How Much Will It Cost to Build My Mobile App?
We all have mobile app ideas. We also have unrealistic expectations for what it should and will cost to build and launch our ideas. Before diving head-first into creating the next Uber + SnapChat + Tinder, it’s important to take time to research and set your expectations properly in order to avoid a bad experience for all parties (including yourself).
Step 1. Research benchmarks and averages.
Research similar apps. Before shopping your idea around to vendors and freelancers, you should look at industry and market data to get a realistic benchmark for what it may cost to build your app. This doesn’t mean that you determine how much you would like to spend on your app. Rather, you should try to determine how much it has cost to build similar apps and other successful products. For example, if you want to build ‘Uber plus Pinterest,’ you should look at what it cost to build the Minimum Viable Product (‘MVP’) version of these two products. According to this article, it cost $1–1.5MM to build Uber and $120,000 to build Pinterest. This should tell you one of two things, either: (1) Your idea is a game changer and you should raise a lot of money! or (2) You should scale back your feature set a lot so you can launch with something that is simpler and cheaper. I advise clients to do the latter, whenever possible…
Research the typical cost of building with development shops and agencies. Next, look into what it usually costs to build and launch an app with various types of partners. According to Fueled, it typically costs $150,000 (minimum) to build the MVP version of an app on one platform (iOS or Android). From my experience, I would agree with this number. However, if you build with a smaller, specialized dev shop (such as SnapMobile), your app can be built on both iOS and Android for a fraction of this price. Again, I would always advise clients to at least explore the more efficient and affordable option. Smaller shops are able to build high-quality products within budgets and timelines that are amenable to startups.
Step 2. Determine how much will it cost to build your app.
You have a lot of control over how much it will or won’t cost to build the MVP version of your product. The price ultimately depends on: (1) Scope, and (2) The partner you choose to build your app. The more you reduce scope, and the simpler you’re willing to define your features, the cheaper the build will be. What qualifies as a good MVP is very context and industry-dependent. However, there are ways to reduce scope even for the most complex apps launching in the most competitive industries. Also, working with a vendor like SnapMobile will reduce your costs tremendously as compared to working with a larger dev shop or agency.
Step 3. Determine an operations and go-to-market budget.
It’s equally as important to set aside an operations and go-to-market budget as it is to set aside a budget for app development. What you spend on running and marketing your product will vary widely depending on the industry, number of employees you need, and type of marketing you have to do. However, my off-the-cuff advice is to set aside at least as much as you spend developing the app to be used on marketing and operations for the first 1–1.5 years after you launch. Many of the most successful startups require around $1.5MM to operate for the first 18 months. Although you may not need this much money (and most startups probably don’t), it’s important to set aside enough money that you can operate and start gaining traction. This is why it’s very important not to spend your entire budget on design and development…
Want us to help you scope — For FREE??!!
Shoot us an email at hello@snapmobile.io. We’d be happy to help you scope and strategize your app concept.
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