Ideas for process-driven industry/sector to automate

[AwkwardTurtle]

I'm a full time software developer looking to start my own side business using my technical skills. Like many I'm struggling for a good business idea, the web design market is densely over-crowded and would under-utilise my skill set. I'm looking for a difficult coding challenge which would hopefully mean the market wouldn't be overly competitive.

I've narrowed my thoughts to a business-to-business service type company, with a product that would improve efficiency for an industry through software automation. Perhaps one where a product already exists but isn't particularly good.

Alternatively, (and perhaps a little more ambitiously for a budding entrepreneur) I'm looking for startup ideas for a business which is highly process driven. A business which would benefit from bespoke software being written from the inside (perhaps because off-the-shelf software would be impractical) and seeking out partners to fill the skill gaps of that industry. One example of this is the conveyancing industry, which I am a little familiar with. However, the main drawback is that there's already many, large, 'volume' conveyancers driving down costs in that market.

 

[Rick at AXLR8]

You are right to pick a high complexity workflow. I would add high volumes of low margin transactions are the place where people most want automation.

We do this at AXLR8 and there is huge competition everywhere so just have a go if you think the enjoyment will overcome the extreme bank balance roller coaster angst.

When we consider new markets (for AXLR8's general workflow software), we have a structured approach to brainstorm new areas and ask questions like these.
How do the clients do business, now and what is happening to their busines processes in future?
Where are the pains and costs?
How are they dealing with increased regulation?
What are all the stages between prospecting for their cleints and the delivery and payment of whatever they sell?
How can we reduce the costs and friction in those?
How much money would they save per month?
How many are there who would buy the application?
Who else is already there (i.e. competition)?
Can they do without a system?
And increasingly these days: are their staff smart enough to use a system?
Are we able to empathise with their stresses and strains and really understand their business challenges?
Actually, do we like the sort of people we have to deal with in that industry?
That last one is really important.

Trial marketing.
Do not write a line of code until you have done some market research. Once we have narrowed it down, we look for the targets on and get directors on the telephone to see if we can help or if they are interested. (If you cannot do or do not like the telemarketing part, go back to work for someone who can run a business.)
Ask the directors what they like and dislike about their present systems. There are some good systems out there for all of them, already. Expect competition to be well established.
Some examples we chased are conveyancing (which you mentioned), mortgage consultants, dentists, fire installers, general helpdesk ticketing, waste management - probably hundreds failed over the years. However, lots succeeded.

Success and scaling up.
A mentor of mine once pointed out to me that for every £1 taken to write an application, you must reckon on £100 to package it. (Think: web FAQ, documention, legals, help tips, user guides, training course delivery and material and so on.) Then it costs £1000 to market it. There will be overheads for admin, finance and audit and all the other compliance stuff.
Successful apps: The challenges encountered with scaling up and the volume sales of the same popular system to lots of people with that specific requirement is intellectually and emotionally demanding. The dream you hope for is different when you get there. I hope you get there and enjoy it as much as I have done over the last few decades and meet as many super customers.

One hit wonders: Lastly, do not be fooled by one client. For every successful marketplace where we have thousands of users, we have three more where there was just one client and nobody ever bought the system again. We made it sparkle by ploughing in three quid (and the rest) for every pound the client paid us and never found just four other clients to break even.
If, aternatively, you get paid on a time and materials basis, you may have to make compromises. For example you are unlikely to end up with full control of the IPR to distribute as you wish. What if they say they don't want you to sell it to competitors? What if they want a percentage on sales?

Give me a bell if you start up. If you think about it again and decide against it, you will still have a fantastic career as a developer working in a company with team mates who are good at and enjoy the bits you do not like.
Good luck whatever you decide.

 

[Rick at AXLR8]

I'm a full time software developer looking to start my own side business using my technical skills. Like many I'm struggling for a good business idea, the web design market is densely over-crowded and would under-utilise my skill set. I'm looking for a difficult coding challenge which would hopefully mean the market wouldn't be overly competitive.

I've narrowed my thoughts to a business-to-business service type company, with a product that would improve efficiency for an industry through software automation. Perhaps one where a product already exists but isn't particularly good.

Alternatively, (and perhaps a little more ambitiously for a budding entrepreneur) I'm looking for startup ideas for a business which is highly process driven. A business which would benefit from bespoke software being written from the inside (perhaps because off-the-shelf software would be impractical) and seeking out partners to fill the skill gaps of that industry. One example of this is the conveyancing industry, which I am a little familiar with. However, the main drawback is that there's already many, large, 'volume' conveyancers driving down costs in that market.

Hi. I am curious how you got on. Did you ever pick an industry and build a system?

 

[DG web consultancy]

This is something I was considering doing but didn't take off (meaning I did something else). I'd considered building a relationship with some medium sized business owners and asking if I can see how they work then suggest ways I might be able to help them if I saw the opportunity come up.