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Ask HN: Can I really create a company around my open-source software? | Hacker News
Ask HN: Can I really create a company around my open-source software? | Hacker News
I get that you've worked on this for months, that you're burned out generally, and now unemployed. So this comment is not meant as "mean" but rather offered in the spirit of encouragement. Firstly, building a business (especially in a crowded space) is stressful. It's not a place to recover from burnout. It's not a place that reduces anxiety. So my first recommendation is to relax a bit, put this on the back burner, and when you're ready go look for your next job. Secondly, treat this project as an education. You had an idea and spent months implementing it. That's the easy part. The hard part is finding a market willing to pay money for something. So for your next project do the hard part first. First find a market, find out what they will spend, ideally collect a small deposit (to prove they're serious) and then go from there. In my business we have 3 main product lines. The first 2 happened because the market paid us to build a solution. We iterated on those for 30 years, and we now are big players (in very niche spaces.) The 3rd happened as a take-over of a project by another retiring developer. He had a few customers, and a good product, but in a crowded space where there's lots of reasons not to change. It's taken many years to build it out, despite being clearly better than the competition, and it's still barely profitable (if you ignore a bunch of expenses paid by the whole business. ) The lesson being to follow the money, not the idea. (Aside, early on we followed some ideas, all those projects died, most without generating any revenue.) So congratulations to seeing something through to release. But turning a product into a business is really hard. Turning a commodity like this into a business is almost impossible. I wish you well in your future endeavors.
For a major commercial product I visited similar markets to ours, knocked on the doors of distributors, tried to find people who wanted to integrate our product into their market. I failed a lot but succeeded twice, and those 2 have been paying us lots of money every year for 20 years as they make sales. Your approach may vary. Start locally. Talk to shop keepers, restaurants, businesses, charities, schools and so on. Look for markets that are not serviced (which is different to where the person is just too cheap, or adverse to tech for other reasons.) Of course it's a LOT harder now to find unserviced markets. There's a lot more software out there now than there was when I started out. Ultimately though it's about connecting with people - real people not just sending out spam emails. And so meeting the right person at the right time is "lucky". But if you're not out there luck can't work with you. You need to give luck a chance.
·news.ycombinator.com·
Ask HN: Can I really create a company around my open-source software? | Hacker News
Spreadsheet Assassins | Matthew King
Spreadsheet Assassins | Matthew King
Rhe real key to SaaS success is often less about innovative software and more about locking in customers and extracting maximum value. Many SaaS products simply digitize spreadsheet workflows into proprietary systems, making it difficult for customers to switch. As SaaS proliferates into every corner of the economy, it imposes a growing "software tax" on businesses and consumers alike. While spreadsheets remain a flexible, interoperable stalwart, the trajectory of SaaS points to an increasingly extractive model prioritizing rent-seeking over genuine productivity gains.
As a SaaS startup scales, sales and customer support staff pay for themselves, and the marginal cost to serve your one-thousandth versus one-millionth user is near-zero. The result? Some SaaS companies achieve gross profit margins of 75 to 90 percent, rivaling Windows in its monopolistic heyday.
Rent-seeking has become an explicit playbook for many shameless SaaS investors. Private equity shop Thoma Bravo has acquired over four hundred software companies, repeatedly mashing products together to amplify lock-in effects so it can slash costs and boost prices—before selling the ravaged Franken-platform to the highest bidder.
In the Kafkaesque realm of health care, software giant Epic’s 1990s-era UI is still widely used for electronic medical records, a nuisance that arguably puts millions of lives at risk, even as it accrues billions in annual revenue and actively resists system interoperability. SAP, the antiquated granddaddy of enterprise resource planning software, has endured for decades within frustrated finance and supply chain teams, even as thousands of SaaS startups try to chip away at its dominance. Salesforce continues to grow at a rapid clip, despite a clunky UI that users say is “absolutely terrible” and “stuck in the 80s”—hence, the hundreds of “SalesTech” startups that simplify a single platform workflow (and pray for a billion-dollar acquihire to Benioff’s mothership). What these SaaS overlords might laud as an ecosystem of startup innovation is actually a reflection of their own technical shortcomings and bloated inertia.
Over 1,500 software startups are focused on billing and invoicing alone. The glut of tools extends to sectors without any clear need for complex software: no fewer than 378 hair salon platforms, 166 parking management solutions, and 70 operating systems for funeral homes and cemeteries are currently on the market. Billions of public pension and university endowment dollars are being burned on what amounts to hackathon curiosities, driven by the machinations of venture capital and private equity. To visit a much-hyped “demo day” at a startup incubator like Y Combinator or Techstars is to enter a realm akin to a high-end art fair—except the objects being admired are not texts or sculptures or paintings but slightly nicer faces for the drudgery of corporate productivity.
As popular as SaaS has become, much of the modern economy still runs on the humble, unfashionable spreadsheet. For all its downsides, there are virtues. Spreadsheets are highly interoperable between firms, partly because of another monopoly (Excel) but also because the generic .csv format is recognized by countless applications. They offer greater autonomy and flexibility, with tabular cells and formulas that can be shaped into workflows, processes, calculators, databases, dashboards, calendars, to-do lists, bug trackers, accounting workbooks—the list goes on. Spreadsheets are arguably the most popular programming language on Earth.
·web.archive.org·
Spreadsheet Assassins | Matthew King