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December 3, 2019
The mobile app market is set for a phenomenal 385% growth in terms of consumer spending in the period from 2016 through 2021.
Mobile apps have become one of the most effective ways for startups to engage with global users at scale. This brings us to the app development costs for startups, and their progressing need to build, branch out, consistently maintain and innovate the product for maximum success.
Even when there are ways to streamline your investment for product development, there is a limit to how much you can save. But, there is nothing stopping you from multiplying the revenue with the right product and right process.
Strong negotiation skills and outsourcing the project won’t help you reduce the cost of startup app development. You are only increasing your future redevelopment cost. As it helps you turn the low-quality app built today into a good, value-generating app. It doesn’t help to consider the lower cost of development as a measure of a successful project. However, building a meaningful product is the easiest way to minimize costs.
We see millions of startups coming through every year, but only 10 percent of those survive. Rushing into product development is the biggest mistake many entrepreneurs make that end up costing them their business. A list of features and a general understanding of what people need to solve a specific problem is not enough to build a successful startup.
With a redevelopment cost, which can go as high as twice the initial investment, and lack of market need being one of the major causes of why startups fail, many entrepreneurs quit even before they have a real chance to build a brand.
Let’s look at three definite business processes that will help entrepreneurs minimize costs and have a better chance of surviving the competition.
Turn To Your Customers For Advice:
Picking the brains of your customers is ‘Business 101’ for entrepreneurs. But, when you don’t have a product, you most likely don’t have customers as well. Some of you may think ahead and interview your potential customers, but not many strive to work for stronger collaboration. Working out an arrangement with your customers or building an advisory group with them can help you save hundreds of working hours and create the right product.
Here is how you can turn to your customers for advice:
- Look for around 100 potentials customers suit how you visualize your ideal buyer.
- Reach out to them and start with a mutual value proposition. Ask if they can spare a bit of their time for an interview where you discuss the solution your product is striving to deliver. You want to gain their trust and nurture a relationship at this point.
- The next point of contact could be a meeting featuring the demo of your upcoming product.
- If you play your cards right, you can even presell your product with promotional offers like 30% discounts on all signups in the next quarter.
- Moving on, only invite customers who are willing to join your advisory meetings on a consistent basis. Make sure to discuss the product, its features, and what sort of improvements can help the product to better meet customers’ needs and solve their problems.
58 percent of consumers would switch half or more of the business to a brand that excels at personalizing experiences. An advisory group of customers can help better personalize the experience your product takes the customer on. At this stage, you don’t necessarily need to look for paying members. But having a stake in the success of the product does give them an extra incentive to commit. That said, keep in mind you haven’t actually made any monetary investment for the product development at this point. In fact, you may have made some money through presales.
Start With Designing Your App:
You can find several no-code design tools that can help you better present your app idea with a clickable and life-like user journey. Building a scalable first version of your app will cost you up to six figures, whereas it will be much lighter on your pocket to get the design of the application done first this way.
Once you share the designs with your advisory group, you can make further changes as required. Ideally, go for at least two rounds of alterations before taking the product to the development stage.
Based on your product design, you can even raise more funds from your customers. Reach out to more customers, close more leads for presales, and invite them onboard. However, as this group grows, it may be a wise decision to categorize every member as an active or passive advisor or product ambassador. Active members would be those who are willing to be actively involved in the product design and development process, rather than just giving their feedback through an email or phone call.
Branch Out The Funds:
One of the most significant advantages of your advisory group is that they will help you identify the essence of your solution. You can find out the core features of your product that your customers absolutely need to solve the problem your product identifies with. The diluted idea generated from this phase can be used to develop the initial version of your app.
However, branching out means splitting your funds into two or three product versions, instead of investing everything into one, advanced version of the app. As an entrepreneur, there is more space to maneuver when you do this, and on top of this, you also remain within your budget while simultaneously priming yourself for further improvements in the app.
As an entrepreneur, it is important to understand that no app with advanced features can get accepted as is by consumers.
So, you need to team up with a mobile app development agency to ensure that your app undergoes thorough testing, refinement, and optimization before it reaches the hands of users, ultimately maximizing its chances of success in the market.
