Live Blogging The Future of Web Apps
part VII

Carson gave a great primer on getting it done on a small budget. Got a good idea but don't know exactly how to go about doing it? Here's a nice blueprint to start with.


How to Build an Enterprise Web App on a Budget
Ryan Carson
DropSend

What's the big deal?
You don't have to be big anymore.
- Broadband is widespread
- People are comfortable with web apps
- Hardware is cheap
- Open source is cheap

What's enterprise?
Mass market or 1000+ users

What's "on a budget"
- Under 30K GBP

Dropsend: Sending and storing large files
The most important thing: Make sure the idea is financially viable.
Use common sense: Will people pay for it?
Be cautious about your projections
Acquisition my ass - Aim to be profitable, as getting acquired is not a sure thing
Forget about the "Is this another bubble" stuff.

The budget
Branding and UI design: 5000 GBP
Development: 8500 GBP (plus some equity) from Plum Digital Media
Desktop Apps: 2750 GBP
XHTML/CSS: 1600 GBP
Hardware: 500 GBP
Hosting: 800 GBP per month for 5 boxes (BitPusher)
Legal: 2630 GBP
Accounting: 500 GBP
Misc: 1950 GBP
Trademark: 250 GBP (without a lawyer)
Merchant Account: 200 GBP
Payment Processor: 500 GBP
===========================
Total: 25,680 GBP

Team building on a budget
Don't go for rock stars - go for quiet talent
Offer equity
Ask friends for recommendations
Try outsourcing

Scalability on a budget
Buy just enough hardware to launch
Build scalability into the software architecture
Plan, but don't obsess

How to keep it cheap?
Don't spend unless you have to
No stationery
No new shiny machines
No luxuries
No frou-frou features
Before you spend 25 GBP on anything, check yourself
Make deals
Barter services or advertising
No phones. Use IM/Skype
DIY: Wireframing, markting, testing, etc.
Shop around

Pessimism has its place
You will go 10% over budget
You will be 3 months behind schedule
Plan on it and update your cash flow

Holy Crap: Lawyers are Expensive
Terms of Service: 1000 GBP
Freelance contracts: 800 GBP
Privacy policy: 15 GBP (Clickdocs)
Barter
Get a free one-hour consultation

Cheap software is your friend
Basecamp for project management
Bug tracking: Trac
Meetings: Skype and AIM
Version control: Subversion (Tortise SVN)

Cheap hardware
200 GBP dev box, for example

How to not spend money on marketing
Use blogs, WOM, viral,
Is your app viral to start?
Writing: Great way to raise profile, especially if in customer profile

What about VC?
Might need it if you need to expand quickly/can't wait

Summary
1) Don't spend it if you don't have to
2) Barter/equity deals
3) Cut features to get to market
4) Be realistic
5) Plan to scale, but don't lose sleep