Thread: How much money do I need for my startup?

Take my post with a grain of salt as I don't have any real experience (except from working and researching on my own project currently), but from what I've read on here, $4k-15k will get you an excellent app developed. But then there's marketing costs to bring in sales, and website development costs.

Just make sure you have the legalities all taken care of as well. First thought that comes to mind is that the developer needs to sign an employment agreement that anything they produce is owned by the company.

I'm no lawyer though, but just something to do research on in case you haven't already.

I have already had all the developers I spoke to sign NDA agreements. However I will look into getting an employment agreement signed once I choose which developer to go with.

Get a customer first. You're set to blow a couple thousand on an app that may actually have no potential at all. Get real feedback and not just family members and friends.

Old rule I go by, whatever you think you need, times it by 3....

Originally Posted by The-J

Get a customer first. You're set to blow a couple thousand on an app that may actually have no potential at all. Get real feedback and not just family members and friends.

That is my plan, to pitch my service to potential clients and once I've generated interest pay to get the app developed. I'm simply trying to plan ahead so I have a good idea of how much cash I will need well before the time comes to start spending.

Originally Posted by JackEdwards

Old rule I go by, whatever you think you need, times it by 3....

The actual app and website shouldn't cost more than 5k maybe 6k to get developed. I have around double that.

Originally Posted by julien515

The actual app and website shouldn't cost more than 5k maybe 6k to get developed. I have around double that.

My first thought when reading your response..

Julien, you are going to need 10 times whatever you think you need...

Originally Posted by JackEdwards

My first thought when reading your response..

Julien, you are going to need 10 times whatever you think you need...

Seriously? you think it's gunna cost me 50k to get my app off the ground?

Don't take this the wrong way but have you ever started a business? and did you need that amount of money? I've made money in real estate, import/export, and had a lawn care company and I never once needed 10x what I expected.

Originally Posted by julien515

Don't take this the wrong way but have you ever started a business?

HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHA. okay I'm done.

Originally Posted by RichKid

HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAH AHAHHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHHAHAHAHAHHAHAHA HAHAHHAHAHAHAHHAHAHA. okay I'm done.

Ummmm... Idk what that is supposed to mean but ok.

Anyway I can see why I might need more than 15k but I want o have the business off the ground and have the app fully functional before I start to seek out investors. I know people have started successful apps in the past on a budget even less than 10k.

How much money do I need for my startup?

This is the wrong question to ask. The very first question that you should be asking yourself is it you have the 'will'. If you have the desire to see this through then the money will come. All you have to do is start. Trust me, I was where you were over a year ago. The difference is that I didn't have the start-up capital, but I did have the 'will' to make it happen. The the money appeared shortly after I stopped asking 'the money question'.

There is no doubt that tech businesses can get expensive. Many people don't realize the costs of running a tech post-development. It will get expensive if you get a user base. It's a given. So don't ask the money question.

To test your will -- I heard this somewhere, I'm not sure where. Go stand in a bathtub of ice. Try standing in the ice for a little under 5 minutes. Pretend that your company is riding your back. The moment that you step out of the tub, everything crashes and burns. Your stake holders (investors, users, people who care) lose everything for your moment of selfishness If you can stay in the tub then you win. That is how this start-up world is. Sometimes it's like standing in a tub of ice and sometimes it's like sitting on the beach in the sun. Make sure you can do both, especially for when you have a weak moment and things don't 'your way' - I'm talking from experience here.

ps...if you do this tub thing then remember to actually get out of the real tub so you don't lose your feet. I will not be held liable for any blue feet.

ground and have the app fully functional before I start to seek out investors.

Another point - be-careful, investors can shape the entire dynamics of your start-up, from the way it functions, to the way you think and act.

Originally Posted by johnp

This is the wrong question to ask. The very first question that you should be asking yourself is it you have the 'will'. If you have the desire to see this through then the money will come. All you have to do is start. Trust me, I was where you were over a year ago. The difference is that I didn't have the start-up capital, but I did have the 'will' to make it happen. The the money appeared shortly after I stopped asking 'the money question'.

There is no doubt that tech businesses can get expensive. Many people don't realize the costs of running a tech post-development. It will get expensive if you get a user base. It's a given. So don't ask the money question.

To test your will -- I heard this somewhere, I'm not sure where. Go stand in a bathtub of ice. Try standing in the ice for a little under 5 minutes. Pretend that your company is riding your back. The moment that you step out of the tub, everything crashes and burns. Your stake holders (investors, users, people who care) lose everything for your moment of selfishness If you can stay in the tub then you win. That is how this start-up world is. Sometimes it's like standing in a tub of ice and sometimes it's like sitting on the beach in the sun. Make sure you can do both, especially for when you have a weak moment and things don't 'your way' - I'm talking from experience here.

ps...if you do this tub thing then remember to actually get out of the real tub so you don't lose your feet. I will not be held liable for any blue feet.

Like I said I've done various businesses before and I am well aware of the hard times and good times it can bring and I have definitely got the will to make it happen. I'm guessing you had to get investors for your business, I want to try and avoid bringing in any investors until after the app is up and running and I have started bringing in some revenue.

I have already gotten started and will be presenting it to my first few potential clients next week.

Like I said I've done various businesses before and I am well aware of the hard times and good times it can bring and I have definitely got the will to make it happen. I'm guessing you had to get investors for your business, I want to try and avoid bringing in any investors until after the app is up and running and I have started bringing in some revenue.

That's great to hear. I too started some businesses before I began my most recent start-up and this is a totally different experience. I think that sometimes it clicks and then sometimes some ventures are little harder to pull through

And yes, you are right. I took on a few investors with my start-up.


A fellow fastlaner introduced me to this guy and he changed my entire view on investors. Everything that he said makes perfect sense and I have seen things that he had said appear in my own start-up. He is the creator of Ruby on Rails and the co-founder of Basecamp. He really knows his shit. If you haven't come across him then watch some of his videos, they may help you in some way.

David Heinemeier Hansson

Originally Posted by The-J

Get a customer first. You're set to blow a couple thousand on an app that may actually have no potential at all. Get real feedback and not just family members and friends.

I agree with The-J on this one. Get a customer first before you spend thousands of dollars. And also, if you have started many businesses before, why are you asking us about how much money you will need for a start up?

This is the first technology based business I have ever done, it's alot different than being an import/export agent for instance.