If you’ve run a business for a while, or been involved in the development of an app, piece of software, website, platform or similar, then you’ll probably have experienced the money pit we speak of.
It is not dissimilar to developing a building. There are always unexpected costs, delays and unforeseen problems that invariably end up adding cost to the project.
Such things are an avoidable reality of building something. But whereas they can often spiral out of control and end up costing well in excess of the originally state price.
Why does this happen?
The most common cause of cost spiralling in digital development projects is poor specification planning. In other words, the developer hasn’t properly scoped out and explored the project before quoting.
As such, their quote is based on a very loose estimation. Usually positioned at a price point they think you’ll accept – meaning they’re in the door and can allow the price to creep up now that you’re committed.
This happens because of a number of factors; chief among which is, due to its unregulated nature, the development industry can produce wildly different prices for the same project. You may even have experienced it yourself – you go out to get three quotes for your project and the cheapest and most expensive are so far apart you wonder how it could be possible.
The fact is that most are plucking an estimate out of the air, some have large overheads to cover, so that factors into their price, and the odd one or two know they’ve done similar projects before and so quote accordingly.
What remains universal is the fact that most projects will not go as smoothly as anticipated and a fixed cost is very hard to stick to. Many developers will build in some leeway in their quote to allow for some flexibility so they can still deliver on their quoted price.
However, you should never forget to think of things like a house-build project. A wall collapsing, an unforeseen geological issue, a job taking longer than expected all have a knock-on effect and budgets are stretched.
The same is true for development.
So, how do you stay on budget?
The first thing to remember here is this; if your project is something relatively simple (let’s say a brochure website) then it is reasonable to expect that a developer can accurately quote and deliver on it to a fixed cost (assuming the spec doesn’t change at any point).
But, if your project is something more complicated, an app with some cool new functionality, or a website platform with some algorithms at work – then it will more than likely end up costing more than estimated.
Use the house-building analogy again, if you want a floating pool in your 16th century farmhouse conversion – then there are going to be complications.
But you can mitigate them, keep overruns to a minimum and stay as close to budget as possible with a few simple steps.
Step 1 – Plan and Plan Well
Remember earlier, when we said about how developers will often not properly scope out the project before they quote? Well, if you make sure you do fully work through, consider and plan ALL the functionality, user interface, administration and management of your project you’re avoiding so much potential misunderstanding and spec issues.
The more fully planned and plotted out your project is, the more accurately it can be quoted for. It can even be broken down into phases that are easier to digest, simpler to achieve and allow for a more staged approach to bringing your full idea to fruition.
Step 2 – Pick a Proven Developer
Consider the construction analogy again, would you rather use a builder with no credentials who was cheap, or a proven builder with lots of examples of good work who cost more?
The answer is simple; it depends what kind of job you want done and how much money you can afford to take that gamble with. The same is true when it comes to developing your app/website/software etc.
Step 3 – Know what you’re trying to achieve
This is something you’d visit in your planning phase, but it is important to highlight. You need to know what you want the end result to be.
More so than just what you want it to look like, or how it will appear on the app store or the dream of having an app you can tell your friends to download. You need to know what you want it to be, what is going to be unique about it, how it will work as a practical idea and that needs to be accurately communicated to your developer. Otherwise the chances are it just won’t end up how you imagined it.
Step 4 – Communicate and Communicate Often
Staying in control of the project, especially a long-term one is one of the best ways to keep it in budget and on time. A good development agency will have a project manager with whom you communicate regularly on the progress of the project.
But it is usually advisable that you, your project manager(s) and your developer(s) have periodic meetings (even just via video conference) throughout the project to ensure everyone is still singing from the same hymn sheet.
Clearly communicating and avoiding misunderstandings is so vital. Do not underestimate how far a project can stray if communication fails.
How Altitude Can Help
We know how much of a minefield something like this can be and the last thing you want is to feel like you’re throwing money away on something that appears to be getting nowhere.
We are incredibly experienced and well-versed in such matters and can help you, whatever stage you’re at. We are on your side and only interested in getting the outcome you want from your project, even if some brutal honesty is required, we always tell you the truth.
