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Financial calculation of a startup – the nuances of valuation

20.01.2025

Despite the fact that each niche is highly competitive today, new ideas regularly emerge. The prospects for their development directly depend on a well-thought-out business plan and potential usefulness for consumers. It is good if you plan to develop an iOS application right away in order to provide your target audience with your product in the most convenient format, because most people today find the services and goods they need through smartphones. Even with an extremely precise understanding of the essence of your project, the principles of its development, it is quite difficult to give a very clear estimate of the cost. However, it is imperative to first analyze and calculate potential costs.

Where to start?

The development of any startup begins with an analysis of the requests and needs of users from the designated target audience. It is important to take into account both explicit and hidden (passive) expectations. There are those that the users themselves know about, and there are those that only the owner of a new startup can foresee. When it exceeds user expectations, it receives a corresponding profit, expressed in profit and the success of promoting its brand.

Even with a certain vision of how to develop your startup, it is not at all necessary to do everything yourself. It is enough to think through a clear plan, and then delegate various tasks to specialized specialists. For example, if you need to develop a mobile application, it makes sense to contact Nova.Shop, where the price of the project will be acceptable and its quality is at the highest level.

We create an MVP

In this case, the main task is to create a basic list of necessary functions and requirements. That is, it will not be a detailed, but a fairly superficial project, in which the main aspects of the business concept are step by step, but thesis-wise.

Further, the components may change during the implementation process, but the backbone remains unchanged.

At the same stage, you can provide an approximate cost of the project after its development. To do this, it is enough to look at the results of competitors, take into account their developments, individual aspects, on the basis of which you can think through the implementation of your startup in more detail.

Scale of development

Before ordering the development of applications for users of specific devices, for example, the iPhone, it is necessary to more clearly limit the prospects. It is one thing if it is a local project with a narrow audience, and quite another when the stake is on a more global coverage of the target audience. It is quite logical that the price of a local project will be lower. However, the niche in which the startup is planned to be launched is of great importance. If this is a specific area for a narrow circle of consumers, then with the right approach you can earn much more on such a project than in a global case, but with higher competition and a dispersed target audience.

Updating market data

Before you start developing on iOS, you need to get your bearings on what competitors are ready to offer, what difficulties they are experiencing at this stage of development, what are their advantages. In almost all areas today, there is a moment of dynamic leap if the business develops with a creative approach. Those who adhere to a leisurely approach and traditional methods are often left on the sidelines. Therefore, it is certainly worth experimenting, but you need to do it wisely.

Here you should also think about how interesting your project can be for investors. It is one thing when native development of mobile applications is needed, and this will be done by one of the enthusiastic specialists from the team. It is quite another thing if you need to order the development of an iOS application from professionals in order to obtain a guaranteed result of instant quality and reduce the time spent on project implementation. The composition of the team, by the way, also greatly affects the success of the case. If the employees are not motivated, then it is unlikely that you will be able to immediately enter the market and make your product recognizable and popular.

Preliminary calculation of costs

To understand how much you will have to invest in the development of your startup, you need to navigate the budget. To do this, it is important to make a list by category:

mandatory;
regular.

Since in the current reality the most effective will be promotion via the Internet, then you need to immediately clarify the cost of developing a mobile application. To get good quality, it is unlikely to use popular mobile application designers. It is better to entrust this task to professionals who will use a creative individual approach.

Employee salaries are another solid share of expenses. Therefore, it is important at the initial stage to take those specialists without whom the implementation of the case is basically impossible. Especially if the budget is somewhat limited. You can also attract freelancers, but in this case, take into account all possible risks with the quality and timing of the execution of the designated tasks. Then, as the promotion progresses, you can supplement the staff with specialists of different profiles.

The costs of equipment and software will also take up a solid share of the budget if you focus on quality. However, everything depends on the chosen field of activity. It is quite possible that it will be enough to just buy an Apple developer account through which to develop a mobile application, and no more additional costs are expected, because customers are offered a digital product. More precisely, there will be costs, but for advertising, marketing, and software maintenance.