2005-08-12 Building A Business Model For A Part-Time Software Moonlight Business

So a moonlight software business has a few dynamics to consider:

  1. As the producer of custom software (databases, web pages, etc), you have limited time because you have a day job.
  2. You may have some limitations legally on what you can and can not build for someone. (I haven't really looked into this for my own situation).
  3. You need to find a client who has an established business and can pay you. Most big companies would not take you because they need 8 hour a day resources. The clients I'd think to go after would be small businesses. A small business that wants a unique website or want to leverage their customer information or improve their operational performance through skunkworks projects done offsite.

I will write a business plan for such a business. How would you charge? Well, you need to have well defined deliverables and theirs a large up front cost in your time to build something custom (less as you use more and more reusable components and recycle your work). Maybe a good business model would be to split the cost of your time between some standard service fees (maybe rate projects in 10 hour increments) It may take you a lot longer than 10 hours to build something, document it, and hand it off so you may needs another pricing construct. Maybe theres a $20/month support subscription for 4 calls to explain how to use the deliverable. It can be paid until the customer is happy with working with the deliverables on their own. Maybe a revenue sharing model could be proposed for more elaborate requirements. More later.