Classic Chicken or Egg Dilemma:
The actual development is beyond my capacity, though it would be easy for a good developer. Also, now that I've formally documented the system design, I see that a significant business model could be built around it. Minor tweaks to my initial design make this marketable to a whole industry, one which is completely under served. My system could solve real problems there and I have connections to start the sales channel, assuming I have a working system. New functionality can be added to the initial system later that would be easy to implement and create new revenue streams.
Back to the questions and my dilemma.
The system isn't complex, but will probably take a good two months for a good full time developer to build. I don't work for free and don't expect anyone else to, but I also don't have the cash on hand to pay a full-time employee (particularly someone with the necessary skills) for two months without this system generating revenue. My original plan was to go to local VC/incubators I have contacts at, but I'd rather approach them after the initial system is built and generating revenue. Those guys tend to value an operating revenue generating business model much more than a great idea for one.
Questions: How do I find a good developer I can trust to build this out?
My next step is: build it or get funding? How do I do one without the other?
This is why rich people get richer. Because they have money to put behind good ideas, deals and opportunities. With that said, your problem is not that complicated.
I would recommend one of two options.
Last note, You really dont want to be raising funding unless you really have to. Use your own money first, dont give up equity so quicky if its a good idea.
You have a single interested client - that alone does not make a business.
I have connections to start the sales channelThen start now. Find other companies in the same space and figure out if they have the same needs and demands.
Once you've validated that your offering is something that is truly wanted, then determine whether the demand is strong enough to support a business. In addition to Franks suggestions, consider doing a paid beta with multiple interested parties (shows commitment and generates cash) or offer a discounted license to generate enough cash to fund development.
If you really can recoup the dev costs in 4-6 months, go get a loan! Even if you close after 12 months you have 6 months of profit.
Hire the developer offering to pay the first 6 months worth of sales directly to them. If it never goes live, they don't get paid.
If you want a developer, I'm willing to listen. My username is my gmail address.