Software House

Software House is a business model where you develop solutions for our companies.

The solutions are tailored per customer needs.

The problem with Software Houses is that you always need to do the same work to earn the same money, there are no compound effects.

It is also a business that does not scale, as you can’t sell the same solution to another customer.

One way to reduce the cost of software house is to use Monorepo to try to extract common code in packages and reuse them in new projects, reducing the total cost of the new software.

One good point of Software House is that it generates more money upfront, so it can be good to bootstrap without a VC.

When working in a SH you can starting looking for a good idea to build your SaaS product.

To find good ideas you should read Where good ideas come from .

SH is like a freelance in a group of people.

The incentive of your customer is to reduce the payment for you, and your incentive is to charge more as the project grows.

It usually does not have any tests, as soon as you deliver the project you move to the next one.

There are no long term incentives.

For a better business model check SaaS