The biggest factors impacting your software project are team, scope, and budget. Our goal is to help you understand the landscape so you can make the best choice for how to build the software that will power your new venture.
The most important aspect of building software is the team. In terms of functions/roles, the team should at least consist of design, architecture, frontend, backend, mobile, DevOps, and product management. Team members with expertise in data science, artificial intelligence, or another specialized field may be required depending on the complexity and focus of the application. The salaries and rates for each of these individuals vary a lot. Assembling a team is a balancing act between experience and costs.
A software solution can be built in a weekend by a student using the right tools and taking the right shortcuts. The same functionality can take a year or more to build for a startup with a $10M round of funding raised. These apps will be vastly different. The student may be able to "demo" their concept, and the full-fledged team may be able to create a sophisticated application that can withstand a large consumer base.
A simple portfolio or personal website with Wix would be around $100–200/year.
You can find developers overseas on freelance dashboards for as low as $8/hour.
With all these variations in the market, the question becomes what kind of software you can get within your budget.
A founder builds their own product.
It's easier to fundraise with a product
Its cost is in time rather than capital.
You bring your vision to life.
You are alone.
It can take years to learn to code and build your first prototype.
You don't know what you don't know.
Our advice: Try to do this. If you find it easy, go for it. If you find it hard, the opportunity cost of your time might not be worth the cost-savings.
2. The sweat equity tech co-founder
A founder finds a tech co-founder who has little or no expenses and convinces them to build their app for 30%+ of their company.
It's easier to fundraise with a Computer Science grad on the deck.
It costs you less upfront.
You are not alone.
Sharing the company means sharing the vision.
These people are scarce.
Tech experience does not come with business experience.
This is a race against the clock.
No cash deals are not sustainable, even for the most financially independent people because of their opportunity cost.
Our advice: If you go down this path, make sure you are being realistic about expectations, honest with yourself and your partner about commitments, and have a four-year plan. This is the type of path where things always take longer than planned and end in co-founder breakups.
If you want to know whether looking for a tech co-founder is right for you, check out this video by Michael Seibel. If what he's saying matches the reality of your network and situation, then follow his advice. Otherwise, we suggest doing things differently.
If you're considering going solo, you're in good company. Check out this Wharton research paper backing up your choice. Many investors still have a hard time with this, so the question to ask yourself is if fundraising ease is more important than optimizing for sustainability, longevity, and revenue. If the answer is no, this list of investors might be a good place to start.
3. The dev shop abroad
A founder spends as little as $5-20k on the cheapest developers they can find.
Relatively inexpensive upfront.
These people are common, there is a lot of competition, and it's a buyers’ market.
You get what you pay for.
This will most likely be throwaway code.
Risky. You don't know what you don't' know.
Managing across time zone, language, and context can be difficult.
Our advice: If you are strapped for cash, you can opt for spending on advertising and providing your service/solution in a lower-tech way rather than jumping into development. If you are going to work with more affordable developers, we suggest you find someone knowledgeable enough to define requirements and manage development. They can be compensated with equity and have a more managerial role. This person could support your vision, but be uncomfortable with the risk required to commit full-time to a new venture. This can work incredibly well if your goal is product validation, and will be a great stepping stone towards fundraising.
4. The first engineering hire
If you have a seed round of over $200k, you may be able to hire an engineer to build your product. Combined with a modest amount of equity, you can spend the year working on both product development and business development alongside each other.
You have a partner without having to give up a lot of equity.
You can find a high-quality person, have constant contact, and a short feedback loop.
People who are willing to do this are rare (but more common than the sweat equity path).
No one is the best at every function, and you will be counting on one person to do the work of a team on their own.
Our advice: This person should be focused on their core competency and complement their skills with freelancers and other contractors. You should decide if your priority is user experience or core technology and hire accordingly. Be honest with them about your runway, your goals, and your expectations. Make sure you have a full-time need. If your product requires 3-6 months of building, having someone full-time might lead to overbuilding or idle hands. Neither of those is good for the business.
5. The million-dollar seed round
If you are fortunate enough to have the track record needed to raise a million-dollar seed round pre-product, that's awesome! You can hire a full-featured team of the best talent Silicon Valley has to offer and build the product of your dreams. There are still some downsides, though.
You can afford the quality of talent that you need.
You can hire the best and build the best product for your users.
You will spend a million dollars on making your product.
You might feel validation from raising money before actually validating the product.
You might need to raise money again before you're profitable enough to support your payroll on your own.
Our advice: Focus on finding and validating your product-market-fit before building the team. Being able to afford a team doesn't necessarily mean that's the best route forward. At this stage, the product and business will likely change, and the earlier on you hire an in-house team, the less flexible you can be with your vision. If you want to keep your options open, don't be Uber, be Kylie.
6. The Get It Built Way
Having experienced each of these scenarios first hand, our founder started Get It Built with the guiding principle that building profitable businesses using technology is better than building venture capital dependent businesses. Our advice is for profit-focused rather than valuation-focused businesses. We are here to create paths for different types of technology businesses. This is the story we are here to facilitate.
Validation: You find a market you want to serve and validate that they have a problem that they are willing to pay to solve by selling them a low-tech solution.
Definition: Once you're confident there's a market for your idea, you can come to us. With an investment of $10-30k, depending on the complexity of the business, we can deploy engineering, design, and product experts to collaborate with you on defining your product's design and technical requirements. At this stage, we are focused on the visual and technical aspects of bringing your vision to life. We don't take any equity and require no further commitments. After this phase, you will have a visual representation of your product, technical specifications, and an estimate of the development costs. You can use that to fundraise from investors, continue selling your solutions, pre-sell the product, or use an alternate funding route. With a validated solution and a clear roadmap, you will be talking to investors with more confidence and leverage than ever before.
Development: After fundraising, you can come back to us to build the product or take another route that fits your situation better. We are best equipped to work on projects with budgets in the $50-500k range. Our process aims to combine the best of both worlds; you have a world-class full-featured team at your disposal without the commitment of having them on your payroll. By focusing on deliverables, we can deliver high-quality software at a fraction of the cost of hiring a team.
After your product is launched and your user base grows, you can decide if you are ready to hire an internal team, and we'll hand over the code, or if you prefer, we can also continue maintaining it for you. Our process is designed to support founders who want to build their businesses on their own terms.
Your vision is implemented.
A world-class development team is working for you.
You can adapt and manage risk at each stage.
No in-house tech team creates investor skepticism.
Being a solo-founder is lonely.
How Will You Build Your Product?
We hope this post helps you understand the many different ways there are to build tech products. Each path has a different price point and various potential pitfalls. You can start a successful tech business in any of these ways. If you think the Get It Built way could be right for you, we are here to help.