How to pick a software company: 9 red flags and 7 revealing questions

How to pick a software company: 9 red flags and 7 revealing questions

We're a software company, and we're writing a guide that helps you evaluate us too. The reason is simple: the market has a lot of bad work, and a client burned once becomes afraid of everyone. That serves nobody.

9 red flags

1. A price far below everyone else. If a quote is 60% cheaper than the rest, something is missing: the scope was misunderstood, the work will be a recycled template, or it ships incomplete and the rest becomes paid "extras."

2. They ask no questions. Anyone saying "we understand" in the first meeting without asking about your operations, user count and special cases doesn't understand — they want to close the deal.

3. No written contract, or a one-page one. You need defined scope, phases, dates, change terms and code ownership.

4. Refusing to clarify code ownership. If that question makes the conversation go in circles, it's the biggest warning on this list.

5. A portfolio with no real links. Pretty screenshots but no working site you can open. Ask for links, and call a client or two.

6. An implausibly short timeline. "An ERP in three weeks." That isn't speed — it's either a template or talk.

7. An anonymous team. Who exactly works on your project? Without a clear answer it's likely outsourced to someone unknown.

8. They never mention maintenance. Anyone discussing only delivery, as if the project ends there, hasn't run real projects.

9. Poor communication from the start. If they're slow to reply while you're still a prospect being pitched, imagine after you've paid.

7 questions that reveal real skill

1. "Can you show me a project like mine and tell me what got complicated?" A professional describes a real problem and how it was solved. "Everything went fine" means they either didn't do it or aren't being straight.

2. "Will the code be mine, and how do I receive it?" The right answer: "Yes, in a git repository under your name from day one."

3. "What is not included in this price?" A professional has a ready list. "Everything is included" will surprise you later.

4. "If I need changes after delivery, how is that priced?" There must be a clear model — hourly or a monthly support package.

5. "How will you test this before delivery?" If the answer is just "we'll try it," with no mention of tests or a staging environment, expect many bugs.

6. "If the developer on my project leaves, what happens?" The right answer is about documentation and shared knowledge, not about a person.

7. "What would you tell me no about?" The strongest question. A serious company will say "you don't need that part yet" or "off-the-shelf fits that better." Someone who agrees to everything is selling, not advising.

Positive signals

- They ask for an analysis session before quoting (even a paid one). - They give you a written spec before starting. - They offer phased delivery. - They raise maintenance and backups without being asked. - They state the limits of their experience honestly.

Bottom line

Choosing a software company affects your business for years. Take your time, ask these questions, and get everything in writing. Most importantly: the company willing to tell you "no" about something that doesn't suit you is usually the one worth working with.

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