Back To School

September is a good period for offering trainings to clients. In September, people have a more favourable attitude to education in general and most of the training courses start in September.

You may find convenient partnering with a University; some of the courses may not have been started yet, and facilities more easily available. You may host the training in student computer rooms.

To all the attendees a three months trial license should be offered. There is a chance that some of the free licences, would convert to annual subscriptions late in December, as Christmas gift.

Conservatively

In theory, the level of competition is proportional to market size and market size is proportional to competition.

Anyone can be tempted by entering a market with an intense competition. A common business plan statement is: “market size is estimated at $100 Millions, we assume conservatively to get $1 Million”.

Never conservative enough, I think. Top players have marketing budgets matching their size, and newcomers-business will be hardly profitable.

Only 5 Inches Tall

Niche markets are hot.

Apart from the top five (Dassault, Ansys, MSC, Siemens PLM and LMS), Computer Aided Engineering company average size is as small as $5 Millions. Because big players don’t pursue such small markets before they eventually grow, niche software live a limited competitive pressure, i.e. bigger profits and growth.

Quoting Seth Godin “because everyone in Hollywood is trying to be George Clooney, there are a lot more opportunities for the few Danny DeVito willing to show up.” My advice then is to invest (your time) in niche software companies.

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