The two most common business models among software companies are based on doing projects for clients or investing in product development. While both models can be rewarding and profitable, there are important differences that might make one model more appealing than the other. Moreover, initial investment and future predictability for those models are quite different. While one provides return of investment in a short period of time, the other requires a lot of time and money with unpredictable future but potentially much higher rewards.

Projects for Clients

Your clients are contracting your company for various reasons:

• They do not have expertise or tools to do the job themselves
• They do not have time to complete the task
• It is cheaper for them to contract your company than to do it themselves
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