Andrey Khavryuchenko himself

Startuplet financial model, expenses

Since a positive NPV is an important for a startuplet, at least in our version, I’ll describe it in more details.

Here’s an expenses model in a google spreadsheet.

So far it’s quite simple…

We have page “Hypotheses” page with 4 variables so far:

• monthly discount rate (36%yr)
• development hour price ($30 per billable hour)
• base server cost (the price of small VPS)
• additional costs per 1K impressions (it should match the cost of dedicated server when the project will reach 1 impression per second)

On “Expenses” page we’ve outlined the expected costs of running the project:

• we have an initial investment of 40 development hours in the first month
• we add 10 development hours each month to fix bugs (god forbid! ) and add features
• and some hosting expenses

As you might notice, server expenses depend on the project usage that’s abstracted as a number of impressions. Expected monthly impressions are stored on the “Users” page.

So far they are taken out of the head – I’ll cover it later.