Seeking Advice: starting a small custom software development company as a side venture
Hello everyone, I'm currently employed at a FAANG company, where I've been for 15 years, working as both a developer and now as an engineering manager. My experience primarily revolves around back-end systems and services, large scale software mostly using AWS. I was based in the US and have now returned to India. I've recently embarked on a new venture: establishing a custom software development company. My aim is to set this up parallel to my day job, focusing on custom software solutions, possibly utilizing AWS (but open to other technologies). I plan to handle design aspects and delegate coding tasks. I plan to quit my day job if my venture takes off. Unlike pursuing a product-led software company, my goal is simpler - to develop software for clients on a contractual basis, with a manageable profit margin. I’m looking to build a small-sized company, targeting a personal income of about 250-300k USD per year post-taxes and employee remunerations. However, I'm facing the classic chicken and egg problem: Lack of network connections for initial projects. No existing portfolio to attract external customers. Without customers, I can’t build a portfolio. I have already registered a legal entity for this venture. I'm reaching out to this community for advice: Has anyone here gone through a similar journey of starting a company while employed? How did you overcome the initial hurdles of building a network and portfolio? Would anyone be interested in collaborating or providing an initial project to kickstart my venture? Any insights or advice would be greatly appreciated. Thanks in advance! TC: ~250k USD (in India)
Does your particular FAANG's employment agreement allow this? At Google in the USA you need permission for software side hustles.
Yes, it allows as long as there is no conflict of interest. There is an internal mechanism to check if any additional legal approvals are required and looks like for such a thing no additional legal approvals are required.
Even if it didn’t. What are they gonna do? Fire him?
I haven't done it, but I have helped someone else do it. You have to narrow down your offering a bit, though it might feel contrary to what you think, focusing on a specific domain, set of companies, etc might be useful. Side hustle takes a ton of cognitive effort and will get frustrating, make sure it doesn't affect your day job or personal life. I think the toughest aspect of it is that people assume they will get easy cheap freelance talent in India, but reality is you have to pay a bomb for talent and managing them is hard.
Here is my post: Check out this post! "Want to start outsourcing company in Europe (Tech Industry)" https://www.teamblind.com/us/s/NGX1NcUW
Have done this, connection is the key, if not teaming up with folks who have good conmection. Example key account managers from other IT services company
Did your already have these account manager connections?
Sadly, your target market is flooded with average and below average talent companies. It will be a mighty task to stand apart from the riff raff, especially because the client is not smart enough to look for the best technical talent as much as the best marketing pitch. Do what you have to do, but don’t bank on your pedigree to help out in growing the business off the bat. This will be really hard, especially in India.
I’ve been doing exactly this for several years; the network was the main thing that led to success for me. You don’t even need a portfolio early on if you’re working with people who trust you / your recommendation. In my experience, the coding knowledge is actually the easy part and won’t need to be that advanced for the majority of projects.
I am planning and I am searching for a partner. I am in the same situation as you. The biggest issue is non existent clients as you said. I plan to hire marketing girl to reach out via email LinkedIn etc. I am in Europe. Rich out to me in DM.