A request came in this week from a client that’s looking to start up a new business.
Now this client is not a shoestring type of start-up.
Meaning venture-capital is involved.
As a result the client wants to start right.
He recognizes that he needs good tech to get off the ground and be successful in short order.
So his request was to provide him with everything he needs - soup to nuts - with regards to tech start-up costs.
Having made lists like this in the past it wasn’t too difficult to build a package for him.
I developed a tech package for him that included everything from capital expenditures to monthly recurring costs or operational expenses.
And here's what I came up with.
For a 20 person start-up we came in around $75,000.
Not quite $100,000 start-up cost. But there’s a reason for that.
There’s still one line item without a price tag next to it.
You see, this client will need a certain line of business application to run his business.
We don’t have that cost yet and so there’s one blank space left.
Not to worry the number will be filled in shortly.
Here’s the thing.
There’s nothing special about the cost estimate I'm providing
It’s all just standard stuff that a business needs.
Sure you could probably shave a few corners here and there.
But in doing so it would be by introducing sacrifices and compromises.
Just want to make sure you know we’re not building a Cadillac here.
The reality is that really does take about $100,000 to set up a 20 person business with their tech.
While you might not pay for it all upfront like this start-up - you will over time.
Building tech out in a business is no small expense.
Still many businesses take it for granted.
They see it as a necessary evil and they begrudgingly write checks.
It’s been fun to work with a client who wants to do things right.
Who understands the value and difference good tech can make.
I hope he gets his funding.