I'm a 30 year old guy who built a small business selling desktop support and general office IT consulting. I sold this company 3 months ago.
A very interesting opportunity has come along : an old client of mine has setup a small software company with 2 coders. The plan is to sell subscriptions on a SaaS basis to small businesses for common small business requirements - invoicing, expenses, timesheets, forecasts.
He wants me to manage the company, and get the product built and delivered.
I've examined the business plan, and I think the business model is workable. There are plenty of competitors in the market, but with my insight into small business, I have some unique ideas that would make for a compelling product.
My problem is that I know very little about software. I've run a few successful software projects in my old business (websites, inventory tools and so on), and I have a decent understanding of IT and business, but this would be a very new venture for me.
There is an existing team working on these solutions, and they say they're about 50% ready to launch. In reality of course, this could mean 20%.
I'm comfortable with the marketing, sales, budgeting, accounting, business side, but I'd like HN's opinion on actual product development.
My current plan for the product development is :
Have the existing code independently examined by a 3rd party with no stake in the project.
Setup a SVN Repository, and Bug Tracking systems.
If the code checks out, work with the developers to build a realistic set of phases and milestones in the project.
Hire a part-time tester to test the coder.
Give the developers plenty of space to work.
Once I'm sure they're the right guys for the job, consider some kind of share arrangement for their services to increase motivation.
Release.
Improve.
Repeat as necessary.
Am I coming at this completely the wrong way? How would you approach this challenge?
If those two developers haven't done that yet, step 1 should be to fire them and hire real developers.
I think I'd need to know more about your specific situation to help. Ultimately your success will depend on two key principles:
1) having quality developers in the team
2) giving them the right structure (including plenty of space) to work effectively
From the sound of it, you don't trust whether those existing developers are any good. There's a million ways to find out if they are, some of which are described in my old article at http://inter-sections.net/2007/11/13/how-to-recognise-a-good... , but you'll have to figure this one out for yourself, I guess.
If they're no good, you need good ones. If they're good, then I would suggest toning down the control/paranoia in your plan and trusting them.