Eran Galperin has a new post to his site today talking about the real cost of software development, how it's more than just time spent hands-to-keyboard.

If you are a first-time entrepreneur and likely someone with little experience with software development, the chances of you successfully directing the development of a product on your own, are slim. [...] In software development, too often vision holders hand off a "vision document", i.e. "The Specifications", to a developer and expect him to translate it to the finished product they have in their mind. Most software developers or graphic designers are simply not fit for that role - they do not have the experience, skills or vested interest in transforming your vision to an actual product.

His examples revolve around the idea of outsourcing the development to another group, but a lot of the concepts still apply to in-house development too. He talks some about the idea of "you get what you pay for" when it comes to quality and how much you're willing to pay. He then gets into one of the hardest questions when dealing with development - how to find good developers. He mentions several things that need to be a part of that relationship like trust and good communication.