Hi Thomas!

Your suggestions are fantastic as usual. I just wanted to add that when just starting out, sometimes the cost is not what really matters. Sometimes doing a really GREAT project that will be visible will bring in future business and pay for itself many times over. I think more new business is brought in from potential customers seeing your app in use at someone's location rather than the cost of it. You may be able to make 'confidential' agreements with first customers to get some development work out there and then raise your prices as you get more more firmly planted in the economy. Years ago, as a favor to a friend, I wrote a custom app for the local police department that came back to haunt me. I wrote it for the MOST minimal cost. About 4-6 months later, many visiting depts liked it and wanted me to do it for them as well. I didn't have the time or drive to do it at the time (mother of toddler at the time and already working 16 hour days, it was 7 years ago), so I passed it on to another VFP developer I knew along with the source code. Well, needless to say, they took it and ran with it and boy did they make a killing! The only thing I've regretted is not having an agreement with 'my friend.' Anyway, what was important to me at the time was having the time to spend with my daughter and to this day, I do not regret my decision. She is 11 now and I still don't have enough time to spend with her! But the principle remains the same, get the app done and out there where the public or potential customers can see it!


Tracy

>>HI all
>>
>>My buddies and I started a business called GALACTIC SYSTEMS INC.
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>>We would like to know what is the typical going hourly rate is for developement of software.
>>
>>Thanks.
>
>Dean;
>
>Within the last year and a half it seems that the consulting market (and every thing else) has changed. Hourly charges for software development vary due to so many factors and you are going to have to do your homework to determine a number for your group. You might be able to take amounts charged by other software houses throughout the nation, and take into account cost of living. If I gave you the numbers for the San Francisco Bay Area it might help a bit. I charge $125 an hour and the going rate is $95 to $150 from the developers I know personally.
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>I am very business oriented and hope you have taken all possible steps to protect yourself and those who are a part of your group – INCORPORATE! If you have not incorporated please consider doing so. If you have incorporated you are off to a good start! I do not know anyone who has been sued for software development but no one can say what will happen. I like to sleep at night!
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>Other things to consider are a Mission Statement, defining operating costs, how to distribute monies and a business plan that defines your financial goals. Perhaps I am too serious about all this but software development is a business and I treat it as such.
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>We have a group here in Silicon Valley of retired business executives who set up an organization to analyze your business plan. They do this for free and are an excellent source of analysis to determine if you are on the “right track”. There may be such an organization in your area that you could present your business plan to. I found our group to most helpful.
>
>Tom