Even as software writing has become ubiquitous across the world, and many software projects are being written in the developing world, opportunities for generating serious wealth through software writing - both on a contract basis, and as a product - continue to exist in niche, targeted markets in the US. Becoming a millionaire for life in less than ten years is achievable even when starting the software business out as an extra income source. This will however require commitment, a desire to specialize in an area of your passion within the world of software, determination to develop a domain expertise, and networking ability to ensure that your bids for a contract advance to the desk of decision-makers.

The Opportunity
Skills Needed
Risks
Rewards
Resources

It is easy for a software developer, such as yourself, to fall in love with the tools of your trade - programming languages, scripting languages, operating systems, development tools and so on - while completely ignoring the industries for which you write your software. The common refrain in these situations is - "I can write for any industry, for any application - just give me the requirements". While that may be true, it is also, however, the path to average income and low returns. The big money is not in the craft of writing software, but in the knowledge of the domain for which you are writing.

Domain expertise cannot be replaced by a requirements document from your client, and neither can the software bugs that creep in due to lack of such knowledge be removed through extensive product testing. Deep domain knowledge not only improves your software design and implementation, but it also increases your client's confidence in you. It lets you talk the same language as your customer, and soon enough - you will know more about your subject matter than him!

And it is domain expertise that will ultimately help you land the really large jobs- such as government contracts and contracts from large companies that will propel your revenues towards the million dollar mark in a few short years. And not to mention the myriad ways in which you can now market yourself - specifically, through speaking engagements, by writing articles, giving interviews, providing subject matter expertise to members of the press and so on. The world is desperate and constantly on the look out for those who have taken the time to develop real expertise in relevant subject matters.

But wouldn't specialization in a particular domain limit your range of clients? Yes and No. While it will reduce the range of your potential clients, it will increase the number of your actual and loyal clients. Plus you will command a premium in the market owing to your subject matter expertise. Add to that your knowledge of your local market and the needs of your clients in that marketplace and you can rest assured that your job is never getting outsourced!

Skills Needed

To pursue the large government or business contracts, the key pre-requisite, as already mentioned, is domain expertise. In that quest, it is important that your peers recognize you as an expert as well - and this can be achieved through collaboration on projects, at standards body meetings, through patent work and through published literature.

Developing and expanding your network of contacts in your chosen industry/domain area is another skill to pick up and polish for bringing in the major contracts. Meeting and mixing with multiple people in your area of expertise will help give you an early intimation of potential opportunities at various clients, more exposure and chances to let people know about your background and your services.

Marketing skills, at least in some specific channels - print channel, web-channel, telephone channel - are absolutely key for expanding your business. While networking will be the pathway to the large contracts, ongoing, regular marketing will deliver the bread and butter work for the initial few years.

Finally, developing a methodology that works - a simple, repeatable and reliable pattern that delivers you the work that you want at the desired pay rate that you wish for - is important to establish as soon as feasible. And then develop the discipline to work that methodology again and again until it keeps delivering results for you. Tweak the methodology to remain relevant as well as for improving your results - but do not make frequent changes, as this will throw you off your game.

Risks

Most individuals seeking success in small business or in extra income ventures tend to move forward half-heartedly and 90% of the time, that becomes a recipe for failure. As detailed in the skills section above, an inability to develop a methodology for success and having the discipline to stick to it will completely unravel all the good efforts put in through networking and building a domain expertise. Similarly, inability to network will close out a majority of opportunities and all your skills and expertise and discipline will keep you away from those millions you deserve.

Fortunately in the software business in most domains, your start-up costs will not be more than $10,000-$15,000 at any given time. Thus you can start without any loans against your name, and build your way up. But without the necessary dedication and networking and marketing efforts in place, your business will not even crack the $100,000 mark - leave alone the $1,000,000 mark you wish to reach in less than ten years.

Rewards

Establishing yourself as a domain expert in an area that you love is reward in itself - and you will be getting paid for it! By giving close attention to details, you can be looking at a ladder that looks like:

1. $100,000/year revenue in 2 years from your start-up date
2. $300,000/year revenue 5 years from your start-up date
3. $1,000,000/year revenue in 9-10 years from your start-up date

While getting the first $100,000 may seem as the tallest order, in reality, moving from $300,000/year to a $1,000,000/year venture will prove to be the biggest test of your discipline and desire to have a large business.

Once you begin managing a million dollar business, moving to a $10 million business can come rapidly. Steady stewardship can raise your revenue to the $75 million to $100 million range. At this stage, your business starts becoming interesting to many of the small and medium businesses across the country - and mergers, partnerships and co-selling opportunities start abounding. We would suggest seriously upgrading your management skills at this stage, or bringing in the right talent to manage the growth and future of the business.

Resources

Some useful resources to begin your journey towards the large contracts for your software business are provided here:

1. http://www.businessmatchmaking.com/ - Initiative by SBA to help small businesses get in front of procurement officers from the government.
2. Federal Business Opportunities at http://www.fedbizopps.gov/ is a wonderful place to look the wide range of items the Federal government is looking for.
3. The SBA website to help you get your business underway: http://sba.gov/
4. A generic software business online magazine to help you determine your area of interest and passion http://www.softwarebusinessonline.com/
5. http://about.com/ - will help you get details on most domains that you finally chose to specialize in.
6. Book Yourself Solid - an excellent book on keeping yourself booked.