Free Software Business Strategy Guide http://FreeStrategy.info Edited by Norbert Bollow Version 0.24 October 10, 2004 Abstract:This Net.Book outlines strategies for running a successful business while at the same time making valuable contributions to the Free Software community. If you like this net.book... If you like this document, you may also be interested in the Monthly Email Letter of Freedom Investments. Recent Changes Version 0.24: Added a link to Francesco Potortì's software licenses article. Version 0.23: Toned down the last sentence of the introduction, which was possibly overly optimistic. Added a comment that in the case of team leadership, it is not necessary to have a formal coaching relationship. Introduction A Free Software business is a company which does not exist solely to earn as much money as possible without incurring unacceptable risks; it's a company where contributing to the development and improvement of Free Software, and upholding the principles of the Free Software movement, are among the basic values of the company. (Here the term "Free Software" refers to computer programs where every user has rights to read and modify the source code, and also rights to redistribute the software, with or without changes, as source code or in binary form. The Free Software Foundation maintains a precise definition which can be found at http://www.fsf.org/philosophy/free-sw.html . There are also people who, because of differing views on matters of philosophy, see appendix B, prefer the term "open source".) Many Free Software businesses are pure information technology companies. However it is also possible for a Free Software business to earn money primarily outside the information technology sector, while developing and publishing Free Software as part of the company's marketing plan. Many people seem to think that commercial software (i.e. software that is produced for commercial reasons) cannot be Free Software. I disagree with this view, and I want to encourage the creation of a large number of Free Software companies, i.e. companies which develop commercial Free Software. The purpose of this document is to show to create a Free Software company and how to make it very profitable. Free Software companies need to have a business system which differs from how proprietary software companies operate, but they can be economically successful. In fact I believe that the only thing that is impossible to do with a Free Software company is to create an illegal monopoly (that is what US courts found Microsoft Inc. to be guilty of). There are no monopolies in the realm of Free Software business, and I predict that this will make Free Software businesses so much more productive than their competitors with proprietary products that it can be expected that Free Software will certainly dominate at least some segments of the information technology market. (One area where this is not likely to happen is commercial computer games, see Appendix D). -- | .O. | A proud GNU user | ..O | http://www.joesteeve.tk/ | OOO | http://gnukid.shyper.com/