# Setup Costs & Running Costs

This section provides a breakdown of the financial investment required to launch the Valu Mobile App with essential infrastructure and operations.

# Initial Setup Costs

# Mobile App Launch Setup

pie title Mobile App Launch Setup: $15,000-20,000
    "Hardware Infrastructure" : 10000
    "Software & Services" : 3000
    "Professional Services" : 4000
    "Contingency" : 3000

Simple Cost Breakdown:

Component	Cost	Description
Hardware Infrastructure	$10,000/year	Complete server infrastructure lease/purchase
2x Servers	$8,000	2-core, 16GB RAM, 250GB SSD each
Network Equipment	$2,000	Basic firewall, switch, DNS setup
Software & Services	$3,000/year	Essential software and API access
External APIs	$2,000	Sumsub KYC, Paybis, Stripe integration
SSL & Security	$500	Certificates and basic security tools
Monitoring	$500	Basic monitoring and alerting
Professional Services	$4,000	One-time setup and configuration
System Setup	$2,500	Server deployment and configuration
Security Setup	$1,500	Basic security hardening

# Monthly Operating Costs

pie title Mobile App Monthly Operating: $4,000-6,000
    "Personnel" : 2500
    "Infrastructure" : 1000
    "External Services" : 1000
    "Maintenance & Support" : 500
    "Contingency" : 1000

Monthly Operating Costs:

Category	Monthly Cost	Annual Cost	Description
Personnel	$2,000-3,000	$24,000-36,000
Developer/DevOps	$1,500-2,500	$18,000-30,000	App maintenance & server admin
Support/Community	$500-500	$6,000-6,000	User support and community management
Infrastructure	$800-1,200	$10,000-14,400
Server Operations	$600-800	$7,200-9,600	Hosting, power, connectivity
Backup & Monitoring	$200-400	$2,400-4,800	Data backup and system monitoring
External Services	$800-1,200	$9,600-14,400
Transaction Fees	$400-600	$4,800-7,200	Paybis, Stripe processing
KYC Services	$200-400	$2,400-4,800	Sumsub verification costs
API Usage	$200-200	$2,400-2,400	Various API calls and services
Maintenance & Support	$400-600	$4,800-7,200
Software Updates	$200-300	$2,400-3,600	Security patches, updates
Technical Support	$200-300	$2,400-3,600	Third-party support contracts

# Launch Risks & Mitigation

# Primary Launch Risks

graph TB
    subgraph "Technical Risks"
        T1[Server Downtime<br/>Impact: High]
        T2[API Integration Failure<br/>Impact: Medium]
        T3[Mobile App Bugs<br/>Impact: Medium]
    end
    
    subgraph "Financial Risks"
        F1[Higher Than Expected Costs<br/>Impact: Medium]
        F2[Low User Adoption<br/>Impact: High]
        F3[Regulatory Issues<br/>Impact: High]
    end
    
    subgraph "Mitigation Strategies"
        M1[Backup Infrastructure<br/>$2,000 extra]
        M2[Extended Testing<br/>Time investment]
        M3[Legal Compliance Review<br/>$3,000-5,000]
    end
    
    T1 --> M1
    F2 --> M2
    F3 --> M3

Risk Assessment:

Risk Category	Probability	Financial Impact	Mitigation Cost
Server Infrastructure Failure	Medium	$5,000-10,000	$2,000 backup setup
Low Initial User Adoption	High	$10,000-20,000	Marketing budget increase
Regulatory Compliance Issues	Low	$15,000-50,000	$5,000 legal review
External API Cost Overruns	Medium	$2,000-5,000/month	Better usage monitoring
Security Breach	Low	$50,000+	$3,000 security audit

# Financial Safety Measures

Recommended Financial Buffer:

Setup Costs: $20,000 (includes 25% contingency)
Operating Buffer: 6 months runway ($30,000)
Emergency Fund: $10,000 for unexpected issues
Total Recommended: $60,000 initial funding

# Success Metrics

Break-even targets:

500+ active users within 6 months
Monthly revenue of $5,000+ by month 8
Cost per user under $10/month by month 12

This simplified cost structure focuses on the essential requirements for a successful mobile app launch while maintaining financial prudence.