Draconis Software Blog

5 Ways Consulting Can Help Your Software Startup

While still focusing on developing and selling RSP, Draconis has also been offering consulting services for some time now. It might still be more common for consulting companies to branch into the software market, but it’s becoming increasingly common for things to happen the other way around, as it did for us.

A lot of the time doing contract work on the side can be very easy for startups. Many may already have relationships with companies who need work, which simplifies what can be the most difficult part of consulting: finding jobs. Even without an network to work from, the software startup already has personnel, a set of marketable skills, and an LLC or similar corporate entity.

Let’s look at some of the benefits consulting provides:

1. Consulting brings in money when you need it most.

Startups can always use more money. This can be particularly true during initial development, when it’s likely there’s no money coming in at all. Having a steady stream of income can literally save new companies from going under. Consulting can often be pretty lucrative on its own, and while you can’t necessarily count on a job whenever you need one, it can be a lot more consistent than those early sales. Even when there is a temporary lull in work, there’s always plenty to be done in the startup itself.

2. Consulting gives you new customers.

While you certainly don’t want to start right in with a sales pitch as soon as you get a new job, you might be surprised how often clients end up becoming customers. A big reason companies avoid buying from a startups is the lack of a strong reputation. Once you’ve proven your trust by doing good work on a job, that reputation is already there. Forming a good relationship is a great way towards getting that next client.

3. Consulting helps you learn what your customers needs are.

During the trials and tribulations of forming a company, it can be easy to loose focus on what your target market wants. A brand new feature is no good if it’s not going to do something to help your customer. Consulting will give you a chance to see firsthand what a potential customer is going through, and will probably give you tons of ideas of how your software tool can help them.

4. Consulting teaches you new skills to help your business.

You can almost always learn something from seeing another company in action. This could be anything from how they pay their sales staff, to how they run their finances, to which kind of furniture they have in their lobby. Keep in mind that you might see just as many things not to do — but this can be just as helpful. There’s no better way to learn about the world of business than by seeing what makes real world companies work (or not work).

5. Consulting gives you a break from the routine of building a business.

Let’s face it; starting a business can be tedious. Don’t get me wrong, there’s often tons of excitement, but when you’re in the middle of writing a business plan, or working on that 10th white paper or piece of marketing material, you might feel like you need a breather. Rather than loosing focus on your company, consulting gives you a chance to do something different while still helping your company. You get to work on a variety of projects, meet new people, and of course the extra money doesn’t hurt either.