The Untold Costs of Building an App

The Non-Financial Costs of Custom Software Development

“How much does it cost to build an app” is one of the most common questions we hear. When we discuss cost, money is typically at the core of the question. We spend a lot of time and energy helping founders understand the financial costs of building an app. There are however, plenty of other costs. Four common cost alternatives to money include time, effort, morale, and opportunity costs.

In most cases, these costs are much more ‘expensive’ than just money.

Time

Startups and entrepreneurs are always racing against the clock. This pertains both to the value of the product within the marketplace and the limited time we have within our personal careers. Choosing to spend months, years, or decades building an app, and the corresponding business, is a massive investment.

It’s important to consider the value of that time. We should always make sure the potential return is worth the investment.

Effort

How much effort is required to validate, launch, and maintain the software. If the market is too small or timing is too early, building an app can quickly become a blackhole of energy. There is no amount of effort or energy that can overcome a market that simply isn’t ready.

Our network and knowledge of the industry can also have an impact on effort. Playing to strengths can serve as wind to our backs. Servicing a community that perceives us as an outsider will likely result in diminishing returns.

Morale

Humans, like most mammals, have a propensity to persist with tasks they find engaging or exciting. On the contrary, we’re quickly fatigued by activities that drain our joy or passion. Opting to build a product outside of our interest and curiosity can cost our happiness.

When building a team, those costs compound. When the team is aligned around a common purpose that energizes them, they often thrive. A team that fails to resonate with the mission leads to certain burnout.

Opportunity Costs

Money, time, effort, and morale each have opportunity costs. Opportunity cost hinges on a simple principle: By saying ‘yes’ to something, you say ‘no’ to everything else. Spending resources on lower value task means you have less to spend on higher value opportunities. These costs typically can’t be recouped and makeup the greatest costs in building technology.

Choosing to spend our time without considering the opportunity costs could result in either regret or missed opportunity.

Conclusion

In the end, “how much does it cost” is a loaded question. The sacrifice is ultimately unclear. Cost can seem like the most obvious question, but it’s rarely that straight forward. The features, target customer, timeline, and product stage will contribute significantly so the financial costs but there could be more expensive tradeoffs.