Startup’s have shoe lace budgets. Agreed. However you still do not want to go with fixed bid projects. Below are a few factors to realize:
MINIMAL VIABLE PRODUCT (MVP)
MVP is the most used word when you are about to build your idea. However, as you start to write down what your MVP comprise of, you pretty much put down everything under the sun to be delivered for the price you negotiated with your identified technology partner. At this point, you already deviated from letting your customer evolve your software, but are now building what you think the customer wants.
If you pass all the “feature requests” through your shoe string budget, you end up building MVP. Now that you do not have to worry as the software development is fixed priced, all features get in and your product gets noisy. The retainer model helps you build your MVP better.
TECHNOLOGY PARTNER LOOSES INTEREST
You love your concept but it is more important that your technology partner loves working with you. Only then you have the right energy to create success and do justice to your idea. However, if they work on your project for a few months and have now gone over the time line they estimated, they no longer love your product and guess what, however hard they do not want, they wont be able to do a good job on your product.
RETAINER MODEL SAVES MONEY
Now that you are so much use to passing your feature requests through the funnel of your shoe string budget, you get so good at identifying what goes in and what does not, that you can call your MVP complete sooner than you expect. Spend those extra dollars on reaching out to the world and see if you want to build the product further or its time to think of another.
Founder CEO, Idyllic.
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