Types of clients to avoid when you run software development business.

After founding Solidstudio, Pawel was an originator in terms of pursuing expertise in eMobility. With the build-up of a solid knowledge-base on industry’s needs & wants, he now keeps a close eye on products’ development. He’s also hugely responsible for the business’ side and designs the business models for our products.

Paweł Małkowiak

Everyone who dreams about starting their own software company needs to answer this question: I know how to build stuff, but where am I going to find my (first) clients?

I’m not going to share a guide to finding clients here. I’m not in the position to give people advice about it. I want to share my observations of the different client types who approach software companies - to be more precise, the client types you better avoid.

I’m not sure whether the more you grow, the fewer such clients approach, you manage to build mechanisms that block them, or you gain more experience and learn how to talk with such clients.

I feel that we’ve been dealing with a relatively high number of such 'cliche clients' in our early days. Another possible explanation is that at some point such clients no longer bother you that much since the people you want to do business with are in your sales funnel too.

Before listing my three least favourite types of clients, I want to note that I think some of them can still be transformed into leads. The question is: will the contract benefit you as well the client or just a client?

A common way to validate your startup idea is discussing it with others. The more you talk, the more your idea can be challenged and improved. It also gives you more information about possible competition. It can even help you find a partner or a customer. I’ve always thought that’s the most sensible way of founding a startup - or any other business, to be honest. It turned out a lot of people feel exactly the opposite.

Here’s an exaggerated representation of the conversation I’ve had many times (

 Hello, I have an idea, and I would like to talk about it as I am looking for a tech partner.

 Hi - sure, we can help you with that. What do you have in mind?

 Well, it is like an Uber for Crypto. But I can’t tell you any more details.

 Ok, I will keep everything confidential, but I need some information.

 Of course! I am sending you an NDA. Please sign it so we can talk.

Well, nothing wrong until this point, an NDA is a pretty standard thing, and it’s understandable to protect a business idea. Then the situation develops...

 I am looking at the NDA, and it says I need to pay you $500k for any single wrongdoing... I’m pretty sure our contract will not be worth that much, can we think about a more rational number?

 (conversation begins to chill) What do you have in mind? $500k is not a significant number if you think how much the idea is worth.

I can add a few more things here: rage, theft accusations, and swearing included. I understand the need to protect your ideas, but if the client starts the cooperation with a trust level equaling zero and is convinced everybody wants to steal from them - no NDAs will change that attitude. Collaborating on simple tasks will become a nightmare.

 Well, I want you to sign this $500k NDA, but I don’t have money to pay you for the work - can it be equity?

2. Treat everything as due yesterday - except the money.

We may laugh a little about the first client, but this second type can cause severe damage. Cashflow is crucial at every point for a service company. Developer salaries, equipment, office - all of that generates substantial costs, and lack of money can let you to bankruptcy in just a moment. The brutal truth is that in the early days, a software company is two invoices from going down.

If the client is not paying, is late with the payment or continuously tries to find ways to postpone the transfer - in my mind, that’s the biggest red flag there can be and a sign to quit any cooperation with the client. As painful as it can be - it will be always less painful than finding out there is no money to pay your staff with by the end of a month.

Sometimes you read an e-mail or answer a phone call that seems to be perfect. The client knows what they want, has an idea about the price, and has structures and processes in place to handle your team. There is only one ‘but’ - it all needs to happen now.

Such a conversation seems so right and tempting at the beginning of running your own company that you may rush into it - you call friendly agencies to ask if they have anybody spare to join you ASAP, move some of the developers from internal projects, and neglect other (possibly important!) leads. Once you have it all or most of it in place, contact goes silent.

Well… it happens - you think. But after a few weeks the same client calls, gives you a decent excuse and the situation happens all over, including the going silent part.

I don’t think there is a way to defend from such client. The difference between an experienced salesman and a newbie, is the latter is so excited about everything that they may go through a number of such cycles before giving up on such client.

At Solidstudio we had the pleasure of working with great clients. Sometimes with ok ones. We managed to cut off not paying customers and avoid signing deals with cagey ones. I believe trust is the most critical value in a business and not having it with the client will prevent you from building a meaningful and lasting relationship that works for both parties.

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True cost of software outsourcing - how can you meassure this?

Software development outsourcing is the term used when a technology company is hired to create and build a business’ IT systems. A hugely beneficial practise, outsourcing in this way can help small to mid-sized companies in particular not only gain a competitive edge, but significantly reduce costs and implementation time.

While the premise of software development outsourcing is quite simple and its benefits clear, finding a reputable company to deliver such services can be a challenge. Google ‘software development companies’ and the result is seemingly endless pages of vendors offering their services at competitive rates. So how do you know which of those developers will properly fulfill your needs and offer true value for money?

Knowing what to expect from a vendor, from both a service level and cost perspective is vital before choosing the best 

 for your business. There are a number of considerations that will help you identify a reputable software development company, all of which are detailed here, plus how much you should expect to pay for such services.

Software development outsourcing: What to consider

Outsourcing software development involves a significant level of trust from both parties to work successfully. More often than not, a business will have to share confidential and valuable data in order to get the IT systems it requires. Any reputable software development company will understand this and offer a service that not only meets a brief from technological perspective, but a human one too. To find a tech partner who will do just that, look out for vendors with the following attributes:

 – A reputable software development company will be sympathetic to their line of work being highly specialised, and will therefore help clients form requirements, ask difficult question and make sure all parties are completely clear on the business’ objectives

 – Making sure a software development company has the right skillset to fulfill technical requirements is vital, as any gaps in knowledge could lead to costly delays. A close look at a vendor's portfolio will give a good indication of whether the team possesses the correct skills, across the most relevant technology.

 – The more senior a team, the more business-orientated it is. A good way to gauge experience levels is to look at ‘Meet the team’ pages and see what percentage senior developers account for.

 – While a project might need multiple developers input, it’s a good idea to choose a vendor who will assign developers to one project at a time. Not only will the sense of ownership help increase a developer’s output, but means each project has one firm point-of-contact.

 – Any software development company worth it’s weight will help a client see past the ‘now’ with any technical requirements, and offer the expertise to scale a project up or down as needs and situations change.

 – Developers are in high demand globally, but that shouldn’t mean waiting long periods for projects to get off the ground. At Solidstudio, development can start in a matter of weeks, with the initial planning phase up and running in a matter of days.

 – A quality software development company will stay in regular contact with clients for a project’s entirety. At Solidstudio, weekly and biweekly calls are standard practise. Clients are also invited to join internal communication channels and are welcome to dial into daily standups if they so wish.

 – The last but one of the most important considerations of all. A quality software development company will be completely transparent at every stage of a project’s progression. From planning and implementation, to costs and potential issues, any work completed should be visible to the client, at any point. Be wary of talk of or signs of further outsourcing from within the vendor – this is also a major red flag.

Software development outsourcing: How much should it cost?

So now you know what to look for in an outsourcing software development company, the next big question is how much should it cost? Giving an exact figure here is almost impossible for two main reasons; firstly, because every project will have different requirements. And secondly, creating a digital product is a process of constant change, and therefore an estimate provided at initial contact stages could easily change (sometimes significantly) as the project evolves.

In order to get a realistic estimate, the best first step is to spend a good amount of time considering what your product requirements are and drawing it up into a project specification document. This should broadly outline how the required software should function, in both the short and long term, which will help vendors understand what level of work and seniority is required. It will also help avoid any misunderstandings in the development cycle and costly delays.

After sharing this document and an initial consultation with your chosen vendor before any work is carried out, you should expect an estimate based on an initial assessment of how much work is involved and the level of seniority it will require. Solidstudio has a track record of smaller end-to-end software development projects over a three-month period, as well as bigger, on-going projects and so can quickly offer very accurate initial estimates. These would include costs for:

It is worth reiterating costs can (and almost certainly will) change as a project evolves. Be wary of low estimates, cheaper estimates don’t necessarily offer the best value, and can often include hidden costs that soon add up. Reputable software development outsourcing companies will be completely transparent when it comes to costs, keeping clients abreast of any changes, and ensuring to check before undertaking new work that might add to the bill.

 is often best suited to IT outsourcing. This pricing method means fees are configured based on the amount of time spent on a project, combined with the cost of the effort (materials) used in the process. Solidstudio works to an hourly rate structure of $40-75, depending on the level of seniority required, with management overlay kept to a minimum.

For more information on software development outsourcing, or for an estimate, contact the Solidstudio team!

True cost of outsourcing - how can you meassure this? Read our article to find out.

Software development outsourcing: what to consider and how much does it cost?

Leading sales, Martyna had a chance to get to know most of our clients on top of having spoken to hundreds of people from the eMobility environment. She’s gained an in-depth understanding of what’s desired or unwanted in the business and she’s now applying that knowledge in her everyday job.

Martyna Wajda

As the digital era continues to evolve, strategic IT partnerships will only become more important. For small to mid-sized companies, in particular, the benefits of having a tech company play a partner role, whereby IT specialists can actively collaborate with the wider team and help inform business and technology strategy, can be considerable.

But it’s not just a one-way street. Forming a mutually beneficial partnership with an innovative technology company, like 

 , can help optimize both organizations. Quality collaborations can help improve everything from how a company communicates right through to profitable revenue, in short, enabling both companies to achieve more than they ever could going it alone.

The key to any successful partnership is, first and foremost, finding the right company to join forces with. At the very least, an IT partner needs to be able to serve your business' needs, ensure optimum IT performance, and has the ability to meet any emerging challenges head-on. Our guide to choosing the 

 for your business outlines exactly what you should look for and what to expect from such collaborations. But for now, let’s take a look at four key ways a strategic IT partnership can be beneficial for everyone involved.

Two heads are better than one, so the phrase goes. So it stands to reason that three, four, five, six etc heads are even better, especially when it comes to implementing long-standing IT systems. But just as an IT partnership can effectively deliver any technical know-how, don’t underestimate the value any business acumen can offer in return. Pooling and sharing resources can be a highly effective way of advancing both parties on the path to innovation and success.

Like any relationship, the more time and effort that goes into it, the more fruitful it becomes. For an IT company to get a deep understanding of a company’s systems and operations, as well as any technological challenge it faces now (and could potentially) takes a considerable amount of commitment, time, and trust.

A sustained, committed partnership offers, on one side, the benefit of on-going, innovative work and, for the other, the delivery of the most effective IT systems. But more than this, a long-term partnership offers both companies the opportunity to get to know each other’s business and build quality relationships with the people who are the driving force behind it, making it easier to work together and quickly adapt to any challenges.

For any reputable technology partner, the success of your business will become as important to them as it is to you. A quality IT company, like Solidstudio, will be creative in its approach to driving innovation to achieve the most effective technology systems for your business' needs. This can mean not only helping a company achieve a whole new level of digital transformation but keeps IT specialists abreast of all the latest cutting-edge technology and at the top of their game.

The cornerstone of any successful relationship is communication, and business partnerships are no different. In order to achieve highly successful collaborations, regular conversations are a must. Here questions such as are objectives being met and if there are new challenges that need to be addressed can be discussed, and key goals and timelines kept on track.

Partnerships offer a great opportunity to practice and develop good communication skills, which are invaluable in business. Scheduling in time for both parties to step back and measure performance at regular intervals can only strengthen a partnership as it moves forward.

For more information on how a tech partnership can benefit your business, get in touch with the Solidstudio team!

Learn about the benefits of technology partnership - does together means better?

The power of tech partnership

5 benefits of working with a nearshore software development company.

If your technology business is rapidly growing and you need new people on board fast, you’re probably considering to outsource development to manage the workload. 

 allows companies to hire skilled developers who can handle even the most advanced aspects of a tech project to let your internal team focus on the big picture.

Nearshoring is one of the most popular form of outsourcing software development or services today. That does not come as a surprise because nearshoring offers many different benefits.

Here are 5 reasons why companies team up with nearshore technology partners:

By partnering with an external company, you get to benefit from the talents it has sourced and nourished for a long time before they join your ranks. You’ll be working with an external team of developers who have previously collaborated and have processes in place to enable smooth development. Hiring a team like that would take you a lot of time and resources.

Nearshore partnerships offer flexible options for scaling your IT team as needed. You may need developers for your project right now, but your needs may change after 2-3 months. Hiring nearshore allows getting the work you need, right when you need it.

Most of the time, nearshore professionals follow the same industry standards and best practices such as agile or scrum. They work on similar timelines, and you have little to no gap between time zones.

Finding qualified talents for your internal team is always challenging. When you team up with a software development agency that builds a team for you, you remove all the hassle that comes with sourcing, attracting, and recruiting developers. You don’t need to spend a dime on the hiring process.

Reducing communication issues that are usually part of outsourcing development helps to improve the ROI and bottom line. In nearshoring, you benefit from reduced language barrier between supervisors and nearshore developers. For example, in Poland pupils start learning English in primary school and are proficient at it by the time they graduate from high school.

How to choose a nearshore software development company?

Hiring a company in a neighbouring country or relatively nearby is different than teaming up with an offshore partner located on the other side of the world. Hiring a nearshore partner is more comfortable, but there are some things you should be aware of when looking for the right technology partner.

Check their knowledge of English or another relevant language - you need that skills for smooth communication. Remember that communication problems may kill a project quickly, especially if we’re talking about the complex process of building software.

Ensure that the company has skills and experience you see - it only makes sense to enter a nearshoring partnership if the partner offers expertise that fills the skills gap you’re experiencing internally. That’s why checking the company’s areas of expertise is so important.

Nearshore development - the current hot topic.

Delegating development tasks to a nearshore development team allows your company to concentrate on the big picture and create a real competitive advantage. Tech giants like Amazon or Apple are aware of the benefits of nearshoring and are increasingly turning to nearshore development today.

Hiring nearshore software developers is on its way to becoming the standard workflow of the future for companies that experience rapid growth and need a sustainable solution to support it.

Don’t leave your company behind and take advantage of nearshore software development. Get in touch with us to see how our team of experts can help you solve problems and achieve new business goals.

Running and scaling a software company - Client Types

18 FEBRUARY 2019 • 9 MIN READ