What to consider while planning the budget for on-demand Mobile App?

What to consider while planning the budget for on-demand mobile app

As technology grows, the demand for mobile app increases.  On-demand mobile applications connect the users to the service they want, rapidly satisfying their requirements. These can be developed for various industries including food order, logistics, doctor-on-demand, tutoring services, beauty/salon, taxi services, fitness services, and so on.

Why on-demand mobile apps are growing in popularity? Because of aspects such as their ability to meet the needs of the customers rapidly, ease of use, interesting features, and so on.

Also know how to improve mobile app performance at- Best Tips to improve your mobile App performance.

Structure of On-demand Mobile Apps-

On-demand mobile app offers two application experiences, one for the customer and the other for the specialist organization. Dissimilar to eCommerce or social networking applications, an on-demand mobile application offers two application experiences, one for the customer and the other for the service provider.

Not all the features in user applications will be available in the service provider application and vice versa.

The User App

As the name demonstrates, this interface is for the customers who use the service. It contains different features, for example, searching for products/services, order tracking, navigation, pricing details, and so on.

The Service Provider app-

This application is for the service providers and has alternatives, for example, profile, active orders, customer support, pricing, and so on.

Admin Panel

On-demand mobile app requires an admin panel, which oversees both the users and the service providers.

Are you thinking of developing an on-demand mobile app? Do you want to provide innovative solutions for users, while getting high return on investment? At that point, one of the most significant aspects to consider is planning the budget for an on-demand mobile app.

Factors to Consider When Planning a Budget for an On-demand Mobile App-

Planning a budget for your on-demand mobile app

Proper plans ensure that you offer the solutions you want without going over the budget and without compromising on the features. It helps you to give the correct support to the users without extending excessively. You would have the option to avoid the unpleasant surprises that may come up previously, during or after the application development. To give you a more clear thought on this, we have listed the best 10 points you have to consider while planning the budget for on-demand mobile applications. Go through these tips to avoid the budget risks that generally plague on-demand mobile application development.

1. Set Clear Goals-

Defining clear goals before the application development helps you to accomplish your key goals while holding the development costs in check. To set clear goals, you should consider points, for example,

  • Who are my target audience?
  • Who are my competitors?
  • What are the unique selling points of my app?
  • What problem (s) does my app solve?
  • How do I plan to generate revenue from the app?
  • How do I stay relevant in the marketplace over the long-term?

When you answer these questions, you will have a clear thought on aspects, such as target audience, your competitors, your core features/functionalities, and how to achieve profit from the application. This helps you to better plan your budget.

2. Finalize the Features-

Features straightforwardly impact the cost of the on-demand mobile application. Keeping that in mind, skipping on the important features could influence the application usability, while going overboard with features or including unnecessary features will make the application boring and complex. Finding the right balance is the key. It is important to finalize the features. To achieve this, you can start with the features that your application can manage without. At that point you can include the most significant features, starting from the basic ones to the more complicated ones.

3. Single or Multiple Platform Development-

Single platform mobile applications are those that support a single operating system, for example, iOS or Android. Mobile applications developed in Single platform can be cost-effective and fast, they are constrained to specific users. Multiple platform mobile applications are intended to be compatible over various operating systems. Multiple platform applications cover a larger user base. To better conclude whether to choose or cross-platform application development, deciding your target audience is important. These days, numerous organizations also develop an application for one platform first and then move to the other platform.

4. Android App or an iOS App-

– Android app pros and cons

As indicated by report, in 2019, Android had a share of 74.13% of the overall market while iOS had a 24.79% share. If you are planning to reach a worldwide user base, an android application is ideal. In any case, Android users spend less on applications. Also, the application development time for android is longer compared with iOS.

– iOS app pros and cons

iOS applications have lesser market share and the App store has stricter standards and a longer review process. However, iOS users are eager to spend more on applications compared with Android users. iOS has lesser development time and greater security.

5. Outsourcing or In-House App Development?

Would it be a good idea to outsource the development of my on-demand mobile application or would it be good to develop it in-house? There is no straight answer to it. When you are planning a budget for an on-demand application, you have to choose whether you want to develop it in-house or outsource the project. Both outsourcing and in-house development have their own advantages and disadvantages. Based on your unique requirements, one alternative can be the best for you.

While in-house development allows you to properly coordinate with the team, it gives you more freedom to explore and add more features. It tends to be costly particularly for startups and small companies. In-house development includes salaries, rent, software licenses and so on. Outsourcing means you are unable to monitor the application development closely but is highly economical. There are numerous dependable application development companies to which you can resource the work to. For finalizing an outsourcing partner, consider aspects, for example, their reviews, experience, and cost.

6. Choose the Right Outsourcing Pricing Model-

When you are thinking of outsourcing the app development, you should choose the price model between- hourly pricing and fixed pricing model. Hourly pricing may cost you higher but it allows you include extra features/changes at whatever point you need. Fixed pricing can be economical but your outsourcing firm would charge you extra for the additional features. However, organizations that offer fixed pricing understand that changes would be eventually required by the client after the initial development. Hence, most of the companies are offering modifications at a minimal cost. You can discuss the various alternatives offered by your outsourcing partner to get a more clear thought on this.

7. Consider the Maintenance Costs-

For on-demand mobile applications, considering maintenance costs is significant. Why? It is calculated that 20% of the underlying cost of development will go towards the maintenance of an application. For instance, for most on-demand mobile applications, you may need to send mobile notifications to the users. To facilitate this, you may need to pay a fee to a third-party vendor.

8. Create a Product Requirements Document-

A product requirements document (PRD) indicates all the requirements of the application as well as its features, functionalities and behavior. It traces the complete application development process, the details of each step, and the expected result. A PRD can help the developers with estimating the cost associated with each phase of the application development, for example, architecture, backend development, and so on, and better plan the general budget of the on-demand mobile application.

9. Consider the Marketing Budget-

Your application may be highly effective. However, without the right marketing, it may not grab the customers’ attention or get the downloads it deserves let alone achieve the estimated revenues. That is putting aside marketing budget is also significant. Marketing budget permits the company to convey the advantages and usability of your application, which prompts more downloads and revenues.

10. Consider the Cost for the Updates-

Standard updates ensure that your application offers a superior experience to the users. In the regular updates, you can incorporate new technological developments into the application and add new features to keep it significant in the marketplace. Timely updates also help you to produce more revenue from the application.

Wrap up-

If you are thinking of developing an on-demand mobile application, the above points will help you with knowing the factors that should be considered before building it. These will help you with cutting costs and invest the money admirably. On-demand applications are estimated to be expected to draw more revenues for the organizations as customers look for instant gratification, quick service and a better experience.

Consult with solace experts in case of any difficulty. We have a dedicated team of experts to develop on-demand mobile apps. Get a free quote for mobile app development. We will be happy to help you.

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