How to evaluate a development before you start and don't miss out:

Developing a new product or service can be a complex and resource-intensive process. Before investing time and money in development, it is important to be able to evaluate the project and mitigate risks.

In this article, I will share my experience in development estimation and talk about the key aspects to look for before starting a project.

Defining project requirements and objectives

The first step to a successful development estimate is to clearly define the requirements and objectives of the project. Develop a detailed statement of work describing the functionality, architecture, technology, and quality criteria. This will give you and your team a better understanding of what needs to be implemented and prevent unforeseen problems in the future.

Example:
ABC wants to develop a mobile app to manage the home meal delivery process.

Project objectives include:

1. Increase the efficiency of the food ordering and delivery process.
2. Improving the user experience for customers.
3. Reducing order waiting time and improving order accuracy.
4. Ensuring integration with existing accounting and management systems.

To achieve these objectives, the project requirements can be summarized as follows:

1. Functionality for ordering food with the ability to choose from a menu, specify a delivery address and pay online.
2. Real-time order status tracking system for customers and couriers.
3. Integration with order and delivery management systems to automate processes and coordinate couriers.
4. Intuitive and attractive user interface available on a variety of mobile devices and platforms.
5. Ability to leave reviews and ratings for restaurants and couriers.
6. Content management system for menu updates and promotions.

Resource estimation

Assess the resources available - time, money and human resources. Determine how much time and money you are willing to spend on development and set a realistic budget for the project. Also recognize that development may take longer than originally anticipated and be prepared for this.

Example:
XYZ wants to develop a mobile app to manage personal finances.

As a first step, they estimate the resources needed to realize the project.

1. Timing: A company determines that they have 6 months to develop and launch an application. They break this period down into project phases such as design, development, testing, and product release.
2. Budget: Based on a preliminary analysis and comparison with similar projects, the company determines that they are willing to spend $200,000 to develop the application. This budget should include the salaries of developers, testers, designers, and other project participants, as well as the cost of infrastructure, software licenses, and marketing.
3. Human Resources: The company analyzes their current resources and determines that they will need a team of 4 developers (two front-end and two back-end), a designer, a tester, and a project manager. They also decide that they need to hire an additional developer and a contract marketer.

Market and competitor analysis

Study the market where you plan to launch your product or service and analyze your competitors. Evaluate how unique and relevant your offer is, and what advantages it can offer to users. This will help you develop a strategy for developing and positioning your product on the market.

Example:
The startup "EventFinder" wants to develop a portal and mobile app for finding and booking tickets for events such as concerts, sporting events and theater performances.

To determine their strategy and positioning in the market, they analyze the market and competitors:

1. Market size and dynamics: The team analyzes statistics and reports to determine the overall size and growth rate of the events market. They find that the market is growing at 10% annually, indicating an opportunity for the introduction of new products and services.
2. Target Audience: The startup defines its target audience consisting of young professionals between the ages of 20 and 35 who actively attend various events and prefer to book tickets online.
3. Competitive Analysis: "EventFinder studies its competitors, including their offerings, strengths, weaknesses, and user feedback. They find that the main competitors are TicketMaster, Eventbrite, and StubHub, but none of the apps offer personalized event recommendations based on user interests.

Based on market and competitor analysis, startup EventFinder defines its unique value and strategy by offering an app with personalized recommendations, a simple ticket booking process and a focus on local events.

Selecting a development team

The quality of development largely depends on the experience and competence of the development team. Assess their skills and experience with similar projects. Make sure that your team has all the necessary knowledge and resources to successfully complete the project.

Example:
Startup LearnVid wants to create a platform where users can share video tutorials on topics ranging from academic subjects to hobbies and handicrafts.

They realize that quality development of key components of the platform plays an important role in the success of the project and start looking for the right development team.

1. Determining the requirements for the team: "LearnVid analyzes their project and determines that they will need experts in web development, user interface, video processing, analytics, and database work."
2. Consideration of internal and external resources: The company analyzes their own resources and decides that they need to hire an external development team that can provide the necessary experience and skills.
3. Finding a development studio: "LearnVid conducts market research and finds Sailet, a development studio that has successful projects in education and video technology.
4. Analyzing portfolios and testimonials: The company examines Sailet's portfolio and pays attention to the quality of their previous work as well as positive feedback from clients. This strengthens their confidence in choosing them as a development partner.
5. Harmonization of the terms of cooperation: "LearnVid and Sailet discuss project details, deadlines, cost of services and other important aspects of cooperation. After clarifying all conditions, the parties conclude the contract and start working on the project.

Risk assessment

Identify possible risks associated with project development. Risks may include technical problems, systems integration problems, time or budget constraints, or changes in requirements or market conditions. Develop a plan to minimize these risks and determine what actions to take if they occur.

Example:
TravelBuddies wants to create a portal and mobile app that will allow users to find traveling companions to travel together and share expenses.

Before development begins, they conduct a risk assessment to identify potential problems and develop strategies to minimize them.

1. Technology Risks: The startup is analyzing possible problems related to the integration of various APIs such as cards, payment and messengers. They are looking for ways to ensure data security and stability of the application.
2. Market Risks: "TravelBuddies identifies that the main market risks are low user conversion, limited travel due to seasonality and economic factors, and the threat of competition from other travel apps."
3. Legal Risks: The team researches the legal aspects associated with co-travel arrangements and cost-sharing to ensure compliance with laws and regulations in different countries.
4. Risks associated with the team: "TravelBuddies" identifies that these include potential conflicts of interest between founders, lack of experience or competence among the team, and the risk of lack of agreement on key decisions.

Accounting for feedback from users

Involve potential users of your product or service in the development process. Getting feedback early in the development process will help you determine if your offer meets their expectations and make necessary changes to the project. It will also help you build a loyal audience and reduce the time it takes to test and refine your product after launch.

Example:
The startup FitLife is creating a mobile app that helps users track their physical activity, nutrition and exercise progress.

To improve their product and meet user needs, they actively collect and incorporate feedback:

1. Creating feedback channels: "FitLife provides users with the ability to leave feedback and suggestions via a built-in feedback form, social media, and email address.
2. Analyzing the feedback: The team regularly reviews and analyzes the feedback received, identifying common trends, issues, and user requests.
3. Prioritization of Improvements: Based on the feedback analysis, FitLife prioritizes areas of improvement for the app, such as fixing bugs, adding new features, or improving the user interface.
4. Implementing Change: The startup makes necessary changes to its app and releases updates to users.
5. User Communication: "FitLife" informs users of the changes made and thanks them for the feedback provided, which builds trust and loyalty among users.

Accounting for contingencies

Keep in mind that unforeseen circumstances may arise during the development process that can significantly affect the project timeline and budget. Be prepared for this and determine in advance what measures to take in case of unforeseen situations.

Example:
QuickBites is building a platform for ordering and delivering food from various restaurants.

They understand that unforeseen circumstances can affect the development and launch of their service, so they take steps in advance to minimize risks:

1. Financial Reserve: "QuickBites sets aside additional funds for unforeseen expenses, such as changes in third-party provider rates or additional marketing costs."
2. Flexible deadlines: The startup sets realistic timelines for development and launch, leaving a margin of time in case unforeseen delays arise due to technical issues, regulatory changes, or supplier problems.
3. Contingent Planning: The QuickBites team develops contingency plans for various contingencies, such as key partner withdrawals, changes in market conditions, or data access issues.
4. Monitoring and Adaptation: "QuickBites regularly monitors the development process, responds to emerging issues, and quickly adapts to changing conditions, adjusting its strategy and plans as needed."

Conclusion

Evaluating development before starting a project is a critical step to reduce risks, optimize resources, and increase the chances of success. By following the above tips and relying on the experience of development experts, you will be able to create a product or service that will be marketable and bring you satisfaction from the result of your work.

If you encounter problems with development appraisals or are looking for advice on the subject, feel free to contact us on the form below.