Should I hire Company or people to build app

Nov 22, 2018 22 Comments

I met with an investor who wants to come onboard and fund my currently nonexistent startup. He seemed fine putting in $50k upfront for about 10-20% (I’m not too worried about equity right now). His partners may put in more. I said $50k is pretty low and isn’t enough to get the app up and running. I was thinking $100k, if not $150.

My question to you all is, should I hire a company that specializes in app development or individuals to build out a functioning app.
-How long would it take to make the app? Rough estimate
-How many people would I need to build an app?
-How much would people cost vs hiring a company?
-Do you recommend I hire people or a company?
The idea is to prove demand from all sides exists, show revenue and growth, before seeking additional, larger funding.

App deals with delivery. UberEats is the fastest way to describe it without giving the idea away. For those of you thinking it’s a lost cause, Uber is exposed. I’m more worried about Amazon than Uber, which is why we’re running like hell to get this up before they get here.

Location: USA

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TOP 22 Comments
  • POWER Engineers / Other
    NtTy44

    POWER Engineers Other

    BIO
    Ruler of my universe.
    NtTy44more
    If you don’t know the answers to these questions wtf are you doing? I wouldn’t give you a dime. Sorry.
    Nov 22, 2018 3
    • Google RockLobsta
      So much this. It’s fine if a founder can’t code, but if they don’t know even the basics and have to turn to Blind.... that’s dead money. Frankly, a lot of these a stupid questions OP. You should not go down this road.
      Nov 22, 2018
    • OP
      I know the numbers for about 5 companies (I’ve gotten quoted before but I’m looking to see if my numbers and expectations are inline with the responses I get here). I don’t really know how many individual people I will need and how much they will cost because there’s a lot more variation (based on quality of workers, timeframe, etc).

      My plan focused on a cheaper proof of concept, then additional funding, then outsource development to a company. After the meeting yesterday he wants me to skip to the app development to save time. I figured asking people here is faster.

      My deadline to present him the numbers is Tuesday. He wants whichever option gets the job done but is preferably cheaper.
      Nov 22, 2018
    • New vpkf84
      Agreed!
      Nov 22, 2018
  • GE / Eng
    weakPtr

    GE Eng

    PRE
    General Electric
    weakPtrmore
    Looks like some investors are about to lose all their money.
    Nov 22, 2018 1
    • SAP kbron
      OMG GE talking!
      Nov 22, 2018
  • Twitter
    hdhhj

    Twitter

    PRE
    Adobe
    hdhhjmore
    OP, What is your skills?if you are not a technical person, then what will be your role? Just wondering why investor is putting his money on you.
    Nov 22, 2018 5
    • OP
      I know the space pretty well. I have some years of experience as well. At least one Fortune 500 company wanted to work with me to test it out in a suburban area with over 400,000 people before rolling me out statewide and then nationwide if the pilot worked. There is another I think fortune 1000 company this year who said would do the same if I came in with numbers from a completed pilot. The problem was, the funding I was hoping for never came through so everything died and remained dead for 3-4 years until yesterday. The plan I developed was solid then and the core plan is still viable despite the time lapse which is pretty telling of either how well my assumptions were or how bad other companies were, or how big this space is. The plan did not account for the rise of autonomous vehicles and their impact. I’m starting to see them in my city more and more. It also didn’t account for Amazons brilliant business decision made a couple months ago which could and very might well fuck me. And worst comes to worse, the market is big enough to support many players in the space if we can’t pull the rug from under the competition.
      Nov 22, 2018
    • Microsoft / Eng
      LiftMore

      Microsoft Eng

      BIO
      Christian. Love Microsoft. High aspirations, low expectations.
      LiftMoremore
      What was Amazon's idea
      Nov 22, 2018
    • Twitter
      hdhhj

      Twitter

      PRE
      Adobe
      hdhhjmore
      For stater, you need to think what kind of app you are building. Do you want an iPhone/Android? or just a web app ?

      Don't try to build the whole app. Most investors are ok with a prototype. You should focus on building the app once you get investor money.
      Nov 22, 2018
    • Oracle Noooo
      Seems like your idea is to deliver goods using drone. Those goods could be any thing though. There might be multiple verticals where you can apply this.
      Nov 22, 2018
    • OP
      I would focus on iphone, then Android. Web app for admin and partnering businesses.

      The first stage is making sure the inventory management system works. Over time we’ll implement all the features. This should cut down on development cost and time.
      Nov 22, 2018
  • You need developers as cofounder. If not you will basically burn through money. Development companies are great at stringing you along and getting more and more money out of you.
    Nov 22, 2018 1
    • Twitter
      hdhhj

      Twitter

      PRE
      Adobe
      hdhhjmore
      I had the same experience while building a startup before. My co-founders and I took help from an app development company which did a shady job and our startup got bust.
      Nov 22, 2018
  • Compass / Eng
    FUPayMe

    Compass Eng

    PRE
    Google
    FUPayMemore
    I’ve built a startup in the past and am currently in the process of building another now. There is no way anyone here can answer the above questions for you based on the information you’ve presented.

    The estimates you need are dependent on the work required. If you want to discuss further send me a dm. But you’re current too under informed to properly handle this project.
    Nov 22, 2018 0
  • Netflix Gqtu28
    If the app just exposes your business, 50k might be enough for a basic REST API wrapper

    But it sounds like you are glossing over some hard problems (delivery routing, integration with third parties, etc). 50k won't be enough - you need full time engineers
    Nov 23, 2018 2
    • OP
      I would prefer full time engineers but I honestly don’t know how much that would cost and what I would have to offer to get them or how long it would take or how many I need. My plan was focused heavily on hiring a company which is pretty expensive. That’s why I’m asking on here, what would it take to get you to work to build out a startups app without breaking its budget?
      Nov 23, 2018
    • Amazon
      dime

      Amazon

      BIO
      Le
      dimemore
      Full time engineer average yearly salary * 4 engineers + 1 designer, it’s a continuous process, plus good engineers demand market salary, I can easily see budget ~1 Mil
      Nov 25, 2018
  • Amazon Feet
    You’re very late to the game bro but good luck.
    Nov 22, 2018 0
  • Vertivco / Eng
    FastPapuan

    Vertivco Eng

    PRE
    YouTube, American Bureau of Shipping, Facebook
    FastPapuanmore
    Send me a PM, worked on a similar startup. Partner went insane because of bullshit expectations.
    Nov 22, 2018 0
  • Sprint lxCy58
    You can build an MVP with just $10k-$20k
    Nov 22, 2018 0
  • New / Eng cato
    I’ll build it for you! Or I can help guide the process if you like. Send me a message
    Nov 22, 2018 0