Awais Afridi
Citizen
Dear Brother, I hve also experience in Software / Web development . Before starting business and investing into it. It is important to note that in start 5-6 months you may not profit in this department. As company needs clients and projects to work with. If you friend has regular clients and has contacts then its ok.
Your friend is a software developer that's good but he Should know some clients to work with projects. If you have clients and you can make 30K a month. Then its better to start. However you will also check if the clients are regularly assignming you tasks or not . You can also make your own company projects such as ecommerce website, news portals, ebay like website, job portal, restaurant managements, property management.
Creating a company project doesn't mean that it will click in start. It will require time and money. such as marketing (social media), data entry team etc .
IF you are assuming to work with local projects then I would recommend not only focus on local projects as normally local projects are time consuming and less budget. Also create profile in freelancing, upwork, fiverr etc to get regular work.
Also to mention that a software company doesn't need much investment , normally you have to hire developers etc. furniture cost, systems and rent cost .