Ever thought about launching a software business in a recession? Yes, it seems counter-intuitive but where there's a will there's a way. 😏

In this blog, we'll share some of the key titbits of advice that can make starting a (successful) software business during an economic downturn a little more likely. So, let's get this party started! 🎉

The Basics 📚

Let's start with the obvious things first but they they have to be mentioned...

1. Keep your day job if you have one (shock) 😱

Paul Graham has frequently said "The best way to start a company is to do it while you're still employed."

So don't quit your day job just yet, champ. In a recession (even more than normal) a steady income is a precious commodity.

Simply because getting a new job becomes harder… So go and embrace the side hustle life for a few months! 🤑

2. Find a cofounder if you can 🤝

Not essential, but having a cofounder definitely helps. Somebody with a complimentary skillset who can share in the burden of bringing something to life.

3. Take charge of the key work yourself but use agencies and freelancers to help where you can 💼

You're the CEO, CTO, and office barista.

That's right, you'll be wearing all the hats. But don't forget to outsource tasks that make you question your sanity (like deciphering building full responsive designs in Figma that adhere to a perfect 12, 8, 4 column layout and 4pt row grid using the latest in their auto-layout rules. Breathe.).

As Tim Ferriss says in "The 4-Hour Workweek", delegating is the key to maintaining your sanity.

3. (Optional) Join a network of entrepreneurs for support 🌐

It's lonely at the top (or bottom, depending on your perspective). Join a network of fellow entrepreneurs to share your woes, triumphs, and memes. You're not alone! 🤗

But be careful here. Don’t let socialising get in the way of doing. There is a word for this. The ‘Wantreprenuer’ ⏰

The Opportunity itself 🎯

1. Be honest about whether it's a good startup idea 🤔

Is your idea a real viable business or just a pipe dream? Check out our blog on how to recognise a great startup idea here.

2. Research the idea first - do not rush into build 🧪

Start with problem interviews and job shadowing to make sure you’ve really understood the problem. Then once you’ve got your solution figured out, transition to solution interviews.

Make sure to follow the rules outlined by Rob Fitzpatrick's "The Mom Test" for getting high-quality and unbiased customer feedback.

Sales and Marketing 📈

1. Figure out who your key audience is and where you can find them 🔍

Who needs your software? Identifying your target customers is as crucial as finding the last roll of toilet paper during a crisis. 🧻

Where do they hang out? What groups are they in? What websites and influencers do they follow?

2. Hone your message and storytelling 📖

You've got a story to tell, so make it compelling. Donald Miller's "Building a StoryBrand" can guide you through the perilous world of storytelling. (And remember, the hero isn't you—it's your customer! 😇)

3. Prepare to sell your product manually 🚶‍♂️

Web funnels are cool, but they're like assembling IKEA furniture without reading the instructions: time-consuming and frustrating. Start with manual sales and work your way up to the digital age. 🌐

Manual sales have the very important added benefit of serving as an extra conversation opportunity with customers to learn more about what they like and do not like about what you’re building.

4. Stand up your first website 💻

Your first website may take you a freakishly long time to get live. You’ll be surprised at just how long. Then with multiple attempts you’ll get faster.

You can stand something simple up very quick. But arriving at something that’s well designed and on message with all the creative media you like just takes time.

Product 📦

1. Offer the service without software first, if possible ✋

Test the waters by offering your service manually (like using a carrier pigeon instead of email 🐦). Doing so helps you validate the need is real and rapidly refine the proposition’s user experience before diving headfirst into software development. 🚀

2. Focus on getting the user experience right 😊

Your users' experience should be great and have zero stress to it. Take a page from Steve Krug's "Don't Make Me Think" and prioritise simplicity in design.

3. Don't spend too much time on brand 🎨

Branding is meaningful, but don't let it consume you like an all-you-can-eat buffet.

Get a simple name, logo, and choice of font and colours in place. Get your social media images done and key messaging honed in. That’s it.

Really try to time-box this down to a few days (this is easier said than done)… Focus on delivering value to your customers first.

Later, once there are signs that this business will work, brand becomes super valuable and worth spending time on. But don’t put the cart before the horse.

4. Build your MVP using no and low-code tooling 🛠️

Create your minimum viable product (MVP) with no and low-code tools.

It juts enables you to get to market much quicker. But the real hidden unlock isn’t the faster time to market, but the fast time to iterate. Low-code development teams are just smaller and more nimble.

This means less communication overhead and much shorter path from insight to product change. Your ability to live the Lean philosophy penned by Eric Ries in The Lean Startup drastically improves.

In case not already obvious, at Mindlace we are big believers in the low-code movement and leverage those tools as a meaningful part of our technology stack. If you're interested in learning more about how we work with entrepreneurs, check here.

5. Appreciate that your MVP will have multiple stages 🌱

Your MVP will go through more stages than your favourite band during a world tour.

Embrace the process, and remember what Reid Hoffman said, "If you're not embarrassed by the first version of your product, you've launched too late."

So ship a lot earlier than you think you should. Then keep shipping and speaking to customers every step of the way.

6. Charge for your product immediately 💵

You should be generating revenue as quickly as possible. Relying on scale then adding in ‘ad revenue’ is about the highest risk game you can play and we personally hate this approach.

Build something useful for people who need it. Then charge! If they won’t pay, the problem isn’t bad enough, the solution isn’t good enough, or they don’t have the money…

Only option 2 provides a clear path forward. The other two mean pivot or kill the idea and go again.

Conclusion 🏁

So there you have it, folks! A quick guide on launching a software business in a recession. Now's the time to roll up your sleeves, put on your entrepreneurial cape, and embark on this wild adventure. 🚀

One final note. When you’re in the middle of them, startups feel like constant problems punctuated by a rare win.

But if you zoom out a little bit though, you might be surprised at how far you’ve come.

Perfect execution is a myth. Just focus on making sure you’re solving a real problem that people will pay for. And do so without jeopardising you or your family’s security.

Then just put one foot in front of the other. 🚶‍♂️

Happy hustling! 💪

‍