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Podcast 033

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Podcast 033

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[at 49:50]

Vincent Tan: Hi Jeff and Joel.  I am Vincent and I'm from Singapore.  My question is, what are your top three costs in running a software business and what do you do to reduce them?

Spolsky:  Ok, that’s easy because I happen to be looking at this the other day… do I still have that PowerPoint slide?  Number one cost when running a software business is, this should be easy, is people of course, paying salaries.  Number two for us is the office space, although even a number two is a very distant second.  I mean its still on the order of, in a normal company, it should be like 5-6 percent of your revenues towards office space and that’s about what we’ve historically averaged.  Its a little bit high now cause we just moved into a big space and we haven’t filled it up yet.