• BLOG
  • CAREERS
BlogSlayerBlogSlayerBlogSlayerBlogSlayer
  • ABOUT
  • PRICING
  • PROCESS
  • WHY FROGSLAYER
  • FAQ
  • CONTACT

How To Set A Custom Software Project Budget

    Home Client Resources How To Set A Custom Software Project Budget
    NextPrevious
    Setting Custom Software Project Budget | FrogSlayer

    How To Set A Custom Software Project Budget

    By Ross Morel | Client Resources | 0 comment | 13 May, 2018 | 0

    When someone reaches out to FrogSlayer about developing a web app or building a software product, the top question we’re asked is “How much will my project cost?”

    This is understandable. Building software is a major investment for a person or business to make. However, when your software project is just getting started, the difficulty of setting a budget is at an all-time high.

    But have no fear. After a decade of estimating and building software, our development team has developed an approach to help potential and current clients determine a sound budget for their software project.

    Determining Potential Value

    Custom software is an asset. Like any asset, it’s important to determine the potential for the software to do one of two things:

    1. Generate profit or
    2. Save money

    In other words – will this custom software help drive revenue or drive efficiency or both?

    Refining the scope and budget to an acceptable range will cost time and money. Knowing that the potential reward will outweigh the costs is important in determining whether the project is viable or not.

    Making a Ballpark Estimate

    After we get a clear understanding on the project’s value, potential ROI, and refine the scope a bit, we will size up the project and provide you with a ballpark estimate.

    We’ll use early requirements, high-level conversations about feature sets and business goals, and previous project experience to estimate cost at this stage. Keep in mind, this is when the estimate for your project will be at its broadest.

    We start by dropping it into a broad bucket (shown below):

    Next, we’ll try to tighten up the range by saying, “Your project will definitely cost $75,000, but probably won’t go over $125,000.”

    If the initial ballpark estimate is too high, we can review the requirements and see if we can refine the scope. From here, we’ll estimate the project again.

    Moving Forward with Discovery, Design & Planning

    If the ballpark estimate is acceptable and the viability outweighs the costs and risk then we will move forward with a Discovery, Design & Planning phase.

    This phase helps our team to further define and refine the requirements and implementation plan. The output is a blueprint for initial development along with a tight budget and schedule.  Your project will start to look something like this:

    Occasionally, the DDP results in an estimate that is higher than the initial ballpark estimate, but don’t let that scare you. By investing a small amount of time and money, you reduce the risk of cost overruns because our team is more certain after the DDP about the cost of the project and the potential ROI.

    Starting Your Project

    After the DDP phase, you will decide whether or not to move forward with development of your custom software project.

    About 90% of our clients move forward from here. With the budget set and risk reduced, it’s all about a predictable delivery with no surprises:

    • We track our team’s progress each week to see how quickly we’re moving through the backlog to determine velocity.
    • We track the budget and project final cost all along the way.
    • If needed, we work with you to refine scope to keep the project on budget and on schedule.

    Final Thoughts

    It may seem like overkill at first but taking the time upfront to answer “How much will my project cost?” is worth the time and cost. Having a responsible and realistic budget upfront keeps everyone aligned and focused on shipping custom software that can pay you back quickly.

    At FrogSlayer we begin with pre-project consulting where we size up the project and prepare an informal estimate. If the ballpark estimate is within a viable budget, a more formal and detailed letter of proposal can be prepared for an upfront cost of $500.

    Remember, find a development team that:

    • Has a clear process for refining your budget along the way as requirements get more focused.
    • Is concerned about return-on-investment (ROI)
    • Is looking for ways to shorten the payback period by reducing unnecessary scope.
    custom software, custom software budget, custom software planning, custom software project budget, Ross Morel

    Related Post

    • frogslayer aggie 100 2019

      FrogSlayer Ranked Among the Fastest-Growing Aggie-Owned Companies in the World

      By Holly Melvin | 0 comment

      (College Station, TX – October 25, 2019) Custom software and business innovation consulting firm, FrogSlayer, was recognized for the 5th time at the 15th annual Aggie 100 awards ceremony. Aggies from all over the worldRead more

    • 6.18.19 - Bryan Rotary Top 10

      Growth continues for custom software firm FrogSlayer, named one of fastest-growing businesses in central Texas

      By Holly Melvin | 0 comment

      (College Station, Texas – June 26th, 2019) FrogSlayer, a custom software development firm, was recently named the 2nd fastest-growing company in the Brazos Valley at the 2019 Bryan Rotary Top 10 Business Performance Awards forRead more

    • custom software development_senior new hire

      Custom Software Development Firm Deepens Its Capabilities Through Four Key Senior Hires

      By Holly Melvin | 0 comment

      (College Station, Texas – June 12, 2019) FrogSlayer, a custom software firm in College Station, TX, announces the most recent additions to their growing firm. Tim Scott, Rob Dragotta, Michael Farnsworth, and Matt Walker JonesRead more

    • frogslayer-aggie-100-2018_3

      College Station Custom Software Development Firm Ranked 29th Fastest Growing Aggie-Owned Company at Aggie 100

      By Holly Melvin | 1 comment

      (COLLEGE STATION, TX – November 12, 2018) FrogSlayer, a College Station based custom software development firm, was recognized as a member of the 2018 Aggie 100 at the Ford Hall of Champions at Kyle FieldRead more

    • Local Custom Software Development Firm Ranked 3rd Fastest Growing Company in Brazos Valley

      By Holly Melvin | 0 comment

      (COLLEGE STATION, TX – July 11, 2018) – FrogSlayer, a local custom software development firm, was named the 3rd fastest growing company in the Brazos Valley for the 3rd year in a row at theRead more

    NextPrevious

    TOPICS

    • Client Resources
    • News
    • Frogslayer Life
    • Software Development & Technology
    • Project & Team Management
    Frogslayer Logo - White

     

    909 Southwest Pkwy E
    College Station, Texas 77840

    (979) 900-3023

    howdy@frogslayer.com

    GoodFirms Badge

    About Frogslayer

    Frogslayer is a software product development and commercialization firm. They partner with leading mid-sized companies to create forward-leaping, industry-shattering software products and digital platforms that enable growth and generate outsized returns.

    • Terms of Use
    • Privacy Policy
    • Sitemap
    © 2020 Frogslayer, LLC
    • HOME
    • ABOUT
    • PRICING
    • WHY FROGSLAYER
    • FAQ
    • CONTACT
    • BLOG
    BlogSlayer