Max Obrazchykov’s Post

It’s time to face a harsh reality: despite being at the forefront of technological advancements, the software development industry is still stuck in an old-school mindset. We’ve been offering clients little more than outsourced development or just selling heads of developers. With the recent changes introduced by Section 174, it’s clear that this approach is no longer sustainable. Why Our Industry Needs to Evolve: Traditional Outsourcing is Failing: Simply providing developers or basic outsourcing services doesn’t address the deeper needs of our clients. Stat: A recent survey showed that 60% of clients are dissatisfied with the value they get from traditional outsourcing models. Increased Client Expectations: Clients now expect strategic partnership and innovation, not just coding services. Effect: Companies that fail to evolve will lose out to those offering more integrated, value-driven solutions. Section 174 Impact: Fact: The new tax laws demand a rethink of R&D investments, pushing clients to seek more than just cost savings. Stat: Companies are looking for ways to mitigate a 20-30% increase in immediate tax liabilities, making comprehensive service offerings more attractive. Opportunities (not many though): Strategic Partnerships: By becoming true partners, not just service providers, we can deepen client relationships and drive mutual growth. Comprehensive Solutions: Offering integrated services that address all aspects of R&D and development needs positions us as indispensable allies. So here’s why the changes brought by Section 174 are a wake-up call— need to rise to the challenge. Adapt or die.

How Section 174 is Impacting Software Development Agencies 50% Of Custom Software Agencies Will Shut Down In 2024 I wanted to share some thoughts about the recent changes to Section 174 of the US tax code and how it’s impacting our industry. Key Impacts: Increased Tax Burden: Companies now need to amortize R&D expenses over 5 years domestically and 15 years internationally. This shift has led to: Stat: A significant increase in immediate taxable income for many firms, affecting cash flow. Effect: Reduced budgets for outsourcing, directly impacting our project pipelines. Cost Sensitivity: Stat: Immediate tax liabilities can increase by 20-30%. Effect: Clients are seeking more cost-effective solutions, putting pressure on us to offer competitive rates without sacrificing quality. Shift in R&D Focus: Effect: Companies may prioritize essential projects over innovative R&D, changing the type of work outsourced to us. Challenges: Delayed Payments: Financial strain on clients might lead to longer payment cycles. Competitive Pricing Pressure: Increased need to demonstrate value and cost-efficiency. We've all noticed the increasing scarcity of clients in the outsourcing industry. However, the full impact of these changes hasn't been felt evenly across all sectors. The real hit is expected to take place starting Q4 this year. Understanding and preparing for these shifts is crucial for staying in business.

I have spoken with 20 CMOs of tech startups lately about implementing automation in their playbooks. Surprisingly, there was no one common process they wanted to automate. Even more concerning, most have dozens of tools storing their data, with no central place for analysis. It's clear that the challenge isn't just about automating processes, but also integrating and analyzing data efficiently. In 2024, marketing automation is expected to grow by 14% annually, with companies using an average of 12 different tools. Integrating these tools into a single platform could save CMOs up to 20% of their marketing budget. And that's another example of "If it ain't broken..." but losing market share to those who already have data-driven flows should be top of mind.

You Don't Need Subscriptions or Guru Courses – It's All Marketing Hype Hey everyone! I am Max, founder of Bandapixels. Let's talk about money today, specifically how to multiply it with your existing business. We all need more gold, right? 💰💰💰 First off, this isn’t universal advice for every entrepreneur, but many of you will find it quite useful. Business Segments: Where the Money Is Most businesses can be divided into three main categories: 1. B2C (Business-to-Consumer): The main consumer of the product or service is an individual. For example, selling retail products to everyday customers. 2. B2B (Business-to-Business): Other businesses are your customers. For instance, selling supplies or services to retail chains or corporate offices. 3. B2G (Business-to-Government): The main consumer is the government. For example, supplying products to public institutions like schools, universities, and hospitals. Which client do you think brings in the most money? Of course, businesses and governments. While working with the government can be complex, dealing with other businesses is more straightforward – your clients should earn even more from using your products/services. Advice for B2C Businesses Think about which businesses might need your product/service. Craft a commercial proposal and reach out to business owners. In today's world, most business owners can be found on Linkedin or some databases. (Once, at 4 AM, I called the owner of a company that partners with a major hypermarket chain. I found them by name and tax ID. To justify myself, their top manager had left a suitcase with personal belongings in a carshare, and I wanted to return it. And I did! 😁) Don't be afraid to communicate with other entrepreneurs – together, you can earn much more. Advice for B2B Businesses If you’re already working with other businesses, here’s a trick to earn even more: position yourself in the traffic stream. Consider app stores like the App Store and Google Play – they connect product suppliers (app developers) with consumers and take a commission. Modern marketplaces like Amazon and eBay do the same, connecting consumers with suppliers for a commission. These platforms make more money than most B2B businesses. To exponentially increase your income, become a middleman – connect consumers and suppliers, taking a small commission. You already have clients and competitors (suppliers). This needs to be digitized and automated. Of course, in today's world, this can't be done without IT. We’ve created B2B marketplaces before; they’re fascinating projects. If anyone needs my IT perspective on their business niche, message me. I won’t charge – I’m happy to offer advice! 🙂 Why don't I create a B2B marketplace and start earning from traffic since I have an IT company? It's simple – no domain specific expertise. Pure IT backround

Why Automation Isn't for Small Business Owners Automation is often hailed as the silver bullet for business efficiency in 2024. It's true, automation has a lot of perks—but it's not a one-size-fits-all solution, and it comes with a price. I’m Max from BandaPixels, and I’ve seen firsthand that jumping on the automation hypetrain isn't always the best move. Here's why: — Cost Overruns: Automation isn't cheap. From initial setup costs to ongoing maintenance, the financial burden can be overwhelming for SMBs. Investing in automation often means upfront costs that many small businesses simply can’t afford. — Complex Implementation: Setting up automated systems is no walk in the park. It requires specialized knowledge, time, and resources that SMBs might not have. The complexity of implementing automation can disrupt day-to-day operations. — Limited Flexibility: Automation works best for repetitive, predictable tasks. However, SMBs often thrive on flexibility and adaptability. Customization is key, and not all automated solutions offer that level of flexibility. — Maintenance Nightmares: Automated systems require regular maintenance and updates. For SMBs with limited IT support, this can become a nightmare. Keeping the system running smoothly demands continuous oversight and can lead to additional hidden costs. — Employee Displacement: One of the most controversial aspects of automation is its impact on the workforce. While it can increase efficiency, it often leads to job displacement. For SMBs, this can create a negative work environment, reducing employee morale and loyalty. Small businesses thrive on personal connections and team cohesion, which automation can undermine. — ROI Uncertainty: The return on investment (ROI) for automation is not always guaranteed. For SMBs, the risk of not achieving the expected ROI can be devastating. Unlike larger corporations, small businesses can’t afford to gamble with their resources. The promise of efficiency and cost savings doesn't always translate into reality. Automation should be a strategic decision, don't fall for Hype. Sometimes, the best solution is the simplest one—keeping things manual.

How I got tired of vague client requests and wrote this Friday guide. Took me 2 days (with help from Dmytro Khramov). Please read to justify the effort.

Interestingly, Forbes reports that companies with highly engaged employees experience 147% higher earnings per share compared to the competition. High-engagement workplaces earn 8% more revenue per employee and see a 63% improvement in shareholder return. In the context of field service management, adopting modern solutions not only alleviates the fear of system failures but also significantly boosts employee engagement. When field teams have reliable, efficient tools, they are more engaged and productive. This leads to higher earnings, increased revenue, and improved shareholder returns. Upgrading your FSM system isn’t just about keeping up with technology; it’s about creating a thriving, motivated workforce that drives your business forward. For instance, I’ve seen that in the solar panel industry, clients often take a long time to decide because they assume the costs are high. By using a tool that allows them to estimate prices without needing a specialist, we’ve sped up the conversion of leads into customers. Additionally, there are frequent issues during site visits where something goes wrong or the price isn’t right, resulting in wasted time and lost sales. I think the problem with inaction is that until it becomes a pressing problem, people stick with what’s working more or less acceptably out of fear that the new system will fail altogether.

Ever scroll through LinkedIn and wonder why some people are constantly posting? Well, I have a confession to make: I'm one of those people. But it's about more than just self-promotion. It's about something much bigger. For those who don't know, my journey started with writing lines of code. Yet, when I founded BandaPixels, I had a #vision that went beyond the keyboard. Here's the thing: #tech can be this incredible force for good. It can solve problems, let us #network globally, and improve the world. But, that potential only gets realized if we share our #knowledge and learn from each other. ❕ Here is how I see it: When people learn new things and gain #skills, they can do more, achieve their goals, and make more #profit. This helps everyone in the long run, making the #economy stronger and growing a more knowledgeable and impactful community. That's why I love platforms like LinkedIn. It allows us to have open conversations, spark discussions on different topics, and share practical #tips that can help people grow. After all, we're all in this together, and I truly believe that by lifting each other up, we can improve the collective quality of life. So, if you have any questions or want to discuss something, feel free to drop me a line. I'm always open to learning and sharing knowledge with others. Let’s chat! #content #education #technology #knowledge #collaboration #innovation

The PropTech industry is a hotbed of #innovation, with the global market projected to reach $89.93 billion by 2032. However, this rapid growth brings its own set of challenges. New #technologies emerge constantly, and consumer expectations are in flux. On the other hand, rising interest rates are putting pressure on investor spending, potentially slowing down the influx of #capital for PropTech ventures. Additionally, a recent study by Gartner revealed a projected 3.4% decrease in overall R&D budgets in 2024. This could limit the resources available for developing and scaling innovative PropTech solutions. How can PropTech startups stay flexible and relevant in this dynamic environment? Here are some key strategies to consider: ✔ Find your niche ✔Go digital  ✔Think fast, test fast ✔Become data-driven ✔Make things easy for users ✔Build a strong team ✔Never stop learning What are your thoughts? How can PropTech startups stay flexible in today’s dynamic environment? Share in the comments. #Proptech #Innovation #Agility #Startups #RealEstate #Technology #MarketTrends