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Everyone these days is looking for new ways to harness technology to make the world a better place. Companies, for instance, are constantly searching for opportunities through which they could integrate technological and digital solutions to improve or optimize their business processes.
Although the landscape is wide open for new and promising software startups, the failure rate is high. An article from Forbes revealed that 90 percent of startup ventures are doomed to fail.
If you want to put up a software company and boost your chances of success, apply these five tips to create a successful business into this competitive industry:
Adhere to the “Keep It Simple” Rule
Developing a platform or software requires careful work. You want your development process to be on schedule and your code to be logically sound. What’s more, you want your user experience to be stellar. Regardless of how awesome your idea is, any inconvenience will prevent consumers from using your product. Long story short, you want your software to be easy for you, your team and your consumers to use.
As for user experience, you need to fully understand the users you’re specifically targeting. A few guide questions that you could consider are the following:
- Where will your consumers be using your digital product?
- When should your consumers use your web app?
- What should your users do while the software is running?
By creating a user experience that many will enjoy, your software can become a seamless part of your user’s everyday life.
Focus Your Attention on Value, Not Features
Building a program with features that you think users would like can be tempting. This approach, however, won’t work. Instead of assuming what people like, you should conduct user testing and extensive research. A good strategy is to come up with a prototype or a minimum viable product (MVP) that contains only the most valuable features. This will allow you to obtain feedback from actual users.
Whatever software you build, you have to keep in mind the value it delivers to your users. Your digital product should solve a problem and make the lives of people better or easier. Once your business has established a strong cash flow, you can add more features to your software.
Also, when you’re marketing your product, you should zero in on the benefits instead of boasting the features. Ask yourself why users should care and how each feature delivers value to consumers.
Test, Assess, and Improve Your Software Continually
The world is moving rapidly. Technology and the behavioral patterns of people change over time. As a budding software business owner, you cannot afford to stay complacent and take a break after rolling out your digital product. Always strive to improve the apps you release.
First, study how things around you are changing and find out how your software can respond to these changes. Then, come up with a schedule for software testing, metrics tracking, and improvement.
By performing these processes, you’ll know the existing features that don’t resonate with users, new features that people need and the functionality the app requires to keep up with the users’ environments.
What’s more, you can use the information you collect from these processes to refine your marketing strategy. You’ll know the elements that are vital for users and create a way to promote the value they’re obtaining from your software.
Keep a Close Eye on Your Dashboard
The organizational dashboard serves as the report card of your company. It details how your company is doing month over month. You gauge this performance using key performance indicators (KPIs). Some important measurements that you need to take note of include:
- Monthly Recurring Revenues (MRR)
- Customer Lifetime Value
- Churn Rate
- Customer Acquisition Cost Ratio
- Cash Flow
Make Your Digital Product Flexible
The software you should build must integrate easily with other platforms. Customers are likely to adopt your digital product for the long haul if they can integrate it with the other apps they use every day. Making your application programming interface (API) flexible can also allow you to create new streams of revenue.
Apply these five strategies when setting up your software startup to create a digital product that will make a difference in the lives of your target users. Do it right, and you’re bound to succeed in your endeavors.