0 Comments August 11, 2020 Signing an agreement for a custom software project is both an exciting moment for your company and a huge leap of faith. Not only is your company’s reputation at stake but often a significant amount of cash is on the line. But knowing in advance how to budget effectively for your project can relieve at least some of the pressure that goes with a commitment of this importance. Taking the time to budget carefully using the guidelines above will save you time and money Here is a quick guide to a few key things to think about when planning the budget for your custom software project. Many of these can be completed in-house even before reaching out to developers or putting the project to tender. How valuable is the project to your company? Remember that you know your company better than anyone, so you also know the gains and savings that can be realized with the software that you are conceptualizing. Be realistic about internal costs means talking to your in-house developers (if you have them), which involves a truthful assessment of the opportunity cost should you choose to develop the project internally. But it also means thinking about the short- and long-term integration of the software into your existing business processes. Will there be specialized training required for staff? Will there be downtime or transition time associated with the launch of the software? Will you be marketing to clients or is this simply an in-house initiative? Reach out for a baseline quote so you have a realistic idea of what this project is likely to cost when you get down to actually signing a contract. Think of this as your first reality check in terms of the money you will have to set aside but also on the timeline you can expect when you enter into final negotiations of terms and conditions. And never hesitate to ask for a couple of prices: base model project and deluxe model (with all the features you really want), for instance. Budget too much. Whether you call it budgeting for contingencies or building in a safety net, the truth is that budgeting too high is always better than budgeting too low. Experienced budgeters each have their own formula: some take the baseline plus 25 percent, others simply double the baseline. Either way, they know that one of two things will happen: they will use the money for project additions and overruns or they will have some money left in the budget to “seed” the next project or flow back into the operating budget. Not taking the time to budget or failing to budget effectively tends to have two impacts on a project: Working with no clear budget often ends up with companies sinking more and more money into a project without a clear sense of what they wanted to accomplish in the first place. By that point who there grows a doubt - does the company even need this custom software project at all. But it might be too late to maneuver, more so - if the developers are inexperienced. Working with a little (or tight) budget often results in missed opportunities to add features based on customer feedback or market research that might cost a little more at the moment but extend the impact and lifecycle of your custom project significantly. Taking the time to budget carefully using the guidelines above will save you time, money, and help ensure that you get the custom software your company needs to do the job your customers want. To begin determining what you need in your custom solution - try out our Tentacle Solution Builder. The experienced team at Tentacle Solutions is happy to assist. Based in Glasgow, Scotland, we deal with all facets of database design, custom software, predictive analytics, testing, creative UI/UX services, and more. Contact us today to learn how we can help you create a one-of-a-kind app to suit your unique needs. 0 Replies to "How to Budget for Your Custom Software Project" Got something to say? We would love to hear your comments! Your email address will not be published. Post Your Comment