The Focus of Software Development Companies

riverdusty

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For Discussion.
I've noted a lot of software development companies don't usually last long because its a very difficult market to make money in. How do you design, develop or deliver a new product that may already have competition or an opensource alternative?
In cases where the Software Dev Company succeeds in becoming a profitable company, the company has been forced to change its focus and become not just a development company, but delve into different areas such as support, consulting, training, etc.
I work in just such a company and we are currently developing a new software package. The package is pretty much unique in what it does and the way it does things.
The company is currently not making money when the people are focusing on the development of the new product, so in order to keep the company afloat, we have to continue with consulting and training offerings (as you've seen in other threads here).
So, the question is, should a software dev company attempt to keep its focus on development or does the reality of the market mean that software dev companies have to have more than one focus?
 
Well, I also run a small software dev company, except we specialize in Web Applications. We have found that there is a market for it, but its always a matter of getting your name out there.
We do find though that while working on a new project it is difficult to keep us afloat, and we find that we do have to offer things like training and support, mostly chargeable. It isn't our primary focus, but what keeps money ticking in while we wait for project completion.
So yes, I don't think that a pure software development company can do just that. Its a matter of time. If it take 3 months to do a project, we need to make sure that the cost of the salary of the developer(s) working on that project are paid for somehow as no client is going to pay for project upfront, and also, they are not going to pay a developers full salary for 3 months, if they did that, they wouldn't need to hire us :-)
 
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