The software industry is a billion dollar industry with a projected market share of $650 billion in 2023. While the statistics are impressive, they are inclusive of the contributions of numerous startups and incumbents that saturate the industry. To compete with these players, aspiring entrepreneurs require a software product of their own with a unique or better value proposition. However, developing a software product from scratch requires hefty investment in terms of both capital and time.
Fortunately, there are some options available that allow entrepreneurs to launch a software product based company with no to low investment. They make the business owner independent and capable of launching a bootstrapped business. In this article, we will draw some insights on how these entrepreneurs can launch a product based company with minimal investment.
In tech startups with limited resources, strategic planning and timely actions are key facilitators of growth and success. Thus, you will need to create a basic outline of the things you will require before procuring the software. These include a business name, a website, hosting service, contact person, etc. Even after including the costs of these prerequisites, you will be staying low investment because of the costs saved on software development.
A software helps people resolve a problem or a set of problems. Target the problem that you want your software to solve. It can either be a business problem like project management and client management or a consumer problem like online food delivery, cab booking or simple ecommerce. While finding a white label software for project management and CRM can be difficult, there are many software reseller programs that provide software solutions for conducting ecommerce operations. We will learn more about these reseller programs later in this article.
The projected market share of the eCommerce industry by the end of 2023 is a whopping $4.48 trillion. It also has an impressive Compound Annual Growth Rate (CAGR) of 9.30% in the projection period 2023-2027.
This implies a total market share of $6.39 trillion by 2027, which is growth of $1.91 in the next 4 years. These numbers are an implicit indication of new entrants in the ecommerce industry, who will require a quality ecommerce software.
Let’s breakdown the industry into some popular niches to shed some more light on the overall market scenario:
The ecommerce industry has limitless business potential for software development businesses. You can also pick all or several ecommerce software categories to move forward with your business venture.
Market research is crucial to get a comprehensive understanding of the target market, competition, potential customers and more. It will assist in the development of a data-driven strategy for product development, marketing and sales. For a thorough market research, you can consider the following:
By doing proper market research, you can gather and act on all important information required to build a strong foundation for your software company.
As the business owner is himself not handling software development in a low-investment software company, he will need to find a technology partner. It is best suited to find a technology partner with a white label reseller program.
A white label reseller program is a type of a business partnership where a software developer finds partners to rebrand and resell their products. This type of partnership is mutually beneficial for both the partners. First, the product developer increases its business reach, and secondly, the reseller partner gets to resell the software under his own brand name.
As the partnership typically includes a Non-Disclosure Agreement, reselling partners can sell the software directly to their clients without the involvement of the development partner. However, in this arrangement, the development partner also provides complete training and support so that you can independently deliver software demos to your clients and resolve their queries.
To start business operations, you need to begin early with the marketing. After carefully selecting the value proposition, you can initiate a pre-launch marketing campaign. This can include creating a new website with landing pages for each and every software in the partnership program. As you get rebranding rights over the software, you can also change the name of the software on your website. Once these steps are done, digital marketing can further help you out in getting the first few customers.
White label reseller programs in the first place are made for entrepreneurs with low investment budgets so that they can get the most out of their investment. First, they save money and time on software development and secondly, gain advantage in market areas where producing competitive software is difficult. There are some benefits of joining a reseller program that we have listed below:
Some white label programs provide access to a large range of products that the reseller partner can sell. This increases the product offerings of the business and indirectly reflects in brand value. Later on, the partner can decide to market one or more products on his website but the access to all products in the partnership still remains.
Gaining years of hands-on expertise in software development is difficult for startups. However, with a white label program, they get quick access to the expertise of professional developers who have been in the industry for decades. Moreover, they can also get their hands on ready-made tried and tested solutions whose market viability has already been proved.
Modern businesses need to stay agile in order to update their offerings for catching up with the changing market demands and scenarios. Thus, to procure and complete such orders that are necessary to represent the agility in a software business, joining a white label program can help. Not only will the business be able to meet the changing market demands, but can also scale up quickly by matching such demands faster than its competitors.
Imagine developing a software application for years that fails to bring the desired results or even recover the capital costs. This situation is quite common with software development businesses and results in a huge loss because of the heft software development cost and long development cycles. As a solution, gaining access to third-party tried and tested solutions turns out to be a very safe investment that reduces business risk.
FATbit is a renowned ecommerce software developer in the market which provides powerful ecommerce solutions for launching startups like online marketplaces, rental marketplaces, eLearning marketplaces, food delivery businesses, cab booking business and more. All its solutions are feature-packed and carefully developed after diving into the complexities of their respective industries to help businesses resolve numerous use cases and consumer problems.
All FATbit products are available in our white label reseller program that you can join and resell under your own brand name. Some privileges you get after joining FATbit white label reseller program are:
With strategic planning and timely action, it is possible to set up a software product business with minimal investment. However, in terms of efforts, entrepreneurs do need to spend time on marketing and find a technology partner that can provide the right guidance for business launch. Regarding the type of software that you should sell, there are numerous categories you can think of but considering the aforementioned statistics, the ecommerce industry appears to be the most lucrative.
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Abhishek Kataria is a business consultant at FATbit Technologies. He assists entrepreneurs and business owners in developing viable digital touchpoints and marketplaces. Abhishek is curious about exploring and analyzing new business trends and has a keen eye for the latest developments in the eCommerce sector. Apart from consulting, you can find him practicing French and exploring his creativity in Photoshop.
