I’m convinced that most people think about software companies in an upside-down way. The common belief is that when you’re building a software company, the goal is to find a neat idea that solves some problem which hasn’t been solved before, implement it, and make a fortune. We’ll call this the build-a-better-mousetrap belief. But the real goal for software companies should be converting capital into software that works. If you understand this, its easier to make the right strategic decisions.

About the author.

I'm Joel Spolsky, co-founder of Trello and Fog Creek Software, and CEO of Stack Overflow. More about me.