Defining Your Business Model | Going IT Alone: The Handbook for Freelance and Contract Software Developers

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Going IT Alone: The Handbook for Freelance and Contract Software Developers

By : Leon Brown

Going IT Alone: The Handbook for Freelance and Contract Software Developers

By: Leon Brown

Overview of this book

Going IT Alone: The Handbook for Freelance and Contract Software Developers

Going IT Alone: The Handbook for Freelance and Contract Software Developers

Credits

Credits

About the Author

About the Author

Acknowledgements

Acknowledgements

About the Reviewer

About the Reviewer

Preface

Preface

Free Chapter

Introducing Freelancing

Introducing Freelancing

The freelance lifestyle

Is freelancing for you?

Defining your motivations

Don't quit the day job

Legal entities

Home or away?

Summary

Positioning Yourself in the Market

Positioning Yourself in the Market

Market segments

Pricing yourself appropriately

Building quality for market segments

Market research

Summary

Defining Your Business Model

Defining Your Business Model

Types of business model for software

Software Development as a Service (SDaaS)

Software as a Product (SaaP)

Software as a Service (SaaS)

Software Supporting a Service

Business Model Canvas

Components

Canvas

Problem tools

Product life cycle

Five Forces Analysis

Seven Domains Assessment framework

The McKinsey 7S framework

Fitting everything together

The business descriptions

Comparison: McKinsey 7S framework

Comparison – Business Model Canvas

Comparison: conclusion

Summary

Creating a Brand

Creating a Brand

A brief definition of what branding is and isn't

Know your audience

Identify perceptions required for objectives

Specializing – becoming a domain expert

Generalizing – targeting a wider audience

Kick starting perceptions

Who do they think you are?

Summary

Networking, Marketing, and Sales

Networking, Marketing, and Sales

Understanding networking

Defining a networking strategy

Writing press releases

Open project sources

The sales process

Summary

An Introduction to Client Types

An Introduction to Client Types

The ethical client

The difficult client

The trusting client

The nasty client

The price-conscious client

Summary

Managing Clients

Managing Clients

Points of contact

Performing risk assessment of the project

Analyzing the client

Cash flow issues

Summary

Negotiation

Negotiation

The Winning Formula

Strategic Negotiation Phases

Summary

Software Development Resources, Patterns and Strategies

Software Development Resources, Patterns and Strategies

Software problems: A recap

Rescued by object oriented programming

Strategic efficiency with MVC

Strategic data management

API-oriented system architecture

Testing strategy

Security considerations

Version control

Summary

Software Development Methodology

Software Development Methodology

Social factors of software development

Features for preventing problems

Methodologies of interest

Designing your methodology

Summary

Creating Quotes and Estimates

Creating Quotes and Estimates

Maths to the rescue: The basics

Risk management

Recovering unaccounted costs

Maintaining estimation accuracy

Summary

Project Management

Project Management

Client perceptions

Methods of communication

Allocating the right people

Written agreements

Feature creep

Risk assessment

Defining a specification

Feedback

Release cycles

Summary

Appendix

Appendix

Interview 2

Interview 3

Interview 4

Interview 5

Interview 6

The McKinsey 7S framework

Understanding the components you need in your business and how they link to each other is an important part of designing a successful business model. The McKinsey 7S framework can be used as a reminder to identify the components you need in your business and how they relate to each other. In essence, this framework is a simplified version of the Business Model Canvas, but with relationships already identified:

Figure 3.6: The relationships of the seven components of a business.

Goals and shared values

The central component of your business are the goals and shared values that your business exists to fulfill. For some organizations, this is simply to make a profit, whereas other organizations such as charities and social enterprises place a higher priority on their social agendas. Understanding ambitions will allow you to accurately define the requirements of each of the other components in order to fulfill them.

Strategy

Possibly more than any other component, strategy...

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83

Tech Concepts

36

Programming languages

73

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