Eric Sink on the Business of Software (Expert's Voice) by Eric Sink

By Eric Sink

Eric Sink at the company of software program is a range of the easiest and most well liked essays from the authors site. The essays conceal company matters that programmers face in the course of the process their careers, relatively if the programmers are small self sufficient software program owners. Sink covers matters like beginning your personal company, then acting the hiring, funds, and different issues.

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Winnable Solitaire is very simple. exe that comes with Windows. My version has just one feature that makes it different: Every deal is winnable. My app changes solitaire from a game of luck to a game of skill. I am primarily doing this product as an experiment, but the product is still very real. I’m selling it to real people, and I’m charging real money for it. 15 Like I said, this is an experiment. I want to gather some data. I’m trying to learn about the kind of software products that can happen in a micro-ISV.

For example, let’s suppose I am buying sweaters for $12 and selling them for $24. My gross profit per shirt is $12, and my gross profit margin is 50%. This is a standard markup level in the apparel industry. The price tag on clothing is usually twice whatever the retailer paid for it. Note that gross profit is quite different from the net profit figure that shows up on the bottom line of the income statement. Net profit is what you get when you take gross profit and subtract all the other costs of running the business.

In contrast, execution involves risk, which is why it leads to reward. Back to the Topic: Do Your Marketing Homework No matter how much you like a particular product idea, it would be foolhardy to launch your new company without doing some basic marketing research. At the minimum, you need to ask yourself one very important question: What kind of competition do you want to have? If you think the answer is none, think again. Having no competition at all can be one of the fastest ways to kill a business.

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