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How to Save Costs on Custom Software Development for Startups

The article was originally published on Codica blog

Building a software product from scratch may seem costly for a startup on a small budget.

In reality, expenses vary significantly depending on the solution, experience, and your partner's team.

In this article, we will discuss our key findings to bring down the cost of software development.

1. Create a detailed business plan

Be clear about the main objectives you ultimately want to achieve. Bear in mind the wide range of business goals based on your particular product.

To begin with, define who your target audience is and set a pricing strategy. Who are your competitors? What advantages do you have over them? To achieve success, you have to dive deep into the details.

As you write down each of the elements, you will be able to reach the finish line more quickly and easily. This approach will also highlight areas where cost reduction is possible.

An example below by Instamojo depicts essential elements that a business plan should include.
As all elements have been set, the question of progress tracking arises. Use the right key performance indicators (KPIs) and metrics that reflect startup dynamics.

You have to stick to the indicators that are meaningful for your startup. If you’re not sure about the best starting point, you could begin with the following KPIs:

* Customer Acquisition Cost;
* Customer Churn Rate;
* Customer Lifetime Value;
* Monthly Recurring Revenue;
* Daily Active Users.

2. Build an MVP first

By the time you have summed up all plan details, you can take a look at the minimum viable product. It may cost too much for some startups to build a fully-featured product at once. For this reason, you need to know what level of “minimum” is ok for your MVP.

Since an MVP has only basic functions, developers will need less time to deliver measurable results. Consequently, the development part becomes less expensive.

Importantly, in this case the users will adopt your solution much earlier. Apart from the cost reduction, a huge benefit of building an MVP is shorter time-to-market.

Proof of Concept vs Prototyping

There are two more things we would like to mention in this section, namely the proof of concept and a prototype. Let’s take a look at the differences between those terms.

Both of them describe a version of your future product, albeit in different ways.

Proof of Concept (POC) describes whether you can realize the idea or not — it’s a test of certain functions. This is where you need to step aside from such frills as performance and usability.

A prototype, in contrast, offers you a graphical presentation of the final product. It gives you a basic idea of crucial design elements, including layout and navigation.

In our examples below, you can see the prototypes built-up by Codica.

The first one is an e-commerce prototype selling online courses for children.
The second prototype is for a trailer marketplace.

3. Start testing as early as possible

You can reduce app development costs by avoiding the need for redevelopment.

It is recommended that software is tested at early development stages. Otherwise, you can risk accumulating bugs, which will need a considerable budget to get fixed. Performing regular tests, in contrast, will allow you to fix all emerging errors.

Another thing is that continuously reworking the project will delay the release date. Thus, ignoring the test results at the early stages can turn out wrong. For example, you risk skipping the right timing to attract customers.

Speaking of testing, we have to underline the importance of early adopters. The sooner you reveal your MVP to the audience, the faster you will get valuable feedback, and use it to develop a full-featured product.


4. Use the Agile approach

The strongest side of the Agile methodology is that it leaves room for a rapid turnaround. Thus, it's possible to add new features to an ongoing project with no delays or extra expenses.

In our experience, the Agile approach is the best one for startups because it is:

* Flexible
* Cost-effective
* It helps mitigate risks

The Agile approach ensures that your partner works only on the required functionality. A product manager, for its part, bridges the gap between the development team and a client.

Overall, Agile deepens the collaboration between the software developer and a client. As a result, you increase your chances to complete the project on time, on budget, and with high-quality results.

5. Hire a proven software company

Now It's time to think about a dev team that will provide you with a software solution for a startup.

You may go for sourcing freelancers. It's getting easier every day due to a large number of freelance marketplace websites. But keep in mind that it has certain risks. For example, the low hourly rates can lead to the poor quality of services.

Alternatively, you can build an in-house development team. In this case, you will get high engagement. Still, this option can be fairly pricey. When creating an in-house team, be ready for the following expenses:

* Salaries and compensations
* Software licensing
* Taxes
* Holidays and sick leaves
* Hardware

Finally, partnering with a company experienced in software development for startups helps you reduce many expenses. You don’t have to recruit, train, and retrain software engineers. Similarly, there's no need to deal with downtime costs or finding an optimal replacement.

If a development agency provides full-cycle development services, their team will include developers, UI/UI designers, project managers, and QA engineers. Therefore, they will be able to cover all your needs on custom product development.

What is more important, specialized MVP development agencies have accumulated expertise of building multiple Minimum Viable products. Which means that you will get not only the product itself but recommendations based on best industry practices. As a result, this team will help create your MVP within a short timeframe and reasonable budget.

How can Codica help

Case study: Babel Cover App
Since 2015, Codica has been offering a wide range of services to help startups to thrive. Our expertise in transforming ideas into final products includes full-cycle application development.

Take a look at one of our many projects, an insurance progressive web application.
Codica built an app for Babel Cover, an early-stage startup specializing in digital insurance.

The solution we delivered allows users to quickly and easily purchase the insurance right from their smartphones, as well as report an incident.

As already mentioned, the application created is a PWA. It is cross-platform, which helps the customer save time and budget instead of building two separate Android and iOS apps.

Conclusion

Custom software building can be challenging. It is, however, not a stop sign if you find a development partner that suits your project well.

Hopefully, the tips we have uncovered will be impactful to your future startup. Here at Codica, we enjoy meeting complex challenges specific to the startup context. Do not hesitate to ask our specialists about your projects and get a free quote.


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Such an option minimizes the risks and expenses for both owners and customers. And here is why. The content owners will not need to care about the technical side of the distribution, and customers will get skinny bundles. These bundles provide more diverse and cheap viewing options, that is why customers find them cost-efficient. The third option is not for beginners but rather for established video streaming platforms. In 2013, Netflix released its first in-house produced series House of Cards. Since then, many companies like Amazon have started creating original content. Source: Sites at Penn State Step 3. Choose your monetization model Speaking of monetization, how are you going to capitalize your platform? You can begin with creating subscription plans for users. For example, the Hulu platform offers the following plans: Let’s discuss the most common revenue generation models. * SVoD (subscription video on demand). This option is highly popular in video streaming as it’s well-suited for this domain. Viewers can stream video content without limitations by purchasing monthly or yearly subscriptions. * AVoD (advertising-based video on demand). It implies that you generate profit by embedding advertisements into the video content, and users won’t need to pay anything. With the growth of the audience, such an option gets especially beneficial. * Hybrid. Within this model, viewers can use a streaming service before paying and get some advanced features on a subscription basis. This model is becoming more common among streaming platforms. And rightly so, as combining more than one revenue-generating model, you are more likely to boost your ROI, or return on investment. Step 4. Decide on the feature set The functionality sets commonly used for building a website like Netflix don’t differ drastically. However, the implementation of specific features can vary on different platforms. When defining the functionality for your service, give primary consideration to the pain points of your audience. What features to implement on your video streaming website in the first place? - User registration and profiles; - Search; - Admin panel; - Reviews/rating; - Push notifications; - Subscription and payout; - Playback settings. The list above contains a must-have functionality for a video-sharing service. We suggest that you implement these features in your MVP, or minimum viable product. You can discover more in our thorough article about the MVP approach and reasons to opt for it. Step 5. Find the right tech stack What are the programming languages and tools that will fuel your video streaming service? Why cannot you use any specific programming language or tool to handle the tech stack issue? Note that you’ll save a lot if you consider technologies that are well-suited for your domain and project. So, let’s talk about the main parts of the technology stack that will help you create a website like Netflix that your users will love to use. Server-side Let’s begin with the back-end for a streaming website that builds the core functionality. The back-end part takes small chunks of video content and converts them into a suitable casting format. You will need a powerful framework to fuel your platform. Consider Ruby on Rails, Node.js, C++, or Python. For example, Hulu and Twitch are built with the use of Ruby on Rails. It proves the effectiveness of this framework in video streaming platform development. Client-side The front-end is in charge of the delivery of streaming content from the server to the user’s device. React and Vue.js frameworks will work fine when you need to build a client-side part of a website like Netflix. Summing up We hope that our guide helps you discover the video streaming basics. If you want to know how much a video-sharing website will cost you, read our thorough article about the creation of a video streaming service: How Much Does it Cost to Make a Video Streaming Website Like Netflix. Are you ready to flex your fingers for your first crack at launching your streaming platform? Then, searching for a reliable custom software development partner is your challenge.
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Latest Cross-Platform Frameworks In 2020 For Build An Application
Numerous organizations are making changes to their business measures by changing to versatile applications. Utilizing these versatile applications, they can arrive at their intended interest groups quicker and all the more without any problem. Regardless, there is rivalry in the portable application industry where it is essential to pick the correct climate, stage, and advancement measure. There are countless alternatives for cross-platform platforms. Also, it's in every case hard to pick between them for Development. The market is developing with the investment of cutting edge programming and innovations. Today, a few tech goliaths are acquainting their platforms with the advantage of the Development business. cross-platform platforms are utilized to manufacture applications, for example, portable applications, web applications, and considerably more. This programming language is utilized to plan intuitive UIs for an appealing application. About Cross-Platform Mobile App Development The plan of cross-platform applications is a programming method for cell phones. This is the strategy for making versatile applications that can be delivered on different portable stages utilizing a solitary code base. Applications should suit every stage and capacity the equivalent over all gadgets. Such projects are savvy and give admittance to a wide scope of programming/equipment. There are, notwithstanding, certain limitations, for example, route and control components, that follow along. Other than the overall highlights of the cross-platform, there is one thing that makes it extraordinary. That is, you need a high-caliber, particular stage to make these applications. On the off chance that we take a gander at the current pattern, application engineers generally lean toward cross-platform application Development frameworks to create Android and iOS applications. What's more, the purpose for this is it's accommodation and cost-productivity which join cross-platform frameworks. Here Are List Of Some Advantages Of Cross-Platform Mobile App Development Reusability of Code UI Segment Consistency Cost-Viability Simple Cloud Reconciliation Tranquil Facilitating Diminished Advertising Time Less Specialized Obstructions Best Cross-Platform Mobile App Development Frameworks Flutter Flutter is a Google-claimed open-source versatile framework used to create local interfaces for iOS and Android throughout a brief timeframe. As it is a Google-planned UI structure that accompanies numerous highlights and highlights, including Hot Reloading, and conveys an excellent encounter to the two clients and engineers. It is a program that manages previous code and uses a 2D delivering motor, for example, Skia, to produce visuals. Advantages Of Using Flutter App Development Fast Application Development Viable With Different Operating frameworks Impressive Gadgets Responsive Structures A Short However Sure History Ionic App Development It is a mixture engineering planned at the highest point of Precise. Ionic requires the Cordova covering to get to the local highlights of the gadget, for example, Contacts, Camera, Receiver. Ionic Framework is an open-source stage broadly used to construct cross breed versatile applications. This plan stage offers instruments and administrations that you can without much of a stretch use to make local and reformist web applications. What's more, Ionic additionally causes engineers to assemble a creative UI and add easy to use highlights to the application. It gives a thorough library of instruments, signals, and segments It utilizes a solitary codebase Joined with Rakish, it conveys extraordinary outcomes It utilizes AngularJS to build up the structure of the application React Native Respond Local is generally youthful, yet we would already be able to guarantee that this is the most well-known cross-stage application on the planet. It gives local structure blocks, making the UI to the application practically undefined from the local one. You additionally get the opportunity to utilize modules written in the local language, for example, Objective-C, Quick, Java or Kotlin. Some Advantages of React Native It's open-source Web improvement should be possible with this system Respond Local has a steady network Codesharing is conceivable with this system It offers a few Modules to engineers So here it is the latest Cross-Platform Frameworks in 2020 for developing a mobile application. If you are any business owner and want to develop an app then this all are the new technologies for you. It’s very easy, faster and low cost so everybody can afford it. You have to just say your requirements and give us a deadline that’s it. Our excellent developers can definitely match your goal and give your fully satisfied mobile application for your business. So don’t waste time and go for it. thirstDevs Infotech is our official website and you have to just get a quote and our employee will surely contact you soon. #IonicAppDevelopment #IonicFramework #IonicMobileAppDevelopment