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Funding the Small ISV?

Eric Sink recently wrote a great article that outlined how he bootstrapped SourceGear with consulting services until he was ready to roll out a product.  Can you share with us the story of how you got the ball rolling at Fog Creek? 

I remember Fog Creek Consulting, so my initial reaction is to assume that you did the same as Eric, but I hate to be presumptious, plus I love a good small business story.

Norrick
Saturday, February 21, 2004

We bootstrapped with consulting services. Shortly after we started the company the market for consulting evaporated in the great consulting meltdown of November, 2000; by then FogBUGZ and CityDesk were making us enough money that we could keep our heads above water.

Joel Spolsky
Fog Creek Software
Saturday, February 21, 2004

The company I work for is relatively new to the dev game.  We write 3rd party modules for accounting software.  Our model has served us rather well, so far.

A potential customer will contact us in need of a solution to some problem.  We will quote a price that is somewhere between what we'd have to charge if only one person paid for it, and what we will charge when we commercialize it.  We tend not to accept work that we cannot use this way.

We are very up front about how our model works.  If a company feels it is too much money, and they (or we) can find another customer for the product, we will split the price between them.  The advantages of paying more is that they get to spec the product, and more importantly, it gets written.  =)

This works especially well for us, because we get a commercializable (gawd, I sound like a marketroid) product, and the library which all of these products use to manipulate business objects.

James
Wednesday, April 14, 2004

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