Hey guys, Is there a comprehensive list of costs t...
# random
e
Hey guys, Is there a comprehensive list of costs that one should be aware of while building a product? Any pointers, blogs will be very useful.
m
This question is very vague. What kind of costs are you referring to? Cloud computation costs? Cost of software licenses? Salary to paid to employees & vendors? Taxes?
e
Sorry, complete noob in product development here. Let me try to explain. As far as I am know, these are the costs involved in building a product. • There is a development, infrastructure and marketing cost. • Then there is cost involved in incubation of the startup. Fees, virtual office etc. • Then there is maintenance cost • And costs involved if and when, optimistically, the product starts gaining traction. There are no license costs at the moment and employee costs will be covered under marketing or developement costs. I would like to know how if there any other costs that I should be aware of, now or down the line.
m
Giving some context/background around your situation will be helpful. • Are you a self-employed developer who is looking to save costs? • Are you employed in a company? If so, then this is the company's headache. • Are you working in (or managing) a team & trying to optimize your budget? • Are you a founder/director in a company?
e
@magnificent-solstice-42554 I have one question related to softqare license can I ask? Here or should I DM?
m
Sure. Ask here.
e
@magnificent-solstice-42554 I am planning to build a product on my own and start a company of my own.
m
Ok, then your biggest expense will be employee payroll, contractor/vendor invoices and possibly office rent. Think of things in terms of CAPEX (one-time, fixed costs) and OPEX (recurring, variable costs). In the beginning, optimize for OPEX and not CAPEX. This is because you don't know if your product/company will actually last for 1 year. You don't want to get locked into a financial commitment in that case. E.g: • See if you can go month-to-month on office rent rather than sign a 1 year lease. • Hire vendors who bill hourly rather than employees. • Don't commit to 1 yr (or 2 yr) reserved capacity for your cloud computing. Instead use pay-as-you-go.
e
Thanks a lot @magnificent-solstice-42554 that's very useful.
👍 1