How to Optimize Your Sunk Development Costs?

Software development domain is highly volatile. Notions tend to fluctuate with due course of time as nothing is for permanent. Technologies keep on upgrading while methodologies revamp accordingly.

The only predictable thing in the tech world is its unpredictability.

Every year new notions emerge, mode of operations and deployment techniques revamp asking organizations to switch ways. The firms, which decide to stick to outdated procedures and strategies get themselves stuck in a state of deadlock while others, which act accordingly rise to the occasion.

The most probable reason why companies stick to previously followed concepts is their belief in invested money, time and resources over the years. They wish to continue in the hope to excel and flourish the foundation set by them earlier. They keep ploughing ahead in the hope to achieve what’s desired. This emotional standpoint often asks businesses to stick to the plan despite all other indicators pointing to failure.

But, do they prosper despite challenging the flow? Probably, not. The revision in strategies and implementation demand the attention of every business owner. They need to have a critical eye regarding current market trends and possess the ability to adapt to the changes happening in the market. As there is no pointing lingering on things where chances of return are close to none.

Organizations should not be attached emotionally to the decisions taken or investment made prior to the project. Prior investments, which can’t be recovered refer to the sunk development cost. Firms should look forward with a positive attitude and mindset in making future decisions. They are advised to explore future growth opportunities and put aside the project if there aren’t any.

Unfortunately, business owners tend to indulge in activities, which are the stories of past. They often become overly committed to activities of past despite their poor performance and results. Their future decisions reflect past and they decide to move forward on the same track in the hopes of attaining successful turnaround.

Huge money is pushed to make a doomed project a success, which is not a wise move if you want to optimize your sunk development cost. Human psychology often holds back leaders in adopting change, which contribute heavily towards sunk development costs.

There are several ways sunk development costs can be avoided allowing businesses to take decisions, which will reap sweet fruits in the end. The Past has already gone, but your future is still in your hands. It’s time to make wise decisions, switch ways and invest smartly. Here are few ways to achieve the same.

• Re-think future goals

After being trapped in sunk-cost you might go clueless of what’s the future? You also might panic because of resources, money and effort you had put in, which is normal. But, it’s time to stay calm and re-think your strategy. Without thinking too much about past you need to focus on growth opportunities and viable options for a long-term ROI.

Exploring and analyzing upcoming possibilities will dictate your success. No matter if you switch ways or stick to the root plan, what’s important is your next move. Hence, it’s important to explore deep, scrutinize every little titbit and challenges that might accompany you in future before taking a final call.

Plan accordingly, discuss with experts, consult your analysis team and perform an extensive research before any further move as you can’t afford to take a wrong foot forward this time around.

• Reassess user’s needs and business objectives

A software or an app is built to cater user’s needs and overcome challenges faced by them. The end user holds utmost importance and businesses need to take care of that. The scope, ROI and growth are ultimately relating to how the user reacts to the final product. Establishment of business goals and objectives are thereby important keeping the end users in mind.

According to user’s perspective, prioritize goals and act accordingly to achieve the same. Consider the most important features needed to integrate first then following the list come to the least important ones. This will make the picture clear knowing where to spend and what can be eliminated.

• Invest like a pro

One of the most important factors, which as a business owner you need to consider is investment. Investing more on the failed strategy or investing in a new model, is the puzzling choice you have to make here. You need to invest smartly after analyzing all the factors that include your app’s value, competition, scope and target audience.

Justify your analysis on the above-mentioned points before you start once again in building your dream product. Make sure your app stands out of the ordinary and you offer more than your competition, which would not only add value to your product but will also enhance your brand’s image.

Ensure you do a thorough research of your target audience and their needs. Plus, also analyze the scope of making money with the continued development as you already have invested heavily in the project in the past.

• Routine meeting schedule

It has been observed that most of the projects fail due to lack of communication or irregular track of project’s development. This raises concerns for organizations to keep up the morale of the team as well as the project’s progress rate. To overcome such cases a regular meet-up and discussion sessions between teams is required, which ensures the project is on the right track and if there are any issues they can be counterfeit.

The discussion reveals interesting ideas while growth possibilities become vast, which ultimately helps in project’s improvement.

• Selection of development company

Another crucial aspect is the selection of proficient development team. Until the team cannot deliver results nothing can turn in your favour. You must be cautious while handing over a project to the development team. Make sure you have done enough research of the market for a perfect development partner. Some important points, which you need to take note before you finalize include,

  

a. Prior experience in the same domain

b. Development process followed by the team to achieve targets

c. Past efficiency in delivering apps within time frame

d. Average budget in getting the task done

e. Customer satisfaction rate

If you can satisfy yourself on the above-listed points, then it’s probably the right time to team with a web development company, which can understand, analyze and transform your idea into reality.

Read More