Software development has undergone a significant transformation in all these years. With new platforms, new languages, and new tech being developed every day, it is difficult to know where to start when planning out your development strategy.

Software Development for Startups – A Complete Guide

We have categorized it into five major sections to help you understand the software development process for startups:

  1. How to start your Software Development Process?
  2. Software Development Process and its Stages
  3. Problems and Solutions of Software Development
  4. Where to Find Software Development Companies?
  5. Software Development – Market Overview, Cost, Technologies Used

Let’s focus on each in detail.

How to Start Your Software Development Process?

Before starting, make sure you have someone with technical knowledge to hire software developers for your startup. The optimal candidate will have field expertise, but if you are short on staff, someone who is at least tech-savvy will be a good pick. By selecting a capable individual for the position of identifying the most excellent fit team, you should be sure that you are getting the most out of your venture.

Many startups hire software developers for the software development in their business, whereas some hire offshore developers. But how can you know the most suitable option for your business? Let’s compare the same for a better understanding.

Read Also: How To Outsource Software Development Effectively


Difference between Freelancer and Software Development Team

Software Development vs Freelance Developer


Freelancer Developer

Software Development Team





Expertise in the limited field

Multiskilled in different fields




Task Concurrence


Each member is responsible for their part


Temporary or Long-term Cooperation

Long-term Cooperation

Size of Project

Small to Full-time

Bigger Projects


Need to include NDAs if privacy is a concern

NDAs are included in the contract


Flexible hours

Time limit

Further Project Maintenance



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Software Development Process and Its Stages

Once you hire the developer, it is time to move on to the actual task, i.e., your startup’s software development business process. Following foolproof software development, a startup business plan is essential for smooth functioning.

Most of the time, development teams collaborate closely with the clients to ensure everyone is on the same page. Here, both parties need to list their options and discuss the groundwork. These comprise various software features, objectives, risk analyses, and other crucial information.

Let’s dive into the guide on the software development process for startups-

Software Development Team vs Freelance Developer

Conduct market research: Market research is part of planning. It involves mapping out what will be done, how it will be done, who will do it, when it is done, and what resources are needed. Do profound market research on the product to figure out:

  • Present and future trends
  • Customer needs
  • Changing market demands
  • Potential business risks
  • Current Competitors

Analyze the requirements: This is the stage where the project management team meets with the clients. They discuss the requirements and features of the software. They decide the scope of the project, budget and tools. During this point, the project’s overall viability is examined. Be aware of the dangers and approaches to be taken throughout the entire software development process.

Design: Under this step, the team brings the solutions based on the client’s product or service. It establishes the overall workflow, procedure, and structure they should adhere to when integrating the solutions. The team develops software models during the design process. These models help them to finalize which tools should be used for the project.

Testing: Under this stage, the team ensures that all necessary features have been completed successfully before going live. They must check whether they have adhered to the particular functions that the product and business demand.

Deployment: The team installs and puts the finished product of the software into use. They create a usable version of the generated program. At this point, the software is launched, and the client and their consumers will be able to use it immediately.

Maintenance: At this level, the team has completed project verification. The program is now accessible for use. The software now has to be scaled and maintained. They are responsible for making the software adapt to the company’s new requirements and inescapable technological advancements.

Test Market Adoptions: Once you launch the product, the next step is to test its performance in the market. You can check the version by receiving feedback from your audience. There are two types of tests for marketability:

  • Alpha test: Test engineers conduct this testing to check the product’s actual performance. This testing ensures the software product is bug-free.
  • Beta test: Here, customers themselves provide feedback. It is widely known as marketability testing.

Promote your product: The next step after completing the marketability test is to market your product. It all depends on how effectively you can advertise your goods. The top four advertising and marketing strategies you can incorporate into your marketing plan are:


Problems & Solutions of Software Development Process

As a startup, you likely do not have the luxury of a large team or expansive budget regarding software development. That does not mean you cannot create a great product. You can develop software that meets your needs and budget with careful planning and execution.

But mere development of the software does not guarantee success. Many problems and concerns arise in every undertaking, especially in the highly analytical and mathematical tech sector. Here are some issues and their solutions to help you in your software development process:

Software Development Process




Case 1

Undermining Critical Needs: Teams are overfocused on the end product and forget what’s important

Planning: To avoid this problem, the team should plan and analyze the crucial points during the initial stage.

Case 2

Sudden and Late Changes: The sudden and last-moment adjustments may disrupt the project flow.

Choose the Correct Model: The Agile and Scrum model allows teams to pause the overall ongoing process. Teams can always revisit each stage as per the requirement.

Case 3

System Development and Maintenance Issues: Avoiding system, development, and coding challenges are impossible. That’s why teams should use standard IT solutions.

Source Control: The teams must have a central repository for source control where they keep the important codes. They can always return to source control if a server faces issues or fails.

Read Also: Software Development – Cost, Features, and Security Measures

Where to Find Software Development Companies?

There are a few ways to find software development companies. You can search online or ask people for recommendations. There are online sources to help you connect directly with people associated with these organizations. Some of them are elaborated below:


LinkedIn is one of the most popular talent finder apps in today’s world. It shows the availability and demand for a particular talent in a specific field. The startups can locate the top places for leading experts in a specific area. LinkedIn also features in-depth profiles of each software development company, enabling users to quickly learn about each one’s specialization, number of employees, contact details, and location. It makes choosing the right custom software development company simpler.


Upwork uses advanced algorithms for finding applicants that fit best per the standard requirements. Each agency account features a thorough profile, testimonials, a portfolio, and total work experience. Clients ensure that they are getting exactly what they are paying for as Upwork counts keystrokes and takes random screenshots to check the ability of the developer’s screen.


Goodfirms is a research and review website that ranks software development organizations. Their ranking is based on experience, market share, portfolio, and verified client reviews. It uses a cutting-edge filtering algorithm to assist consumers in finding the businesses that best fit their needs.


Clutch is a well-known and reputable source for selecting a software development company for startups. Each business is screened correctly and scrutinized before being included on the website. This is accomplished through specific applications, client evaluations, one-on-one phone calls, and portfolios.

Moreover, when you search for a company, you will be able to check their ratings and details related to their area of expertise, employee count, contact details, hourly rates, location, and minimum project costs.


Attend conferences where businesses may network and discover the latest trends and innovations. You will be able to speak with company CEOs or COOs, meet engineers and team leaders in person, and find a match that matches your project and culture.


Similar to Clutch, specialised directories like Appfutura compile vendors of software development services according to numerous categories. Most websites also have pages for each company with information and customer reviews in addition to the listings.


You can get your answers by asking your query on Quora. You can get hands-on offers from software development companies or independent engineers. This platform has developed into a network of companies and clients, as well as various experts, marketers, developers, etc.

Many businesses use it as a promotional tool and aren’t afraid to publicly market their products. Frankly, all of them are vying for a consumer by providing smart solutions, helpful advice, and visual aids like photographs and infographics, etc.

Therefore, if you ask, “What’s the best mobile app development organization?” you will receive dozens of answers within a short period of time.

Software Development – Market Overview, Cost, & Technologies Used

Software Development is a rapidly growing industry expected to grow as more companies shift to virtual environments. Improving customer experiences, bringing more feature-rich and innovative products to market, and implementing new revenue and cost-saving opportunities are essential. Here are some fascinating software development statistics, trends and insights to demonstrate the sector’s growth and how it is the economy.

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Market Overview

What size is the market for software development? What awaits us in the future? How many software engineers exist worldwide? In this section, we’ll discuss some frequently asked topics about the software development industry and examine its prospects for the future.

Software Development for Startups

  • Around 517 billion US dollars will likely be spent on enterprise software globally in 2021, an increase of 10.8% from the previous year.
  • Due to the detrimental effects of the coronavirus (COVID-19) pandemic on the global economy, enterprise application software revenue will reach 209.4 billion US dollars globally in 2020, a 2.2 per cent decrease from 2019.
  • Software development is anticipated to grow due to the quick increase in enterprise data volume and automation of business processes in several sectors, including retail, manufacturing, healthcare, and transportation.
  • In 2019, there were 26.4 million software developers worldwide. By 2023, the number is projected to increase to 27.7 million, and by 2024, to 28.7 million.

Also Read: Automation in Software Development- A New Stream of Revolution

Cost of Software Development

Custom Software Development takes time in planning, design, architecture, programming and quality assurance work that goes into development. Under this, we will look into average software development time statistics and how that impacts the cost.

Software Development for Startups

  • Custom Software Development takes an average of over 4 months of development
  • The price range depends on the extent of the work, the deadlines, the developers’ experience, and other criteria; the average cost ranges from $3,000 to $120,000
  • The most complex software may cost up to $1 million to develop
  • 51% of company representatives claimed that it could cost up to $5,000 to develop an original concept in the pre-research stage
  • As per the industry standards; software maintenance costs often range between 15% and 20% of their original development costs
  • In 2019, software developers earned a median salary of $107,510, the highest 25% made, while the lowest 25% earned $82,430
  • A freelance software engineer can earn between $25 and $300 per hour

Also, Read Here – Outsourcing Software Development to India – Why it is the Preferred Centre for Outsourcing?

Technologies Used in Software Development

Businesses investing in software and developers have over 700 programming languages to choose from. Here are some of the tools used in software development.

Operating Systems Software Development Use Worldwide

  • As per the most recent stats of Statista, the most common environment for 61% of software developers is Windows
  • With 47% of developers using it, Linux is in second place on the list of the most used PC operating systems, followed by macOS
  • The most popular programming languages are JavaScript, Python, Java, C#, and PHP
  • As of 2020, MySQL is developers’ most widely used database system
  • The top three web frameworks are jQuery, React.js, and Angular
  • One of the essential software development tools is regarded as being GitHub
  • Python is one of the fastest-growing programming languages

Read Also: Best 12 Countries to Outsource Software Development


We now know that before starting your software development process, it is crucial to understand what you need clearly. A proper software development plan for startups can help save time and money. 

We have provided you with this guide to ensure that you start your software development with the necessary knowledge and expertise. Software development can be different for different businesses. There are many factors that lead to the success of software development for startups since each project involves different stages, hidden pitfalls and different choices.

Remember to consult with experienced developers and take advantage of the above-stated resources. Your startup can thrive with continuous hard work and dedication.

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