Calculating startup cost for a software or web company involves so many assumptions.It is always good to find realistic numbers to support the assumptions but it is so difficult to have the exact cost of development,test and equipment cost,personnel and administrative cost,marketing and sales.what has proven to be difficult for me is the cost of development.Estimating the hours and its correspondent cost is hard.If the product development is outsourced to India,Russia or the US,how much money is invloved.

I know it cost between $5 and $20 to hire a developer from Elance.But how long will it take the developer to complete my project.If he is not able to complete on schedule,who bears the cost.
Core Startup Expenses