What is a typical profit margin for a small, custom software development shop?

Posted by jamieb on Programmers See other posts from Programmers or by jamieb
Published on 2012-04-03T01:46:04Z Indexed on 2012/04/03 5:39 UTC
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I help manage a small (5-15 employees), custom software development shop. We're hired by various clients to produce web or mobile-based applications. We make everything from pretty simple $10k e-commerce websites to very complex applications that might cost $100k over the course of several months. Our clients are generally start-ups, but we also occasionally work with more established companies (including the federal government).

I'm just curious what kind of profit margin would be typical for a business fitting this profile?

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