Encouraging Growth in a Software Company?

entrepreneurial asks: "I'm putting together a business plan with a few partners to start producing software for fun & profit. We have a decent early product, several interested clients and enough talent to get things started. The problem gnawing on my mind, however, is how to grow it? I can see us reaching a point in the not so distant future where four or five guys just aren't enough and we have to start bringing in more people. I've worked in massive, faceless bureaucracy and a couple of smaller, mature companies that had already reached the top of the growth curve, so I've never been there. Can anyone out there share some advice, war stories or resources to help?"

Comments

Before you worry about growth...

[Agar]

...worry about the stability of the team you currently have. Any friction or personality conflicts will be exascerbated by both success and failure, potentially tearing apart your core group before you really reach growth phase.

Make sure you have clear roles (who really is in charge?), ramifications for non-performance, and -- I can't stress this enough -- written agreements on company ownership and compensation, vetted by an attorney and signed by all parties.

If your core group includes personal friends, these issues get even tougher because of the emotional baggage and existing interpersonal dynamics.

Beyond those points, my advice towards successful growth would be to think in terms of roles and responsibilities. Fill the roles with people that can perform the jobs the best. Management by concensus does not work in a fast-moving industry.

Cart before horse

[DrSkwid]

Statistically your company, like hundreds of others, is doomed to fail.

You need to work out how you are going to survive before you work out how to grow.

Technical skill is not enough, you need people for support, sales, accounting and other admin.

Try not to borrow money, surviving without debt is a great lesson.

If you are the leader, be ready to give up the reigns when necessary, you won't need to micro-manage everything and one day even your presence might be a liability.