Business cannot live without cooperation. Throughout our history, building a successful business model was about creating tight bonds with related industries and domains. The more complicated these models become, the more bonds have to be created.
Let’s just stop for a moment and think about a typical startup developing itself into a bigger company. Usually it starts with a couple of important processes:
- product development infrastructure,
- production itself,
At early stages, nothing else matters. A startup must establish production routine, get used to logistics, and sort out the best ways to market their products. Imagine the world, where such startup evolves into a bigger business structure. More customers, capable infrastructure, and growing ambitions demand immediate attention.
Many companies prefer to expand rapidly using external financial support. From their point of view, the DIY moto is the way to go. The startup now adds additional departments:
- sales & marketing,
- customer service,
- software development,
- graphic and web design.
A growing network of business processes leads to overcomplicated management methods and, more importantly, costs a lot of money. Additional staff members mean more workplaces. You have to pay for workhours, social security, and equipment. This is a huge investment.
The long run perspective for such expansions is less expensive. However, it relies greatly on management efficiency and demand for the product. The majority of startups cannot afford such expansion anyways.
What to Outsource
The main goal of outsourcing is to allow your company to focus on important business processes. In some areas your employees are efficient professionals tested with time. Let them work calmly and deliver results, outsource less important processes. Here are some domains you can outsource:
- graphic and web design,
- SEO and internet marketing in general,
- marketing research,
- customer support,
- software development.
Many of areas listed above are well-known. At the same time, internet marketing and software development are fairly new industries. Many business owners still doubt investments in them.
Let’s talk about software development in particular and investments in general. There is a catchy term being thrown here and there – ROI. It means “Return On Investment”. This term characterizes how much you gain for each dollar spend. The math alters from case to case. We like to keep things simple. Just think about statistics below.
- From 2007 to 2012, unit sales of the Apple iPhone doubled each year. In 2015 fiscal year, they sold over 231 million units worldwide. Since 2007, over 800 million devices were sold discounting iPads and iPods. Apple claims that each 10th person in the world has a handheld device running iOS.
- Users downloaded over 100 billion applications from App Store. The market generated about 1.7 billion US dollars in revenue.
- Each month, an average American spends about 230 minutes on Facebook. Over 47 million visitors of Facebook use their iOS devices to access the site.
Some food for thought:
- There are millions of iPhone users in the world.
- They are socially active and like downloading applications.
- They use mobile phones to consume information and advertisements.
In terms of marketing efficiency, mobile applications still lag behind TV and internet. However, mobile apps are very efficient and should be considered a premium marketing tool. A well-made application will boost your sales and ensure the loyalty of your clients.
With that said, we need to find a way to pay less for iOS development in order to get bigger gains.
Actual 7 Ways to Save Budget
- Set in stone payment amount and schedule. We prefer to determine the total development cost beforehand. Fixed contracts and guarantee deposits are the way to go. When you have a consistent schedule of payments with predetermined upfront payments, it is much harder to lose track of how much money you invest in a project.
- Know the average prices. iPhone application development costs a small fortune due to various reasons including App Store Review that demands extensive quality control. Learn to bargain and research the market before ordering an application.
- Guarantee a set amount of work. This is a very simple way to ensure that the developer offers a better deal. If you guarantee our team a fixed volume of work, we will be able to estimate the costs and come up with reasonable numbers.
- Build long-term relationships. The application may need maintenance and further technological support. Many projects are developed scalable. In order to make investments more efficient, try to work with the same developer over the whole lifespan of the application. If you have already worked with us, you can get a discount… just because we like you!
- Keep track of numbers. Count work hours, content volume, number of project iterations, and other important things – everything can be counted. This will allow you to better manage your expenses and negotiate with a developer.
- Verify that the developer can do the whole job. If your application needs stunning design, great backend, GUI, social media support, and other important features, make sure that the developer can do everything. Paying to different outsourcers increases overall costs drastically.
- Time zones and time management. Smaller developer teams take more time to finish a project. Often, a publishing date is something very important for marketing and affect ROI. Make sure that the project will be ready on time. Search for a developer that will be available at convenient times of day for you. Better communication between you and your contractor ensures greater results.
Remember, outsourcing something like iPhone application development can bring you additional revenue through various sources. Do not try to overcut the expenses. Sure, an app may be less important for your business model, but in the long run it can become a big part of your marketing strategy. Make it great!
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