from creating software companies

1/20/2023 By Brandon Mitchell

Preface: I am only 24. I usually hear good startups are founded by folks when they're in their 30s or 40s, as they have had a range of experiences (both successful and unsuccessful). I have created a few different companies focused on software -- whether that be a product or a service. I am still young and I am still heavily inclined to continue learning, but I do hope my young-minded thoughts and concepts can unlock the barrier of entry for other folks. Keep in mind all of these are technically side businesses, as I've either had a full time job or attending university.

Intro

I have created 3 companies within the last 3-4 years (2 formal LLCs, 1 individual freelance work which I consider to be somewhat of a company). My first company was called Strike Robotics, which was an automated checkout app (desktop) to help users checkout highly sought after items. At our peak, we reached > hundreds of thousands of items purchased through our system, generating close to 100k in profit for our users. For those that don't know, I am talking peak COVID-19, when resellers were overpricing all things they could get their hands on - PS5s, Yeezys, Jordans, home gyms, etc. We supported over 30 sites (walmart, footlocker, yeezysupply, amazon, etc) to automate the monitoring / checkout process in under a few seconds. We were not the only ones doing this, many other folks ran similar companies, which lead to a constant battle between who had the most consistent and fasted bot, as well as others having insane bypasses to allow them to take all stock for a given release. This was a fun time. We onboarded a wizard developer who was amazing, allow a bit pricey. As the market tanked for resell-able items, so did our user base. Losing users = losing profit. We went through a phase where I was not paid for my work (I am talking about 10-30 hours of my time per week) for about 6 months. In fact, because all of the bypasses and third-party services we needed to buy, I didn't really make much at all. Because we supported so many sites, we had constant battles with updated security and trying to improve our speeds of our tasks. Updated security from a site could range from an additional cookie generated before checkout to a whole new anti-bot system -- both not very quick to find solutions for. So I had no pay, continual security updates, and complaining users, which eventually lead to the (mutual, I had an amazing co-founder) dissolvement of our company.

As of 2022, I have established a limited liability company for software consulting, focused on the home services industry. Despite still being in the early stages of development, I am confident in the potential impact this company can have on our clients, and am fully committed to its success. Currently, we have only one client, but they have been a valuable asset to our growth and development. Their business is well-established in the home services industry, but they were utilizing a multitude of services for various tasks, such as invoicing, accounting, time tracking, and inventory management. Recognizing this, we decided to create an all-in-one tool for them, streamlining their processes and eliminating the need for multiple services. Our goal is to continue seeking out similar clients or introducing new technologies to existing clients, with the aim of automating their processes and increasing efficiency.

Learning #1: The importance of having a clear vision

Having a clear vision is important for creators of small businesses within technology because it helps to define the direction and purpose of the company, and serves as a guide for decision-making and goal-setting. A clear vision allows entrepreneurs to stay focused on their ultimate goal, even when faced with obstacles or challenges. It also helps to communicate the company's mission and values to employees, investors, and customers, which can increase buy-in and support. The instability of my first company lead to the eventual failure of it. My second company has learned without a vision, we have nothing to develop for.

Additionally, having a clear vision can also help to attract and retain top talent, as it provides employees with a sense of purpose and direction, and allows them to understand how their work fits into the larger picture. It also helps to identify potential opportunities for growth and expansion, and can inform the development of new products or services.

Learning #2: The importance of choosing the right people

Choosing the right people is important for creators within technology because a strong team is essential for the success of a small business. The right team members can bring a wide range of skills, experiences, and perspectives to the table, which can help to drive innovation, improve efficiency, and increase productivity. My first company, I had a 16 year old co-founder. Dude was amazing. He had never really programmed before, but his drive to make an amazing product motivated me to continue working with him. Our dev-hire was also amazing, and very motivated. His background was heavily in CS and he simplified so much of our processes, establishing good code standards and making it much easier to build on top of. My second company also has amazing co-founders. My friend who develops with me does not have a background in CS either, yet he continually grinds to ensure things are done and done well.

Having the right people in place can also help to foster a positive and supportive work culture, which can improve employee morale and retention. Additionally, having a team with diverse backgrounds and experiences can also help to better understand and serve the needs of a diverse customer base.

Learning #3: The importance of learning how to pivot

In the world of technology, the pace of change is extremely fast, and new technologies and trends can quickly disrupt traditional business models. Being able to pivot and adapt to these changes is crucial for small businesses to remain competitive and stay relevant in the market. Whether it be the tech stack you are using becomes outdated, or your customer prioritizes something else, it is crucial to respond accordingly and thoughtfully. Sometimes the customer doesn't see the vision of the developers, sometimes its the other way around, and it is critical that you learn how to handle both scenarios.

Learning #4: The importance of putting the customer first

Learning to put the customer first is important for creators of small businesses within technology because it helps to ensure that the products or services they are offering are meeting the needs and wants of their target market. By putting the customer first, small business owners can develop a deep understanding of their customers' pain points and challenges, and design solutions that address those needs. This can lead to increased customer satisfaction and loyalty, which can be crucial for the long-term success of a small business.

Putting the customer first can also help small business owners to identify new opportunities for growth and expansion. By listening to customer feedback and understanding their needs, small business owners can identify new products or services that could be developed or new markets that could be entered.

Learning #5: The importance of staying persistent

There will be obstacles and setbacks while creating and building a company, and it's important to have the perseverance to overcome them. Persistence allows small business owners to stay focused on their goals and not give up when faced with challenges. This can be particularly important in the technology industry, where new products and services are constantly being developed and competition is fierce. Competition often does one of two things -- it makes you stronger, or it destroys you. Learning how to stay persistent can build strength in your company. That being said, it is not always easy.

As I've learned from my first company, the more persistent you are, the happier your customers are and the more you are able to bring in (usually word of mouth). Also, if you product isn't behaving as expected but customers see your dedication, they establish trust and are more willing to continue to support as they anticipate beneficial updates.

Conclusion

In conclusion, as a young entrepreneur in the technology industry, I have learned valuable lessons through my experiences creating small software companies. The importance of having a clear vision, learning to adapt and pivot, choosing the right people, putting the customer first, and being persistent have all been crucial in my journey. These lessons have allowed me to stay focused on my goals, understand and serve the needs of my customers, and build a strong and dedicated team. I hope that my young-minded thoughts and concepts can inspire other young entrepreneurs to take the leap and pursue their own business ventures. It's not easy, but it's definitely worth it. It's important to have a clear vision and know what you want to achieve, be open to change and adaptability, have a strong team, stay persistent even in the face of obstacles and challenges and always put the customer first. These are the lessons that I've learned so far and I will continue learning as I move forward. I will keep working on my current company and I'm looking forward to see where it takes me.