Software startups require very little office space. Depending on how complicated you want a piece of software to be, you may have only half a dozen or so developers. You may even start out with only one or two! With so few employees, you won’t be paying too much for office space. In some cases employees may be able to work at home, which completely eliminates the cost of renting office space.
Another appealing thing about creating software is that there are many ways to affordably market software. The world of marketing with billboards, television, and radio isn’t quite fair; the advertisement space goes to the highest bidder. Thanks to search engines and social media sites, marketing online is a little easier. For a fraction of what it would cost for a radio ad, you can reach many more customers by utilizing social media sites and optimizing your website so it shows up in relevant search engine searches.
Thanks to the low initial and operational costs, the potential for profit is huge. There are many examples fresh in the public’s minds of companies like Google, Facebook, and many others who went from a humble startup to companies worth billions of dollars. Not every software development company is going to turn out like that, but they are good examples of what is possible. In summary, the general reason software startups are so appealing is that they provide the possibility of huge rewards while minimizing risks.