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This is because a publisher requires a known company with hits and experience and then they may or may not give you any money up front requireing you to do a reimbursement payout. A small publisher may give you distribution but not money.




Not necessarily, but be careful. When you are small and unknown you may be approached with offers that are unrealistically low or no contract is provided -and you may be inclined to accept them. I've been through some of these and am currently studying up on software consultancy.

Your parting shots are on the mark. However, you can get away with investing more of you own time than your own money. Unless you are going to work for someone else, expect to spend a few tens of thousands worth of technology and resources to get started.

One other point that is true in all businesses. The most common reason for a business to fail is because there isn't enough cash to meet overheads. The more you rely on outside funding, the higher your overheads and the less control you have over your company. Giving over control is not neccessarily a bad thing; it is essential for higher rewards, but only to a point that you are comfortable with. Not only is it hard to get funding, but once you've got it, it comes with heavy obligations. You need to make sure you have enough cash to carry you through at least the first six months. Small businesses that you can set up yourself are always safest, but unless you are wealthy, usually not big enough to be very profitable. A small business is usually a life-style choice. I can't say too much about running a large company, becasue I haven't had the experience.

Even a small software business is difficult to start. I've had a shot bar and an English school. In both of those cases money starts flowing in as soon as you open the doors. With software you have much higher initial overheads and a contract could take years to complete. Contracts are much more difficult to negotiate, wheras with a bar it's simple -"a beer, please." "That'll be $5 thank you!" -finished.