What Is the Real Cost of Development

Real costs encompass everything you need to spend from the day you start until the product enters the market, plus the on-going cost of remaining in business. So, if you spend $100,000 developing your program and calculate the running costs at $50,000 per quarter, to break even your sales in the first year must be at least $300,000.

You may find it less painful to put down everything if you imagine you are listing all items you can claim as tax deductions. This includes but is not limited to the following:

Rent

Heat

Electricity

Water

Legal costs

Accountant fees

Stationery

Telephones

Travel

It has probably occurred to you that it is a good idea to keep these outgoings low.

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