Forums: Discussions for entrepreneurs and small business.

Anyone know usually how much you need to startup a software company? Any samples i can refer to?

VERY GOOOD

Huh? Very good what?

Jasper,

There are way too many variables in starting a software business for me to offer any meaningful estimate.

The main cost components to consider include:

Development

Business Development (marketing, sales, distribution,etc)

Support, etc

If you want to discuss your specific situation, feel free to contact me privately.

Thank you Robert for the reply. I still got a few queries. My stage now is more like seeding, so development cost will be high but not on marketing and others because only development. So now i do not need so much. Now if i calculate based on this my cost of startup will be less. So the money i need from investor is less and let say they ask for 50% of my company. Later when i finish development i will need more cause i need to do marketing and support. Then how? Will the investor reinvest again? And what will be my % ownership then? Or i have to consider all this upfront to estimate how much the investor suppose to invest. How do i determine my company worth in the future? What i am trying to ask is now my company does not worth so much so investor wont invest so much. Later when it grow, then how?

Thanks for your reply.

Thanks for sharing this information, it is really helpful as well as informative. Nowadays, softwares are in high demand these days to handle and manage business. 

Don't understand why you are why you seem ready to jump right in and hand over 50% or more of your company. Have you looked at other ways to get finance or are your development and start up costs so high that you view investment as the only viable route?

If you feel this is the case then fair enough but I would make sure I had fully explored all other options before taking on an investor.

What you need is a business planning software. Check out Palo Alto.

In your situation, I would recommend you to consider taking help of business consultants. Believe me, they are highly professionals who can help you to get the estimate for starting a software company. And, if you are running short or low on finance to start up your company, visit this site:http://allianceonellc.com/ to fund up your new business.