Category Archives: microISV

Costa Rica Nikon 135

How to make difficult decisions

When you run a business (even a small business like mine) you have to make a lot of decisions. Many of these decisions are complicated and have to be taken with incomplete information. But you can’t take too long over them, or you will never get anything done. Here are 3 techniques I use to help with difficult decisions.

Break it down

This is a very simple method for breaking a difficult decision down into smaller parts using a spreadsheet.

  • Decide the criteria that are important for the decision. Add a row for each.
  • Add a weighting column. Assign each criteria a weighting in the range 1 to 10, depending on its relative importance to you.
  • Add a column for each option you are considering.
  • Set each criterion/option cell a value in the range 0 to 10, depending on the extent to which the choice for that column fulfils the criteria for that row.
  • Calculate the weighted sum for each column.
  • Choose the outcome with the highest weighted sum.

Here is an example for choosing between 3 different types of hosting:

making difficult decisions

It’s not particularly scientific, but it does force you to systematically break down the problem into smaller parts and justify your decision.

Take the long view

It sometimes helps to stand back and look at the bigger picture. I can think of no better way to do that than to ask a hypothetical (hopefully elderly) future me, lying on my deathbed, which option they approve of. For example, given the choice between adding an innovative new feature to my product or improving the conversion funnel by a few percent, I think future me would be happier that I chose to add the innovative new feature. It is also a useful reminder that many decisions probably aren’t all that important in the grand scheme of things.

Flip a coin

Sometimes you need to make a decision, but you don’t have enough information or the time taken to get that information is going to cost you more than making the wrong decision. In that case, don’t agonise over it. Just roll a dice or flip a coin and move on.

passive income

Software products are *not* passive income

Some people dream of creating a ‘passive’ income that generates money on auto-pilot while they go and learn tango in Argentina, or whatever their chosen path to the top of Maslow’s hierarchy is. In my experience, a software product is a long way from being a passive income. I know lots of people who own software product businesses. I don’t think any of them regard it as a passive income either.

While on holiday I’ve run my own business from a laptop in less than an hour per day. But the business would start to suffer if I did this for more than a few months. Even if you are not adding new features, software products require significant effort to maintain. Sales queries need answering, customers need support and bugs need fixing. New operating systems will often break things in otherwise stable products (particularly on Mac OS X). And there is always admin stuff to do: tax, accounts and a hundred other things. Marketing also requires ongoing effort, whether it be in the form of A/B testing, newsletters, SEO, PPC or blogging. If you aren’t continually improving your product and marketing, then harder working competitors are soon going to start eating your lunch. You can hire people to do the work for you. But then you have to train and manage those people. And the most capable people have a habit of going off to start their own companies.

There may be some products that can generate passive incomes. Perhaps ebooks, training videos and mobile apps. But I expect they still need significant amounts of ongoing marketing effort if they are going to earn more than pocket money. Remember – if it sounds too good to be true, it probably is…

software entrepreneur

Confessions of a bad software entrepreneur

If you read blogs and forums and go to conferences you will soon pick up that there are a number of recommended ‘best practices’ for being a successful software entrepreneur. I don’t conform to many of them:

SaaS product

No. Both my products are desktop based.

B2B market

Not really. Most of my customers are consumers.


No. I bootstrapped the business from my own savings.

Subscription model

No. My licences are a one-time fee.

Beautifully designed responsive website

No! converts well, but it is certainly not beautiful or responsive (a new website is on the way though).


No. Just me.


No. I have delegated bookkeeping to my lovely and talented wife (who also proof reads this blog) but I don’t have any employees or virtual assistant and do the vast majority of things myself, including all the marketing, sales, programming, documentation and customer support.

Drip email campaign

No. One day perhaps.


Not really. I like variety. I have 2 products under active development and also do some consulting and training.

Social media campaign

No. I have long since given up on Twitter and Facebook as marketing channels.

Mastermind group

No. I do talk with my peers in forums, at meetups and conferences, but not in any structured way.

Started young

No. I was pushing 40 when I started my entrepreneurial career.

Endless growth

No. I can’t really grow the business much more without taking on staff or becoming a workaholic. But I am happy just to maintain the current level of sales. [1]

Exit plan

No. I haven’t given it any real thought. I am quite happy doing what I’m doing.


My one-man software business has made me a nice living doing a job I enjoy for more than 10 years. So I guess I must be doing something right. There is no ‘one true way’ to be an entrepreneur. If you have a good product with good support and good marketing, most other things are optional.

[1] Added after suggestion by Tom Reader.

It’s great to be in the software products business

hard at work on my software businessThose of us who own software product businesses sometimes grumble about what a difficult business it is. Although its indoor work with no heavy lifting, it has it’s frustrations: software piracy, customers who moan about paying a whole $0.99 for thousands of hours of work, buggy third party software, RSI, chargebacks and the catastrophic consequence of accidentally offending the great god Google, to name but a few.

But reading Kitchen Confidential brought home to me just what a hard business it is to run a restaurant. You have to make a major financial outlay to fit out the restaurant and kitchen. You have rent and staff salaries to pay every month, regardless of whether customers come or not. Staff turnover is generally very high in the catering business, so you are continually having to hire new staff. You have to deal with drunken, unreasonable and dishonest customers. Possibly also drunken, unreasonable and dishonest staff, who have ready access to sharp knives and boiling liquids. Theft by staff can be a real problem. You have highly perishable stock. If you don’t order enough, you have to turn people away. If you order too much, you have to throw away the excess or risk poisoning your customers. You have endless deliveries from suppliers, which you have to check to ensure they are the correct amount and quality. You have to keep the restaurant clean. Extremely long hours are standard. Even if you are doing well, you can’t seat more people than the restaurant can physically hold. A restaurant that has to turn people away Fridays and Saturdays might be empty on Monday. And success brings its own problems as you can only increase the scale of the operation by expensive and disruptiveĀ  measures such as opening a new restaurant or moving venue. The relentless overheads of staff, rent and stock mean that cash flow is a huge issue. It’s no wonder that restaurants fail so frequently.

Running a software product business is pretty cushy by comparison. You can start your own software product business with just a PC and a generous dollop of time. Nearly all the issues related to manufacturing, suppliers, stock and shipping go away when you are dealing with electrons rather than atoms. If you do make a mistake, you can usually put it right just by making another release. The worst a disgruntled customer is likely to do is post a snarky comment on a forum or send you a nasty email. High margins and low overheads means that cash flow is much less of an issue than for most other businesses. Software businesses also scale much more easily than other businesses. You aren’t tied to a particular location and don’t even need to rent an office building (billion dollar company Automattic has a fully distributed workforce and no company office).

The software business is a great business to be in!


7 Reasons Software Developers Should Learn Marketing

1. Improved career prospects

The intersection of people with development skills and marketing skills is pretty small. Being in this intersection can only help your career prospects.

development marketing skillsAlso an in-depth understanding of software is very helpful when you are marketing software, compared to a marketer who doesn’t really understand software.

2. It’s not rocket science

The basics of marketing boil down to:

  • Find out what people want/need/will pay for.
  • Get peopleā€™s attention cost effectively.
  • Communicate what your product does.
  • Choose the right price.

None of these things are as simple as you might think, if you haven’t tried them. But its not rocket science to become competent at them. Hey, if the average marketing person can do it, how hard can it be? ;0)

3. Less reliance on marketing people

If you don’t have any marketing skills then you are completely reliant on your marketing people to do a good job at marketing the software you have poured your soul into. Are you comfortable with that? How do you even know if they’re doing a good job?

4. Number crunching

Developers tends to be well above average in their analytical and mathematical skills. Online marketing tools such as Analytics, AdWords and A/B testing generate vast amounts of data. Being good at crunching numbers is a big bonus for some aspects of marketing.

5. It’s interesting

When I started out as a professional developer some 30 ago, the thought of being involved in the sordid business of marketing would have appalled me. But, as I have got more and more involved in the marketing side of things, I have found it really rather interesting and creative. There is a lot to learn, including: pricing, positioning, customer development, segmentation, partnerships, email marketing, SEO, AdWords, social media and conversion optimization. I think of development as hacking computers and marketing as hacking humans.

6. Diminishing returns on development skills

The more time you spend as a developer, the better you are going to get at it. But you will run into diminishing returns. E.g. you won’t improve as much between your 9th and 10th year of programming as you did between your 1st and 2nd year. Learning a completely new skill avoids diminishing returns.

7. You’ll need it if you ever start your own software business

If you ever start your own software business you will quickly find that marketing skills are at least as important as development skills. So it’s a huge plus if you already have some marketing chops. Even if you have a VC sugar daddy who is going to give you enough money to hire marketing staff, you’ll still need some marketing skills to know who to hire.

If you are employed as a developer full time, I recommend you jump at any chance to get involved in marketing or go on a marketing course. I also run a training course for people wanting to start their own software business that includes a lot of material on marketing.

South West Bootstrappers meetup

I am organizing a regular meetup in Swindon (UK) for people who are running (or are interested in running) their own bootstrapped (i.e. not VC funded) software product business. Come along and talk shop with other aspiring and experienced bootstrappers. It doesn’t matter if you are developing for web, Windows, Mac or mobile.

The first meetup is on the evening of Tuesday 16th June 2015. You can find out more and RSVP at

swindon meetup