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How Much Does It Cost to Build Software or an App?

by Victor Purolnik
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How Much Does It Cost to Build Software or an App?

“How much does it cost to build software or an app that does XYZ?”

This is probably one of the most common questions I get, and my answer is always the same every time – It doesn’t matter.

While the various features or the functionality of your software do indeed matter, however, what matters most is the scalability of your initial MVP.

So what is scale?

Scale or scalability can be defined as how many people are going to be using your software or app.

There is a considerable difference between building an MVP that is going to be used by 10 US-based clients or building one that is going to be used by 10,000 EU-based consumers.

At the most basic level, you can take a lot of shortcuts. You can either use low-code or no-code tools, you can link them together, you can do rapid prototyping and you do not need to do automated testing which can be quite expensive.

You can also do some things manually. You can build manual MVPs, and use virtual assistants to take some complex functionality and do it async which will save you a lot in terms of costs.

You can do all this for your 10 B2B clients who are likely early adopters and worst case if something goes wrong, it can quickly be fixed without having significant problems.

However, if you are building an MVP that is to be used by 10,000 EU-based consumers, you’ve got to consider things like GDPR and other compliance issues which in turn requires you to consider a more scalable product.

How do we classify software when it comes to scale?

Prototype

The prototype is something that doesn’t allow users to complete end-to-end actions but it was created to demonstrate a core part of the functionality.

🎙️ Podcast

Throwing spaghetti at the wall: building quick 6-week prototypes to find a product that sticks with Robin Warren from Corrello & Blue Cat Reports

MVP

The MVP on the other hand, can be used by users to sign up and it can deliver a certain goal but the whole thing is not entirely scalable.

Scalable Software

This level offers more infrastructure to the MVP, with automated testing allowing you to take on more users.

Enterprise Software

Enterprise software is the most advanced offering of a software product.  It goes deeper into things like certifications, compliance, and a more robust level of data security.

Each of these levels can now be looked at as a magnitude more expensive as your product moves from a prototype to a more advanced offering, and this is what matters when you think about cost and your MVP.

So there you have it!

Are you thinking about your software product and how to take it to the next level? Maybe you’re having development problems and don’t know what to do next.

Book a brief call with me! I’d be happy to chat and see how I can help you!

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Victor Purolnik

Trustshoring Founder

Author, speaker, and podcast host with 10 years of experience building and managing remote product teams. Graduated in computer science and engineering management. Has helped over 300 startups and scaleups launch, raise, scale, and exit.

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