There is no company yet associated with 文字マジック – I’m preparing for success, but I’m also preparing to survive failure.  My previous business venture failed, after I’d sunk more capital into the business than necessary to reach the point that failure was obvious.  If 文字マジック fails, then I will cut my losses, salvage what value I can and then be like Robert the Bruce’s spider and “try try again”.  Incorporating a micro business provides some benefits.  You can often offset costs against possible future revenues.  Also, a limited company can act as a legal firewall.  But there are also downsides to incorporating a micro business too early.  The tax on time of the extra administration required is definitely significant.  It also costs money to incorporate.  In addition to the inevitable fees due to the government of one’s jurisdiction, you will very likely have to contract the services of accountant.  Back home in the UK, I had a very solid no b**s*** accountant in Cambridge.  But Mike’s services aren’t free.  I only contracted him when I need him, which is just the way it should be.  Anyway, I live in Tokyo now.  I’m almost certain that both the time and money overheads of incorporation would be greater than in the UK.  And I don’t know any very solid no b**s*** accountant in Tokyo yet.  So I’m deferring incorporation of  文字マジック for now, at least to the point where there is a realistic prospect of generating some revenue.

I’m a professional software developer – writing programs is what I do for a living.  Previously, I’ve done that first as an employee (Parasolid, D-Cubed) and then as a contractor (RoundPoint, SolidWorks, WaxInfo, Microsoft Research Cambridge).  Now though, I’m in a situation where the time seems right to move out of contracting and make a serious attempt to start/be a Micro ISV.  Below are the reasons why I am starting a micro software business now.  I fit the stereotype of the white English software developer – cynical, atheistic, pessimistic and prone to mood swings.   Although I’m certain that to some extent I’ve been caught up in the hysteria of Barack Obama’s “Yes We Can!”, even the rational Vulcanesque side of me tells me that now is a great time to start a micro business.  You may not be in the business of software.  But there is a good chance that you need to make a living too. If some of the reasons below apply to you as well, then maybe the time is right for you to start a business too.  Yes We Can!

1. The Credit Crunch – Worldwide, employment is falling and contract rates are plunging – it’s not a good time to be looking for work.  The current recession is a white collar recession too.  Class, gender, skin colour – none of that matters so much anymore.  Anyone who needs to earn a living needs to have a hustle.
2. Need to Earn a Living – I wasn’t born rich.  I haven’t made my fortune yet.  My wife Fumiko pays the bills right now.  Gratuitous geek spending and funding this MicroISV (PC stuff, large stack of expensive books) come out of my savings.  That situation can’t go on indefinitely.  I need to build up a pension pot to fund our retirement.
3. RSI – I’ve had RSI for 8 years – pretty badly for the last 2 years.  Right now, I’m fighting my way through it, slowly learning to type properly on my Maltron, and make sure I get down to the pool several times a week.  (Shout out to Kunitachi SC, and Tuesday training for this summer’s masters relay swim race across Lake Biwa.)    Working from home means that I can just stop if the pain gets too much.  That would be a bit harder as a Tokyo salaryman, where going sick, or taking too many loo breaks is a big no no.
4. Stable Home Life – After the stress of clearing out years of junk back in Cambridge, Fumiko and I have made a fresh start in Tokyo.  Now that is all behind us, surprise surprise, my RSI is  calming down a little, and my enthusiasm for programming has returned.  A stable home life is a good foundation for a stable business.
5. Portability – Right now, Fumiko and I live in Tokyo.  5 years from now, who knows where we will be.  I’d like an income source that I could take with me.
6. It’s a Great Time to Start a Micro Business – Everyone knows it’s hard to raise capital right now.    Back in the UK, the banks, who were pimping money to anyone (猫でも大丈夫 – even if you’re a cat it’s OK) 2 years ago, now won’t lend to anyone.  VCs and ‘angels’ – forget them I say.  If you running a micro business, maybe you don’t need to raise a lot of capital anyway.  And later on, if you need paid help to grow the business, well employment is falling and contract rates are plunging, so that is cheaper than it was.  It’s not a good time to sell a business – valuations have fallen through the floor.  But success doesn’t happen overnight anyway.  Success takes years. By the time you are ready to sell out, the irrational exuberance of markets may have returned.  And why think about selling out anyway?  The psychological impact of giving up control of something that you’ve nurtured and believed in for years can be devastating.  (Any employed or contracted software developer who has had ‘their’ product cancelled for ‘business reasons’ will know what I’m saying.)  So why not think in terms of owning your micro business for a long time?    Maybe for the rest of your life?  That’s my thinking for 文字マジック.

I’m kind of surprised how bullish this post came out.  Next time, I plan to strike a more realistic note, and return to the theme of failing fast, and trying again.  How does the solo entrepreneur distinguish between haters trying to cut down tall poppies and those people who are offering an honest well-intentioned criticism?  How does one choose the mountain that has gold at the top, and then not die on the way up?