5 steps to easily plan a budget for making an app

n order to build a successful digital product, entrepreneurs have to deal with a lot of bills. Since the services in the sphere of IT do not come cheap, it is vital to think through all the project's details and plan the app development budget. This way, you will understand where you can cut on some expenses and where not.

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In this article, we discuss 8 steps that will help you plan a budget for creating an app.Define your goals before getting started with developmentMobile app development is a complicated thing. So, if you want to clearly convey your idea to developers and designers you should firstly think through all the details by yourself.The steps described below influence the final development cost of your product that, in turn, is a great part of your total mobile app development budget.1. Define for what purpose you need an appThere are lots of scenarios when it comes to the purpose of creating an app. Let's consider the most common of them. So, you want to create your own app to:Broaden your opportunitiesYou have a brand that is present physically or even in a form of e-commerce website but you want to provide your customers with a mobile-friendly experience and get more sales. Such companies as Asos, Lush, Walmart were guided by this scenario. The reason for movement in the direction of mobile commerce is that the number of mobile users is growing rapidly as well as an average bill they spend compared to desktops.Build your ideaYou have a million-worth idea but you have no clue about all that development stuff. You can hire an IT company outsourcing to help you. There are a variety of success stories of companies that outsourced development to implement their products. For example, $3 billion-worth Slack company used outsourcing to build their product in its earliest stages. Opera relied on developers from different countries to create its platform. Another example is Skype whose creators hired a team of developers from Estonia to build their business. Withstand competitionIt is difficult to find a business where mobile solutions would be inappropriate or useless. On the landscape of tough competition, companies that use advantages of mobile apps can dominate over others. So, this scenario is about entrepreneurs who do not want to lose opportunities and leg behind competitors. Taco Bell's app is an example of this scenario. Engage your customersYou want to build an engagement platform for your customers like it did Nike with its Nike+ running app. They did not just build a useful product for their target audience but got an opportunity to promote their brand in digital spaces as well.Depending on a scenario your product's features as well as its marketing strategy can vary a lot. In turn, it affects time and approach required for UI/UX design, development, and marketing.As you know, time is money. So, the more time is required for product creation, the larger budget to develop an app you will need.2. Select a platformThe choice of a platform is a very important factor affecting the budget to make an app. It is obvious that if you have chosen Android, iOS, and Windows development, your bill will differ from the one you can get in case of development for just one or two of them.It is worth noting that Android development is often more expensive if compared to iOS. That's because Android-based devices differ from each other and support a variety of screen resolutions as well as different versions of OS that your app should be optimized for.The best way to decide between platforms is to conduct a research of your target audience. Also, you may take a look at competitors' solutions and see what platforms are supported by their apps.3. Decide between in-house development or outsourcingIn-house development can be problematic since you have to hire professionals. Besides, you should take care of an office for your employees as well as provide them with a compatible salary for your region. Sometimes it's unaffordable for young startups. Having a low budget and no appropriate technical skills it is quite difficult to do.Learn the difference between outsourcing and local development in our article: How Much Does It Cost to Create an App?While cooperating with the middle-sized or big outsourcing companies, you get the final product of high quality. As it was already mentioned, a variety of startups have chosen the outsourcing way on their earliest stages before hiring in-house developers.Actually, a lot of IT giants such as Google and Microsoft are still using outsourcing to cut on expenses and keep their own coders focused on company's core services.Outsourcing company's per hour rate depends on its size4. Evaluate your app's featuresThe features you want to implement in your app affects directly the final app development budget. That's why it is reasonable to make a list of features that should be realized. It will help you to understand what problems your app intended to solve and may come in handy when discussing the project with your developers.You can include in this list any feature you would like to see in the final product, from registration and in-app purchases to the integration of social networks and other platforms.5. Estimate your profit and set goalsJust like any business, the app requires clear revenue goals. Since you should understand how much time you will need to pay off all the expenses and when you could invest some additional money into the promotion or additional features, as well as the appropriateness of further investments.

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