How would i determine the cost

[MikeMike]

of creating an application, with a fairly large database backend, in which 3rd parties would be able to enter information, and it would then correspond to each unique users specific information and suggest things... Do you guys have any sort of well known, application developers that would be useful to contact.

yea, im being vague, but there is no way in hell im giving out more details... i need to figure out how to get this cost estimate into my business plan in more detail... i know i could come up with some NDA], but ive never done that either...

yea, you guys will hate me for this post... I don't trust being able to call up some application developer, tell him what i want, and if i dont go through with it, watching him go through with it himself...

 

[wiredspider]

depends

 

[theflyingpig]

Hey anandtech, there's a new image host called ******* and it is awesome. Why are you blocking it? Explain yourselves.

Edit: wow. I can't even type the name. Pathetic. min dot us there.

 

[Zebo]

$3562.75 off the top of my head.

Seriously MM w/o experience in SQL, web, etc you may want to start a business with something you know something about. Alternatively take a partner who knows his shit.

 

[Zebo]

Ideas are not patentable, product is, choose partners wisely.

 

[MikeMike]

$3562.75 off the top of my head.

Seriously MM w/o experience in SQL, web, etc you may want to start a business with something you know something about. Alternatively take a partner who knows his shit.

oh, ill take on a partner, but you have to realize this is a class project... I will begin consulting with my prof to see who he can put me in contact with, but im doing this project by my lonesome...

pretty much, want to get initial investments around 500-600k instead of the original estimated 800k (i pulled this out of my ass just to get something on paper, assuming this would be overly high, just to see what profitability looked like) i believe my initial investments will come with ownership in the company (30-45%)... with plans to either sell off the company in 4 years once profitable, or receive additional VC in about 3 years in order to expand into other markets

 

[MikeMike]

Ideas are not patentable, product is, choose partners wisely.

processes are patentable as well

 

[Wyndru]

Someone over in the programming subforum might know, I don't know how much traffic that sees though.

 

[wiredspider]

read this again, sounds like facebook and their suggesting you like things...

 

[alkemyst]

anyone that needs an AGP card donated can't have very bright ideas.

 

[slayer202]

oh, ill take on a partner, but you have to realize this is a class project... I will begin consulting with my prof to see who he can put me in contact with, but im doing this project by my lonesome...

pretty much, want to get initial investments around 500-600k instead of the original estimated 800k (i pulled this out of my ass just to get something on paper, assuming this would be overly high, just to see what profitability looked like) i believe my initial investments will come with ownership in the company (30-45%)... with plans to either sell off the company in 4 years once profitable, or receive additional VC in about 3 years in order to expand into other markets

facepalm​

 

[MikeMike]

read this again, sounds like facebook and their suggesting you like things...

ya.. im creating a facebook alternative...

:whiste:

facepalm​

this part was just made up as i went... i have no idea yet what sort of numbers exactly i will need, i just know that from my research, with an investment of up to $1M, the business will be profitable after the 4th year, and obviously quicker the less upfront costs i encounter

 

[alkemyst]

First do your research and make sure it's not already 'been done'.

As far as what money and what return you will get will largely depend on the business.

I'd not bank on a 40% split nor assume more capital upfront brings you to a faster profitable year.

 

[MikeMike]

First do your research and make sure it's not already 'been done'.

As far as what money and what return you will get will largely depend on the business.

I'd not bank on a 40% split nor assume more capital upfront brings you to a faster profitable year.

ive done it, it has not been done, in any way comparable to this...

i dont have any real recurring costs other than the normal... it all depends what my initial investment must be in order to create the product, in terms of how many years it will take to pay off... if successful in Market A... i can more than double my potential market by expanding to one other area... there are LOTS of expansion possibilities.

 

[JS80]

ive done it, it has not been done, in any way comparable to this...

i dont have any real recurring costs other than the normal... it all depends what my initial investment must be in order to create the product, in terms of how many years it will take to pay off... if successful in Market A... i can more than double my potential market by expanding to one other area... there are LOTS of expansion possibilities.

A real VC invested company has office space, a product team, engineering team, finance, sales, etc. PM me if you need help modeling the cost structure. I will sign NDA if you really think I will steal your idea.

 

[yllus]

Anyone who'd give you an estimate based on as little information as you've given is not a true professional and you should publicize their name so they are forever unhireable. It's the software developer equivalent of a doctor prescribing you prescription drugs after you've described the symptoms as, "I feel sick."

As a rule of thumb, VCs will not invest in a company that will not provide a 150% ROI in 5 years' time. Regular old banks are often a preferable alternative for funding. Keep in mind that if you ask either a bank or VCs for money and your response to the question of, "How much have you personally invested?" is "zero", they'll politely ask you to leave. You are expected to put your figurative financial future on the line before asking anyone else to do the same.

 

[MikeMike]

Anyone who'd give you an estimate based on as little information as you've given is not a true professional and you should publicize their name so they are forever unhireable. It's the software developer equivalent of a doctor prescribing you prescription drugs after you've described the symptoms as, "I feel sick."

As a rule of thumb, VCs will not invest in a company that will not provide a 150% ROI in 5 years' time. Regular old banks are often a preferable alternative for funding. Keep in mind that if you ask either a bank or VCs for money and your response to the question of, "How much have you personally invested?" is "zero", they'll politely ask you to leave. You are expected to put your figurative financial future on the line before asking anyone else to do the same.

I am at 110% after 5 years, with 600K invested, with a small market share estimate, and no expansion into other markets...

and no shit i wont be getting an estimate from what i revealed, I am not about to reveal more...

oh, and using 2009 numbers for my potential market, which was greatly affected by the depression...

you posted in my prior thread FYI regarding this idea... since then i have redone some numbers and estimates (mainly lowered estimates, increased initial costs)

 

[JS80]

Anyone who'd give you an estimate based on as little information as you've given is not a true professional and you should publicize their name so they are forever unhireable. It's the software developer equivalent of a doctor prescribing you prescription drugs after you've described the symptoms as, "I feel sick."

As a rule of thumb, VCs will not invest in a company that will not provide a 150% ROI in 5 years' time. Regular old banks are often a preferable alternative for funding. Keep in mind that if you ask either a bank or VCs for money and your response to the question of, "How much have you personally invested?" is "zero", they'll politely ask you to leave. You are expected to put your figurative financial future on the line before asking anyone else to do the same.

VCs don't invest in vaporware. You need to find an angel investor aka a rich uncle to develop the beta software before you can even knock on VC door.

 

[Homerboy]

somebody needs to be archiving all these MikeMike business threads for future lolz

 

[MikeMike]

somebody needs to be archiving all these MikeMike business threads for future lolz

Go for it... because if I dont do this, at some point something very similar to this WILL become real.... it has WAY to good of a real life application to todays world.

and what part of "class project" dont you understand? i HAVE to do this, so i HAVE to figure out how to get the numbers...

 

[MikeMike]

VCs don't invest in vaporware. You need to find an angel investor aka a rich uncle to develop the beta software before you can even knock on VC door.

i have 9 uncles on one side... all of varying wealth... so i dont just have "a" rich uncle...

 

[alkemyst]

i have 9 uncles on one side... all of varying wealth... so i dont just have "a" rich uncle...

Shit dude, with several rich uncles alone; why you asking us?

 

[MikeMike]

Shit dude, with several rich uncles alone; why you asking us?

because i have no clue where the hell, or how the hell I should go about determining the cost of developing the backend, front end, databases, data warehousing, and more for the core of the product... which for my final project (aka this business plan) is the most important aspect for an accurate forecast...

 

[alkemyst]

Go for it... because if I dont do this, at some point something very similar to this WILL become real.... it has WAY to good of a real life application to todays world.

and what part of "class project" dont you understand? i HAVE to do this, so i HAVE to figure out how to get the numbers...

First to the second paragraph, do you own homework then. Read the fucking book.

Secondly to the first, that's most of the point here...most 'great ideas' are in process or already done.

Us that know your post history are very keen on how that applies.

 

[slayer202]

this sounds like such bullshit.

and how do you expect to do a class project without telling other people the idea? I really doubt it is such a genius idea, especially if your software idea is the bulk of it. and come on man, if you really want to find out what it will cost to develop, contact a company and give them some bullshit application that would require the same work as this, but change the details. holy shit