All companies small and big are looking to develop an application to meet the current consumer needs. But just like with any project the limitation is often the budget.
Determining your software budget can be challenging and important, especially if you’re not sure how much you should be spending or what factors to consider when making your decision. A miscalculation of your development budget may lead to challenges in acquiring further funding or the inability to sustain your startup. So in this article, we will be providing a few simple steps to get you started in creating a realistic and effective software/ mobile app development budget that will help ensure your organization has the resources it needs to succeed.
How to Estimate the Budget for Creating an App from the Ground Up
1) Map Out Your Organization’s Current Priorities and Forecast Future Growth
First, it’s important to assess your organization’s current and future needs. This will help you identify the specific software and technology solutions that are necessary for your business to operate effectively. Consider factors such as the size and scope of your organization, the complexity of your operations, and the specific goals and objectives you’re trying to achieve.
2) Conduct Preliminary Research/Total Cost Analysis for mainframes
Next, research the different software options available and compare their features, pricing, and customer support, this is your opportunity to run a competitive analysis also. Look for solutions that are scalable and flexible, as well as those that offer good value for money. Consider the total cost of ownership, including any additional costs such as training and maintenance fees.
3) Putting it all Together
Now that you have an idea of what software solutions will work best for your organization, it’s time to start putting together a realistic budget. Determine the maximum amount of money you are willing to spend on developing your app and then add 20–30% more as a buffer. Now that you have developed your software budget, it’s time to look at the big picture and determine how much funding is needed in total for launching your app. If you are not building the app from the group up yourself via a bootstrap method, this cost will usually consist of fixed costs such as hiring costs and cost for the necessary hardware needed to develop the app, as well as variable costs such as research and development (R&D) fees, licensing fees, etc. This will likely include additional costs such as product management, marketing, legal services, distribution, etc. Factor in additional funds for business operations such as payroll, office space rental, and equipment purchases.
Reduce Cost by Hiring Agency
Of course, the budget to develop your app and software can be greatly reduced by hiring a software agency that can provide you with a dedicated team of developers for the price of hiring one full-time developer. The agency will be able to greatly eliminate many of your fixed and variable costs and reduce them to a simple hourly rate based on the complexity and size of your project. The agency will even conduct the UI/UX design, and R&D research, provide marketing advice, and go to market strategy to make your app a success.
Most importantly you are also paying for the experience of making successful apps, ensuring you won’t incur any costs that may come about from inexperience and first-timer mistakes. You can check out the last article we wrote to see the additional benefits of outsourcing your development to a software development agency.
Working with an experienced agency will allow you to accurately estimate the budget for your next software budget with the latest technologies available more accurately. If you have a project that you are considering initiating but are not sure where to start? Speak to us today to learn how we can get your project off the ground!
Valere is an award-winning software development agency that has built over 300 top-rated applications for startups and Fortune 500 companies in all verticals like healthcare, finance, sports, fitness, education, and more. Their apps have been featured by the New York Times, and have been consistently recognized as Apple App Store’s top featured apps, TechRadar, and Google Play Store’s top featured apps! Schedule a call with us today to learn how we can help your team create the perfect software or application that can Accelerate Your Business Goals!
