If I Started Now: How to Start a Software Company That Makes $40,000 Per Month

by James Clear

This post is part of the If I Started Now series, which hands you the step–by–step blueprint on how to get started building a particular business.

Let me share a secret with you.

Software is the greatest tool for building a profitable business that the world has ever seen (even if you don’t have any money to get started).

Bold statement, I know.

However, once you’re finished watching today’s interview, I’m confident you’ll feel the same way.

Why Should I Watch This?

Today’s interview is with Dane Maxwell and it will cover the exact steps you need to take to go from nothing (seriously — you don’t even need an idea!) to a profitable software business.

Dane has already built four six–figure software companies and his biggest seller, Paperless Pipeline, currently pulls in over $40,000 per month. Yes, every month.

If you have ever thought about building an iPhone app, web app, or any type of software then this interview is for you.

The goal of this interview is to help you answer the question, “If I started building a software business, what steps should I take right now?”

Don’t miss this one. You’ll love it.

Click the Play Button Below

Mentioned In This Interview

Special Gift — Because Dane is my main man, he has decided to give away a free gift to Passive Panda readers. Click here to find out more.

Spin Selling — Dane mentions this book in the interview (and I promptly pull a copy off my shelf like it was planned all along). You can check it out on Amazon here.

The Foundation — Dane has also taught hundreds of students how to build their own software companies. One student, Sam Ovens, recently went from having no money to building an iPhone app that pulls in over $2,500 per month … and he did this all in 10 weeks. You can get a case study of Sam’s full story here.

What You Should Do Now

Leave a comment below and share your thoughts on this interview and on any questions you have about building a software company.

As always, I’ll do my best to help.

Nido Qubein: Why Immigrants Become Millionaires

'Switzerland is extremely entrepreneur-friendly'

After working for a large company, Swedish-born Ann Söderblom, 31, recently took the plunge from employee to entrepreneur. Söderblom, who advises expats on how to start their own business, tells The Local why Switzerland is the perfect place to set up your own company.

Tell us about yourself.

I’m originally from Sweden, where I completed my studies in human-computer interaction and went on to do a consultancy internship in Barcelona, Spain. Five years ago, I decided to move to Switzerland to be closer to my sister who was living there and to try something new. It also helped that Switzerland has a few more months of summer than we do in Sweden. I then spent a few years working for large multinational companies, doing project management work.

What did you make of the Swiss working culture?

There is generally a good work-life balance here and people don’t tend to work crazy hours. Swiss departments also tend to be very organized with a clear hierarchical structure. However, this hierarchy is not necessarily so good for women and the distribution of management positions tends to be very male-dominated. That’s one of the reasons why I prefer to work for myself.

Although, working for a multi-national corporation also meant I was very much a part of the expat community. In the last couple of months I am trying to be more integrated into Swiss communities by learning some Swiss German words and chatting with neighbors.

Tell us about your business.

My business, Söderblom Design, helps international people in Switzerland start their own business. I help them both with corporate identity and with making the transition from employee to entrepreneur the least stressful possible. My two current clients have a copywriting business and a life-coaching business. 

What made you decide to become your own boss?

I’ve wanted to have my own company since the age of 15, a dream that I kept alive while studying and working in big corporations.

When I was 15, I'd spend weekends, evenings and vacations producing and selling t-shirts, organizing and catering for events, sewing prototypes for children’s toys and later importing Japanese tableware. At first, I didn’t sell anything but it was all a good learning experience.

I learned a lot through making mistakes and hands-on experience. Finally, in 2011, I started doing corporate design work for a few clients, which inspired me to start Söderblom Design so I could pass on my knowledge with others.

Was it difficult to settle in?

When I arrived here, I had to apply for a work permit through the kreisburo, which was a very straightforward process. And when I started my own business, I got a treuhand (financial advisor) to take care of taxes for me.

I haven’t found the bureaucracy too bad here! Switzerland is really an efficient country when it comes to dealing with authorities.

So far, I’ve had no problems getting by with a basic level of German – but then most of my work is in English.

What advice would you give someone hoping to set up their own business in Switzerland?

I 'd say that starting a business is pretty much the same everywhere in terms of the fundamentals. Perhaps my best advice would be not to quit your job straight away but to start small and test your business ideas at weekends and in your evenings to see how it goes. Then start making a profit and you can scale it up over time.

One classic rookie mistake is keeping your idea secret because you think someone is going to steal it, when you really need to tell as many people about it as possible and get lots of feedback.

I'd also recommend learning just a few words in Swiss German as it gets people to open up a lot more. But you'll also find that people will be very happy to switch to high German – if you speak it.

Is Switzerland a good place to be an entrepreneur?

It's a very entrepreneur-friendly place. Not only are the taxes good, but there are lots of events where entrepreneurs can showcase and test their ideas — like the Technopark in Zurich, the Blue Lion initiative, Venture Kick and the Start-up Weekend for tech start-ups.

Would you ever go back to working as an employee?

Not very likely. Once you’ve tasted the freedom of having your own business, it’s quite hard to go back.  

Eluding the Illusion of Time: Douglas Karr on Priorities, Resources, and the Value of Quality

When your goal is to meet a deadline for a project, time can sometimes become your biggest enemy.

It’s not that I don’t understand the work involved to complete a particular task at hand; it’s all of the other unanswered questions that come along with working with clients and teams. I don’t know if my client will provide the resources in time. I don’t know that our team’s resources will be consistently applied. I don’t know if we’ll run into problems with the technology. I just don’t know.

What I do know is that I’ll be held accountable. The problem is that I won’t be held accountable for the result – I’ll be held accountable for the deadline.

When Will it All Get Done?

Recognizing this, I pad project schedules for safety. That said, I am putting my contract and relationship with my client at risk by taking my time estimate, doubling it, and doubling it again… eventually ending up at 4 times the original estimate.

It’s not that I’m lying or trying to delay the project — it’s that I want to ensure it’s done correctly and exceeds the expectations of the client. And, of course, I want to ensure that the client will get the hand-off when they expect it. There are often downstream repercussions when a project isn’t completed on time. This is the critical moment in our relationship. If the client asks their internal staff, the staff will say it takes a fraction of the time. If the client asks a competitor, they’ll undercut me for sure. It’s a critical moment because the only reason why the client would accept my estimate at this point is because they trust me. If they trust me, we’ll move forward. If they don’t trust me, we’ll end the relationship.

It has nothing to do with time and very little to do with the results. Time is an illusion.

What’s Your Hourly Rate?

When I started my business, I responded to one ornery prospect with a rate of $250.00 per hour. He grimaced and literally berated me for the next five minutes or so. He said he could hire someone for one-tenth that rate and there’s no way he would pay it. I asked how much he would pay. He responded $75.00 per hour. So, I told him that I could do it for $75.00 per hour, but that it would take me three times as long as my original quote. I smiled. He didn’t. So I walked.

The illusion of time appears again. Within that discussion, the value of the project at hand wasn’t discussed — only my hourly worth as a human being. If he interviewed 10 people who ranged from $25.oo per hour to $250.oo per hour, I’m confident that the $25.00 per hour contractor would get the contract. I’m also confident that the results were disastrous. Just about every day, we meet with clients who have completely blown their budgets on cheap contractors who couldn’t get the job done.

We don’t manage retainers nor track hours anymore. We set budgets with our clients and have them hold us accountable that the value we generate is greater than the monthly subscription we charge. We like to measure that in increased visibility on search, social, improved conversion rates, and – ultimately – more dollars to the bottom line.

How do you Manage Time?

I don’t. Ten years ago, I started the Marketing Technology Blog and grew a sizable following online. The authority I built, combined with the following, began to drive demand for my services. The demand was enough that I launched my agency 5 years ago. Suddenly, I was a CEO and a blogger. I was recruited to write Corporate Blogging for Dummies. My influence grew, my network grew, and my business grew.

On a daily basis, I have to respond to a dozen or so tweets, a handful of Facebook status updates, dozens of PR pitches, hundreds of emails, a few phone calls an hour… and I need to execute for the clients who are paying my agency. I am surrounded by an amazing team that barely keeps me from drowning and thankfully keeps our clients afloat.

You can’t balance a checkbook when you don’t have enough money to cover the checks. The same goes for time management. When the demand for your time exceeds the number of minutes in the day, there is no time management. At that point, we’re not really managing time — we’re managing priorities.

Prioritization over Preservation

Some folks tell me that what this means is that I’m not charging enough, or I need to grow my business, or I need to say no… but that’s not who I am. I want to stay affordable to most businesses. I want to help more clients improve their marketing results. I want to stay engaged with my following on social media. I want to read every email from a new startup or a public relations professional. I love my disaster of a life!

The result is that I turn away business. Not because of the time it will take or the money it will pay, but because it’s not a fit for my style of work. I’m sure many of you are shaking your heads and some of you probably think I need psychological help, but I don’t. I’m absolutely content with finding and working with businesses that appreciate the value and commitment I bring to their company, instead of holding me accountable for over- or underestimating timelines made for self-preservation.

And I’m not alone. Virtually every client I work with is resource-challenged, and the demands continue to grow. Our service, sales, and marketing staff now balance a plethora of social mediums, a barrage of emails, and the interruption of meetings. They face increased expectations of developing content, nurturing leads, improving customer retention, and acquiring new business — all with less money, fewer people, and just a handful of tools.

Visualization Management

The key to our success isn’t managing time, it’s managing priorities. We balance our publication, our speaking schedules, our sponsors and sponsorships, our audience and our community alongside our clients’ demands. Because of these myriad responsibilities, we use a ton of visualization tools. From cashflow in our accounting platform, to analytics for our audience, to email visualization tools to handle bulk actions (check out Mailstrom), to MindManager and ProjectDirector for identifying obstacles and opportunities to drive business results.

In my opinion, time management is as dead as the corner office, the personal assistant and the flashy gold watch. It’s simply not how we’re working anymore. We have a fixed amount of resources, not a flexible amount of time. The challenge for every successful business is to prioritize their resources effectively — not based on deadlines, but on results.

Top 26 Bengali Entrepreneurs

Ranking the most successful Bengali entrepreneurs is not an easy task, especially when you consider that most of the Companies they run are unlisted. However, with some market data available, its do-able. Once again, let us re-affirm the fact that the readers of the blog should not use the data on the Blog's articles for any investment decisions. We have surely missed out some names and the authors would appreciate any reader reaching out to us to apprise us of the same. 

Next up: "Top Bengali Entrepreneurs 25-50"


1) Subrata Roy, Managing Worker and Chairman at Sahara India Pariwar is arguably the richest Bengali in the world now; and if reports are to be believed, even he doesn't know the true extent of his wealth! Conservative estimates value the Group at over Rs. 130,000 crores (US$ 26 Billion) spread over its interests in real estate, media, sports, tourism, film, healthcare and hospitality. Whether it is his charitable activities, fleet of private jets or hobnobbing with Bollywood celebrities, almost everything he does is reported widely in media. Even in the times of Mayawati he is one of the most powerful people in Uttar Pradesh. Recently, he paid the most ($370 Million) for the Pune IPL Team, bought a stake into Force India Formula One Team for $100 Million and lent $150 Million to troubled industrialist Vijay Mallya, Chairman of Kingfisher. The Group's pet project is titled 'Aamby Valley", located in Lonavala, Maharashtra. 

Image: the Golf Course at night, Aamby Valley, Maharashtra

2) Purnendu Chatterjee, Chairman of The Chatterjee Group (TCG), heads a private equity fund which has invested over $3.5 Billion in India alone, over the last 10 years. With global business interests ranging from Petrochemicals, Life Sciences, Information Technology, to Real Estate and Entertainment, this man has been a trail-blazer of sorts. An alumnus of IIT Kharagpur and the University of California at Berkeley; he joined McKinsey in 1976, became a partner at 34 and at one time was mentored by none other than the Billionaire Investor George Soros. He is well known in India, for being the largest private share-holder of Haldia Petrochemicals, being a part of the team that bought global Petrochemicals giant, Basell in 2005 and being one of the Founders of the Indian School of Business, Hyderabad.

Image: Indian School of Business, Hyderabad, co-founded by Purnendu Chatterjee


3) Sunil Kanti Roy, Chairman of the Peerless Group, is probably the wealthiest resident Bengali today. He heads the Rs. 13,000 crores (US$ 2.8 Billion) Group having diversified interests in Finance and Investments, Hospitals, Real Estate, Hotels, Travel and Senior Care. Roy received the 'Padma Shri" in 2009.

Image: The Group's Axis Mall in Rajarhat, Calcutta



4) Dr. Kali P. Chaudhuri, Chairman of KPC Group, might be based out of Bay Area, California, but has huge investments in West Bengal and the rest of India. His businesses enjoy a combined valuation of more than Rs. 8,300 crores (US$ 1.6 Billion), and is spread across Healthcare, Pharmaceutical manufacturing, Biofuels and Alternative Energy, ITeS, Education, eal Estate and Travel. He is considered to be one of the foremost Orthopedic surgeons in the world.

Image: KPC Group logo

5) Amar Gopal Bose, Founder and Chairman of Bose Corporation is valued at more than $1.1 Billion according to the Forbes Billionaire List 2011. A brilliant Electric and Acoustic Engineer, Mr. Bose was born to an Indian freedom fighter who escaped to the US to escape prosecution by the British. The Company operates 5 plants, 200 retail stores and an automotive subsidiary in Stow, Massachusetts. He graduated from the Massachusetts Institute of Technology in the early 1950s and as a token of gratitude donated a majority of the Company in the form of non-voting shares to his Alma Mater to sustain and advance MIT’s education and research mission. His son, Vanu Bose, runs Vanu, Inc. Chances are if you are reading this while listening to music on your headphones aboard British Airways, hearing the evening prayers at Mecca, or enjoying Zubin Mehta's performance at the Colosseum in Rome, you have got to thank Mr. Bose for it!

Image: Bose Corporation HQ in Framingham, Massachusetts 


6) Prasoon Mukherjee, Chairman of Universal Success Enterprises Limited, is based out of Singapore, but has made huge investments into India over the past decade or so. With interests spanning across Ports, Power, Tourism, Hospitality, Townships and Industrial Parks, Chief Ministers of states, from Guajarat to West Bengal have rolled out the red carpet for him. His Group is valued at more than Rs. 5,000 crores (US$ 1 Billion), and his pet project is the Kolkata West International City, a 377-acre township being developed in Howrah, India. Recently he has setup a motorcycle manufacturing plant with TVS in Eastern India. 

Image: The Main Gate at the KWIC, Howrah, India


7) Bicky Chakraborty, Founder and Chairman of Elite Hotels, Sweden, enjoys two sobriquets, "the Richest Indian in Sweden" and "Sweden's Biggest Hotelier". Not surprisingly, his 22 super-luxury Hotels, across the country welcomes the best of Swedish and International society. He also owns more than 40 English Pubs in Sweden and the Westbank Hospital in Howrah, India. He is building another 275-bed Hospital in Calcutta, increasing his Healthcare portfolio. His personal networth is estimated at more than Rs. 3,000 crores (US$ 600 Million).

Image: Elite Hotel Stockholm Plaza, Stockholm, Sweden


8) Aveek Sarkar, Chairman of ABP Group, owns two newspapers, nine magazines including Fortune India, four TV channels (ABP News, ABP Majha, ABP Ananda and Sananda TV), two publishing houses including Penguin India and a Mobile and an Internet company. With a personal net worth of more than Rs. 2,500 crores (US$ 500 Million), his private art collection is sometimes the discussion of Calcutta's coffee-house addas. Both his son, Aritra Sarkar and daughter, Chiki Sarkar have fledgling careers in ABP Group and Penguin India respectively.

Image: Aveek Sarkar presenting the Anandalok Award to Aishwariya Rai in 2011


9) Bijon Nag, Chairman of IFB Industries, has diversified interests running across Home Appliances, Engineering, Automotive and Agro. Two of his divisions are listed on the BSE while two are not and his businesses enjoy a combined valuation of Rs. 2,000 crores (US$400 Million). 

Image: IFB HQ, Calcutta


10) Kaustav Ray, Chairman of RP Group, has businesses spanning IT, Media, Agro Foods, Ceramics and Sports. With a cumulative value of Rs. 2,000 crores (US$400 Million), the Group's flagship Company "RP Infosystems" produces the "Chirag" brand of computers, the third largest computer brand in India according to DataQuest. In addition, he sponsors two soccer Clubs, located in West Bengal and Kerala respectively.

Image: A hoarding for Chirag Computers in Calcutta


11) Satya Prasad Roy Burman, Chairman of the Khadims Group, is a heavy-weight in the Indian leather industry. Apart from their own leather manufacturing facilities located in Eastern India, the Company has almost 700 retail stores (including 256 in West Bengal alone) across the length and breadth of the country. Recently, the Company has forayed into Jewellery, Departmental Stores and Restaurants and these businesses are cumulatively valued at over Rs. 2,000 crores (US$400 Million).

Image: A print ad for Khadims shoes


12) Gautam Kundu, Chairman of Rose Valley Group, has diversified interests into Real Estate, Insurance, Hospitality, Apparel, ITeS and Media and Entertainment. The Group valued at more than Rs. 2,000 crores (US$400 Million) owns and operates the ultra-luxury the Chrome (Calcutta), the Orbit (Siliguri) and the Marigold (Goa). Overall, the Group owns 22 Hotels, 5 resorts, 2 Amusement Parks, 2 publications and 4 TV Channels, including the current hot favourite, "Rupashi Bangla". 

Image: Chrome Hotel, Calcutta


13) Sudeep Dutta, Chairman of Ess Dee Aluminium, enjoys a listing on the BSE and is valued at more than Rs. 1,800 crores (US$ 350 Million) and is one of the biggest players in the Aluminium Packaging Business. He acquired India Foils in 2008 and got the International VC Sequoia Capital to pick up a 7% stake in the company. He started in 1991 with only 12 employees.

Image: Sudeep Dutta


14) Sagnik Roy, Partner at Txyco Ltd and Yongtong Group, is often called as "China's son-in-law" for being the most powerful foreign businessman in China. Born in Durgapur, India, he heads TXYCO Ltd., a Rs. 1,500 crores (US$ 300 Million) conglomerate. 

Image: Iron Ore supply for one of Txyco's plants in China


15) Asim Ghosh, CEO of Husky Energy, is probably the first non-Promoter CEO on this list. Before taking over as the CEO of Husky Energy in Canada, Mr. Ghosh was the MD and CEO of Hutchison Essar Ltd., from 1998-2009.  During his tenure, the Company grew from a one-city operation to become the country’s second-largest mobile phone provider, with more than 63 million subscribers.In 2007, he presided over the sale of Hutchison Whampoa’s stake in the company to Vodafone in a deal that valued the business at approximately $19 billion. At the time, the sale was the biggest corporate takeover in India's history and, according to a Thomson Reuters analysis, the largest all-cash transaction in Asia up to 2007, with Vodafone agreeing to pay $11.1 billion in cash for Hutchison Whampoa’s stake. His net worth is estimated at Rs. 1,500 crores (US$ 300 Million).

Image: Asim Ghosh addressing Husky Energy shareholders

16) Pritish Nandy, Chairman of Pritish Nandy Communications, was founded by him in September 1993. The Group, collectively valued at more than Rs. 1,500 crores ($300 Million) was one of the first in the Media and Entertainment industry in India to go in for a public listing on the BSE and NSE. Currently, they are into Films, Television Content, Commercials, Events, Wellness and Theme Places. 

Image: "Kaante", produced under the PNC Banner


17) Santanu Ghosh, Chairman of Xenitis Group, has interests in IT Hardware manufacturing, Training, Telecommunications, Motorcycles, Media and a recently launched brand of cycles. The Group is valued at more than Rs. 1,250 crores ($250 Million) and went to the market with an IPO in 2007. Ghosh was nominated for the “Entrepreneur of the Year” Award by Ernst & Young in 2006. 

Image: Indian FM Pranab Mukherjee with Global Automobiles' bike


18) Shanta Ghosh, Chairman of DCPLGroup, valued at more than Rs. 1,250 crores (US$ 250 Million). Founded by Sadhan Dutt, the Group has diversified interests into Engineering and Architecture Consultancy, Civil Construction, Real Estate, Chemicals Manufacturing and IT-BPO services. 

Image: DCPL House, Salt Lake, Calcutta


19) Dr. Prannoy Roy, Managing Director of NDTV, was born to an Indian father and Irish/ English mother in Calcutta in 1949. After completing his PhD from the Delhi School of Economics, he founded NDTV in 1988 and quickly cemented its position as the numero uno television news channel in India. Currently he runs five channels in India, and two abroad. NDTV has nurtured the finest Indian TV journalists such as Rajdeep Sardesai, Barkha Dutt, Vikram Chanda, Pankaj Pachauri and Vishnu Som. NDTV is also credited with running social campaigns such as "Greenathon", "Save Our Tiger", etc. His Company is valued at more than Rs. 1,000 crores (US$ 200 Million).

Image: Dr. Roy at the World Economic Forum (WEF), Davos, Switzerland


20) Sumit Mazumder, Chairman of Tractors India Limited, has taken the mantle over from his father, A. Mazumder, who has run the business for over six decades. TIL competes with the big guys in India, such as L&T, by building heavy machinery for construction and excavation at their plant located in Calcutta, the only of its kind in India. They are also the sole dealer for the products of American giant, Caterpillar in Eastern India and Bhutan. His businesses are valued at more than Rs. 1,000 crores (US$ 200 Million).

Image: TIL Pavilion at the Excon India Trade Show, 2009


21) Arindam Chaudhuri, Chairman of IIPM, runs a Rs. 1,000 crores (US$ 200 Million) business with his father, Prof. Malay Chaudhuri. With 18 B-Schools across India, four Magazines and a Film Production Company, IIPM is considered to be a heavy-weight in the education sector in India.

Image: Arindam Chaudhuri with his Bentley


22) Tapas Chakraborti, Chairman of DQ Entertainment, is listed on the BSE, and enjoys a market-cap of around Rs. 1,000 crores (US$ 200 Million). The Company is into Film Production, Animation, Gaming and Licensing and Distribution. With an employee base of close to 4,000, the Company is spread across Hyderabad, Chennai, Mumbai, Kolkata, Manila, Ireland, Paris, Los Angeles and Japan.

Image: Tapas Chakraborti on a CNBC interview 


23) Gautam & Satyam Roy Choudhury, Chairman of Techno India Group, heads the Education conglomerate valued at more than Rs. 1,000 crores (US$ 200 Million). The group runs more than 31 colleges across Eastern, Northern and Western India and counts more than 1 lakh student as its alumni. 

Image: Techno India Campus, Calcutta


24) Anjan Chatterjee, Chairman of Speciality Restaurants and Situations Advertising. The latter, which is not even a non-core business for him clocked revenues of Rs. 100 crores in 2010. The former, which has given him the title of "Restaurant King" in India has seen him setting-up close to 100 restaurants across the country, under seven different brands: Mainland China, Oh! Calcutta, Sigree, Haka, Flame & Grill, Shack and Machaan. His businesses are cumulatively valued at Rs. 1,000 crores (US$ 200 Million).

Image: Inside a Mainland China restaurant 


25) AK Chandra, Group Director of PC Chandra Group, manages one of the biggest conglomerates in Eastern India. They have interests in Jewellery, Chemicals, Plastics, Rubber, Hospitality, ITeS and Real Estate and are valued at more than Rs. 1,000 crores (US$ 200 Million). With almost 30 jewellery retail stores spread across eastern, Northern and Southern India, the division is counted as one of the biggest Jewellery brands in the country.

Image: The Senator Hotel, Calcutta


26) Shankar Sen, Chairman of Senco Gold, owns and operates 30 jewellery showrooms across Eastern and Western India and also exports jewellery to New York, Chicago, Singapore, Washington, Birmingham, Dubai, Abu Dhabi, and London. Senco Impex is also into wholesale trading in the domestic markets. The Company enjoys a valuation of Rs. 800 crores (US$ 160 Million). 

Image: Bengali movie actors wearing Senco Jewellery products