Startups begin to incur costs even before they are off the ground and profitable. A lot of startup founders underestimate the costs of starting a business and end up managing their funds in an unplanned and loss making manner. It is like shooting a bullet in the dark – you don’t really know whether it will land in the right spot. Makeshift logistics can also scare away customers and investors as they are not able to put their trust in a company that changes its stance often. Majority of these problems stem from poor financial planning and a lack of awareness about the true costs of building a mobile app startup.
Not only does the entire process involve complex thought processes and implementation in terms of the technology used, startups also need to be looking at spending their funds wisely. The only way to make intelligent spending decisions is to know firsthand what costs are involved and make a realistic plan for your budgetary spend. Let us take a look at some of the major costs involved in building a startup business from scratch.
You already have an idea, you may have to sit down and do a complete brainstorm and strategize about the kind of business that you are going to build from your mobile app startup. You would need to look at finding the right mobile app partners. If you have no technical cofounder, you would have to hire someone to take care of the technical aspect. If you do not have an idea and also have no expertise in the field, you may even have to hire a business consultant that costs anywhere from $ 50/hr to a few hundred dollars an hour. Say, you have them come on board for a couple weeks, clocking in 80 hours, you can expect to pay anywhere from $4000 to as high as $20000 or more.
Once you have a solid idea, and a mobile app partner, you would need to look at design costs. An in-house designer takes home a pay of roughly $20 an hour, so working full time, a designer would have a CTC of roughly $6,400 per month. Say the designer works with you for the initial six months of your business, you would spend roughly $40,000 on the designing aspect of your business. Also, if you want a more experienced designer to create the UI and UX interfaces for your application, experienced designers can charge upwards off $50 an hour as well. So you do the math!
This is where you need a developer to translate designs into a live application. The average developer will expect about $72,000 per year. If you collaborate with a tech firm, charges for one time and development could go upwards of $90,000 or more. That said, such companies don’t usually provide additional support after your app is launched unless it is pre-negotiated in your contract. Plus, if you need a prototype, you can expect to pay extra – variable on the basis off how high fidelity your requirement can get.
Once your application is ready and tested, you need to take into the market. The average national salary for marketing professionals is roughly $65,000. Even if you get a seasoned professional who is able to undertake growth hacking for your brand; any design, content and other services ancillary to your marketing campaign will be charged as overheads. Your marketing budget alone, especially in the initial phases can easily take away lion’s share of your available resources.
Notice how we have not even talked about advertising distribution costs, the cost of building your website and social platform as well as managing those? If you want to start a business, you know that costs will be variable based on the requirements and complexity of the app that you are creating. It makes so much more sense to partner up with an expert technological cofounder because not only will you be getting better rates, but they will also be strongly invested in your venture and business success.
At &Apps, we see ourselves as an active partner in your success story. Our top management consists of alumni from top B-Schools in the world and a senior technical team with more than five years of experience in developing mobile apps, web apps and e-commerce solutions. With our ethical policies, focus on customer satisfaction and the willingness to be by your side throughout the entire business growth lifecycle – including after launch day – we take pride in the fact that our past start-up partners be extremely satisfied with our supportive services.
Instead of giving different rates and hourly quotes for the work involved in developing and designing your app, we prefer to give an All-Inclusive hourly or fixed rates for the total work involved. This reduces your total cost of development upto 5 times!