How Non-Technical Founders Should Budget for Software
How Non-Technical Founders Should Budget for Software
Budgeting for software feels risky when you do not write code. Many founders either underbudget and stall the project or overbudget and waste cash. You can avoid both.
This guide explains how to plan a software budget with clarity, even if you are not technical.
Start With the Problem, Not the Product
Do not begin with features. Start with the problem you want to solve.
Ask yourself:
- Who has this problem?
- How often does it happen?
- What outcome do they expect?
Clear problems lead to clear scope. Clear scope leads to better cost estimates.
Define the Type of Product You Need
Not all software costs the same. The budget depends on what you are building.
- Informational website: content, pages, contact forms
- Web application: user accounts, dashboards, logic
- Mobile app: iOS, Android, or both
Each step adds cost. Many founders assume they need a mobile app when a web app works better and costs less.
Break the Budget Into Clear Buckets
A healthy software budget is not one number. It is a set of parts.
1. Discovery and Planning
This covers:
- Requirements
- User flows
- Technical decisions
Skipping this stage leads to rework later. That always costs more.
2. Design
Design includes:
- UX structure
- Visual style
- Clickable prototypes
Good design reduces development time and support issues.
3. Development
This is the largest cost. It includes:
- Frontend
- Backend
- Integrations
- Testing
Costs rise with complexity, not screen count.
4. Launch and Setup
Expect costs for:
- Hosting
- Domains
- Analytics
- App store setup
These are often missed in early budgets.
5. Ongoing Costs
Software is never “done”.
Plan for:
- Bug fixes
- Updates
- Hosting
- Support
A safe rule is 15–25% of the build cost per year.
Plan for Trade-Offs Early
You cannot optimize for speed, quality, and low cost at the same time.
Decide what matters most:
- Faster launch
- Lower upfront cost
- Long-term scalability
This decision shapes your budget more than any tool.
Use Ranges, Not Exact Numbers
Early estimates should be ranges, not fixed prices.
For example:
- MVP: $20k–$35k
- Growth version: $40k–$70k
Ranges reduce stress and help you plan cash flow.
Avoid These Common Budget Mistakes
- Budgeting only for development
- Adding features without revisiting cost
- Assuming all changes are small
- Ignoring maintenance
Most budget overruns come from scope drift, not bad developers.
A Simple Budgeting Rule for Founders
If you are early-stage:
- Spend the minimum to validate the idea
- Keep cash for iteration
- Budget for learning, not perfection
Software is a tool. The goal is traction, not polish.
Conclusion
Non-technical founders can budget for software with confidence. Focus on the problem, define the product type, split costs clearly, and plan for change.
A realistic budget protects both your idea and your runway.
