Practical Guide
What you need to know before building your first product
Use → to begin
Whether you're a founder, product manager, or creative professional, understanding how software works helps you make better decisions.
You don't need to write code. But you need to understand what's being built, what it costs, and what can go wrong.
Knowledge is leverage. The more you understand, the better you can evaluate options, manage projects, and avoid costly mistakes.
| # | Section | Key topics |
|---|---|---|
| 1 | Software Fundamentals | What software is, how it runs, files and projects |
| 2 | Types of Software | Static sites vs. dynamic apps, the complexity spectrum |
| 3 | Programming Languages | What each language does, when you'll encounter them |
| 4 | Key Components | Frontend, backend, databases, APIs, Git, hosting |
| 5 | Building Quality Software | Testing, efficiency, scalability, clean code |
| 6 | What Can Go Wrong | Security, privacy, technical debt, support |
| 7 | Software Costs | Hosting, APIs, maintenance, realistic budgets |
| 8 | AI Coding Tools | What they can do, where they fall short |
| 9 | Planning and Next Steps | Business plan, learning path, key takeaways |
Fundamentals
Software is a set of instructions that tell a computer what to do.
A recipe tells a cook how to make a dish, step by step. Code tells a computer how to perform a task, step by step. If a step is missing or wrong, the result is wrong too.
Email, Instagram, banking apps, your car dashboard, smart TVs, traffic lights. All powered by software. Just instructions running on different hardware.
Fundamentals
Programming is the craft of writing those instructions in a language the computer understands.
Like writing sheet music. The musician (computer) plays exactly what is written. Nothing more, nothing less. If the notes are wrong, the music sounds bad. That's called a "bug."
Computers are extremely literal. They do exactly what the code says. Bugs happen when the instructions are incomplete, ambiguous, or simply wrong.
Fundamentals
On your own computer or phone. Like Microsoft Word or a desktop app. Only you can see and use it.
On a remote server somewhere. Like Gmail or Netflix. Anyone with access can reach it over the internet.
Most modern software combines both: something on your device, something on a remote server.
Fundamentals
Software is organized in files and folders, just like documents on your computer.
my-website/ index.html main page style.css visual design app.js interactivity package.json project config images/ logo.png hero.jpg
Fundamentals
Beyond the visible code, every project has hidden components that make it work.
Files like package.json or .env that control how the project behaves, what tools it uses, and what settings it needs.
Pre-built libraries the project relies on. Like buying ingredients from a store instead of growing them yourself. Saves time, creates reliance.
Secret settings like API keys and passwords. These should never be shared publicly or committed to code repositories.
Important: A project might have hundreds of dependencies and several secret keys. Understanding what's in your project beyond the visible code is essential for security.
Fundamentals
You don't need to write code. But understanding these building blocks helps you make informed decisions about what gets built.
Types of Software
A simple website and a full application are wildly different in complexity, cost, and risk.
Analogy: A flyer vs. a magazine vs. a newspaper with daily delivery. All "print," but very different operations, teams, and budgets.
Understanding where your idea falls on the spectrum determines everything: tools, timeline, cost, and team size.
Types of Software
A static website is a digital brochure. Same content for every visitor. No "brain" behind it.
Cost to host: $0 to $5/month | Complexity: Low | Best for: Information display, marketing
Types of Software
When content changes based on who is visiting or what they do, you need a server and a database.
Key difference from static: You now need a backend, a database, authentication, API integrations, and security. Each adds cost, complexity, and ongoing maintenance.
Types of Software
| Each step up adds | What it means in practice |
|---|---|
| More code | More things that can break |
| More infrastructure | Servers, databases, services to manage |
| More cost | Monthly bills that grow with usage |
| More maintenance | Ongoing work that never stops |
| More expertise needed | Requires experienced developers and architects |
Types of Software
For most new projects, start with a web app. Mobile can come later as a wrapper around your existing product.
Programming Languages
There are hundreds of programming languages, but only about a dozen dominate the industry.
Analogy: Different tools in a workshop. A saw cuts wood, a drill makes holes, a sander smooths surfaces. Each programming language is designed for specific types of work. Using the wrong one makes everything harder.
You will hear these names in conversations, job postings, and project discussions. Here's what each one actually does.
Programming Languages
Defines what's on the page: headings, paragraphs, images, buttons, links, forms.
The skeleton and bones of a building.
<h1>Welcome</h1> <p>This is a paragraph.</p> <button>Click me</button>
Defines how it looks: colors, fonts, spacing, layout, animations, responsive design.
The paint, furniture, and interior design.
h1 { color: navy; font-size: 2rem; } button { background: blue; border-radius: 8px; }
Technically, HTML and CSS are not "programming languages." They are markup and styling. But every website uses them.
Programming Languages
The language of the web. If you're building anything for a browser, JavaScript is involved.
// Show a greeting when button is clicked function greet(name) { return `Hello, ${name}!`; } button.addEventListener('click', () => { alert(greet('World')); });
Programming Languages
The Swiss Army knife. Known for readability and used across many domains.
# Calculate a discount def apply_discount(price, percent): discount = price * (percent / 100) return max(price - discount, 0) result = apply_discount(100, 15) print(f"Final price: ${result}") # Output: Final price: $85.0
Programming Languages
| Name | Type | Used for | You'll see it when... |
|---|---|---|---|
| HTML | Markup | Page structure | Every website, always |
| CSS | Styling | Visual design, layout | Every website, always |
| JavaScript | Language | Web interactivity, full-stack | Any web project |
| TypeScript | Language | JavaScript with type safety | Professional/large projects |
| Python | Language | Backend, AI, data, automation | AI features, APIs, scripts |
| SQL | Query lang. | Talking to databases | Any app that stores data |
| React | Framework | Building user interfaces | Most modern web apps |
| Next.js | Framework | Full-stack React apps | Production web apps |
| Node.js | Runtime | Running JS on servers | Backend of web apps |
| Tailwind CSS | Framework | Utility-based styling | Modern UI development |
| Swift | Language | iOS and Mac apps | Apple platform development |
| Kotlin | Language | Android apps | Google platform development |
Programming Languages
A typical web application uses multiple languages, each handling a different layer.
A single web application might use HTML, CSS, TypeScript, React, Node.js, SQL, and several APIs. Each has a specific job. Understanding these layers helps you evaluate technical decisions.
Key Components
Everything the user sees and interacts with.
The behind-the-scenes logic the user never sees.
A static website has no backend. The moment you need user accounts, saved data, or payments, you need both layers.
Key Components
A database is where your application remembers things.
A very powerful, structured spreadsheet that code reads from and writes to automatically. Each table is like a sheet. Each row is a record. Each column is a field.
If your app needs to remember anything between visits (user accounts, saved content, order history), you need a database. That's a significant step up in complexity and cost.
Key Components
SQL (Structured Query Language) is how you talk to a database. It reads like English.
-- Find all orders over $100 SELECT customer_name, total FROM orders WHERE total > 100 ORDER BY total DESC; -- Count users by country SELECT country, COUNT(*) FROM users GROUP BY country;
| id | name | role | |
|---|---|---|---|
| 1 | Alice | alice@mail.com | admin |
| 2 | Bob | bob@mail.com | user |
| 3 | Carol | carol@mail.com | user |
Tables with rows and columns, just like a spreadsheet. Tables can reference each other through relationships.
Key Components
When users interact with your application, the system needs to manage connections and track who is who.
Why this matters: Connection management and session handling are invisible to users but essential to how software works. Poor management leads to slow performance, crashes, or security holes.
Key Components
An API is how different pieces of software communicate with each other.
Analogy: A waiter in a restaurant. You (the app) give your order to the waiter (API). The waiter takes it to the kitchen (another service) and brings back your food (the response).
| When your app needs to... | It calls... | Which returns... |
|---|---|---|
| Process a payment | Stripe API | Payment confirmation |
| Send an email | SendGrid API | Delivery status |
| Show a map | Google Maps API | Map tiles and data |
| Authenticate a user | Google OAuth API | User identity |
| Get weather data | OpenWeather API | Temperature, forecast |
Each API typically charges per request. Costs add up as usage grows.
Key Components
Git tracks every change ever made to your code.
Like "Track Changes" in Google Docs, but for your entire project. Every edit is recorded: who did it, when, and why.
Something broke? Revert to the last working version instantly. No work is ever truly lost.
See exactly what changed, when, and why. Full audit trail of your entire project's evolution.
Multiple people can work on the same project. Git merges changes and resolves conflicts.
Key Components
Rule of thumb: Never build anything without Git. It is the first thing you set up, and the thing that saves you when things go wrong.
Key Components
Pre-built components that speed up development. Like IKEA furniture vs. building from raw wood.
Key Components
Making your software accessible to the world requires three things.
Your internet addressmyapp.com
~$10-50/year
A server that runs your app 24/7
$0-500+/month
Moving code from your machine to the server
Can be automated via CI/CD
Static sites: free hosting on Netlify, Vercel, or GitHub Pages. Dynamic apps: paid services like Railway, Render, AWS, or Google Cloud.
Quality
How do you know your software actually works?
Untested software is a ticking time bomb. It might work today. It might break tomorrow. Without tests, you won't know until a user reports it, or worse, until you lose data.
Quality
Test individual functions in isolation. Like checking each ingredient before cooking.
test("10% off $100", () => { expect(discount(100, 10)) .toBe(90); });
Test that pieces work together. Does the frontend correctly save data to the database?
The recipe produces a good dish, not just good ingredients.
Test the full user journey. User signs up, creates a profile, makes a purchase.
Simulates real behavior in a real browser.
At minimum: Every project should have unit tests for critical functions and manual testing for user flows. Skipping tests is borrowing time you'll pay back with interest.
Quality
Before anything goes live, try to break it yourself.
| Try this | Why it matters |
|---|---|
| Submit empty forms | Does it handle missing data? |
| Enter very long text | Does the layout break? |
| Use special characters (!@#$%) | Could enable security attacks |
| Click buttons twice quickly | Does it double-submit? |
| Open it on your phone | Is it responsive? |
| Turn off internet and try | Does it fail gracefully? |
| Try a different browser | Does it work everywhere? |
| Log in as different users | Do permissions work correctly? |
Quality
Well-written code is easier to maintain, debug, and extend. It costs less in the long run.
Quality
Software that works for 10 users may collapse at 10,000. Scalability is the ability to grow gracefully.
Rule of thumb: Build for your current stage, but be aware of the next one. Don't build for 1 million users when you have zero, but don't paint yourself into a corner either.
What Can Go Wrong
Security vulnerabilities are invisible until someone exploits them. One breach can destroy trust and cost millions.
Attackers insert malicious database commands through input fields. Can read, modify, or delete your entire database.
Malicious scripts injected into your pages. Can steal user sessions, redirect users, or deface your site.
API keys or passwords accidentally committed to code. Attackers scan public repositories for these constantly.
Backend routes without proper authentication. Anyone can access or modify data without logging in.
What Can Go Wrong
If you collect user data, you are legally responsible for protecting it.
If your app stores personal data (names, emails, payments), you need legal and security review. This is not optional.
What Can Go Wrong
Building fast is easy. Maintaining it when it breaks is the hard part.
Every piece of software breaks eventually. Servers go down. APIs change. Users find edge cases. Dependencies get vulnerabilities. The question is: can you fix it?
What Can Go Wrong
Quick solutions often become expensive problems later.
Ask the right questions early: "Is this solution flexible enough to change later?" and "What would need to change if we added feature X?"
What Can Go Wrong
Shortcuts that save time now but cost more later. Like credit card debt, it compounds.
| Shortcut taken | Future cost |
|---|---|
| No tests written | Bugs discovered by users, not developers |
| No security review | Data breach, legal action, user loss |
| No documentation | Can't maintain or hand off the project |
| No version control | Can't undo mistakes, work gets lost |
| No architecture planning | Full rewrite needed when you grow |
| Too many dependencies | Vulnerability exposure, update nightmares |
A quick demo is not a product. What takes 1 hour to build can take 100 hours to fix when it goes wrong in production.
Costs
Building is the easy part. Running, maintaining, and scaling is where the money goes.
Understanding costs upfront prevents painful surprises later. Even free tools run on infrastructure that costs money as you scale.
Costs
| Static site (Netlify, Vercel) | $0-5/mo |
| Small web app (Railway, Render) | $5-50/mo |
| Growing app (AWS, GCP) | $50-500/mo |
| Scaling product | $500+/mo |
Hosting is rent. It never stops.
| Free tier (Supabase, PlanetScale) | $0 |
| Small project | $20-50/mo |
| Growing data | $50-200/mo |
| High performance | $200+/mo |
More data + more users = higher costs.
Domain: $10-50/year. SSL certificate: usually free with modern hosting.
Costs
Most modern apps rely on paid external services. They typically charge per usage.
| Service | What it does | Typical cost |
|---|---|---|
| Stripe | Process payments | 2.9% + 30c per transaction |
| SendGrid | Send emails | Free to $20+/mo at scale |
| Google Maps | Maps and location | $7 per 1,000 loads |
| OpenAI / Anthropic | AI features | $0.01-0.10+ per request |
| Auth0 | User authentication | Free to $23+/mo |
| AWS S3 | File storage | $0.023 per GB/month |
Real example: If your app makes 10,000 AI calls per day at $0.03 each, that's $9,000/month just for one feature.
Costs
Software is never "done."
Costs
| Stage | What it looks like | Monthly cost |
|---|---|---|
| ● Hobby project | Static site, free tiers, no users | $0-20 |
| ● Small product | Web app, some users, basic hosting | $50-200 |
| ● Growing startup | Real users, multiple services | $500-5,000 |
| ● Scaling business | High traffic, enterprise features | $5,000-50,000+ |
Plan for costs to grow with success. That's a good problem to have, but plan for it. Software that can't afford its own success is a common failure mode.
AI Coding Tools
AI coding tools like Claude Code and OpenAI Codex have changed who can build software. Here's what you need to know.
AI Coding Tools
The "vibe coding" trap: Using AI to generate code without understanding the output. Works for demos, breaks in production. Like using Google Translate for a legal contract.
AI Coding Tools
AI can generate a working demo in minutes. That does not mean the problem is simple.
| What AI builds quickly | What's actually needed for production |
|---|---|
| Login form | Session management, password hashing, rate limiting, 2FA, account recovery |
| Payment button | PCI compliance, refund handling, tax calculation, receipt generation, fraud detection |
| Database queries | Connection pooling, indexing, backup strategy, migration plan, monitoring |
| File upload | Size limits, type validation, virus scanning, storage strategy, CDN delivery |
The gap between "it works on my screen" and "it's ready for real users" is where most of the work (and cost) lives.
Planning
The biggest mistake: building before thinking. A tool is only as good as the strategy behind it.
Planning
Fill this out before you start building. If you can't answer these, you're not ready.
| Question | Your answer (1 sentence each) |
|---|---|
| Problem | What specific problem are you solving? |
| Target user | Who exactly is this for? |
| Core feature | What is the ONE thing this product does? |
| Type of software | Static site? Dynamic? Web app? |
| Monthly budget | What can you spend on hosting, APIs, services? |
| Success metric | How will you know it's working? |
Start with the MVP (Minimum Viable Product): the absolute simplest version that delivers value. Airbnb started as a single page with photos of an air mattress, not a global booking platform.
Planning
Tools write code. They don't design systems.
For anything beyond a static website, you need someone who understands architecture, security, scalability, and the long-term implications of technical decisions.
Hire or consult a technical architect for critical decisions
Find a technical co-founder who complements your skills
Invest in learning the fundamentals yourself over time
Planning
If you want to go beyond static pages, invest in understanding these core concepts.
You don't need to become a developer. But the more you understand, the better you can evaluate technical work, ask the right questions, and make informed decisions.
Recap
Thank You
Understanding Software
A practical guide for informed builders
Asaf Avigal
linkedin.com/in/asaf-avigalQuestions?