Phillip Flores - misvCRM


with Phillip Flores creator of misvCRM and VeriTime Time Tracker
Phillip was really the first time I even heard about the 30-day challenge, which was basically to hit the ground running on June 1st, and have a complete sale-able application up and running by June 30th. I've know Phillip for some time, and asked him if he would share some of his experiences with me.
From his site:
The Swiss Army Knife CRM for mISVs* The all-in-one application to manage your clients, licence keys, products, sales, product issues (bugs), and client communications. It even records your expenses!
Phillip, could you give me a quick rundown on how you got involved in the 30 day challenge?
What started me on the 30-day thing was a posting in the BOS forum about writing an application in 30-days. The responses were quite encouraging i.e. people were interested in keeping track of what will be happening. A couple of weeks before this posting I've told myself that from June 1, 2008 I'd start writing my misvCRM application and try to have something in 30-days. It started as a personal challenge. I challenged myself because I've had been procrastinating in starting the development of this application. In short, the 30-day challenge came at the same time of my own challenge. Even if the 30-day challenge did not occur, I would have done my 'own' 30-day challenge.
I know you've had your timekeeping software out for quite a while.. but what really got the itch in you to really jump on the 30 day project? You seem to focus on the pain of running an ISV, was there a discussion there that started it, or were you having these problems yourself?
What started me on this? Well, as they say 'scratch your own itch'. I've been looking around for a while for an application that will allow me to manage things relating to the sale/issues relating to my time tracking application. I've looked at some but they were an overkill to what I was thinking of. What I was looking for was an application that targeted the single software developer (which was me) and the ones I came across were targeting development teams. The other reasin that spurred me to write this application was that I've encountered or read questions in BOS and in other fora regarding the existence of an application that did exactly what misvCRM does and reading through the responses and checking out the suggestions I came to the conclusion that there might be a need for such an application out there.
You also seem to have become a sort of focal point for more than several blogs on the topic, who all was involved with the rss aggregating you did. Did you feel having other people involved helped you keep going?
In some way I think they did especially in terms of the comments that some of my positing received. On the other hand, the overall effect on my effort was minimal simply because I've already decided on my own 30-day challenge and blogging about it. But it is nice to know that there are others in the same boat.
At the end of the 30 days, you had a pretty good offering on your hands from what I saw, and you decided to hold off for a few more features before entering the next steps - have you set similar time constraints/goals on this next phase? (anything comparable to the 30 days before).
At the end of the 30-days I had a usable product but not in the quality that I really wanted. I revisited some of the portions opf the application and found them wanting. Most of the fixes or changes I did after 30 days were related to the user interface i.e. I subscribe to the idea of having the least number of mouse clicks as possible. What I mean by this is to make it really easy for the user to use the application especially if my target market are software developers themselves. Yes, I did give myself another 30 days to get it out of the door and I think I may just make it.
Once you are done, what do you think the next "30 day" step is? Website? Ads? Marketing? Other than BoS, do you have any target forums or groups to approach?
I have to stop myself from tweaking the code or adding minor nice to haves e.g. hot tracking the controls. I suppose with Delphi this not very hard to implement. There are a few things that I already consigned to version 2.0. The next step after the code freeze is to do the documentation - the help file. I'm going to use Dr. Explain in developing the help file and I wll blog about this as well. I'm also planning to make a few video tutorials although this is not high on the list. I think (I hope) having software developers as a target market they will be able to figure out how to use the application. Of course, there is also the question of the website. I think what I shall do with the website is something very basic because I think a lot of people who purchase software do not really read everything that is on the site. They read a few salient points, download the trial, and then decide whether they will buy or not. So the website will simply contain a brief info about the product i.e. what benefit will this product bring, the price, download area, and tutorials. I still have to get my feet wet in the whole SEO thingy simply because I do not have the funds to really get into it. It is some sort of a catch-22. I need the sales to have some funds for Adwords etc. As for target groups, I will look at software development groups e.g. OISV, the Delphi newsgroups etc.
Also, my future plans for this application is to move it away from software developers and make another version geared towards people who sell manufactured products and also have to do some defect tracking but this is another story.
One quick non-sequitur - being based down-under, have you noticed any major difficulties in payment processing for people purchasing your software? What has been your best processing method?
None really. I used to use Regsoft and Northstar Solutions as payment processors but the cost of redeeming the cheques were a pain not because I did not get them but rather our banks here charge quite a fee so I started using PayPal. All my sales now are via PayPal. I think nowadays people are more Internet savvy and do not mind using PayPal compared to a few years ago.
Thanks Phillip, for your time answering my questions.


Phone Home!

My thoughts on phoning home in software.
Disclaimer: My software, when appropriate, phones home.
My life, and the life of my customers were both significantly improved by adding a tiny feature to my software licensing scheme. My software phones home. BUT, a big hairy but, ONLY WHEN THE USER REQUESTS it.
PROBLEM I have discovered that a percentage of users have difficulty copying a license file to a given directory. I have discovered that a percentage of users have trouble copying and pasting from an email.
SOLUTION? A link, IN THE PROGRAM, that the user can click that allows them to enter their email or other inforemation, which then goes out to my system and grabs the license file. I only keep the license on the site for a given amount of time to prevent duplication.
Simple. Maybe not perfect, but it has definitely met my needs.


Nick Hebb - FlowBreeze Flowchart Software


with Nick Hebb creator of FlowBreeze Flowchart Software
Nicholas Hebb has over 15 years experience in manufacturing engineering, test engineering management, and software development. He has worked in the life safety, telecommunications, light industrial, heavy industrial, and medical device manufacturing sectors.

Nick, you have a manufacturing background that seems to have been the source of your BreezeTree software, was it an itch you were specifically trying to scratch?

Yes and no. My original plan was to create a quality management application for small manufacturing companies. After putting months into it, I realized that I was overshooting my capabilities. It would take too long to complete single-handedly, so I decided to create a small application to generate revenue in the meantime.

I had three product ideas, and they all were based on my experience in manufacturing. The two that "scratched an itch" were the ones I didn't go with. FlowBreeze was based mainly on experience and a hunch. I actually had working prototypes of the other two. I didn't pursue one because all the keywords I would need to target for advertising and SEO are very expensive.

I didn't pursue the other because I felt the risks were too high. When companies migrate servers or move files around, hyperlinks in Word, Excel and PowerPoint often break. Admins find themselves in an urgent, need-to-have situation, which means the software could be priced at a premium. The goal of the product was to perform mass repairs of the broken hyperlinks across a network. Unfortunately, there are a few quirks in how these are handled by various versions of Office and the various Office applications. The Microsoft Knowledge Base workarounds for these problems don't always work. So there was a risk that the program could screw up thousands of files in a single shot. I know I could have worked these problems out, but I decided that flowcharts were a safer path. There is a demand for this (I still get inquires) and only one other company making such a product, so if any readers need a product idea...

Did your software ever get re-purposed into the tool it is today? Was it something you noticed needed to change or was it a customer?

Many of the changes along the way have been based on customer feedback. Ironically, I have found those who didn't buy because it lacked feature X to be the greatest source of feedback. Everytime I've added a small feature I've seem a small increase in sales.

I've added an Insert Branch feature at the request of customers. I've never envisioned FlowBreeze as an org chart tool, but I've had customers request it. Also, I've had customers send me sample flowcharts that are best described as org chart / flowchart hybrids. The top of the diagram is a tree layout of the personnel, and the bottom branches flow into process diagrams. So in a small instance it's been repurposed, but the bottom line is you adapt the product to what your customers want to do - not what you think they want to do.

What percentage would you say your modifications come from your own thoughts vs. customer requests? Is there any significant synthesis that comes from several requests leading you to some new addition to your software?

I keep a list of planned features. I've gotten only a few requests that I hadn't thought of already. But the customer feedback drives the prioritization. If I had gone with the features I thought were the higher priority, it'd be a very different product by now.

I guess that synthesis does come from support requests. I hadn't really thought of it that way, but when you see patterns in related topics, ideas emerge on how to tackle the whole issue. It might be cause for a new feature - or just small usability improvements or changes to the documentation.

What sorts of things have you tried to attract attention to your products? I know you frequent Joel on Software forums, what other forums have you tried? Are you a google ads user? What would you say has been your greatest success as far as gaining traction in the market?

Drumming up a buzz for a flowcharting add-in to Excel is difficult. I'll be the first to admit it's a weird concept in an non-buzzworthy arena. The only thing I have deliberately done is to put an article section on my site. These articles generate decent traffic, help boost my search engine rankings, but only a small percentage navigate through to my product page.

I don't use forums as a marketing tool. Although I frequent Joel on Software, I've never looked at programmers as my target market. Some do buy, but many programmers look at flowcharts as a vestige of the procedural programming days of the 80's. I know that my first flowcharts were for a Fortran class. Truthfully, I don't see a big difference between flowcharts and UML activity diagrams. Maybe I'm wrong, but I think of UML as having a stronger foothold among Java programmers, and there seems to be a natural aversion to anything Microsoft related in the Java community. So that really isn't anything I've gone after.

I do use AdWords, but haven't been diligent enough to make it a great sales driver. I've always considered my primary target market to be people needing to create flowcharts for business process documentation. The search volume for flowcharting keywords alone isn't that great, but many of the keywords bridging the connection between flowcharts and documentation are expensive. Very expensive.

I think my greatest success has been offering a low cost site license. There are some who would advise against this, but I've tested different schemes and prices and feel confident that it's the best route for my product. Selling site licenses (and global licenses to multinationals) turn an OK month into a great month.

Have you had any huge eye opening moments in running your business? Any times when you just completely understood what you were doing wrong (or right)?

There's never been a big neon sign that points the way. And too often the bigger ones are recognizable only in retrospect.

For example, I mentally equated the adoption rate of Office 2007 with the adoption rate of Vista, which only 4-5% of my visitors were running during 2007. By extension I didn't feel a pressing need to add ribbon support for my Excel add-in. Bad move. When I added a customized ribbon tab to FlowBreeze, sales went up roughly 25%. (If you hear a distant thump-thump-thump noise as you read this, it's the sound of me kicking my own ass.)

What would you say is the most challenging part of publishing software?

I think marketing is the biggest challenge for most independent software vendors. It's a big subject that can't be addressed in a short interview - plus I'm not an expert. I will say that the most successful ventures I know through personal relationships do not follow the path chosen by most of the regulars at the Business of Software forum.

They don't market via the trialware model, they don't fuss over AdWords, they don't blog, and they don't submit to download sites. Instead, they get on the phone and call potential customers, they fly out and make presentations, they pitch through channel partners. In short, they target a more expensive market.

But most developers won't take that path. There are a lot of introverts and others who don't feel comfortable in the role as salesman. There is also the lifestyle choice. If you start a venture where sales and customer service are a bigger part of your work day, there's the fear that your business will become a stress pot that's not much different than the day job you walked away from.

You mentioned in your email that you were working on a new product, and have adapted your sleeping patterns somewhat. What's "Development Mode" like for you? Describe your "Programming Zone".

I'm in the zone when I think to myself, "Why would I possibly want to be doing anything else than what I am doing right now?" It's just fun. Plus, no matter how well I know my code, there's still a certain amount that I need to wrap my head around in order to be productive. If I'm in the middle of something and stop for the night, I know that it can take an hour or so to get back to that level of productively. So I just don't want to stop.

What mistakes would you guess budding software businesses are going to make, regardless of whether they read this?

They vary by person, but common issues are over-analysis, targeting saturated markets, developing another product before learning to market your first, choosing a technology then trying to find a product idea to match it, and many others. If you're determined, then try, fail, then try again.

Do you use source control? What product? What other "Best Practices" do you practice?

I currently use SourceGear Vault. I'll be moving to hosted source control sometime in the future. Most of the offerings I've seen use SVN, so that is probably the route I'll go. Currently, I'm too dependent on my main development system. I would like to restructure my tools in a way that allows me to be more mobile.

I'm probably not the best source for best practices. One thing I find myself doing more is pseudocoding on paper. When I'm in front of a PC, I'm more action oriented. When it's just pencil and paper, I'm more thought oriented. I also don't compile until I have walked through the code. I'm not going to pretend that I've never relied on the compiler to detect problems. But it's a bad habit that I've tried to break.

Do you have a favorite idea, phrase, or activity that helps you through rough spots?

My favorite phrase is "Hope Is Not a Method". It's the title of a birth control film that we had to watch back in high school. It still makes me laugh to think that the title of a sex ed. movie has become my business philosophy, but it really is fitting to many aspects of running a company.

Thank you Nick, for your time in answering my questions.


The lessons we learn

NIN-"The Slip" rolls out of my speakers, while a take a break from the last legs of my current project. You know, all the little things you do at the end of a project - tying up loose ends. Ahh, the light - I can see it.

The biggest lesson I've learned about trying to interview mISV owners? mISV owners are busy people. Yep, they keep chugging along, and may or may not get back to you. It doesn't bother me, its just definitely something within the confines of my project: Learn what makes a great mISV.

Granted, I should have a larger body of leads in the works, if I were to take this very seriously. Maybe 20 or 30 potential interviews in the mix, but like I said, I'm kinda busy myself right now. Head is down, fingers are coding. After a week or two I'll have the ability to pester some more business people into giving me some info.

So I started thinking about all the little tricks and tips I see in JOS, and other blogs, and wondering why there isn't a digg-like service for distilling wisdom. Maybe more like twitter, you find an rss feed, or forum post or wikipedia article - and you post a SINGLE sentence (or two) that distills the fundamental idea going on. Maybe a max % of the source text. Then people could vote on the best summation of text. Whatever, a passing thought.

Although, yes (I was chastised on the Business of Software forum for posting my thought), every business is different - I do see some very obvious ideas for selling software online that are very much becoming standardized and important. I started thinking about SEOMoz's list of suggested SEO ideas, with the "consensus" levels, etc - and thought - why can't we do that with selling software online?

So, I updated my great craigslist search tool - One Eye Open webpage with some of these ideas, and picked up a few sales right off the bat. It's hard to argue with that.

So, While waiting for more interviews to come back, I think I'm going to start trying to boil down what I see in the mISV forums and websites that are floating around.




Patrick McKenzie- Bingo Card Creator


with Patrick McKenzie creator of Bingo Card Creator
Patrick created, markets, and sells Bingo Card Creator in his spare time. Active in the ESL community and a full time job with a Japanese technology incubator.
From his site:
"My goal in offering Bingo Card Creator to the world is to in my own small way improve students' education by making fun and educational activities possible. In addition, I hope to save teachers from having to spend excessive amounts of preparation time doing a menial task when you could be directly engaged with your students."
It seems like you tool would work well in primary education. You created your software to fit a specific niche market (ESL teahcers/students), did you plan on creating general classroom oriented cards? or was this something your customers asked for?
I never planned on it being exclusively for ESL teachers/students -- the general market for teaching vocabulary is much larger, and it was my plan from the first to target them and all other sorts of educational activities. The number I actually offer with the product has expanded significantly, though. (Version 1.02, which was released in about 8/2006, came with 15 lists. The product now has over 250.)
What percentage would you say your modifications come from your own thoughts vs. customer requests? Is there any significant synthesis that comes from several requests leading you to some new addition to your software?
Most new features come from my thoughts, but I frequently rethink implementations because my customers tell me that the current way is not intuitive. For example, I made it impossible to print to anything but the default printer, on the theory that this would make things easier for technically disinclined customers, but as it turns out many of my customers have not set their default correctly on the school network and are used to picking it anew every single time.
Have you been involved in education environments long? How has BCC changed how you think about eductation?
I seem to be unable to escape education -- I've bounced from being a teacher to supporting teachers to now developing Big Freaking Enterprise Apps for universities, and then there is Bingo Card Creator. BCC hasn't really changed how I think about education.
I've noticed on Joel on Software how you mention some strategies you've used to attract attention online to your product, what sorts of things have you tried?
Adwords, organic SEO (search engine optimization), creating resources likely to be consumed and linked by teachers, offering hundreds of sample bingo cards, etc.
If there was one thing you felt would absolutely make a huge impact on your sales, but did very little (or nothing) - what was it?
I thought my site redesign, which professionalized the look a bit and made it much more modern, was going to increase my conversion rates by much more than it actually did.
Have there been any huge eye opening moments related to marketing online - something that just made a huge difference or has it been incrimental?
There were a lot of big wins in the early days from things which were fairly trivial. Use visual buttons instead of text links for trial downloads, increase conversion 100%... As of late, the biggest "flip a switch and make money" change has been using Conversion Optimizer with AdWords. Google featured my success with that, you can read about it on their site here: http://www.google.com/adwords/conversionoptimizer/bingocard.html
What would you say is the most challenging part of publishing software online?
There are 50 gabilllion sites on the Internet, how are you going to get folks to notice you and choose to spend their limited time with you over the other ones?



Update - 4 interviews on the way

Just so you don't think this blog died as soon as it started, I have four interviews lined up. NOW I have to pester more people! I'm going to try and space them out so that I have a continuous stream of interviews, so I'm thinking one a week for the moment.


Startup Something

I own a small company in Central Illinois. We specialize in automating business processes - especially in publishing over the last few years, but we've also done everything from insurance subrogation tracking (yeah, and only about 50% of the people I meet actually know what that is) to high volume transactional processing. (Real simple transactions, REALLY fast). And then something changed

A few years ago I created a term vectorspace engine called VSDB as a thought experiment in how search engines work. But instead of focusing on documents, I focused on "dimensionality", and thought how nice it might be to look at objects instead of just documents. This way, you could use it to search a database, using it for dating, use it to find problem/solution pairs in a knowledgebase, or any number of generic matching you need. In the process I also discovered that the data can clump, and the engine could brute-force find Common groupings in data, like finding common groupings of blogs.

I immediately started building little tools to help me do things with VSDB, from searching for recipes based on what I have on hand, to blogging and notetaking in a cloud, to searching my emails (Back to 2000, I'd still like to find the ones going back to 1995.)

So, my background is consulting and problem solving, and this whole "packaged product" thing is completely new to me. So I found Group of enterprising individuals, and started pulling at threads to see how the heck these people make a living selling software.

Now, I realize - I missed a few steps along the way, and need to really examine how to create my "startup" - selling my vectorspace engine and building a product based business, or at least building a consulting practice around my VSDB product. I've read a lot of stuff, I've bought a few books, and I've met a few people - but I think that running a business is very different from programming.

I'm a programmer, I know deep down that there is an efficient way to do just about whatever it is you want to do. You can either look it up, or you can buy it... but it's out there. Since the web is populated with a lot of programmers - you can find it if you know how to query properly. But I've noticed that learning about running a Micro-ISV or other startup requires a conversation - the problems and opportunities are built on the interaction of people, and the solutions likewise require the interaction of people. Someone posts a question, and there is a large amount of discussion that follows about what's worked, what hasn't - telling you : "Yes, Here is a general concensus", or "Well, your milage may vary depending on a lot of variables".

Either way, the solutions require conversations.

So - I thought. Why not ask these guys what they do, how they got there, and what their challenges are.. and give them the opportunity to shill their products at the same time. Win, win. So, here it is. Now excuse me while I go find people to interview. Got any suggestions?



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