Seriously thinking of starting a software company — what did year one realistically look like for you?

My co-founder and I set out in early 2023 with a similar budget. Out of 14 proposals we sent that first year, only 4 turned into actual projects. We issued our first invoice in month 5, but because it had 60-day payment terms, the money didn't hit our account until month 7. If we hadn't had cash on the side, we would have had to shut down in month 6.

Line up at least one client before handing in your notice. And don't bother with an LLC-type setup; just start as a sole proprietorship. It's easy to close down, setup costs are low, and if you qualify for perks like the young entrepreneur exemption, your premium burden drops significantly.

Funding a SaaS with custom client work sounds great on paper but in practice it almost never works. Between client revisions never-ending calls, and urgent requests you won't find the time to write a single line of code for your own product.

selling was the hardest part for me in year one. i'd go to clients talking about how clean my code was, and all the guy cared about was how much money it was going to make him.. then it took me at least 6 months to switch from a developer mindset to a business mindset.

set a rule from day one: don't write a single line of code without a deposit. tbh a client that won't pay a 40 percent advance will never pay at delivery, pure experience talking.

Keep an eye on these 3 things when managing your first-year budget: 1) Keep your KDV and provisional tax funds in a separate account from your working capital. 2) Always include an hourly rate clause in your proposals for out-of-scope requests. 3) Never start work without a signed contract.

Your eight years of corporate background is your biggest asset. Your first clients will almost always be former colleagues, old bosses, or warm referrals from them. Don't burn any bridges before stepping away from that desk.

I'm curious too.

I didn't know that.

Thanks a lot, I'll try it today.

There is something to watch out for. Solutions that work at a small scale collapse when you grow; I learned this late.

There's a trap here, let me mention it. Extending terms makes customers happy but turns you into a financing institution.

Just leaving this note, it might be useful.

yes, that's exactly how it is with starting a software company and when making decisions write down the worst-case scenario too, not just the best.

if I were you Id go this route.

Following.

Let me share my experience. The moment you depend on a single client you no longer set the price.

Hasty decisions become decisions you have to fix six months later. That's all, sorry if I went on too long.

Thanks, that was the answer I was looking for. People defend habits, not processes. Resistance comes from there.

Mistaking revenue for cash is the most expensive illusion; trust the bank account. Good luck with that.

if I understood correctly, you're saying: Don't hesitate to ask; those who don't ask always pay more.

most time waste accumulates in tasks waiting for approval and btw hope this helps.

Just a heads-up. Don't hesitate to ask; those who don't ask always pay more.

Correct me if I'm wrong.