Help Needed - Web/Software Development Start Up - HOWTO ?

[tom3k493]

Hi, so first and foremost - I'm not sure if this is the correct forum to post this in, so feel free to move if necessary !

So my issue is as follows:

Along with a couple of other people, we have decided to start developing an internet service (simply put - we're working on a website, which perhaps in the long run might earn us some revenue from advertising etc)

Now, I have researched quite a bit (or tried to at least) about setting up a private limited company for our project, but I keep finding that there seem to be no good articles/advice/books that focus on software development start ups.

First things first, I have no idea where to actually start my research! I know we need a private ltd, and I've read all the information about actually registering a company with Companies House - but after that part of the process, all the information seems to stop. For example, for the first few months (at least) we would have no income. We are all students, so at the end of the day - this is a side project from which we are not expecting guaranteed income. I am not sure how to approach the financial situation - a bank account would be good incase we do get some people interested in advertising on our website, but do I still have to file accounts every year even if there is no profit/loss ?

Also, obviously you can appoint more than one Director, but what are the options for a Managing Director, and two Directors underneath him who each have their own title and coordinate separate things. Using US acronyms, ideally we'd have a CEO, then below him a CIO and CCO. Do these titles exist in the UK - I haven't been able to find anywhere any good information about this topic.

At the end of the day, I just need some help to point me in the right direction of research, and if anyone has been through a similar start up - then advice, and guidelines

Thanks!

 

[GraemeL]

Hello Tom,

have you really tried to find out?

Look at (for example):-

http://www.google.co.uk/products/ca...=X&ei=1I6GT4zsBobM0QWgwsDABw&ved=0CJUBEPMCMAM

And yes, if you set up a Limited company, you would have to submit annual accounts in a specific format; almost all businesses require someone with accountancy skills to do so and they cost money.

Honestly, setting up a business in 'hope' as a Ltd company is not a good idea. Suggest you research 'Creating a business plan' if you are really serious. There is much more to it than the 'fun' bit of creating a website.

G

 

[tom3k493]

Thanks, I'll check these out!

 

[tom3k493]

Also, yes I have researched, but ultimately the main reasoning behind setting up a company was to firstly copyright the website, secondly have some sort of formality in our work so that should an investor in the future want to invest, then we would have a company already in place, shares available, and a general structure to our project

 

[TODonnell]

We do company formations (see below).

The main thing is income. You can develop software, have a company formed and a website but where is the money going to come from?

As you are already a 'company' (a group of people), registering a company, with shareholders, might be an idea, to sort out who owns what. It creates an entity distinct from you all, which can trade and be traded. Just my 2p.

You'll have to do returns and keep proper records. Could be educational, if you haven't done it before.

 

[tom3k493]

Seems quite like what I'm looking for - I'll check you out

 

[tom3k493]

Also what kind of company would you recommend setting up - the above said not a private ltd, but I still seem to think that this is the right way to go ?

 

[tom3k493]

what do you mean ?

 

[TODonnell]

A private limited company is the norm.

 

[businessfunding]

Also, yes I have researched, but ultimately the main reasoning behind setting up a company was to firstly copyright the website, secondly have some sort of formality in our work so that should an investor in the future want to invest, then we would have a company already in place, shares available, and a general structure to our project

It takes no time at all to set up a company, but it will commit you to admin & expenditure.

Investors will often want a new 'clean' company set upin any case.

I would really concentrate on your concept and business plan before you start incurring unnecessary costs.

If you want to formalise things, create a formal partnership agreement between you.

 

[AshleyWhiteBusiness]

Don't forget to register your business name once you are settled

 

[marlint]

Having started two of my own software companies, I've got a bit of experience in this area.

Don't bother starting a company until you've got the immediate prospect of income, it is a waste of time, commits you to expenditure down the line, is an administrative burden, and will distract you from what you need to be doing.

Don't worry about copyright (all of your content and code is copyright by default) trademarks etc for now. If you are starting a new website and intend to drive enough visitors to it in order to make more than pocket change off advertising then you have got a big enough task on your hands already. Once you start getting a decent number of visitors, then you might look at trademarks.

The key bit of advice is before you even start building anything, go out and find 10 people who will be willing to use (and if applicable pay for) what you want to build. If you can't manage that, then ask yourself how you're going to find sufficient customers to make any money off it.

Ignore the temptation to build the website before doing this (I'm a techie, so I get the same temptations). This bit is probably the lowest risk aspect of a software/website startup, and is likely to be well within your comfort zone.

Don't worry about titles, business cards, company name etc. They are all just vanity and can be sorted when you have some customers.

Don't worry about investors- you have no chance of getting investment until you have a product and customers. If they like what you are doing, you will be able to sort out any issues with company structure etc.

Do the hard bit first, which is to find some prospective customers and users. This will help convince you that your idea is worth pursuing, and also offer you your first 'beta' users, who will be invaluable in terms of feedback, product ideas, and spreading the word.

Don't operate on the basis of 'build it and they will come'. They won't, and you'll have wasted a lot of time on nothing.

 

[tom3k493]

Having started two of my own software companies, I've got a bit of experience in this area.

Don't bother starting a company until you've got the immediate prospect of income, it is a waste of time, commits you to expenditure down the line, is an administrative burden, and will distract you from what you need to be doing.

Don't worry about copyright (all of your content and code is copyright by default) trademarks etc for now. If you are starting a new website and intend to drive enough visitors to it in order to make more than pocket change off advertising then you have got a big enough task on your hands already. Once you start getting a decent number of visitors, then you might look at trademarks.

The key bit of advice is before you even start building anything, go out and find 10 people who will be willing to use (and if applicable pay for) what you want to build. If you can't manage that, then ask yourself how you're going to find sufficient customers to make any money off it.

Ignore the temptation to build the website before doing this (I'm a techie, so I get the same temptations). This bit is probably the lowest risk aspect of a software/website startup, and is likely to be well within your comfort zone.

Don't worry about titles, business cards, company name etc. They are all just vanity and can be sorted when you have some customers.

Don't worry about investors- you have no chance of getting investment until you have a product and customers. If they like what you are doing, you will be able to sort out any issues with company structure etc.

Do the hard bit first, which is to find some prospective customers and users. This will help convince you that your idea is worth pursuing, and also offer you your first 'beta' users, who will be invaluable in terms of feedback, product ideas, and spreading the word.

Don't operate on the basis of 'build it and they will come'. They won't, and you'll have wasted a lot of time on nothing.

wow this is perfect - exactly what I needed. As for people using it - I am very very confident that people will use this service. Thanks for your help, and if you have any products out there that I can check out - then link me

 

[marlint]

Sure, the current work in progress is http://www.pwinty.com

 

[tom3k493]

Sure, the current work in progress is pwinty

Looks pretty cool - Just a quick question - what did you mean by the code is copyrighted by default ? - How does that work ? (sorry if that seems like a ridiculous question)

 

[marlint]

Well, if you create a website, or a piece of software or anything like that, no-one can just come along, make a word for word copy and then sell it as their own.

There is no special mechanism you need to go throught (have a look at http://www.ipo.gov.uk/types/copy/c-about.htm ) for details

 

[TODonnell]

Artistic works are automatically copyrighted as soon as they are produced, AFAIK. You don't need to do anything further to 'own' them. You can put a (c) mark on each item just to let people know who the owner is.

See the footer of this site.

 

[liongroup]

Having started two of my own software companies, I've got a bit of experience in this area.

Don't bother starting a company until you've got the immediate prospect of income, it is a waste of time, commits you to expenditure down the line, is an administrative burden, and will distract you from what you need to be doing.

Don't worry about copyright (all of your content and code is copyright by default) trademarks etc for now. If you are starting a new website and intend to drive enough visitors to it in order to make more than pocket change off advertising then you have got a big enough task on your hands already. Once you start getting a decent number of visitors, then you might look at trademarks.

The key bit of advice is before you even start building anything, go out and find 10 people who will be willing to use (and if applicable pay for) what you want to build. If you can't manage that, then ask yourself how you're going to find sufficient customers to make any money off it.

Ignore the temptation to build the website before doing this (I'm a techie, so I get the same temptations). This bit is probably the lowest risk aspect of a software/website startup, and is likely to be well within your comfort zone.

Don't worry about titles, business cards, company name etc. They are all just vanity and can be sorted when you have some customers.

Don't worry about investors- you have no chance of getting investment until you have a product and customers. If they like what you are doing, you will be able to sort out any issues with company structure etc.

Do the hard bit first, which is to find some prospective customers and users. This will help convince you that your idea is worth pursuing, and also offer you your first 'beta' users, who will be invaluable in terms of feedback, product ideas, and spreading the word.

Don't operate on the basis of 'build it and they will come'. They won't, and you'll have wasted a lot of time on nothing.

Excellent post. I've made many of the mistakes mentioned above and learned the hard way.

 

[tom3k493]

Excellent post. I've made many of the mistakes mentioned above and learned the hard way.

Yeah, I defo agree - this was by far the best post, and what I needed