Finding A Niche To Build A Software Business

When you think of software companies, most likely you think of Microsoft, Adobe, maybe even Apple, because this is the software most users use on a daily basis for their personal lives. However, how many people have heard of Sirsi Dynix, 37 Signals, insidesales.com, or Remco Software. Each one of the four companies mentioned above may not be household names, but in their specific industry of libraries, business processes, sales, and hotels they are king.

If you have ever dreamed of starting a software business, your chances of success aren’t great if you plan on dethroning the huge company like Microsoft. You will better position yourself for success if you do what these less recognizable companies did. They found that the only way to get your name recognized is by targeting a niche, exploiting it, and building a successful foundation on that niche.

Every industry these days use computers, and have a need for specific software, the hotel industry is a perfect example. Hotel management software was developed because the industry needed specific software to simplify their everyday functions, and improve their performance. They needed software to manage their reservations, housekeeping, room service etc. By focusing efforts on this industry, Remco has been able to capitalize from the hospitality industry, and are becoming a leader in hotel management software.

This success hasn’t happened quickly, and they have had to keep revising the software as changes require. Remco has spent lots of time with the staff of hotels, large resorts, and smaller bed and breakfasts to see what areas of the software could be changed or improved. The more time that is spent with the front line people, meaning the hotel managers and their employees, the better you are able to understand what the software should do. Hotel management software now does more than just reservations; it also includes features for spa amenity management, special customer requests, room service, and many other hotel needs. As the software is modified, the user interface becomes easier to use, which reduces entry errors and adds to the competitive advantage of the company using it.

Finding a niche has been the key to success for all software companies. There are opportunities everywhere, if you keep your eyes open. With enough research, you will find an opportunity market to exploit to build your successful software business.

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