Do you want to learn software development for business gcu? Or about software engineering for business? chcu software engineering. Is that you in a nutshell? Or does your website name mean something else? This article is to help any beginner who has seen the official line, or wants to understand better what Software Engineering actually is and why it’s essential to students who are taking the course – even if they aren’t learning with the traditional methods, Software Development or business gcu.
Have you ever wanted to learn software development or software engineering but didn’t know where to begin? Don’t worry, it’s a daunting task. I’ve been there. That’s why I created this page to help you get your feet wet (and avoid the dreaded rabbit hole). It’s filled with everything you need to know about software development for business gcu.
What is software development?
According to IBM Research: “Software development refers to a set of computer science activities dedicated to the process of creating, designing, deploying and supporting software.”
Software itself is the set of instructions or programs that tell a computer what to do. It is independent of hardware and makes computers programmable. There are three basic types:
System software to provide core functions such as operating systems, disk management, utilities, hardware management and other operational necessities.
Programming software to give programmers tools such as text editors, compilers, linkers, debuggers and other tools to create code.
Application software (applications or apps) to help users perform tasks. Office productivity suites, data management software, media players and security programs are examples. Applications also refers to web and mobile applications like those used to shop on Amazon.com, socialize with Facebook or post pictures to Instagram.1
A possible fourth type is embedded software. Embedded systems software is used to control machines and devices not typically considered computers — telecommunications networks, cars, industrial robots and more. These devices, and their software, can be connected as part of the Internet of Things (IoT).2
Software development is primarily conducted by programmers, software engineers and software developers. These roles interact and overlap, and the dynamics between them vary greatly across development departments and communities.
Programmers, or coders, write source code to program computers for specific tasks like merging databases, processing online orders, routing communications, conducting searches or displaying text and graphics. Programmers typically interpret instructions from software developers and engineers and use programming languages like C++ or Java to carry them out.
Software engineers apply engineering principles to build software and systems to solve problems. They use modeling language and other tools to devise solutions that can often be applied to problems in a general way, as opposed to merely solving for a specific instance or client. Software engineering solutions adhere to the scientific method and must work in the real world, as with bridges or elevators. Their responsibility has grown as products have become increasingly more intelligent with the addition of microprocessors, sensors and software. Not only are more products relying on software for market differentiation, but their software development must be coordinated with the product’s mechanical and electrical development work.
Software developers have a less formal role than engineers and can be closely involved with specific project areas — including writing code. At the same time, they drive the overall software development lifecycle — including working across functional teams to transform requirements into features, managing development teams and processes, and conducting software testing and maintenance.
Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a software development business?
The costs associated with opening a software development company can range from very little (i.e. less than $1,000) to extremely high sums (i.e. venture capital funds). The money invested in a business typically goes toward:
- website hosting expenses and data storage fees
- specialized programs that a project requires
- copyright, trademark and patent fees
- additional employees or contract workers
The variance in startup costs is primarily due to the number of employees and contract workers brought onto the project. Workers speed up the development timeline, but also increase costs.
Paul Jarvis’ company OfCourseBooks is a good example of how a successful business can be started for very little. Jarvis and his team spent $1,125 in startup costs. The funds paid for a website, specialized fonts, stock photography, legal fees, the first month’s operating expenses and a couple other miscellaneous items.
John Sung Kim took a different approach with his company, getting a $40,000 initial investment before developing a call center software program.
What are the ongoing expenses for a software development business?
The ongoing expenses for a software development company also vary. OfCourseBooks costs $45 per month to maintain. A program like Microsoft Dynamics 365 require many more servers and a lot more personnel to maintain, and therefore, has much higher operating expenses.
Who is the target market?
The target market for a software development company can be almost anyone, but it must be well-defined. Business owners need a clear understanding of a need that people or businesses have, and how a program addresses that specific need.
How does a software development business make money?
Software development companies have traditionally charged customers on a per-license basis, but many companies are transitioning to a software-as-a-service (SaaS) structure instead. In SaaS arrangements, customers pay an ongoing fee in order to use the developing company’s program. Some level of support is usually included in this fee.
A few outlying software development companies don’t charge license or subscription fees. Instead, these companies typically either build advertisements into their programs or offer training that does have a fee associated with it.
How much can you charge customers?
There is a great range in how much computer programs cost. Simple apps are frequently free or just a few dollars. Complex enterprise solutions can cost tens of thousands of dollars. For example, Angry Birds originally cost $0.99 to $2.99 and is now free. Microsoft Dynamics 365 can be $190 per user / per month.
How much profit can a software development business make?
While not every business reaches this level, the profit potential for a software development business can be enormous. John Sung Kim stayed with Five9 until its revenue reached $10 million. An IPO on the NASDAQ valued the company at $350 million.
Even much more modest companies have substantial profits. For instance, OfCourseBooks brought in a little over $11,000 in profit before even launching a program.
How can you make your business more profitable?
Software development companies can increase their profits by providing additional services to clients. Expedited support, extra training and program customizations might be offered at an extra cost.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Software Development Business Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name, we recommend researching your business name by checking:
- Your state’s business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
Form a legal entity
The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your software development business is sued.
ou can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It’s really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business’s name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company’s assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Conclusion:
You’re an entrepreneur, software developer, or business owner wanting to learn more about the business side of software development, entrepreneurship and management. If you’re reading this, we think you can benefit from understanding how business is done in the technology sector and especially when it comes to software engineering for business.