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Arnezie

macrumors 65816
Original poster
Oct 10, 2011
1,317
115
So I need a concept first and if that can be sold maybe an app on a large government scale. Where would I find someone with the ability to do this ? As of now it is a concept I would need to have someone run thru it and develop a plan and then possibly an app. The app once developed would be for a government agency.
 

thewitt

macrumors 68020
Sep 13, 2011
2,102
1,523
If all you have is a concept, you will need to go raise money unless you can convince someone who is going to do all the work to invest into your new company. There are lots of programmers out there who will happily write software for you. You just need to pay them.
 

Arnezie

macrumors 65816
Original poster
Oct 10, 2011
1,317
115
Willing to pay if my idea is something that they can make work and can show this in a model. Governments are hesitant to pay for anything unless you can show specifically how it would work and that it would work the way they need it too. I guess I just need to know someone that maybe can take an idea and say yes or no
 

1458279

Suspended
May 1, 2010
1,601
1,521
California
That's a bit of a tough spot. Part of this depends on what you want out of your idea. Going from an idea to a functional business is the hardest part. Some can take a great idea and fail as a business, others can take a poor idea and make it work as a business.

Usually a VC will have the skills to examine the idea and see if it's workable as a business. What I've learned about the process is that you give up a share in order to get to various stages, then you give up more and more until you own a small percentage of a larger project.

The further along you are in the process before going to investors, the more value it has and the more you end up owning.

One downside is that if you don't have the programming skills or other skills, you have to find someone that'll take their time or money to invest into something not proven. What you'll find is there's no end to the list of great ideas. They have funding contests, you might want to look into that as one path.
 

AxoNeuron

macrumors 65816
Apr 22, 2012
1,251
855
The Left Coast
I've been a freelance software developer for a while now and I'll tell you there are 50 truly awful ideas out there for every good idea.

The fact that the government is a crucial part makes me even more suspicious.

Be very careful before investing your money in this because it already doesn't sound like a good business strategy. When creating a software application you want it to take a small amount of money from a very large amount of people, either directly or via advertising. If it doesn't involve a lot of people it is still possible to be successful, the guys who made the Obamacare website managed to charge a billion dollars so it's always possible. But it's much harder to make a lot of money off the government.

The most important aspect of making a lot of money via the software business is to create a monopoly. So you've got to answer the most important question, how is your business going to become a monopoly? If it's not going to become a monopoly why would any right minded software developer work for you? Companies like Facebook and Twitter became monopolies because they got there far earlier than anyone else. Another effective and attractive tactic is to get a government-enforced monopoly but this requires that you have friends on Capitol Hill or K street to lobby on your behalf.

You've got to have some advantage like this otherwise you are relying purely on luck. Luck has made a lot of people wealthy for sure but it's not s reliable business strategy.
 
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Flight Plan

macrumors 6502a
May 26, 2014
883
824
Southeastern US
Ugh, I'd not want to write software for the government. You'll have to prove to them that you obey all rules, laws, and bad ideas, which are CONSTANTLY being added and made more restrictive.

It's definitely not "easy money". It's like torture to keep your contracts. One missed rule and you could lose a contract and then have to close your business. Don't dance with that devil.
 
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1458279

Suspended
May 1, 2010
1,601
1,521
California
Another issue is developing on spec or on contract. On spec means that you invest into something hoping that someone will buy it. On contract means you get paid as it's being developed. Getting a government contract is a cumbersome process and if it's a big project, can be a huge investment just to get the contract.

One class I took in business school covered this alone. The process starts with an RFP and becomes a lengthy legal process.

Building on spec has huge risk because once you've invested time and money, you don't know if anyone will buy it. They end up with the upper hand because you've already spent your money/time and can't get anything from your investment without them.

I'd vet this thru a VC that has specific background in contracting with the government.
 

firewood

macrumors G3
Jul 29, 2003
8,141
1,384
Silicon Valley
If you need to trust someone you've never met before to tell you whether your app idea will be profitable or not... save your money. Even if some "expert" says "Yes", the odds will still be worse for you than playing roulette. Either spend a lot of time to learn enough about the market and the challenges involved yourself, or you will most likely be throwing your money away.
 

developer13245

macrumors 6502a
Nov 15, 2012
771
1,004
This is not an impossible situation, but there many challenges.

I’m a software developer and have set up two software companies now, so here are a few tips:

First of all, you need to protect your idea by only engaging other parties under non-disclosure, confidentiality, and work for hire agreements. So start with engaging a corporate lawyer, and be ready to have a few thousand dollars ready for a retainer. Those documents usually cost a few thousand dollars, and should be developed correctly for your specific business needs. You will also need to consult an accountant to determine what business structure is appropriate. You can do your own book keeping to get started (using software), but having an account help get that set up is also a good idea.

It’s hard to approach a VC unless you have some parts of the technology working to demonstrate as part of a complete business plan.

You should create a detailed specification document that describes the core functionality of the product, and “segment” it into individual parts that can be implemented for demonstration purposes. Then you can approach developers to get bids, but you must do this under NDA agreements. I would approach developers with the intent to pay them up front on either a fixed bid, or an hourly basis. But all work must be done under a work for hire agreement, so you own the implementation of the product - but this only works if you compensate the developer for their work (I know, paying software developers seems like an odd concept, but…).

If you begin working with a developer and your idea starts to take shape, then you can always modify the working relationship “down the road”. But, if you don’t start off correctly AND invest some of your own cash, no VC in the world will take you seriously.

You will probably run into a variety of developers with different attitudes and business knowledge. AVOID anyone who does not understand these basic concepts. But if you have serious idea, this is how to start.
 
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