Small Software companies who lose a client as fast as they get one

America has hundreds of small software development companies that are in business to lose clients. Why are they so stupid? It beats me. The way I look at it, if you only have one programmer, then you probably have no business sense. If you had good business sense, you would know how to grow your business and you would have multiple programmers, right? In real life, the answer is not so clear. But, my experience with companies that have only one software developer, or a few new ones is as follows:

These tiny companies will fail to deliver on promises by one means or another. They will acquire a new client, put them on the back burner in order to service another client, and lose the new client. Why take on a new client if you are just going to lose them? It seems obvious that taking on new clients is a sort of insurance policy. These small companies have no sense in knowing how much availability they have, nor do they care. They take on a new client when there is no time in their schedule to service them and no plan to service them either. It is really criminal if you think about it.

The big problem is that these companies are typically short-staffed. How can your company grow when you don’t have the staff members to get any work done? You can’t. So, these companies get a client, lose a client, get another one, lose another one.

To grow a company, you need to get new clients faster than you lose clients. That way you grow. If you lose them as fast as you get them, it is like putting water in a cup with a hole in it. Not a good business strategy — but, try telling them that!

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