Friday, November 6, 2015

How to Reduce Developer Costs"

I like to cite examples of what to do using my personal startup, Kronicity. Kronicity is a free research tool that generates revenue through user engagement and publishing. Greta idea, but getting it developed has been a pain in the ASCII. I literally went though 5 developers to get the product to a place where we can anticipate a launch. And I've come up with a few rules for development and a new tool in my business strategy tool box.

1. Never use equity as payment for a developer. They're just too few around and they're so easily pulled away by paying customers.

2. Vet the hell out of them. This doesn't mean looking at sites they've developed. You really have to get in there and talk to the owners of the site they've worked on and even the developer's partners. Sorry to say guys, but development seems to attract the real awkward kind of folks - folks no normal human can work with.

3. You can save a bundle gong offshore, but Don't go directly offshore. Use a third party in the USA that can be held responsible. More on that in  the example.

4. Talk it over with a lot of folks.

Here's how I accomplished all of these rules in Kronicity. First, I found a developer in hartford, CT that outsourced his work to Egypt. He's a very likable and competent sort and, critically, bound by law to adhere to his contract with me. I get the security of a local developer but paying offshore prices. He came with personal references and paid him for a test of his skills that went quite well.

Next I took on a developer as partner. Not just any developer. I found one that I can work with -  not awkward and argumentative. His job is to make sure the contract developer is doing his job, on time and under budget. As a business strategist and paleontologist, I have no idea when I'm having the wool pulled over my eyes. He also utilizes his network of developers to discuss and adjust our development - something I could never do. Bottom line is that his motivation is the same as mine.

The results have been amazing - half the development time and $123,000 less than planned. We've since added development services to GJC Business Strategy Consulting service list. We work with you to not only develop good business, marketing and channel planning, but also build and guarantee the site for a fraction of what most think possible.

We're available for free consultation in the Hartford area. Looking forward to hearing what you're building.

Fo more on the value of Business Strategy, see post: "What Does a Business Strategist Do?"

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