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Business

4 Mistakes That Can Kill Your App Development Business

Building a reputation takes a long time but losing it will ask for just one wrong decision
4 Mistakes That Can Kill Your App Development Business
Image credit: Shutterstock.com
Guest Writer
CEO, 360 Degree Technosoft
4 min read
Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

The journey from an idea to execution is full of lessons to be learned for the lifetime. The journey itself is a teacher. There will be highs and lows but the real business will survive if both these situations are taken care of in a proper manner. Profits are not meant for the luxury only and losses does not just mean the end is at the door to welcome. A real business owner should have a proper understanding of how exactly to deal with the situation, not to let loose the ends when the time is right and not to tighten them to its extreme when times are low. Balancing the things are set at the priority. One man can’t know everything that is for sure which is why we are here to help. We are here to show the 4 biggest mistakes that can put an end to your app development business.

1) Don’t Kill the Deal

It’s difficult to convince the client to hand over their project. However, when you finish convincing the client, you are in a great hurry to get started with the project. Here’s the first mistake you are bound to make,” ignoring the paperwork.” It’s very essential to legalize things and get everything on paper.

This is profitable for both the parties and creates a sense of trust for business. If you are considering that making things legal would cost you a fortune than it might be nothing compared to the loss it would be when things go left. Certain upfront legal fees would be advisable for making things legalized in the form of contract and agreement and then proceed. Even if the client suggests to get started without proper documentation, don’t agree. Protect yourself and your business by putting every single thing in writing.

2) Hire in Hurry

There are desperate times in the app development business to hire designers and developers on an urgent basis. Well, don’t let this desperate times force you to make any desperate recruit. Don’t hire any random developer to work on your esteemed project and ruin the work resulting in client dissatisfaction. Business is not only about the entrepreneur, its the people working there who are equally responsible to make it or break it.

Another factor affecting the hiring process is the payroll. Of course, business has its own budget to follow but it is not at all the correct measure to choose your team members. Payroll is considered as the biggest expense of the business but it is also the revenue-yielding asset for the business.

3) The Budget Bargain

As a startup, the business will always strive to acquire an increased number of clients from the market. In the heed of getting the market share and making a place, the price would be kept lower than the other competitors. That’s a nice strategy but really an old one. The chances of losing the clients at an early stage are much higher once you come at par with the budget other companies are offering. The key here is to offer something to ask for a little more. Offer the clients with something they cannot deny. Lowering your budget is a stale tactic to get initial success which might create a negative impact in the long run.

4) Hasty Decisions

Taking risk is something which is mandatory as a business owner. However, risks should be calculated and bearable. If some risks bear fruitful returns doesn’t mean the business should be put at stake. Such hasty and intimidating decisions can be one of the biggest mistakes in the app development business. Taking too many projects with limited resources and overloading them with work is a step towards quality deterioration. A few quality degraded works and the great reputation is gone in a flash. Building a reputation takes a long time but losing it will ask for just one wrong decision. You don’t want that to happen to your business, do you? If not make sure to stay away from these 4 mistakes.  

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