Funding Your Next App: 3 Things You Need to Know

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A lot of people see app development as a costless thing to do. You only need to spend a few hours writing code to get the app ready for the market, right? In reality, however, app development can be costly, especially if you are striving for excellence.

Turning an idea into an app that users actually love requires some investment. If you have an app development project in mind, and you are ready to turn your idea for an app into a successful business, funding the development project is a great start. Here are three things you need to know about the process.

It Doesn’t Have to be Crowdfunded

Many app developers turn to crowdfunding for funding, and there are great reasons for that. Crowdfunding is a great way to leverage existing communities and get the funding you need without losing ownership of the idea or the company.

That said, crowdfunding is not the only option to consider. You can also consider crowdsourcing the app and having volunteer developers contribute different skills and expertise to the development project. Crowdsourcing still lets you maintain ownership of the app.

Self-funding the development project is even better. You can use anything from a startup loan to installment loans that are designed to be easy to repay to raise funds for the project. The latter can also help support your startup operations in general.

Be Conservative

Before you can select the best way to raise funds for your upcoming app, you need to create a budget for it. This is where you have to be extremely conservative in identifying potential costs, mapping your expenses, and scheduling your development project.

The easiest way to start is by identifying tools that you will use. Some of them are apps with a one-time charge, while others use subscriptions and the SaaS business model. Make sure you identify all cost elements in this department, including tools for testing and the cost of a development server.

Next, take into account the additional manpower you need to complete the app in a reasonable timeframe. You can work with freelancers or use micro-job platforms to offload some of the development tasks to third-party developers.

Leave Room for Error

After you have a fairly conservative budget in mind, it is time to consider potential issues and account for them. If the project gets delayed for two weeks, how much extra money do you have to spend?

Identify potential problems with the project, note the big hurdles that you have to overcome, and prepare for delays or other disruptions. Calculate the extra costs associated with those disruptions and begin refining your budget accordingly.

What you want is a reasonable budget with enough room for errors, not a large budget that appears unreasonable. This is a bit of a balancing act, but it is a process that every app inventor must go through to have a smooth and successful development project.

That’s it! Now that you know these details, funding your next development project will not be a problem at all. Create a budget, leave room for error, and find a funding source that works best for your project.

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