If you were to name the software companies you know of, you would probably name companies like Adobe, Microsoft, or Apple, because most people come in contact with their software every day. But who of you has heard of 37 Signals, insidesales.com, Sirsi Dynix, or Remco Software? Even though those companies may not be as recognizable as the three companies named first, they are big players in the industries in which they operate - business processes, sales, libraries, and hotels respectively.
If your plan is to go into the software business, there is a right way and a wrong way to do it. You won’t find much success if you go after big entrenched companies like Microsoft. The better way to break into success is to do what companies like Remco did. They recognized they wouldn’t be able to beat Microsoft so they went after a small niche and did their best to own it.
Since every business uses computers in some form or another, they all will be in need of software solutions for what they do. There is a perfect example of this in the hotel industry. The hotel industry needed hotel management software to perform everyday tasks and increase performance levels. They need it to do things like managing reservations, coordinating housekeeping and room service, and other various tasks. Remco has targeted this industry and has benefited greatly from it, as they are quickly 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.
Successful software companies have become successful by finding a niche market. If you do your research and keep aware of all opportunities, you can find a perfect market to exploit and make your software business successful.