Custom application development costs: How to talk about budget

Given the complexity of custom application development, you might think that the toughest parts of the process would be the initial prototyping, testing, or fixing bugs.

In our experience, however, that’s not usually the case. It’s actually the conversation about the project budget that is most difficult.

Custom application development costs can vary by orders of magnitude, and there’s a dance between the resources needed, the value provided, the final price tag, and the amount your budget will afford. Opening the door to a conversation about budget often feels like you’re giving away your last bit of safety in an area with few guardrails.

We believe doesn’t have to be this way. Here are the questions you should ask about budget up-front so that you can maximize the value that custom software development projects deliver.

Have you laid the groundwork?

Before talking specifically about what goes into a budget, we have to take a step back to think about the whole development and purchase process.

Construction is a valuable metaphor here. Several things must happen before construction companies break ground on a new project. First, the site must be surveyed so that decision-makers have complete and accurate information. Next, the site may need to be remediated before work begins (e.g., a new retention pond might need to be built, or the soil could need to be drained of excess water). Finally, experts must be engaged to draw up site plans, then review those plans for structural integrity.

You wouldn’t want to go forward with a project without having taken those steps. If you hired a contractor on Monday to build your house and the next day they were on-site pouring a foundation, you’d be right to be worried.

Yet for some reason, companies sometimes expect custom application development to work this way. After the first brief conversation, prospective clients may ask if work can start right away.

Well, no, it can’t. Without the proper analysis of the existing software and processes, the odds aren’t great that the developer’s solution will solve the real problems. The better that developers understand the context around the problem, the better they will be able to deliver a solution that not only fixes it, but doesn’t compromise any other systems in the process. That step is essential, which is why you should be ready for it when you consider building a custom application.

Are you solving the right problem?

Even if your understanding of your business needs and current situation is spot-on, a custom software development project will inevitably fail if it doesn’t address underlying problems. Returning to our construction metaphor, say you had a house with a flooded basement. You could purchase a pump to drain the water, but if water keeps pouring in the pump will eventually be overwhelmed and the rest of your home will flood. The pump fixes the superficial problem, but it does not solve the issue that’s causing water to pour into the basement in the first place.

At Skeleton Key, we prioritize fixing root-cause problems versus merely treating symptoms of underlying issues. In software, that can mean that the situation you find the most troublesome isn’t always what you need to fix first or directly. Often, by resolving an underlying issue the symptom first identified as “the problem” disappears. Other times, fixing the obvious problem gives you breathing room to address more serious underlying issues. For example, remodeling an application might make it usable enough while you redesign and rebuild the entire system.

Advice for having the budget conversation

Laying the groundwork and solving the right problem form the context for the budget conversation. Without it, the budget conversation will always misfire. But with this context in hand, you can now have an open conversation about the resources you’ll need to make the project successful.

Custom software means custom pricing. Be honest about your budget.

Building custom software is like building a custom home: the more you add to it, the more expensive it will be. However, you can build a custom home today with an eye toward adding a bedroom or garage later when your budget allows. Likewise, we often have the flexibility to build a project in a way that meets your budgetary constraints, with an eye toward further development over time to make improvements as your budget and cash flow permits, and continually add more value as we do so.

Knowing what your budget picture looks like now, and what it’s likely to look like in the next few years, will make it easier for everyone involved to plan.

Create a roadmap that focuses on the most valuable parts of the problem.

Another great aspect of custom software development is the ability to craft a timeline in collaboration with you. Sometimes a project is just too big to be done all at once. When possible, we can break up development projects over time to keep the spend manageable while still providing benefits for your organization. That might mean tackling a different part of the problem across different quarters, or longer. As we work with you, we can discuss how to adapt projects to your needs, providing options you might not expect.

Who are your key stakeholders? Get them involved from the start.

One of the recurring patterns we encounter in our work is that as we dig deeper into the underlying problem that needs to be solved, the project’s scope needs to shift. When this happens, new people need to be brought into the discussion, some of whom will need to sign off on the changes before work begins. Casting a wider net at the beginning to involve all relevant stakeholders and their perspectives will help reduce potential friction at later stages, which also reduces your overall spend.

We’re here to help

We know discussing budgets can be intimidating, but it doesn’t have to be. We pride ourselves on helping clients ask the right questions in order to find best solutions for their biggest problems, and there are many levers we can pull to help make your project a reality. Contact us today for a no-charge initial consultation and find out what’s possible.