Coming up with an idea is easy, implementing it is difficult. And costly too, we can’t help but mention this factor. If startups are trying to build complete software from scratch, the cost will be very high for startups on a tight budget. But the fact is that startups will still have solutions, there are some ways to reduce the cost of custom software development that Tech Town will learn with you right in this article.
6 ways to reduce the cost of custom software development
1. Good planning
We cannot build a building without drawings, or go on a journey without a map. Likewise, it is risky to develop custom software for startups without a well-prepared business strategy. We will not be able to evaluate the whole picture if we ignore important details in the project, which is also the premise of a failed startup.
First, define the goals the startup wants to achieve, categorizing them into financial, brand, and product goals. Once everything is clear, it will be easier for startups to prioritize and achieve their goals faster. Besides, a clear plan will help startups identify areas where they can cut the cost of developing custom software.
Assume all goals are set. The question here is how to track progress. The answer is to use the right performance indicators (KPIs), which reflect the health of startups. By analyzing key indicators, startups will assess whether they are on the right track or not.
There are too many metrics, which metric should startups choose? The rule here is to focus on metrics that make sense for your startup. If you don’t know where to start, Tech Town advises startups to focus on the following KPIs:
- Customer switching costs;
- Customer Churn Rate;
- The long-term value of the customer;
- Monthly recurring revenue;
- Daily active users.
2. Set clear requirements
If startups decide to hire a software development company, you should organize an interview with their experts. This is a meeting with the software development team to identify the startup’s key business needs and project requirements.
How can you prepare for that exchange? The main task here is to define the key requirements for the startup’s future product. This way, startups will not have much difficulty in conveying their project ideas to a custom software development partner.
The clearer the startup’s requirements, the more accurate time and cost estimates will be received. From there an accurate cost estimate, you will know how much budget will be needed for your custom software development project.
Note that requirements descriptions should be as concise as possible, which will help avoid ambiguity. The mission of startups is to ensure that all participants are on the same “page”, otherwise misinterpretations can lead to chaos and inconsistent results.
Therefore, the technical team involved in software development for the startup will have to redo the project’s work. Working on a shared goal will bring success to a project, which is especially true for startups on a tight budget and wondering how to cut costs of developing custom software.
3. Start with a Minimum Viable Product (MVP)
It will be very expensive if startups build all the functionality of the product at once. Therefore, prioritize the “framework” features to create an MVP first. The MVP approach to market is very popular among startups that need to reduce software development costs.
The two main advantages of building an MVP are:
- Cut the cost.
- Launch products sooner.
The meaning of MVP is reflected in its name. Minimum viable product (MVP) is a product with basic functions, created to test the feasibility of a business idea. It is also an effective solution that customers can use.
The core benefit of building an MVP is reduced cost and time to market. Since this is a product with little functionality, the software development team will need less time to complete it. Therefore, the costs startups have to pay for them are also less expensive. Besides, startups can also present their solutions to potential audiences as soon as possible.
Potential customer feedback is very important, it determines the future of the project. Startups will know if their business idea is worth the investment, or better yet, give it up altogether. In addition, startups will also see how their product should be modified to better meet your target audience.
4. Start testing at an early stage
The general rule here is to start software testing at the very beginning of the custom software development cycle. This way, startups avoid an error or a big risk – it will cost you more money to redo the project from scratch.
Over and over, this forces startups to release products quickly, and more than once. Be aware that you run the risk of losing your competitive edge by bringing your product to market later than your competitors.
At the same time, by performing regular checks, startups can identify and fix problems before moving on to the next project work. Thereby, you have reduced the cost of software development for your startup by avoiding the need to redesign or re-develop from scratch.
Talking about testing, it is impossible not to mention the importance of early user acquisition. The sooner startups introduce a solution to a target audience, the quicker it can be improved upon and developed into a finished product.
Where can startups find their first users? We can guarantee that social networks are the best. Don’t hesitate to present your solution on Facebook and LinkedIn groups or Reddit, in addition to forums.
5. Using Agile methodology
There are several software development methodologies for startups. The most popular approaches are Waterfall and Agile. In which, Agile is the best choice in terms of reducing software development costs.
A great benefit of the Agile methodology is that it encourages change to quickly adapt to the changing seas of the market. Developers can add new functionality or do iteratively a number of times on each stage of product development. The project backlog is tailored to the constantly changing business requirements, thereby helping startups deliver value faster.
Startups can significantly reduce the cost of custom software development by evaluating their products on a regular basis. Make sure that your software development partner builds only the necessary functionality. Since then startups avoid paying extra for unnecessary features.
It’s much easier to manage separate iterations than it is to manage the entire project at once. Any problems that arise can be identified and resolved at the outset before it “blooms” into project failure.
In a nutshell, Agile improves the collaboration between your software development company and your startup. As a result, you increase your chances of getting a high-quality software solution with the best time and budget.
6. Use a custom software development service
It’s time to think about a development team that will build a software solution for your startup from scratch. There are three options available. Startups can hire software developers for startups on freelance platforms like Upwork. Alternatively, startups can build an internal development team. Finally, you can use the services of a company that has experience in developing custom software for startups.
Startups will know why partnering with a custom software development company like Tech Town is the most cost effective option. Let’s analyze it together!
Years of experience
When it comes to building a software solution from start to finish, expertise plays a vital role in the success of the project.
Tech Town can provide startups with a full team of positions for your startup, including developers, UX/UI designers, project managers and QA engineers. All of these experts have extensive experience in building high-quality MVPs for startups. They will look specifically at the nature of the market and the challenges startups may face. As a result, you will receive a unique software solution tailored to your specific business needs.
As Tech Town said above, developing software for startups can be quite expensive compared to companies with in-house IT teams. In turn, a partnership with an experienced company allows to reduce the cost of MVP development services. For example, you don’t need to spend on recruiting, training, and retraining your employees. Likewise, you won’t have a problem with the cost of time off or other expenses in running the IT team.
So, it can be assured that this approach saves considerable costs in software development.
Support and maintenance after launch
Startups’ partnership with us doesn’t end after the product launches. You are sure to get 24/7 maintenance and technical support.
Since Tech Town is familiar with custom software solutions for startups, it will be easy for us to handle any issues that may arise. Such a partner will be of great help if you decide to develop software without an in-house IT team.
We know how to turn your software ideas into reality, contact us to discuss your ideas.