COSTS OF AN APP DEVELOPMENT VS. LAUNCHING OF A STARTUP

Once you’ve got an awesome app idea, it’s high time to consider the costs needed to develop an app. But hold a second, a startup doesn’t blend seamlessly with an app — it’s two separate processes going either hand by hand or absolutely independently.

Most people mistakenly believe that developing an app equals to launching a startup. In fact, you can send forth a startup and then engage in developing an app.

But there is some bad news 9 out of 10 startups fails, and it’s a real fact. Wait, you shouldn’t give up and throw your app ideas away. Just remember, there are two main reasons for a startup failure:

  • Inexpert finance management
  • Improper target market research

Let’s get started analyzing the most frequently asked and shared Googl answers.

COST TO BUILD AN APP

A vast majority of people have no clue of the factors influencing the price of an app. Understanding the key drivers of app development pricing will help you make an informed and cost-effective decision.

Key drivers

  • App Features

What is the functionality of your app? Which pains does it solve? And what 3rd party services are required?

These are the basic questions to answer when you’re going to build a custom app. For example, your app needs to display all nearby restaurants and allow rating and comment on the dishes, etc. like Yelp. GPS or location features, feedback and communication services need to be developed.

There is a broader spectrum of features that an app can have:

  • Online booking
  • Loyalty programs
  • Camera or Gallery integration
  • User registration
  • Calendar integration
  • Payment option
  • Social media integration

In a nutshell, the more features an app has, the more it will cost. One more important thing to mention, all features aren’t equal i.e. some are more complex to develop than others. To save time and money, you can use some features developed by a 3rd party or APIs provider.

  • Screen sizes

Because there are a great many of screen sizes, you should decide on the platform (iOS, Android, the Web or Windows Mobile) as well as on a preferable screen size. In fact, the more is the number of screens, the more design and user experience work is needed.

Each screen requires a particular navigation through the app. And if there is a vast number of “paths” through the app, the time, as well as the costs, required to develop an app is increased.

  • Server

In case your app offers chat or booking or has a database, you’ll need a server. There are a great many of cloud servers nowadays that you can rent for a song. For example, Amazon Web Service offers a virtual place for apps, and you don’t need to buy a server anymore.

Instead of that you rent a space needed for storage and pay for time using the server.

Taking into account, there is a good many of variable influencing the final price of the app development, the price may range from $5,000 to $500,000 assuming that the app isn’t complex like Uber. In case you want to develop an Uber clone app, the prices start from $75,000.

Cost to launch a startup

СB Insights states that launching a FinTech startup today is failing. And since 2011 you need at least $5,000 to start your business.

But consider the fact that the costs needed to run a startup are much higher than those required for launching.

For example, the latest research reveals that you need to spend around $314,000 annually to run a startup in Zurich with two web developers and designer, and in Manila, it’s six times cheaper.

Another interesting thing to consider that there is a huge difference in the rates of designers, developers, and offices. The more quality products and the more experience has a developer/a designer, the higher rates for work. But it’s another topic to cover.

An interesting story happened to Groupon, a second fast-growing startup that features a billion-dollar valuation. Andrew Mason, the Groupon founder, thought that it was a harsh time when they got started.

Initially, it was an average WordPress blog used for selling T-shirts, and, moreover, there wasn’t any from for size and color.

They received orders via email. Then they decided to start generating PDF coupons and send them to people.

When they reached a milestone — 500 sushi coupons, they realized it was a real success. After Groupon sees its ever-growing popularity, they have developed the app to keep up with the times.

KEY TAKEAWAYS

All in all, the costs needed to deploy an app and launch a startup are as different as chalk and cheese. And sometimes it’s even better to launch a startup with a site, and in case it wins, start developing an app to bring the customers more benefits.

The key point is, launching a startup doesn’t depend on an application. You can follow the Groupon success story, and we bet, you won’t crater.

Fivenson Studios is based in Ann Arbor, Michigan, our graphic design team specializes in logo and web page design, as well as marketing campaigns for social and print media. From flyers and brochures to targeted landing pages, we aim to bring your company into the spotlight and reach a greater range of potential customers.

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