One of the most critical aspects of creating your product lies in software development. In this post, we cover the basics of keeping software development costs down.


When you’re a start-up owner, not a day goes by when your plate isn’t overflowing with tasks to complete. There are always fires to extinguish and costs to cover. From 9:00 am to 5:00 pm (give or take), prospective solutions for trimming expenses and strategies for maximizing profits are likely to consume your every waking moment. That is why sometimes it is reasonable to delegate at least a part of this workload to a professional software development company.

Every start-up is bound to undergo a series of phases as it transitions from a business idea to an ideal business. Between conducting market research, hiring a team, and growing a customer base, the first year of founding a start-up can be incredibly hectic.

But one of the most critical aspects of creating your start-up’s first product lies in software development.

However, the second-most-common reason start-ups fail is financial. Therefore, it’s equally vital for companies to cut costs where they can. Read on for five valuable tips to help you save money while investing in quality software development for your start-up. 

Invest in Quality Software Testing

When looking to cut costs, one thing start-ups shouldn’t skimp on is software testing. Investing in software testing can ensure your app or website is user-friendly—before you swing open the floodgates for customers. Fortunately, a company like XBOSoft Software Testing can ensure your company’s digital products are competitive. This is the case even in market spaces experiencing fast-paced changes.

Outsource Software Development

Outsourcing software development is one of the easiest ways start-ups can save on digital product development. For example, mobile app development in the US can range between $45,000-$75,000. However, in Belarus, companies can accomplish the same process for between $20,000-$30,000. Some even estimate that outsourcing the software development process to countries like China or Ukraine can lead to a cost decrease of almost 40%.

Draft a Technical Specification

Most successful businesses begin with a well-defined, coherent plan. Start-ups are no exception. For this reason, it’s smart to start your software development process with a technical specification. This is a document that outlines your product’s specific functions and predefined purposes.


Drafting such an outline will help you ensure that you and your engineers—whether in-house or abroad—are on the same page before beginning digital product development. This will help your company avoid unexpected costs once software development is underway.

Establish Regular Communication to Save on Software Development Costs

Establishing regular communication between start-up founders and software engineers is crucial to saving money throughout the software development process. Confer with software engineers early on and resist the temptation to make assumptions regarding software development’s intricacies. Doing so can result in additional direct costs you didn’t project in the early phases.

For this reason, set up regular, documented meetings with software engineers. This can be vital in staying within the budget you have allocated for software development.


Develop an MVP

Many now-successful start-ups (think Uber and Snapchat) began as a minimum viable product (MVP). This term refers to a software solution that performs only necessary functions. Creating an MVP allows start-ups to test what works with customers while making the minimum product investment. After collecting information about the basic version of the product in the most cost-effective way, start-ups can continue to add more features.

The Bottom Line

In a world where the one-year cost of running a five-person start-up can exceed $180,000, it’s essential to cut costs where you can. Of course, you must also plan for significant expenses for your business, especially software development initiatives.

But by outsourcing software development and investing in quality software testing, start-up owners can produce quality digital products while saving money where it counts.