Startup Expenses And Software Development

1195 WordsNov 21, 20155 Pages
Startup Expenses Startup expenses are defined as money that businesses spend before they even open their doors. They are the expenses that are incurred before the business is running. In the case of GameGo, our highest startup expenses will come from software development, advertising, and licensing fees. Software Development Expense The most important factor in the launch of GameGo is the software development. Bernard Kohan, a mobile app and web application development and technology analyst expert, wrote the cost of software development depends on the type class of company. GameGo is classified as a "Moderate Class" Custom Development Company because we are developing a web application and online interface with our average number of…show more content…
Specifically, we will focus on advertising through video game conventions and social media outlets such as Facebook, Instagram, and Twitter. From the article How Much Does Facebook Advertise Cost? by Marc Prosser published on July 13, 2013 it states that, “With Facebook, you get to choose what you want to pay for advertising. You will never pay more than the maximum amount that you bid to have your ad appear or be clicked on. However, the bidding process is competitive. If you bid too low, your ad will never be seen.” On average, companies spend about $24.00 daily per site to advertising through Facebook, Instagram, and Twitter, which will let their ad be shown about 36,000 times a day (Prosser, 2013). To make sure our ad is seen efficiently throughout the day, we have set a daily budget of $27.00 per site equaling $29,565 per year. Having heavy and concise advertising has proven to be effective for companies when done right. Another way that we wanted to advertise was by going to video game conventions and getting our product in the market. The average cost of having a 20X20 square foot booth would be $50,000 (Cost of Trade Show, 2014). We would have to have a budget of $70,000 for the trade show to make sure that we have enough for the booth and room and board for the team. Our objective to this is spreading awareness of the services we
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