A software is not a business

Every day, I encounter messages like “Figma killer” or “Canva killer.”

It’s amazing that AI is making it easier to build software. The world needs more software that caters to specific needs—custom tools built by people who understand their users.

But let’s be clear: having a working piece of software is not the same as having a business.

Software is just one part of a tech business. It’s important, yes—but not enough.

One of the core things a business needs is distribution. There has to be a way to attract new customers consistently. Maybe you have a big personal following. Maybe you’re great at writing cold emails. Maybe you know how to network like a pro. Whatever your style, you need a distribution channel that works.

In this AI era, where building software is easier than ever, guess what’s getting harder? Getting attention, standing out, and finding your distribution channel are becoming increasingly difficult.

Shipping a feature isn’t the end. You’ll need to update your changelog and educate your users—both new and old—on what changed and why it matters. That takes work.

You’ll need help articles. And those help articles will need updates. Someone will ask about your privacy policy. Another will want to see your security practices. Your team members will leave. Now, you need to post job ads, review resumes, onboard new people, train them, and mentor them. You need to have excellent customer support. Yes, AI can help, but there always be edge cases. 

You’ll need to be present on social media. Messages will come in from Reddit, LinkedIn, Twitter, Hacker News, and who knows where else. People will nitpick the most minor things. Strangers will unexpectedly stand up for you, lifting your spirits. Some days, you’ll get upset over something silly—and know you shouldn’t—but it’ll still get to you. And you’ll keep going.

Your best-planned feature launch might land with a thud. Then, one morning, you’ll wake up to a wave of love from people you’ve never met, all because some stranger with a big following liked your product and shared it.

A business is all that and much more.

At the end of the day, a business needs to be profitable. Doesn’t matter if you’re VC-funded or bootstrapped—revenue must beat expenses. Raise $20M and build a fancy CRM? You’ve got a software, not a business. Build a small CRM with a friend for taxi operators, keep costs low, and earn more than you spend? Now that’s a business.

I love that non-programmers can build apps and programmers can build faster than ever — more power to you. I hope your software becomes a huge business.

But until that happens, don’t confuse software with a business.