Costs to Consider Before Starting a Mobile App Development.

Hello LinkedIn Community,

I have over a decade of experience in mobile app development, and throughout my career, one of the most common questions clients ask right at the beginning is about the cost of developing an app. Often, I notice that clients don't have a clear understanding of the various factors that contribute to the overall cost of mobile app development.

Embarking on a mobile app for your enterprise or starting mobile app based start-up is an exciting journey, but it's essential to be well-informed about the potential expenses to prevent any unforeseen financial challenges. Here are some crucial cost factors to consider before you dive into mobile app development:

1. Development Costs

Development is often the first cost that comes to mind. This includes designing, programming, and deploying your app on platforms like Google Play Store or Apple App Store. Development costs can be broken down into:

• API Development
• Designing
• App Programming
• Admin Panel Development (if required)

Development cost purely depends on the requirements of the app. The formula to estimate development cost Development Hours X Hourly Rate

2. Server Infrastructure Costs

Your app will need a robust server infrastructure to store user data, images, videos, and more. Costs to consider include:

• Server Hosting (Amazon AWS, Google Cloud, Azure)
• Data Bandwidth Costs
• Licensing Costs for Paid Development Tools
• Domain Name & Email Hosting Charges

3. Functional Services/Third-Party Services

Supporting services that enhance app functionality often require third-party APIs. These include:

• SMS Services (for OTP and transactional alerts)
• Push Notifications
• SMTP Services (for email alerts)
• SSL Certificates (for security)
• Google Maps API

4. Platform Charges

Uploading your app on platforms like Google Play Store or Apple App Store incurs charges:

• Google Play Store: $25 (one-time fee)
• Apple Developer Account: $99 (annual fee)

5. Payment Gateway Costs

If your app involves online transactions, consider:

• Setup Charges
• Transactional Charges
• Return and Refund Fees
• Currency Conversion Charges

6. Shipping and Courier Costs

For apps delivering physical products, factor in:

• Shipping Account Setup Charges
• Shipping API Charges
• Delivery Charges (varying by location and weight)

7. Maintenance Costs

Ongoing maintenance is critical for app longevity. This includes:

• Bug Fixing
• New Feature Development
• Security Updates and Compliance

8. Marketing Budget

Investing in marketing is essential to ensure your app reaches its intended audience. Consider costs for:

• Social Media Marketing
• SMS Marketing
• Affiliate Budget
• Paid Search Engine Ads
• Offline Marketing (e.g., paper ads, brochures)

9. Funding Costs

If you seek funding to scale, be aware of associated costs:

• Startup Incubator Membership Fees
• Networking Group Fees
• Event Participation Costs
• Mentorship Costs
• Pitch Deck Preparation
• Commission for Funding Houses

10. Legal Costs

If you are thinking of mobile app based startup then establishing a legal foundation for your start-up involves:

• Company Formation Costs
• Trademark, Copyright, and Patent Costs
• Legal Services
• Accounting Services

11. Bank Charges

Banking services come with their own set of fees:

• Account Opening Charges
• Maintenance Fees
• Transaction-Based Charges

12. Operational Costs

Lastly, consider everyday operational expenses such as:

• Office Rental
• Employee Salaries
• Internet and Telephone Bills
• Electricity
• Traveling Costs
• Your Own Salary

Next Steps

To set your start-up on the path to success:

1. List Services Needed: Identify all the services your app will require.
2. Get Cost Estimates: Research and get quotes from vendors. If you need any help in estimation i will be very happy to help you.
3. Prepare a Budget: Compile your estimates into a comprehensive budget.
4. Plan for At Least a Year: Ensure you have enough budget to sustain operations for at least a year.
5. Build an MVP: Start with a Minimum Viable Product with essential features, launch it, market it, and iterate based on feedback.
6. Hire Professionals: Invest in qualified professionals rather than cutting costs with inexperienced hires.

Tips from My Experience

• Budget for at Least a Year: Ensure financial stability for at least the first year.
• Focus on an MVP: Start with a minimal feature set, launch, and scale as you gain traction.
• Hire the Right Talent: Don't skimp on talent. Hiring professionals can save time and prevent costly mistakes in the long run.

By considering these costs and planning accordingly, you can set a strong foundation for your mobile app start-up. Happy innovating!

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If you need any help in estimation i will be very happy to help you. You can write me on [email protected] or Whatsapp me on +91-9325452585

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