The operational cost of running a startup

So what does it actually cost to operate an early stage startup? In reality not that much. Being a solo, bootstrapped founder, the costs are minimal.

Cost breakdown

  1. Domain name: $8.88 bought at Namecheap. Amortized to $0.74/month
  2. Servers: 1 x 2GB droplet for the API, and 2x 1GB droplets for various other services. All hosted at DigitalOcean. Total cost $20/month
  3. Sending mail: Mailgun free tier: $0/month
  4. Hosted email: Google apps. $4.29/month
  5. A dedicated desk at my co-working space: $285/month
  6. Software licenses: $0/month Our entire software stack is opensource

The grand total is: $310.03/month

To start an online software company, you don't actually need a lot of money. Infact the biggest cost is the co-working space, and for office space in London, what I'm paying is cost-effective.

Some of these costs were in GBP, but were converted to USD at an exchange rate of 1.30

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