<p>In an ever-evolving software development landscape, innovation and excellence have become essential pillars of success. At Rocketech, we understand the significance of cutting-edge technology in enhancing your business processes, <a href="https://rocketech.it/software-development">services</a>, and products. Today, we are thrilled to share news of our latest achievement that reaffirms our commitment to delivering exceptional software solutions.</p>



<p>We are proud to announce that <strong>The Manifest</strong>, a reputable <a href="https://themanifest.com/ua/software-development/companies/kiev?utm_source=directory&amp;utm_medium=blog&amp;utm_campaign=TM+Awards" target="_blank" rel="noopener">agency shortlist</a> and business blog website, has recently honored Rocketech by recognizing us as one of <strong>the most-reviewed software developers in Kyiv</strong>. This recognition holds immense value for us and underscores our dedication to delivering top-tier development services to our clients.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="1080" src="https://wp.rocketech.it/wp-content/uploads/2023/08/top_the_manifest_software_developers_kyiv_2023_award.png" alt='The badge saying "Most Reviewed Software Developers in Kyiv by Manifest".' class="wp-image-6156"></figure>



<p>Our journey to this remarkable recognition is marked by a relentless pursuit of excellence. At Rocketech, we offer not just software development services but a dedicated Chief Technology Officer (CTO) and a powerhouse of resources. It allows you to focus solely on your core business while we handle the entire software development lifecycle, encompassing project discovery, design, programming, testing, and deployment. Whether you are a fresh startup or an established enterprise, we have your technical needs comprehensively covered.</p>



<p><strong><em>We extend our heartfelt gratitude to our clients who have stood by us throughout this journey. This award is a testament to your trust and partnership with us. Without your unwavering support, this achievement would not have been possible.</em></strong></p>



<p>This recognition serves as a catalyst for us to continue pushing boundaries and setting new standards in software development. We remain committed to empowering businesses with innovative solutions that drive growth and success. <strong>Your success is our success</strong>.</p>



<p>Our vision extends beyond the present recognition of being one of Kyiv’s most-reviewed software developers. Our future is intricately tied to our mission—<strong>empowering startups to not only get started but to thrive in competitive markets</strong>.</p>



<p>Our role as <strong>experienced tech partners</strong> goes beyond merely delivering software solutions. We act as a catalyst for emerging startups, helping them grow and scale efficiently in fiercely competitive landscapes. Our commitment to transparent pricing, rapid project kick-offs, and on-the-fly result forecasting is tailored to meet the unique needs of startups, enabling them to make data-driven decisions and adapt to evolving market conditions swiftly.</p>



<p>Trustworthy, long-term tech partnerships are the lifeblood of startups. We understand the challenges of navigating uncharted waters, and we’re here to provide continuous support, mentorship, and expert guidance. These partnerships are not just about initial success; they’re about ensuring sustainable growth and longevity in the ever-changing tech ecosystem.</p>



<p>Our recent recognition by The Manifest affirms our dedication to excellence, and it’s a testament to our ability to support startups in achieving their goals. We believe that our success is intrinsically linked to the success of the startups we empower.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Ready to level up your business?<br>Talk to our experts.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>


Rocketech Receives the Manifest’s Recognition as One of Kyiv's Most Reviewed Software Developers

<p>SaaS stands for <strong>software as a service</strong> and refers to cloud-based software users can access through a website or a web app. Slack, Google Docs, Dropbox, and Shopify are just a few successful examples of SaaS platform development done right.</p>



<p>Is SaaS development still a solely big players’ prerogative? Can startups or local <a href="https://rocketech.it/blog/post/how-to-create-a-marketplace-platform-in-2022" target="_blank" rel="noreferrer noopener">marketplaces</a> enter this market? We summed up the most important points and explained how to build SaaS applications and solutions in this guide.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="624" height="301" src="https://wp.rocketech.it/wp-content/uploads/2022/11/saas-intro.png" alt="This image shows a young entrepreneur typing on a laptop computer. A young entrepreneur using a laptop computer to develop a SaaS product. " class="wp-image-4292"></figure>



<h2 class="wp-block-heading">SaaS Development Overview: What is a SaaS Solution?</h2>



<p>SaaS, or <strong>software as a service</strong>, refers to the use of the cloud to deliver licensed software that users can then pay for on a subscription basis. In other words, these are cloud solutions accessible through a web interface or a mobile app.</p>



<p>To work with such software, <strong>users</strong> <strong>don’t need to download and install anything on their computers</strong> or connect to an isolated corporate network. All you need to do is open it in an Internet browser. SaaS products can be anything from simpler office tools to complex enterprise-level software.</p>



<figure class="wp-block-table"><table class="has-light-color has-primary-background-color has-text-color has-background"><tbody><tr><td class="has-text-align-center" data-align="center">SaaS is a business model for subscription software distribution. Users pay a set amount each week, month, or year and receive the service. </td></tr></tbody></table><figcaption class="wp-element-caption">What is SaaS?</figcaption></figure>



<h3 class="wp-block-heading">SaaS Product Types</h3>



<p>One of the reasons why the SaaS concept became so widespread is its <strong>versatility</strong>. Software-as-a-service products are now a big part of business ecosystems in nearly any field. Most often, they are grouped by <strong>industry</strong> or <strong>purpose</strong>. Here are the largest and most well-known types with examples.</p>



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2022/11/saas-product-types.png" alt="An infographic explaining SaaS product types." class="wp-image-4286" style="width:600px;height:1500px"><figcaption class="wp-element-caption">SaaS product types</figcaption></figure>



<h3 class="wp-block-heading">Six Benefits of SaaS Solutions</h3>



<p>SaaS cloud platforms steadily replace conventional software installed in on-premises infrastructure. We summed up <strong>six main reasons</strong> why businesses choose to develop SaaS applications.</p>



<h4 class="wp-block-heading"><em>#1</em> Easy to Set Up</h4>



<p>SaaS applications are <strong>web-based</strong>. It means users don’t have to configure them in a complicated way. Companies also don’t need to purchase infrastructure resources to run these cloud-based services.</p>



<h4 class="wp-block-heading"><em>#2</em> Scalability</h4>



<p>As the business expands, companies can easily scale the SaaS solutions. This allows them to <strong>handle growing workloads and accommodate more users</strong>. In the case of traditional software requiring on-premises infrastructure, scalability often becomes a challenge.</p>



<h4 class="wp-block-heading"><em>#3</em> Convenient Payment</h4>



<p>The fee is <strong>included in the monthly (weekly or yearly, alternatively) operating costs</strong> and is easier for most companies to pay than an expensive software license. The subscription increases as the platform scales, naturally. However, the customer business doesn’t have to invest in additional infrastructure capacity.</p>



<h4 class="wp-block-heading"><em>#4</em> Instant Updates</h4>



<p>Users benefit from SaaS <strong>software updates as soon as they are deployed</strong>. For comparison, when using conventional software, organizations have to purchase and install new versions to keep it up-to-date and access enhanced and additional features.</p>



<h4 class="wp-block-heading"><em>#5</em> Accessibility </h4>



<p>Companies can use any SaaS application literally<strong> anytime and anywhere</strong>, as long as the Internet is available. It makes it easier to organize remote work, keep better control, and establish communication with stakeholders regardless of their physical location or time zones.</p>



<h4 class="wp-block-heading"><em>#6</em> Trial Versions and Basic Plans</h4>



<p>Most SaaS products allow users <strong>to try them before making a decision</strong>. Instead of investing in an application that may not meet expectations blindly, users can test the features and see if they meet their needs.</p>



<h2 class="wp-block-heading"><strong>How to Build a SaaS Platform in Six Steps</strong></h2>



<p>Some adventurous startupers try to find the best saas development platform and do it themselves, for example, with no code instruments. While it is a possible scenario, such products are rather temporary solutions — they lack flexibility and are not easy to scale. Let’s have a look at what happens if you go the way of custom development. Here’s <strong>our six-step guide on how to create the software as a service</strong>.</p>



<h3 class="wp-block-heading">Step 1: Discovery</h3>



<p>Whether you opt for a SaaS development platform or hire <a href="https://rocketech.it/blog/post/scaling-startup-success-the-benefits-of-hiring-a-dedicated-development-team" target="_blank" rel="noreferrer noopener">dedicated developers</a>, successful projects start with a thought-through roadmap and good planning. To that end, startups use methods of product discovery or a project <a href="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" target="_blank" rel="noreferrer noopener">discovery phase</a>. It revolves around <strong>three</strong> <strong>main aspects</strong>.</p>



<h4 class="wp-block-heading">Your Business Idea</h4>



<p>The first step towards creating your own SaaS solution is to understand exactly what you want to do, which problem, and how you want to solve it with cloud technology. In the case of SaaS application development, it’s usually making things easier to work with or moving software or your service to the cloud.</p>



<p>Successful business ideas aim to solve the problems of a specific target audience. In SaaS product development, cloud migration primarily simplifies a process (a website launch, project management, or document creation). After that, SaaS services develop ecosystems and develop additional functionality.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://wp.rocketech.it/wp-content/uploads/2023/08/saas-business-concepts.png" alt="An infographic explaining SaaS business concepts" class="wp-image-6093"></figure>



<h4 class="wp-block-heading">Market Research and Analytics</h4>



<p>A comprehensive market study is essential to understand what your target customers need. Examine your competitors: design, features, marketing and advertising, pricing, and more. It will help you grasp how other startups implemented a similar idea, what worked well, and what can be improved to get a competitive advantage.</p>



<p>Conduct in-depth <a href="https://rocketech.it/blog/post/the-guide-for-perfect-customer-development-problem-interview-checklist" target="_blank" rel="noreferrer noopener">problem interviews</a> with your potential users. It’s the quickest, relatively inexpensive, and most secure way to find the product-market fit. Combining the data from your customer research and analytics allows you to define the basic functionality.</p>



<h4 class="wp-block-heading">Requirements and Documentation</h4>



<p>A competent approach to documentation is the backbone of every successful project. Simply put, you need to create it so that managers always understand the business requirements of every release, developers plan every iteration and choose the right SaaS development tools, and QA engineers test the right parts of the software.</p>



<p>It is also the stage when the requirements management process starts. It involves identifying, documenting, analyzing, and prioritizing project goals. In the case of a third-party service provider (a SaaS developer, for instance), it also registers obligations and liabilities.</p>



<h3 class="wp-block-heading">Step 2: Prototyping and Interface Design</h3>



<p>The next step in developing SaaS solutions is creating a <a href="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" target="_blank" rel="noreferrer noopener">prototype</a>. It should catch and <strong>convey the future product’s business logic schematically displayed</strong>. Although most likely you will make many changes at later development stages, a prototype can help define and readjust first features and, in some cases, already attract first investments.</p>



<h3 class="wp-block-heading">Step 3: Software Development and Building an MVP</h3>



<p>It’s the most significant part of any software development project. It’s complex and often broken down into <strong>shorter iterations</strong>. Each iteration should create an increment — value for the end user. The iterative process usually starts with creating a <a href="https://rocketech.it/blog/post/when-to-launch-an-mvp-7-scenarios-where-its-crucial" target="_blank" rel="noreferrer noopener">minimum viable product</a> (MVP).</p>



<p>The MVP has limited functionality (sometimes, just one feature), which is yet ready for a market release. This way, you can collect valuable feedback from the first users and plan and develop further features accordingly.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Don’t know how to plan your software development project? We can help.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback" data-tags="funnel">Ask us</button></div>



<h3 class="wp-block-heading">Step 4: QA and Testing</h3>



<p>QA stands for <strong>quality assurance</strong>. QA engineers don’t just test software for bugs but maintain <a href="https://rocketech.it/blog/post/how-to-set-up-qa-process-on-short-term-projects-that-rocks" target="_blank" rel="noreferrer noopener">product standards</a> in the long run. Their main task is to prevent software defects and, as a result, ensure the high quality of the development process and its outcome.</p>



<p>Many startups with limited resources try to save up on the QA stage and required specialists. In reality, poorly organized QA processes lead to much bigger financial losses — from hiring specialists to fix badly written code to losing customers due to a poorly functioning product.</p>



<h3 class="wp-block-heading">Step 5: Scaling and Maintenance</h3>



<p>Development is never over with the full-product release. Successful ideas evolve, and profitable businesses expand. There are many strategies for scaling digital products. But it’s important to remember that (like with any other software type) for SaaS, programming doesn’t stop when you make it available in the market.</p>



<p>For example, <strong>Salesforce </strong><a href="https://www.salesforce.com/news/stories/the-history-of-salesforce/" target="_blank" rel="noreferrer noopener">developed</a> machine learning, AI-based products to upsell them to existing customers, grew into new areas like social media marketing and advertising, and became a global SaaS application development platform.</p>



<h2 class="wp-block-heading">Building a SaaS Product: Monetization Models</h2>



<p>Similarly to other software types, there are several ways to monetize a SaaS project. The choice of a pricing model depends on several factors, including <strong>target audience</strong>, <strong>industry</strong>, <strong>number of features</strong>, and <strong>complexity</strong>. Naturally, founders need to think this part through very carefully to return the investment in the cost of developing a SaaS platform and start generating profits.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/08/saas-monetization-models.png" alt="An infographic describing main SaaS monatization models" class="wp-image-6095"></figure>



<h2 class="wp-block-heading">Final Thoughts on SaaS App Development</h2>



<p>Although the idea of creating your own cloud-based product may seem unrealistic, more startups nowadays launch successful services in niche markets. However, there’s a catch. If your budget doesn’t include hiring an in-house tech team, you’ll need trustworthy SaaS platform developers to support your business throughout the entire journey.</p>



<p>At Rocketech, we have <a href="https://rocketech.it/cases/saas" target="_blank" rel="noreferrer noopener">hands-on experience</a> with the SaaS development process from ideation to product launch and scaling. We offer our clients not only full-cycle software development services but also provide them with business advice and market expertise.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Do you have a SaaS product idea?<br>Let’s discuss its business potential.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


Developing SaaS Applications for Startups: How to Build a Successful Solution

<p>When you want to build a tech product, there are two ways. You can hire your own IT team and do it yourself or come to a professional vendor. Many people are scared to cooperate with agencies, and we understand why. I will try to explain how misunderstandings happen, what’s behind them, and how we solve them at <a rel="noreferrer noopener" href="https://rocketech.it/?utm_source=google&amp;utm_medium=blog&amp;utm_campaign=blog" target="_blank">Rocketech</a>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2022/12/sign-a-contract-1.png" alt="" class="wp-image-4818"></figure>



<h2 class="wp-block-heading">Agencies Have Major Focus Issues</h2>



<p>Many agencies focus on sales performance and try to manage everything — marketing, design, development, HR services, and much more. We started several years ago and quickly understood that agencies must focus on <strong>services</strong>. The smaller the focus is, the easier it is to scale your business. From the customer’s perspective, it is better to choose a specific agency that works in your domain zone.</p>



<h2 class="wp-block-heading">Third-Party Teams</h2>



<p>A very common working model for agencies is outsourcing to some third-party companies. We understood it wouldn’t work if we wanted to establish long-term partnerships. With this approach, founders simply overpay for an agency’s “brand” and often encounter a conflict of interest on the development side. This way, the “brand” often lacks quality control.</p>



<blockquote class="wp-block-quote">
<p><strong>At Rocketech, we collaborate only with our own developers who follow our standards. And this is the value we offer to our customers.</strong></p>
</blockquote>



<p>My advice to founders looking for a custom software development agency: look at the candidate-company LinkedIn page and the employee list. Check out their other social network profiles. It will help you understand who is communicating with you and who is going to be involved full-time only in your project.</p>



<h2 class="wp-block-heading">The Value You Get Every Hour</h2>



<p>We participate in different tenders around the globe and understand what is included in every hour of development. In the end, quality depends on the person delivering the service. </p>



<p>For example, we provide maximum value even for limited budgets. It means all our employees have a minimum of 5-6 years of experience (8+ years for business analysts and DevOps specialists). Besides, we don’t charge for recruitment and employee bonuses — it’s already included in hourly rates.</p>



<blockquote class="wp-block-quote">
<p><strong>Every company has a unique process and working standards. Sometimes it takes time to understand what makes the price. </strong></p>
</blockquote>



<h2 class="wp-block-heading">Methodology of Delivery</h2>



<p>Most software development agencies follow either the <strong>Fixed Price</strong> or <strong>Time and Material</strong> (T&amp;M or outstaffing) collaboration model. They have specific discrepancies. Besides, the concept may vary from vendor to vendor. Here are the classic differences between the two approaches summed up.</p>



<figure class="wp-block-table"><table><tbody><tr><td></td><td><strong>Time &amp; Material</strong></td><td><strong>Fixed Price</strong></td></tr><tr><td><strong>Compensation</strong></td><td>Hourly</td><td>By phase (a specific part of the project)</td></tr><tr><td><strong>Code transfer</strong></td><td>Full access during development</td><td>Upon the payment</td></tr><tr><td><strong>Team management</strong></td><td>Typically performed by the customer; the agency can provide some management, but control over the project depends on the customer</td><td>The agency’s responsibility; one single manager is assigned to communicate between the customer and the service provider</td></tr><tr><td><strong>Task</strong> <strong>management</strong></td><td>Done by the customer all the time</td><td>Fixed in the technical requirements document bound to the contract and inflexible during development; only extra annexes are possible</td></tr><tr><td><strong>Working process</strong></td><td>To be designed by the customer or already designed for the team to just follow it</td><td>No need to dive into it; the whole process happens internally; the customer only works with the project manager</td></tr><tr><td><strong>Budget</strong></td><td>Flexible and changes all the time; the product owner takes responsibility for it</td><td>Fixed at the beginning and can be changed only after the work is done</td></tr><tr><td><strong>Risks</strong></td><td>The customer is in charge of risks and risk management</td><td>Belong to the agency; it results in overcharging for every feature</td></tr><tr><td><strong>Changes</strong></td><td>Upon request and typically costs a few hours</td><td>After agreeing on everything and registering it in the annexes; typically expensive</td></tr><tr><td><strong>Technical requirements document</strong></td><td>Not vital and can be changed at any time</td><td>Created by the project’s product owner</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Clear Requirements</h2>



<p>Regardless of which kind of project you delegate to a custom software development service provider, always try to be as clear as possible about what needs to be done and what you expect as a result.</p>



<blockquote class="wp-block-quote">
<p><strong>The more detailed your tasks are, the easier and quicker the team will implement them.</strong></p>
</blockquote>



<p>We have different approaches to idea evaluation and testing based on our experience and business expertise we happily share with our customers. Naturally, building a marketable digital product is a challenging task, and founders come to agencies to get the best out of this cooperation. However, successful business owners are also product owners. Understanding and translating what needs to be done allows them to create products that skyrocket.</p>



<p><a href="https://rocketech.it/contacts">Contact us</a> for more details about our processes and collaboration models.</p>



<p><strong>Let’s make great digital products together!</strong></p>


Signing a Contract with an Agency: Pitfalls and Industry Insights

<div class="wp-block-image is-style-default">
<figure class="alignleft size-full is-resized"><img loading="lazy" decoding="async" src="https://wp.rocketech.it/wp-content/uploads/2021/08/istockphoto-1220744928-612x612-1.jpg" alt="" class="wp-image-822" width="408" height="272" srcset="https://wp.rocketech.it/wp-content/uploads/2021/08/istockphoto-1220744928-612x612-1.jpg 612w, https://wp.rocketech.it/wp-content/uploads/2021/08/istockphoto-1220744928-612x612-1-158x106.jpg 158w" sizes="(max-width: 408px) 100vw, 408px" /></figure></div>


<p>In this article, I’m going to talk about the main methods of developing mobile applications in 2021. Unfortunately, I will mention only the most common options in the startup market. The main reasons are the cost of development and the speed of building a team. Young companies need the most effective, inexpensive, and time-tested solutions.</p>



<p>There are two basic approaches to mobile app development:</p>



<ul>
<li>Native</li>



<li>Cross-platform.</li>
</ul>



<h2 class="wp-block-heading">Native </h2>



<p>The native approach to the development of mobile applications implies that the company/startup implements applications for each platform separately and in different programming languages. </p>



<h3 class="wp-block-heading">iOS</h3>



<p>All native iOS apps are implemented on Swift or Objective-C. All new applications are developed exclusively in Swift. Objective-C is used only to support legacy code and libraries, which are very expensive to refactor in Swift. iOS developers of the “new school” are often familiar with Objective-C just superficially. In order to work with the old code base, to work with Obj-C classes there’re bridges to Swift.</p>



<p>In short, the situation with native iOS development is more than clear, you need Swift. This Isn’t surprising, Swift was originally developed by Apple, specifically iOS and macOS development.</p>



<h3 class="wp-block-heading">Android</h3>



<p>The Android apps are mainly developed with Kotlin or Java. Kotlin is backward-compatible with Java. To all that is written in the same language, you can address from another one. It works both ways. Developers are in no hurry to finally switch to Kotlin, but increasingly prefer to develop applications from scratch with it. But, unlike iOS programmers, who don’t actually need Obj-C, Android developers are absolutely required to have experience with Java.</p>



<p>Kotlin was created by Russian students of ITMO University specifically for Android development needs. The language is easier to learn and easier to access in the Android SDK. That’s why its community is growing so rapidly.</p>



<p><strong>Benefits of native development</strong>:</p>



<ul>
<li>The application is integrated into the system’s UI/UX. The user of each platform has their own behavior patterns and habits. The native approach allows you to make the application as familiar and convenient as possible.</li>



<li>Performance. The development uses tools for a specific platform to the maximum, thereby ensuring the performance of the application. Native code works perfectly with hardware, and even complex applications, with the right approach, will work the same way as pre-installed ones. We can guarantee maximum responsiveness of the interface and a good user experience.</li>



<li>Quality. As a rule, there are much fewer bugs and crashes in native applications. Of course, developers are responsible too, but developing for one platform usually is much easier.</li>



<li>There are no restrictions. All pre-installed applications and a large number of OS elements are developed with the same tools that the platform holder provides to you. The native code has access without any problems to the camera, microphone, GPS, accelerometer, notifications, and so on. </li>



<li>Native applications are more flexible and scalable. You can safely expand the functionality and don’t be afraid that the application will be slow and work with failures. Native development tools actually have no limit to the possibilities.</li>
</ul>



<h2 class="wp-block-heading">Cross-Platform</h2>



<p>The cross-platform approach uses specialized tools that help you develop an application for several platforms at once. </p>



<h3 class="wp-block-heading"><sub>PWA</sub> </h3>



<p>PWA (<em>Progressive Web Application</em>) is a cross-platform web application. This application can be opened on any device, but it uses the browser engine to work.</p>



<p>Google is actively promoting PWA and is quite successful in integrating this technology into Android. Android can already execute all JavaScript code and work with the capabilities of devices almost without restrictions. If Google continues to lobby for PWA at the same pace, then it will definitely take some part of the mobile apps market.</p>



<p><strong>BUT! </strong>I strongly advise against developing mobile applications using PWA at the moment. There’re some reasons below:</p>



<ul>
<li>Unlike Android, Apple restricts this technology a lot. Without native code and plugins, you won’t be able to release them in the Appstore. Despite Apple has given support for PWA in Safari, they are still hostile. Your app has to pretend to be a native.</li>



<li>The performance is worse. Mobile operating systems handle machine code much better than JavaScript.</li>



<li>All browser restrictions apply to PWA as well. Especially in iOS.</li>
</ul>



<p>In short, PWA is a new interesting philosophy that may push native apps out of stores in the future, but so far there are more questions than answers. Companies like Google can invest huge resources in the development and support of applications, but for everyone else, it is quite risky and unpredictable.</p>



<h3 class="wp-block-heading">Hybrid Apps</h3>



<p>Hybrid apps are more of a cross-platform approach to native app development. Hybrid applications are developed using the same technology for several platforms at once but are assembled into separate native applications. Such development is usually built on libraries that somehow have native code on the inside.</p>



<p><strong>Pros</strong>: </p>



<ul>
<li>A common code base for most of the functionality. For some functionality, such as accessing the server API, platform developers write almost the same code. In a hybrid approach, this functionality can be made into a separate code that is common to all platforms. Working with such code takes twice fewer man-hours as in the case of native development. </li>



<li>Resources optimization. As a rule, simple projects are built a little faster and only by one developer. This is probably the main advantage of this approach to application development. </li>
</ul>



<p><strong>Cons</strong>:</p>



<ul>
<li><strong>UI/UX Design</strong>. All platforms have their own guidelines regarding the design of applications for them. These guidelines are made so that the application doesn’t break out of the style and does not annoy the user. In cross-platform you have to design for all platforms once or develop a design for each OS separately. But it takes a lot of resources and cross-platform loses its meaning.</li>



<li><strong>User experience</strong>. Performance, interface responsiveness, and operation speed in cross-platform apps are much worse than in native ones.</li>



<li><strong>Functionality</strong>. Almost every cross-platform solution has some restrictions. Some technologies don’t work well with cameras, geolocation, offline operation, and device memory. There’s a big risk of features that are very difficult to implement. It means you’ll have to develop natively.</li>



<li><strong>Quality</strong>. The cross-platform approach is a compromise between resource savings and the quality of the final product.</li>
</ul>



<p>In a nutshell, the main problem if you’re developing a quite complex product, you’ll have to support and extend actually 3 codebases, instead of 2, as with native. All the restrictions on functionality and performance can be solved, but it’s not easy and two more developers will be needed. There’s a risk of reaching a dead end. Getting out of it may become more expensive than developing the application for two platforms separately from the beginning.</p>



<h3 class="wp-block-heading">Hybrid Technologies</h3>



<p>The most popular hybrid solutions at the moment are <strong>React Native</strong> and <strong>Flutter</strong>.</p>



<p><strong>React Native</strong> was developed by <em>Facebook </em>and is actively used in its apps. <strong>Flutter </strong>was invented by a team inside <em>Google</em>.</p>



<ul>
<li>React Native is older; development takes longer but imposes fewer risks.</li>



<li>Flutter is more progressive; it’s possible to build an MVP faster, but due to the fact that the technology is new, the risks are still high.</li>
</ul>



<p>In the foreseeable future, Flutter could capture a large part of the mobile app development market due to the fast-growing community and the huge support from Google. </p>



<p>Both technologies have the risk of very expensive and complex support and development. As the functionality grows, it becomes more and more difficult for the application to keep its quality and performance high. So, for example, Airbnb abandoned React Native. However, they did it not in favor of Flutter but of the native code. But for a long time, they worked with React Native and made a huge contribution to the RN community.</p>



<h2 class="wp-block-heading">Conclusion</h2>



<p>At the moment, cross-platform applications are far inferior to native ones in terms of performance, user experience, interface responsiveness, and UI/UX. On the other hand, technologies such as Flutter and React Native, and even PWA, can decently save your resources on simple projects. Founders just have to decide on priorities either quality or saving resources for marketing as an option.</p>



<p>We always recommend looking out for the requirements and the situation in your market. At the discovery stage, based on your requirements and plans, our team will be able to select the appropriate tech stack and talk about the risks associated with each of them. The decision is always yours.</p>


Mobile Development Trends and Approaches

<p>Every business goes through a growing process. The entire life cycle of a company is similar to that of a human. According to the Adizes model, it has 10 stages: Courtship, Infancy, Go-Go, Adolescence, Prime, Stable, Aristocracy, Early Bureaucracy, Bureaucracy, and Death. Unfortunately, organizations often ignore this chain and skip some of the stages, going straight to the most interesting one. </p>


<div class="wp-block-image is-style-default">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" src="https://wp.rocketech.it/wp-content/uploads/2021/09/image.png" alt="" class="wp-image-979" width="692" height="508"><figcaption class="wp-element-caption"><strong>Adizes Model</strong></figcaption></figure></div>


<h2 class="wp-block-heading">Is skipping stages a problem?</h2>



<p>The desire to stay in line with trends has driven many companies through digital transformation. Many of them have tried to implement process automation without preparation. As a result, they were in complete chaos instead of a working business model. If there was a mess in the company’s data before the integration of the CRM system, then after the implementation, nothing changed. Employees were too lazy to fill out the system, both before and after the CRM installation. Without analysis and preparation, a working model cannot be built. Improvisation often harms the enterprise rather than improves it. Consistency is essential here because it helps to avoid mistakes or minimizes them.</p>



<h2 class="wp-block-heading">How to use levers to grow your business successfully</h2>



<p>Business success depends on many factors, such as the sequence of the transition between the stages. To understand how to work with a business properly, it is worth paying attention to the “Six Levers” model, aimed at providing consistent and smooth business development. It helps you properly organize your business operations.</p>



<h3 class="wp-block-heading">1. First lever. Income Generation Model</h3>



<p>This lever will help you learn how to make money and what you need to do to maximize profit. If you look at Porter’s Five Competitive Forces model, we will see the main factors affecting the profitability of an enterprise:</p>



<ul>
<li>Competition in the industry</li>



<li>Clients</li>



<li>Substitutes</li>



<li>Suppliers</li>



<li>New entrants</li>
</ul>



<p>They all interact with each other. Digitalization helps customers gain access to information about offers on the market, which leads to an increase in the importance of price or non-price advantages. Suppliers strive to drive competitors out of the movement of goods, build their platforms, and control the supply channels. New players seek to capture a certain niche, and substitutes claim market share, although they may not be present in it.</p>



<p>The balance of forces in the market forms the profit-making zone, a part of the market that helps the company generate revenue. Since market earnings have been determined by market share until recently, now it is vital for businesses to distinguish innovations, new management models, and non-standard solutions. These tools increase intersection with the profit-making zone and lead a company to prosperity. To receive this result, it is better to analyze the extraction zone and move with it. </p>



<h3 class="wp-block-heading">10 strategies to protect profits</h3>



<p>10 main mechanisms for keeping profits are:</p>



<ol>
<li>Product differentiation: in terms of efficiency, this model is inferior to other methods of retaining income. Although many marketers and business people strive to be different from competitors, it is unprofitable without good reason because finding a consumer of a specific product is not easy.</li>



<li>Differentiation with cost parity: efficiency is slightly higher due to the structuring of costs by analogy with other market participants.</li>



<li>Differentiation with cost leadership: a good model for protecting income. There are times when entrepreneurs produce their product and optimize its cost structure. If the analysis reveals a fragment with a high cost and low utility, it is withdrawn.</li>



<li>A one-year lead in technology: an investment in R&amp;D will help create an innovative technological solution that competitors will have no earlier than in a year. This strategy model has medium profit protection effectiveness.</li>



<li>A two-year lead in technology: a good investment with a head start. With the right approach, companies can increase users’ loyalty to a particular technology and profit in the long term.</li>



<li>Brand and copyright: a recognizable brand gives advantages, and the copyright protects against entire inheritance because patents prevent innovations from being cloned by competitors.</li>



<li>Customer Relationship Ownership: Companies collect large amounts of user data and build a loyalty program model based on it. Communication with the client allows you to bring current offers to the market and receive a stable income.</li>



<li>Dominant position strategy: the larger the company and the wider the range of services provided, the higher its place in the market. </li>



<li>Value chain management: vertical integration of the holding, when the entire production cycle takes place in one company. Highly effective revenue protection strategy model.</li>



<li> Establishing an industry standard: releasing a niche product with no analogs. This model is trendy nowadays, although it may fail without proper investment and analysis.</li>
</ol>



<p>Strategies can and should be combined because it helps to maximize profits.</p>



<h3 class="wp-block-heading">Second lever. Marketing policy</h3>



<p>To go to the profit-making zone, you need:</p>



<ul>
<li>Pricing policy. Working with pricing at the market level, focusing on competitors and consumers.</li>



<li>Quality policy. Quality control and streamlined production processes focused on international standards.</li>



<li>Service policy. Interaction with customers after the completion of the transaction.</li>



<li>Positioning policy. A reference point for the desired market niche with an analysis of current trends.</li>



<li>Functionality policy. The proposal of product properties that solve the consumer’s problems.</li>



<li>Assortment policy. Product table with categories and management.</li>



<li>Distribution policy. Organization of sales channels and product volumes.</li>



<li>Partnership policy. Selection of potential business partners with optimal products and solutions.</li>
</ul>



<p>If the firm implements the second lever, it gets the tools to move to the profit zone.</p>



<h3 class="wp-block-heading">Third lever. Business processes</h3>



<p>Positioning should be visible in the daily operations of the company. The most important feature of positioning is the ability to be displayed at each point of contact. A customer journey can be thought of as simply a collection of points of contact.</p>



<p>These points of contact are symmetrical to the organization’s business processes. If we assume that the client makes some requirements to the company’s positioning that can be described in the context of the EST model, then at each point of contact, the client will make demands on it in the logic of the EST model.</p>



<p>Points of contact are divided into online and offline.</p>



<p>Online:</p>



<ul>
<li>advertising;</li>



<li>site;</li>



<li>blog;</li>



<li>social media;</li>



<li>chatbot;</li>



<li>reviews;</li>



<li>application;</li>



<li>content model;</li>



<li>mailing.</li>
</ul>



<p>Offline:</p>



<ul>
<li>business processes;</li>



<li>advertising;</li>



<li>office;</li>



<li>products;</li>



<li>technologies.</li>
</ul>



<p>It creates a connection between the customer journey and business processes. And since each stage of the customer journey is tied to the income component, it can be said that the Customer Journey Map model is a graphically fixed profit formula, and business processes are a Customer Journey Map, based on the internal logic of the company’s work.</p>



<h3 class="wp-block-heading">Fourth and fifth levers. Organizational structure and HR policy </h3>



<p>The organizational structure is a reflection of the business model. The competency model says that employees are responsible for their roles and carry out operations related to the specific requirements of customers and their ability to pay. In the formation of the competence of employees, RASCI and FTE tools will be helpful, which allow you to assign tasks and areas of responsibility to employees and organize a workflow with a clear schedule. The idea is that business processes should define resource costs and job roles with the competent distribution of functions among employees.</p>



<h3 class="wp-block-heading">Sixth lever. Automation</h3>



<p>One of the most important levers on this list is the company’s automation process. It is needed to speed up work, save resources, and improve quality.</p>



<p>Any organization should have an executive part and tools for process monitoring. It helps to analyze internal procedures and optimize them effectively. A “digital twin” of the company may be used to implement it. After the virtualization of enterprise processes, it will be possible to analyze every aspect of the activity and plan further development based on the consequences.</p>



<p>Digital displays of all processes are necessary for better monitoring because only they make it possible to connect the enterprise’s IT architecture and operations.</p>



<p>The strategy level and marketing model should be integrated with business analytics systems, a tool that helps management make decisions based on data processing. Also, it is necessary to implement ERP systems for monitoring assets, debts, and other balance sheet indicators to control finances. Production management is integrated with MES systems: programs for coordinating production processes, tracking product quality parameters, allocating resources, and maintenance control. Production automation is combined with process monitoring systems such as SCADA, dispatching systems ADTCS, and automated control systems (ACS).</p>



<p><strong>Remember that only the transition from each stage to the next enables the company to implement reforms without the risk of failures in individual system elements and with maximum efficiency. The six-leverage principle is the key to the successful implementation of a new operating model and the ability to monitor and analyze the state of the business continuously. And we at Rocketech.IT will help you with this!</strong></p>


6 Levers Of Growth For Successful Development Of Your Company

<div class="wp-block-image">
<figure class="alignleft size-large is-resized"><img loading="lazy" decoding="async" src="https://wp.rocketech.it/wp-content/uploads/2021/03/danielle-macinnes-IuLgi9PWETU-unsplash-scaled.jpg" alt="" class="wp-image-42" width="350" height="232" srcset="https://wp.rocketech.it/wp-content/uploads/2021/03/danielle-macinnes-IuLgi9PWETU-unsplash-scaled.jpg 2560w, https://wp.rocketech.it/wp-content/uploads/2021/03/danielle-macinnes-IuLgi9PWETU-unsplash-158x106.jpg 158w" sizes="(max-width: 350px) 100vw, 350px" /></figure></div>


<p>The concept of “Minimum Viable Product” (MVP) has been widely popularized in the development world through the Lean Startup model. An MVP is a basic version of a product that can be launched on the market to get validation right from customers during its early stage.</p>



<p>As a kind of “fail fast” approach is cost-saving in that it allows flaws to be identified before time and money are abundantly invested in the development. Early adopters are used to identifying cases when the product wouldn’t succeed or identify how the course of development should be adjusted.</p>



<p>MVP can be structured differently depending on the field and the purpose of a certain product. But one thing is essential in this work: any idea of a product should go through meticulous research of the target audience and the competitors long before customer validation on the market. </p>



<p>The efforts put into this phase bring immense advantages of understanding why the product should exist, what forms, visuals, and essential features can help create an emotional connection with the audience, and what is necessary for successful launching on the market. This preparatory research can drastically shape the process of defining an MVP of the product.</p>



<p>However, even that work can’t completely insulate the process from some surprises when the product falls within Utility tools. The picture between what the product should be and what the product could be can change considerably after beginning work with a development team.</p>



<p>Here are the popular difficulties we are facing when developing this kind of product.</p>



<h2 class="wp-block-heading">1. The Backend Service Behind a «Simple» Functionality</h2>



<p>Some features that might look simple on the surface may have a grand backend service behind them. This service can take months to build and/or turn into a network that serves the simple button on an application or a website.</p>



<p>It is not always obvious what stands behind some technologies we are taking for granted and what data is available to easily get from the system or the Internet network through an application or a website.</p>



<p>It might run counter to what an MVP should be especially when time or budget-limited.</p>



<p>For example, a product that shows in a given moment the actual speed of the Internet should virtually measure the speed of data transfer. That product should know where to pass data and a receiver should accept it and measure the time of transferring. This process repeats in reverse order to calculate both download and upload speeds.</p>



<p>The service that maintains this possibility possesses a lot of quality attributes, located on multiple servers to provide real-time high-fidelity measures for many customers across the world.</p>



<p>The network of these servers itself is a great product on the market and can be evaluated separately.</p>



<h2 class="wp-block-heading">2. New Technologies Required</h2>



<p>Some features may sound like a good idea, but there is no technology yet to bring it to fruition. It could require up to years of kind of scientific work to create this technology. It might be greatly rewarded after all but there is no guarantee of getting a result in a certain timeline.</p>



<p>For example, a new technology of interactions is to be created to get some specific technical information from surrounding devices a user doesn’t have any physical access to.</p>



<h2 class="wp-block-heading">3. Related Area Involved</h2>



<p>Some features go hand in hand with solutions in related areas. What may seem limited to digital products sometimes is involved with other technical fields. So getting a product done consisting of those features requires having subject-matter experts in a developing team who can take care of those solutions. However, there aren’t many outsourcing software development companies staffed with those experts permanently, restricting their ability to make estimates on those types of projects and work on them.</p>



<p>For example, features that involve working with analog signals instead of only digital ones require having specific experts. If a product should obtain data from temperature sensors, photocells, or light sensors, we can say for sure that it won’t be something ordinary from the developing perspective.</p>



<h2 class="wp-block-heading">4. Apple Limitations</h2>



<p>Sometimes some attractive features are forbidden for iOS applications due to Apple policy, so developers can only work with the public APIs provided by Apple. Sometimes there could be workarounds that still solve the customer’s problems but worsen their experience with an application.</p>



<p>Those workarounds might not be so obvious and difficult to discover if no one has ever done it before. After discovering one, the next difficulty is assessing whether or not a customer’s need impels them to use the workaround and pay for it. </p>



<p>An MVP may become a risky undertaking.</p>



<p>To frustrate matters further, Apple’s policy can change, leaving uncertainty in development. </p>



<p>For example, in 2020 Apple didn’t allow access to calls of users for applications, and iOS applications that offer call records provide a recording line that should be merged with a user’s call into a conference.</p>



<h2 class="wp-block-heading">5. Integration with Third Parties</h2>



<p>Fortunately, most listed difficulties can be solved by other ready services which were developed before and maybe even for other needs. So the work of a development team simply boils down to integration with service and implementation of the desirable «button» in a product.</p>



<p>There are only a few cons:</p>



<ul>
<li>dependency on the performance of a third party;</li>



<li>possible limits of service.</li>
</ul>



<p>Despite that, using a third party instead of doing it on one’s own is fully under the MVP concept.</p>



<p>Speaking of Utility tools, it is important to invest in research and initial grooming of technical features with a development team before handing off something to development. This is to avoid waste and be able to adjust the product concept in the early stages.</p>



<p>In the end, we see the tendency that there is nearly always a way to build an MVP of a Utility tool that earns an approbation on the market.</p>



<p>We at Rocketech create MVPs for different industries, please check our cases <a href="https://rocketech.it/cases" data-type="URL">here</a>.</p>


How to Avoid Difficulties Building an MVP for Utility Tools

<p>In 2023, the <a href="https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/" data-type="URL" data-id="https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/" target="_blank" rel="noreferrer noopener">total retail e-commerce sales amounted to $5.8 trillion</a> globally. To understand these figures, imagine Australia’s 2022 nominal GDP was <a href="https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=AU&amp;most_recent_value_desc=true" data-type="URL" data-id="https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=AU&amp;most_recent_value_desc=true" target="_blank" rel="noreferrer noopener">$1.6 trillion</a>. Fast-paced digital transformation, the rise of <a href="https://rocketech.it/blog/post/instant-e-commerce-a-new-way-of-selling-online" target="_blank" rel="noreferrer noopener">instant e-commerce</a>, and unprecedented events of the global pandemic have accelerated the online marketplace development industry. Today, a “<strong>marketplace</strong>” no longer exclusively refers to giants like Amazon or AliExpress. <strong>Startups successfully launch niche solutions, connecting local vendors to their potential customers</strong>.</p>



<p>Although such a project has a lot of factors that impact the outcome, we have summed up the essential guide on <strong>how to build a successful marketplace</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2022/12/marketplace.png" alt="A miniature shopping cart is standing on a laptop keyboard symbolizing e-commerce." class="wp-image-4705"></figure>



<h2 class="wp-block-heading"><strong>Creating a Marketplace: Where Should You Begin?</strong></h2>



<p>Selling or exchanging goods or services isn’t an innovation. However, digital evolution and the sharing economy have transformed and adjusted this idea to the ever-changing consumer needs.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://wp.rocketech.it/wp-content/uploads/2023/06/what-is-a-marketplace.png" alt="An infographic explaining what a marketplace is." class="wp-image-5761"></figure>



<p>The idea isn’t new, and the concept is clear. So why are most marketplaces <a rel="noreferrer noopener" href="https://www.forbes.com/sites/forbestechcouncil/2022/03/17/why-most-marketplaces-are-doomed-to-fail-and-how-to-make-sure-your-company-is-not-one-of-them/?sh=6b8c0fd758bc" target="_blank">destined to fail</a>? First and foremost, many founders don’t have a<strong> well-defined plan</strong>, while the project’s success massively depends on <strong>determining the goals and objectives</strong> and following the roadmap step by step.</p>



<h2 class="wp-block-heading"><strong>#1 Planning Phase</strong></h2>



<p>Some founders neglect the initial planning phase and make the mistake of rushing the launch of a ready product. However, the best way to build a marketplace is to understand what your product will be and who you make it for. This phase covers the following steps.</p>



<ul>
<li><strong>Define your product</strong>. What will the product be (a website or a mobile app)? What consumer problems will it solve? What is its main idea? What should distinguish it on the market?</li>
</ul>



<ul>
<li><strong>Decide on the type and niche</strong>. Will you focus on services or goods? Which niche will you take? </li>
</ul>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>                                                  <strong><em>Marketplace Types</em></strong></td><td></td></tr><tr><td><strong><em>Customer</em></strong></td><td>Business-to-business, business-to-customer, or peer-to-peer</td></tr><tr><td><strong><em>Product</em></strong></td><td>Goods, services, coupons, discounts, hybrid, etc.</td></tr><tr><td><strong><em>Structure</em></strong></td><td>With vertical structure: offer one product category (e.g., sports goods) <br>With horizontal structure: offer a wide range of products (from baby goods to appliances)</td></tr></tbody></table><figcaption class="wp-element-caption">Marketplace Types: Customer Segments, Product Categories, and Structural Organization</figcaption></figure>



<p><strong>The type and purpose are not constant</strong>. Good projects evolve, which leads to changes in functionality and even the overall product focus. Besides, some narrow markets have a demand for <a rel="noreferrer noopener" href="https://rocketech.it/case/steps" target="_blank">unique, hybrid products</a>. And sometimes the idea works if you look at it <a rel="noreferrer noopener" href="https://rocketech.it/case/flydesk" target="_blank">from a different angle</a>. </p>



<ul>
<li><strong>Define your target audience</strong>. Will you target buyers or sellers? Will you work only with individual users or companies? How will enterprise customers know about your application? Which pain points will your product address? How will it be useful for your target audience?</li>
</ul>



<blockquote class="wp-block-quote">
<p><em>Conduct qualitative research. 1–1 interviews with potential end-users are an endless source of priceless information that will help you avoid many mistakes when deciding on the product’s functionality.</em></p>
</blockquote>



<ul>
<li><strong>Analyze your competitors</strong>. No matter what you do, someone has already done it before you. Your task is to understand what you can improve in your competitor’s model and offer it to users. </li>
</ul>



<p><strong><em>Business insight:</em></strong> Airbnb wasn’t the first accommodation renting startup. But they were among the first to offer real people’s apartments rather than hotels and hostels. On top of that, the company made the offers transparent — they replaced hotel pages with personalized host profiles.</p>



<figure class="wp-block-table"><table class="has-dark-color has-gray-100-background-color has-text-color has-background has-link-color"><tbody><tr><td>Looking for more insights from the industry leaders on how to build an e-commerce website? Find them in one extensive <a href="https://www.designrush.com/agency/web-development-companies/trends/ecommerce-development" target="_blank" rel="noreferrer noopener">guide</a> by <strong>DesignRush</strong>? </td></tr></tbody></table></figure>



<h2 class="wp-block-heading"><strong>#2 Choose the Monetization Model </strong></h2>



<p>Although it’s part of the planning phase, it should get a special emphasis. The purpose of launching any business is to generate profits. The money you make should be enough not only to cover the platform’s maintenance and promotion but also to bring a net profit. Here are the most widespread marketplace monetization methods.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://wp.rocketech.it/wp-content/uploads/2023/06/marketplace-monetizing-models.png" alt="An infographic explaining the three most widespread marketplace monetization methods: commissions, subscriptions, and advertising." class="wp-image-5767"></figure>



<h3 class="wp-block-heading"><strong>Commissions</strong></h3>



<p>The marketplace can charge commissions for <strong>transactions</strong>, <strong>registration</strong>, or <strong>listing fees </strong>(goods placement like on <strong>Etsy</strong>). You take commissions from the seller for assisting them in selling the goods.</p>



<h3 class="wp-block-heading"><strong>Subscriptions</strong></h3>



<p>Users pay <strong>a monthly or yearly fee</strong> to use the marketplace or subscribe for additional services or instruments. Extra functionality on top of basic features can grow into your product’s competitive advantage.</p>



<h3 class="wp-block-heading"><strong>Advertising</strong></h3>



<p>There are different ways to earn money with ads. With <strong>third-party advertising</strong>, users usually don’t have to pay for using the marketplace because the ads generate revenue for the service. However, you can also offer main-page ad spaces to the platform’s sellers for an extra fee.</p>



<p>These are only the most common ways to monetize a marketplace. But you need to choose them (often in combination) carefully according to your target audience and their preferences. Also, frequently changing rules negatively impact customer satisfaction levels (in the case you change the pricing model once the product is on the market).</p>



<h2 class="wp-block-heading"><strong>#3 Choose the Approach to Marketplace Development</strong></h2>



<p>There are various approaches to the development process. Depending on your long-term objectives and budget, there are <strong>three main options</strong>.</p>



<h3 class="wp-block-heading"><strong>WordPress</strong><strong> and Alternatives</strong></h3>



<p>It’s the easiest, fastest, and cheapest option. Using WordPress templates (like Mayosis or DGWork), you can create a website in a few hours, spending from $50 to $1000 (template price + hosting cost). However, this approach lacks customization options and technical support (all technical issues are on you). Besides, you’ll have limited settings.</p>



<h3 class="wp-block-heading"><strong>White Label Solutions</strong></h3>



<p>Technically, these are also templates but in the form of ready e-commerce platforms developed by experienced programmers (like Yo!Kart or CS-Cart). Their launch takes longer and costs more because, in addition to development, programmers themselves start, customize and test the site. Technical support is usually also included with White label solutions.</p>



<h3 class="wp-block-heading"><strong>Outsourcing the Development</strong></h3>



<p>In general terms, it means delegating the entire process to a group of professionals who create a marketplace app or website from scratch. There are also different approaches to how to <a rel="noreferrer noopener" href="https://rocketech.it/blog/post/how-to-choose-your-tech-vendor-the-insider-guide" target="_blank">choose a development services provider</a> — from finding separate freelancers and managing them yourself to hiring a well-coordinated <a rel="noreferrer noopener" href="https://rocketech.it/blog/post/dedicated-team-the-future-of-software-development" target="_blank">dedicated team</a> that will take over the entire process, including the product launch and often further scaling. IT outsourcing allows you to create a unique product with quality assurance in a relatively short time.</p>



<h2 class="wp-block-heading"><strong>#4 Create an MVP</strong></h2>



<p>Once you have done your market research and decided on the business model of the future online marketplace platform, it’s time to proceed to its direct structure and basic functionality.</p>



<p>Some startup founders tend to create a 100-page preliminary technical specification for the end product. 150+ successful projects completed by Rocketech prove the effectiveness of the <strong>agile approach to software development</strong>. We break each project down into stages that have smaller objectives. It allows us and our Partners to adjust every new feature and overall functionality to the ever-changing market demand and conditions. <a href="https://rocketech.it/blog/post/when-to-launch-an-mvp-7-scenarios-where-its-crucial" data-type="URL" data-id="https://rocketech.it/blog/post/when-to-launch-an-mvp-7-scenarios-where-its-crucial" target="_blank" rel="noreferrer noopener">Creating an MVP</a> is the first stage of product development in the agile method.</p>



<blockquote class="wp-block-quote">
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://wp.rocketech.it/wp-content/uploads/2023/06/what-is-an-mvp-1.png" alt="An infographic explaining what a minimal viable product is." class="wp-image-5765"></figure>
</blockquote>



<p>Launching an <a href="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" data-type="URL" data-id="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" target="_blank" rel="noreferrer noopener">MVP</a> helps you minimize the risks of building a product that nobody needs. In simple words, you develop and launch a product that already carries value for the end user and see what works well and what doesn’t work at all. </p>



<h3 class="wp-block-heading"><strong>Key Reasons to Create an MVP</strong></h3>



<p>At this stage, design and usability are of secondary importance. However, these aspects should be set for the prospect of development and improvement. You’re testing not a specific implementation but an idea.</p>



<ul>
<li>The MVP will help you feel the ground and <strong>see if the market needs your product.</strong></li>



<li>A well-functioning MVP is a powerful <strong>instrument for attracting investors</strong>. </li>



<li>You can see the problems you will encounter when developing the product’s final version.</li>



<li>You can gather <strong>invaluable feedback from the target audience</strong> and learn new ideas for improving the product.</li>
</ul>



<p><strong>An MVP is necessary if you plan to create a complex application with many features that need continuous testing</strong>. It builds the ground for the next crucial step to a successful product.</p>



<h2 class="wp-block-heading"><strong>#5 Hypothesis Testing</strong></h2>



<p>Strictly speaking, the MVP enables you to test multiple hypotheses on real users. Every feature you decide to add at further stages should result from such testing. How much will you earn if 100 people start using the app within two months? How much investment do you need to get the required number of users? Will the users pay money for that extra functionality you consider making the primary source of profit?</p>



<p>Furthermore, if the hypothesis is proved, why? Founders often think users need particular functionality, but the solution skyrockets for a different reason. </p>



<p><strong><em>Business insight</em></strong>: The global e-commerce marketplace Groupon <a rel="noreferrer noopener" href="https://startupsavant.com/startups-that-pivoted" target="_blank">started as an extra feature</a> of a different website, The Point. It was a consumer activism platform offering users to create a campaign for social good and invite others to participate. Another example is the $10B-worth e-commerce ecosystem Shopify which <a rel="noreferrer noopener" href="https://producthabits.com/shopify-grew-snowboard-shop-10b-commerce-ecosystem/" target="_blank">started as an unsuccessful online store</a> selling snowboarding equipment.</p>



<p>The most common misconception is thinking that the only hypothesis to test is whether your product will succeed or fail. In truth, there should be numerous ideas for validation that are concise, easy to understand, and can be tested quickly and accurately.</p>



<h2 class="wp-block-heading"><strong>Product Launch is Only a Milestone</strong></h2>



<p>While many founders explore how to build a marketplace app, the more efficient research question is how to create a competitive advantage in the marketplace. It’s no longer about finding something unique but rather understanding your future product, market, and, most importantly, your customers.</p>



<p>At Rocketech, <strong>we guide startups throughout the entire process</strong> — from the <a href="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" target="_blank" rel="noreferrer noopener">discovery phase</a> to product launch and further <a href="https://rocketech.it/blog/post/how-to-scale-a-marketplace" target="_blank" rel="noreferrer noopener">scaling</a>. Marketplace development is one of our 12 market expertise domains we handpicked and keep mastering with every project. </p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Do you have an e-commerce business idea?<br>Let’s validate and bring it to life together.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>


How to Create a Marketplace Platform in 2024

<p>E-commerce accommodates one-third of US businesses, with <a href="https://www.forrester.com/blogs/marketplaces-make-their-mark-in-the-channel/" target="_blank" rel="noreferrer noopener">over 60% going through marketplaces</a>. Although it’s tough to compete with giants like eBay or Amazon, the industry is enormous, which leaves many uncovered niches and regions worldwide.</p>



<p>After <a rel="noreferrer noopener" href="https://rocketech.it/blog/post/how-to-create-a-marketplace-platform-in-2022" target="_blank">creating your own marketplace</a>, you will face certain difficulties. The next challenge is <strong>expanding the business</strong>. We created a guide for founders covering seven vital aspects you should consider when deciding <strong>how to grow a marketplace</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2022/12/scale-a-marketplace.png" alt="A female business founder  looking at a tablet and business reports and charts showing marketplace performance." class="wp-image-4689"></figure>



<h2 class="wp-block-heading"><strong>Where to Start?</strong></h2>



<p>Scaling a marketplace is a long-term process requiring a thought-through strategy. First, you need to understand when it’s time to grow. The answer is rarely obvious, but there are usually three clear signals.</p>



<ol>
<li>You are sure you have a product-market fit.</li>



<li>You understand how to launch a product in new markets, whether new categories or locations.</li>



<li>You lose to your competitors in some marketplace metrics and need to defend your position.</li>
</ol>



<p>Scaling and launching a business are interconnected processes that can significantly benefit from studying real-life successful examples. Analyzing successful ventures provides valuable insights and strategies. Similarly, learning from the experiences of failed marketplaces offers lessons on what to avoid. Furthermore, borrowing standout ideas from industry leaders can lead to innovative and effective scaling approaches. Here are the aspects you should consider including in your scaling strategy.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/07/how-to-scale-a-marketplace.png" alt="An infographic describing the most important steps of scaling a marketplace." class="wp-image-6008"></figure>



<h3 class="wp-block-heading"><strong>#1 Balance Supply and Demand</strong></h3>



<p>Marketplaces are usually limited in supply, not demand. Initially, most world-famous platforms like <strong>Etsy </strong>and <strong>Airbnb focused on attracting supply while demand appeared naturally</strong>. However, there are areas where attracting buyers is the biggest challenge. For example, dog walking services face the problem of dog owners’ distrust of strangers. At the same time, such services have no problem attracting the offer — from dog owners to students who need extra pocket money. </p>



<blockquote class="wp-block-quote">
<p></p>
<cite><em>Define your business’s specific nature and scale it based on demand and supply in your niche. However, in most cases, you’ll face a supply shortage.</em></cite></blockquote>



<p>If you don’t increase demand while the supply grows, the order volume will be distributed among more vendors. Once the contractors don’t get enough orders, even the reliable ones will leave the platform. Similarly, a surge in demand not supported by sufficient supply leads to lower service quality and poorer end-user experience.</p>



<p>Moreover, about <a href="https://www.lennysnewsletter.com/p/how-to-know-if-youre-supply-or-demand" target="_blank" rel="noreferrer noopener">40% of marketplaces</a> have different supply-demand ratios depending on the region or product category.</p>



<blockquote class="wp-block-quote">
<p></p>
<cite>“<strong>To track supply and demand and figure out where we were constrained,</strong> <strong>we would watch the marketplace health stats like quotes per loan request, loan requests per user, the competitiveness of rates, and contact rates by market/area</strong>.<strong> If we were low in a given area, we would work hard to build supply in those areas or turn down demand.”</strong><br><strong><br><em>— </em><a rel="noreferrer noopener" href="https://www.lennysnewsletter.com/p/how-to-know-if-youre-supply-or-demand" target="_blank"><em>Nate Moch</em></a>, Zillow.</strong></cite></blockquote>



<h3 class="wp-block-heading"><strong>#2 Expand Wisely</strong></h3>



<p>Some marketplaces decide to go global too early. While it may sound easy, expanding geographically involves significant pitfalls. <a rel="noreferrer noopener" href="https://news.airbnb.com/about-us/" target="_blank">Airbnb</a> and <a rel="noreferrer noopener" href="https://www.investopedia.com/articles/personal-finance/111015/story-uber.asp" target="_blank">Uber</a><em> </em><strong>started with one city and then gradually moved to other locations</strong>. The limited area (to start and continue with) can be anything from a district in your hometown to a large city or even a country.</p>



<blockquote class="wp-block-quote">
<p></p>
<cite><em>“When we began to scale, expanding geographically was one of our top 2-3 growth levers for both supply and demand”.</em><br><br><em>— </em><a rel="noreferrer noopener" href="https://www.lennysnewsletter.com/p/accelerating-growth-at-scale-phase" target="_blank"><em>Casey Winters</em></a><em>, GrubHub.</em></cite></blockquote>



<p>Apart from more complex logistics, going global has two crucial factors.</p>



<ol>
<li><strong>International shipping</strong> implies higher costs, longer deliveries, and dealing with third-party local or international carriers.</li>



<li><strong>Regional legislation</strong> can cause trouble in terms of restrictions, regulations, prohibited goods, or extra taxation of consumers for overseas shipments.</li>
</ol>



<p>Besides, remember cultural differences and national context if you expand internationally. In-demand products vary drastically in different countries, let alone local contractors, income levels, and rules.</p>



<h3 class="wp-block-heading"><strong>#3 Check Your Vendors</strong></h3>



<p>It may seem that online marketplaces only provide some digital space to vendors and can’t be responsible for each transaction. In reality, <strong>the quality of the product or service provided by the contractor affects the marketplace’s reputation directly</strong>.</p>



<p><strong>Lyft</strong>, <strong>DoorDash</strong>, <strong>Airbnb</strong>, and other marketplaces that skyrocketed <a rel="noreferrer noopener" href="https://www.lennysnewsletter.com/p/maintaining-quality-kickstarting" target="_blank">practiced</a><em> </em><strong>manual onboarding of the early-stage supply</strong>. It created high credibility for new businesses and set high service standards customers would note and remember.  </p>



<p>Granting a partner status should become a comprehensive process involving quality assessment and thorough vendor checks. Otherwise, low quality, lost goods, or unanswered messages become the marketplace’s problem. As it’s impossible to eliminate such cases, consider making a risk management budget and creating a strategy for dealing with unhappy customers.</p>



<h3 class="wp-block-heading"><strong>#4 Discover New Niches</strong></h3>



<p>Many beginner entrepreneurs make the same common mistake — they want to sell everything right away and forget about <strong>the Pareto principle</strong> or <a rel="noreferrer noopener" href="https://foundr.com/articles/leadership/personal-growth/80-20-rule" target="_blank">the 80-20 rule</a>. <strong>Typically, in a retail network, about 20% of goods generate 80% of revenue</strong>. Having “too much to offer” at early stages may lead to marketplace failure. The most successful examples show that 1-2 categories are the best odds to start. Remember, at the very beginning, <a rel="noreferrer noopener" href="https://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4" target="_blank"><em>Amazon</em> was selling only books</a>. </p>



<p>However, <strong>discovering new niches when you get your platform up and running i</strong>s the right way to go. Similarly to Amazon, the leading marketplace in India, <strong>Flipkart</strong>, started as a book-selling platform. At that time, it was difficult to find vendors providing household, electronic, or fashion products. </p>



<p>After multiple experiments with selling various products under the electronics category, the company launched a music streaming service which later developed into in-app video streaming. In 2020, Flipkart launched a digital platform accommodating micro-market level B2B and B2C businesses. In 2021, the company’s revenue amounted to <a href="https://www.statista.com/statistics/1053314/india-flipkart-revenue/" target="_blank" rel="noreferrer noopener">433 billion Indian rupees</a>.</p>



<p><strong>Opening a separate storefront can be a powerful instrument for entering new niches</strong>. If you have a fitness coaching P2P marketplace, think of creating a storefront for fitness clothing, equipment, or healthy nutrition. It will allow you to expand the offer dramatically based on the pre-existing platform’s reputation and client base.</p>



<h3 class="wp-block-heading">#5 Leverage New Tech</h3>



<p>Adopting innovative technologies can significantly enhance user experiences, increase efficiency, and attract a broader audience. Leveraging advancements in <strong>artificial intelligence</strong> (<strong>AI</strong>), <strong>virtual reality</strong> (<strong>VR</strong>), and <strong>augmented reality</strong> (<strong>AR</strong>) can play a pivotal role in transforming and expanding a business.</p>



<p>AI is a game-changer for marketplace scalability. Implementing machine learning algorithms allows businesses to analyze vast amounts of data, gaining valuable insights into user behavior, preferences, and trends. AI-driven recommendation engines can significantly improve the personalization of product or service suggestions, enhancing the overall user experience. Additionally, automation powered by AI can streamline operational processes, reducing manual workload and increasing the scalability of the platform.</p>



<p>Virtual reality (VR) and augmented reality (AR) bring immersive experiences to the forefront, providing unique opportunities for marketplace expansion. <a href="https://www.designrush.com/agency/ar-vr/trends/benefits-of-virtual-reality-in-business" target="_blank" rel="noopener">Visit Designrush</a> to learn more about the benefits of virtual reality for business.</p>



<p>VR can create virtual storefronts, allowing users to explore products or services in a simulated environment, replicating the in-person shopping experience. This immersive approach can be particularly beneficial for industries such as real estate or travel, where users can virtually tour properties or destinations before making a decision.</p>



<p>AR, on the other hand, enhances the real-world environment by overlaying digital information. For marketplaces, AR can be used to enable virtual try-ons for clothing or accessories, visualize furniture in a customer’s home before purchase, or provide additional information about products through interactive overlays. These applications not only enhance user engagement but also contribute to increased conversion rates. On top of that, by integrating AI, VR, and AR, businesses can create intelligent chatbots and virtual assistants. These tools assist users in navigating the marketplace, answering queries, and providing personalized recommendations. The combination of AI-driven insights and immersive experiences creates a more dynamic and responsive platform, fostering customer loyalty and attracting a broader audience.</p>



<h3 class="wp-block-heading"><strong>#6 Know Your Audience</strong></h3>



<p><strong>Identifying your target audience and its behavior is crucial for building effective e-commerce marketplace strategies</strong>. Moreover, as your marketplace develops, your target consumer also transforms. Any detail in customer behavior can become a game-changer.</p>



<p>Another Indian marketplace, <strong>ShopClues</strong>, and its <a rel="noreferrer noopener" href="https://brandequity.economictimes.indiatimes.com/news/advertising/shopclues-introduces-commute-commerce-through-ghar-wapsi-ad/48104916?redirect=1" target="_blank">‘commute commerce’ marketing campaign</a> is a showcase example of understanding the target audience and customer needs. After analyzing user behavior, ShopClues learned that customer activity increased during daily trips home from work. The marketplace leveraged this knowledge.</p>



<ul>
<li>They launched a commercial that aired during the usual commuting times.</li>



<li>They created special offers valid during the 6-9 PM slot.</li>



<li>They shot a video ad about their target audience.</li>
</ul>



<p>As a result, the traffic on the ShopClues site in the first two weeks increased by 40%. The campaign received the APAC Effie Awards 2016 for outstanding marketing results.</p>



<blockquote class="wp-block-quote">
<p></p>
<cite><strong>Etsy created a <a rel="noreferrer noopener" href="https://www.etsy.com/blog/" target="_blank">blog</a> called Etsy Journal. Besides useful content with crafty tips for a creative audience, they also promote their user stories.</strong></cite></blockquote>



<h3 class="wp-block-heading"><strong>#7 Build the Community</strong></h3>



<p>Whether vendors or buyers, it’s all about people. And people like being part of a community that values its members. It creates customer loyalty and reinforces the marketplace’s reputation. <strong>Celebrating and promoting your best sellers by writing case studies and success stories inspire consumer trust and encourage vendors’ devotion</strong>. </p>



<p>To make your platform easy to use, create your own knowledge base that contains answers to FAQs from sellers and buyers. You can also create a guide or a set of training articles or videos for vendors showing how to optimize their business on your platform.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2023/07/scaling-a-marketplace.png" alt="A miniature shopping cart and tiny shopping bags against the background of a person shopping online on a marketplace." class="wp-image-6011"></figure>



<h3 class="wp-block-heading"><strong>#8 Keep Testing</strong></h3>



<p>The marketplace strategy requires continuous testing of new ideas. Even if most of them don’t show the desired results, <strong>new initiatives may lead to unexpected advantages that your competitors have not yet discovered</strong>. It includes any insights, from introducing new tools, services, and content to acquiring new strategic partners. Entering into partnership agreements with those involved in your business area creates additional value for both your buyers and sellers. </p>



<p>If you have launched a marketplace for handmade products, negotiate with local photographers and offer your vendors professional photo shoots for their products, providing them with a competitive advantage in the market. Contact local magazines and trade shows related to your industry. <strong>Tell them about your platform</strong>.</p>



<p>Marketing hypotheses are based on consumer insights, customer feedback, and market analysis. They are like the key to your target audience. New hypotheses should be constantly put forward according to the research findings. The main point is to remember that<strong> no idea is final, and every project evolves</strong>. Successfully scaled marketplaces adjust their scaling to these changes.</p>



<h2 class="wp-block-heading"><strong>Final Thoughts</strong></h2>



<p>Whether you’ve only decided to create a marketplace app or already have your platform launched but need further scaling, you need an experienced tech partner. Hypothesis testing and business scaling are among the Rocketech competencies we have carefully been crafting with every successful project.</p>



<p>We help businesses analyze their position in the market and define clear goals for further growth. Together with our clients, we look for the best ways to achieve these goals by implementing innovative tech solutions. </p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Have a digital product in the scaling phase and need an expert team to do it right? We have it.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


From Niche to Scale: How to Expand a Marketplace

<p>Pretty much every startup founder wishes for their product to become the next Uber, Airbnb, or Slack. <strong>While launching is already a huge challenge, many startupers forget about startup scaling</strong>. At some point, the journey turns into a monumental, <a href="https://rocketech.it/blog/post/how-to-manage-challenges-of-long-term-projects" target="_blank" rel="noreferrer noopener">long-term project</a> that becomes too difficult to handle.</p>



<p><strong>What do startups need to know about further stages?</strong> We summed up the most common pitfalls in our guide.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2023/08/startup-scaling-challenges.png" alt="A startup founder draws a metaphorical plan for startup launch and a map of startup scaling challenges" class="wp-image-6204"></figure>



<h2 class="wp-block-heading"><strong>Growth vs Scaling</strong></h2>



<p>In the world of startups, two buzzwords that frequently dance across boardroom tables and coffee shop conversations — “growth” and “scaling.” These concepts, while seemingly interchangeable, are distinct forces that can steer your entrepreneurial ship in vastly different directions. Here’s why.</p>



<p>Let’s start with <strong>growth</strong>. Think of it like a small plant turning into a bigger one. <strong>Growth means slowly getting better at your startup</strong>. You might get more customers, make more money, or sell more stuff, step by step.</p>



<p>For example, imagine you run a little brewery. You’re growing if more people are coming to taste your beer, and maybe you open another spot in a nearby town. It’s like taking small steps forward.</p>



<p><strong>Scaling</strong>, on the other hand, is like turbocharging your startup. <strong>Scaling means making your business much, much bigger without spending tons more money</strong>. It’s like finding a magic button to make things explode in a good way.</p>



<p>Back to the brewery example, scaling is when you start selling your beer all over the country, making more beer with fancy machines, and earning way more money without going broke.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2023/08/startup-growth-vs-scaling.png" alt="A visual quote explaining the difference between startup growth and startup scaling" class="wp-image-6207"></figure>



<p>So, growth is about slow and steady progress, and scaling is about supercharging your business. First, you need to grow, like a baby learning to walk, and then when you’re ready, you can aim for the stars and scale up big time.</p>



<h2 class="wp-block-heading"><strong>Is It Time to Scale Up the Company?</strong></h2>



<p>Choosing the right moment to get to another level is an art of some sort. Scaling up too soon can lead to disaster, but waiting too long can mean missed opportunities. There’s no simple and universal answer to “When?”. However, these four beacon questions can help startup founders make better decisions.</p>



<ol>
<li><strong>Is there potential demand in the future?</strong></li>
</ol>



<p>Are there clear signs that your product or service will be in even greater demand in the future?</p>



<p>It’s not just about what’s popular now; it’s about understanding trends and staying ahead of the curve. Scaling up should align with your ability to meet this growing demand.</p>



<ol start="2">
<li><strong>Has the startup achieved a </strong><strong>positive cash flow?</strong></li>
</ol>



<p>Is your startup making more money than it’s spending? Have all your pending payments been recovered?</p>



<p>Positive cash flow means you’re financially stable and can cover your expenses while having some left for growth. Scaling up without this financial foundation is like building a castle on shifting sands.</p>



<ol start="3">
<li><strong>Is your startup using the right tech?</strong></li>
</ol>



<p>Do you have technology that can handle increased workload as you scale up?</p>



<p>Up-to-date and efficient technology is the backbone of modern business. Ensure your startup is equipped with the right digital arsenal to handle increased operations.</p>



<ol start="4">
<li><strong>Is your startup backed up by the right team?</strong></li>
</ol>



<p>Do you have a team that can execute your expansion plans effectively? Is team scaling something you can effectively do soon?</p>



<p>Growth often requires more hands on deck, but it’s not just about numbers. It’s about having the right people with the skills and dedication to help your startup thrive.</p>



<p>If you are positive about these four critical points, you might be in a good place to start planning the expansion.</p>



<h2 class="wp-block-heading"><strong>7 Startup Scaling Challenges</strong></h2>



<p>Here you are, ready to take your startup to a new level and go beyond the horizon. And that’s where many founders stumble. In reality, running a startup is like <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2022/04/01/the-duality-of-it-startups-why-is-it-two-businesses-in-one/?sh=16b268841526" target="_blank" rel="noreferrer noopener">running two businesses simultaneously</a>. On the one hand, it’s about finding the money to get you up and running. But meanwhile, you also have to operate your company’s sophisticated organism.</p>



<p>Essentially, meticulous planning can help you secure the best possible outcomes. And a huge part of proper planning is predicting the pitfalls awaiting on the way and negating them accordingly. Here are the seven most common challenges startups face while scaling.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/08/7-startup-scaling-challenges-3.png" alt="An infographic summing up the 7 challenges of startup scaling" class="wp-image-6215"></figure>



<h3 class="wp-block-heading"><strong>#1 Scaling Up Too Early</strong></h3>



<p>Scaling up too soon is like a chef opening a restaurant before perfecting the recipes. <strong>Premature expansion can stretch your resources thin and lead to financial strain</strong>. For instance, an e-commerce startup may be tempted to diversify into multiple product categories without establishing a loyal customer base for its initial offerings. This can result in high operational costs and limited revenue, jeopardizing the entire venture.</p>



<p>Or imagine a software startup with a groundbreaking product that decides to launch in multiple international markets without adequately testing its product’s viability in the home market. The result may be inefficient operations, heavy financial burdens, and an inability to respond to market feedback effectively.</p>



<h3 class="wp-block-heading"><strong>#2 No Product-Market Fit</strong></h3>



<p>Many startup founders develop a mythical idea into a business venture without even checking if people need their product. In most cases, hypothetical ideas in our heads have very little to do with the market reality. If your product doesn’t offer enough value to the end customer, even the most expensive advertising and best marketing experts won’t help — <strong>the product simply doesn’t have the target audience</strong>.</p>



<p>Picture designing a car with square wheels. It may be a great car, but it won’t work well on the road. Startups need to find the right “fit” between their product or service and the market. If an app for senior citizens offers features more suited to teenagers, it won’t gain traction despite being well-made.</p>



<h3 class="wp-block-heading"><strong>#3 Shortage of Resources</strong></h3>



<p>Imagine an architect tasked with designing a skyscraper but provided with only a handful of bricks. <strong>Startups encountering resource shortages, such as funding, talent, or equipment, face immense hurdles</strong>. For example, a biotech startup aiming to develop groundbreaking pharmaceuticals may struggle if it lacks funding to conduct clinical trials or hire experienced researchers.</p>



<p>The irony here is that most startups set sail with extremely limited resources. So, when founders are kickstarting their businesses, it’s really important to get a bit imaginative in how they go about achieving their objectives. Whether that means promoting a product to the masses, grabbing the media and public’s interest, or establishing a solid brand presence in this cutthroat business world, creativity is key.</p>



<h3 class="wp-block-heading"><strong>#4 Investor Pitching</strong></h3>



<p>Startups and investors tend to look at projects from different angles. Startups usually focus on the idea, while investors are more concerned with execution and the impact it generates. Entrepreneurs often get caught up in thinking about their product and its unique features, sometimes overlooking the essential principles of building a business and presenting their product for investment.</p>



<p><strong>A strong investor presentation</strong> isn’t just about project details written by technical teams. It also <strong>needs a deep look at competitors and the market, detailed plans for product development and manufacturing, safeguarding intellectual property, forming a workable business model, and crafting a smart marketing strategy</strong>.</p>



<p>Many founders pitch sponsors with just “genius ideas of the century” that often have little to no investment potential. Naturally, such applications are mostly rejected.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">We help our clients pack their product ideas and present them to investors the right way.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Ask us how</button></div>



<h3 class="wp-block-heading"><strong>#5 Assembling the Right Team</strong></h3>



<p>Here’s one quite common scenario. Startup founders have a brilliant idea, tons of motivation, and a tight budget. They decide to cut the budget on hiring a proper development team, thinking that the first, done-somehow product version is OK for a while and can be redone (perfected, improved, you name it) at later stages when they have enough money. Well, it’s wrong.</p>



<p>Assembling a few “cheap” freelancers to build the foundation of your software product poses many risks that will eventually cost you an arm and a leg, from technical debt and badly written code to the wrong overall strategy. Scaling engineering teams is only possible if you start right.</p>



<h3 class="wp-block-heading"><strong>#6 Finding a Pricing Model</strong></h3>



<p>Pricing is a big deal, especially when you start in a new market. You don’t want to make your price too low because that makes your product seem not so appealing and cheap. But you also don’t want it so high that people can’t afford it.</p>



<p>Many startups struggle to find a price that’s high enough to cover their costs and make some profit. Having a low profit might help sell more at first but won’t work in the long run. As time goes on, your expenses will go up, and you’ll need more profit to keep going.</p>



<h3 class="wp-block-heading"><strong>#7 Changing environments</strong></h3>



<p>Failing to adapt to a dynamic market is like navigating a complex maze with a map frozen in time. Today, change is constant, and startups must embrace this reality.</p>



<p>Imagine a traditional retail chain steadfastly clinging to brick-and-mortar stores while e-commerce continues rising. Such resistance to change can lead to dwindling sales as consumers increasingly turn to online shopping, ultimately resulting in the retail chain’s obsolescence.</p>



<p>Market dynamics evolve, consumer preferences shift, and technological advancements redefine industries. For some business owners, it becomes an ultimate challenge to stay flexible and anticipate the changes in their customers’ behavior.</p>



<h2 class="wp-block-heading"><strong>How to Scale Up and Survive</strong></h2>



<p>The short answer is to plan carefully, create a strong team, and keep testing. Here are the three insights in more detail.</p>



<h3 class="wp-block-heading"><strong>Build the Operations</strong></h3>



<p>Startup scaling is more likely to become successful if you understand <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2022/05/13/the-operational-approach-the-reverse-side-of-managing-an-it-startup/" target="_blank" rel="noreferrer noopener">the mechanisms of expansion</a>. There are different versions of a startup lifecycle. Let’s take the one that explains what happens when you decide to scale your team.</p>



<ul>
<li><strong>Stage One: Creative Beginnings</strong></li>
</ul>



<p>At the start, founders juggle many roles, from conceiving the idea to handling marketing and finances. This is when the team goes from one to ten members, fueled by creativity and testing ideas to find their market and secure funding. It’s <strong>the foundation-building phase</strong>.</p>



<ul>
<li><strong>Stage Two: Building Operations</strong></li>
</ul>



<p>As the startup grows to 10–100 employees, the focus shifts to <strong>creating a strong operational system</strong>. The original team evolves into capable leaders who build and manage their own teams. This phase emphasizes resource allocation, maintaining quality, and refining communication. Clear communication tools and HR systems support remote workforces. The goal is to establish a responsible organization with lasting values and culture.</p>



<ul>
<li><strong>Stage Three: Strategic Growth</strong></li>
</ul>



<p>In the 100–1000 employee range, the startup enters a phase of <strong>strategic scaling</strong>, akin to a chain restaurant with automated processes and quality control. The operational system should be impeccable, allowing experienced staff more freedom. Armed with market knowledge, the startup expands confidently. Cost-cutting methods from earlier stages enable scaling without constant innovation.</p>



<h3 class="wp-block-heading"><strong>Build the Foundational Team</strong></h3>



<p>Starting with the right team is more significant than many founders think. As mentioned above, building the first product version with just anyone available around will most likely turn into a costly mistake.</p>



<p>Partnering with experienced professionals will help you avoid many potential problems in the future. Put simply, experts suggest tech stacks that will stay relevant and easy to maintain. A good dev team writes clean code and, most importantly, preserves your <a href="https://rocketech.it/blog/post/protecting-your-intellectual-property-what-startup-founders-need-to-know-when-changing-development-teams" target="_blank" rel="noreferrer noopener">intellectual property</a> and project expertise inside your product.</p>



<h3 class="wp-block-heading"><strong>Keep Testing</strong></h3>



<p>Some of our clients are serial entrepreneurs. They come up with multiple ideas and need ways to test them quickly and efficiently. Launching <a href="https://rocketech.it/blog/post/the-strategic-advantage-of-mvp-development-for-startups" target="_blank" rel="noreferrer noopener">a minimum viable product</a> (MVP) is the proven way to validate your hypothesis with real people in actual market environments.</p>



<p>We believe that <strong>development only starts with the product launch</strong>. While proper planning is vital, running hypothetical scenarios won’t bring tangible results. The moment you make your product available to your target audience is when you face the reality. Customer feedback and behavior help you adjust your strategy accordingly and make the product people actually are willing to pay for.</p>



<h2 class="wp-block-heading"><strong>Final Thoughts</strong></h2>



<p>By the time startup founders get the desired funds, the investors will expect them to have already established operations and understand the meaning of startup management principles. Whether it’s your flexibility, perfected business model, or tech teams scaling approaches, most likely, you’ll face many challenges in this journey.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Need an experienced tech partner who knows how to overcome those challenges?<br>We can help.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>


Smart Startup Scaling: Challenges and Solutions

<p>Until very recently, the <a href="https://rocketech.it/blog/post/how-to-build-a-successful-saas-platform-from-scratch">Software-as-a-Service model</a> was something large corporations offered their clients. It meant years of development, thousands of people writing the code 24/7, and fabulous amounts of money. Well, things have dramatically changed.</p>



<p>Today, even small startups can deliver their product ideas to their customers through SaaS solutions and build the latter even with limited budgets. You just need to figure out <strong>how to outsource SaaS product development and what to consider when looking for a tech vendor</strong>. Here’s what you need to know.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2023/10/saas-outsourcing.png" alt="Decision-makers discuss a new SaaS development project." class="wp-image-6338"></figure>



<h2 class="wp-block-heading">A Few More Words on the Concept of Software as a Service</h2>



<p><strong>Software as a Service (SaaS) is a web application delivered to end users over the Internet</strong>. Rather than installing and managing software on their own devices, SaaS provides a subscription-based model that helps users conveniently access the complete application, along with its IT infrastructure.</p>



<h3 class="wp-block-heading">Why Do Businesses Transition to SaaS?</h3>



<p>There’s a multitude of reasons behind many SaaS development outsource options. The key drivers behind this strategic transition range from scalability and accelerated development to quick deployment and enhanced security.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/10/why-businesses-transition-to-saas.png" alt="An infographic explaining 5 reasons why businesses transition to SaaS" class="wp-image-6358"></figure>



<h4 class="wp-block-heading">Scalability</h4>



<p>There’s no need to worry about servers crashing if the number of users suddenly increases. Transitioning to the SaaS model implies that companies can expand their infrastructure capabilities as needed without purchasing new hardware and other necessary components. Costs in such an approach will be much lower than upgrading one’s own equipment.</p>



<h4 class="wp-block-heading">Accelerated Development</h4>



<p>Local applications need to be developed and tested for various platform combinations like device hardware, operating systems, security settings, etc. In contrast, SaaS applications are created in a unified controlled environment. It significantly simplifies and speeds up development, debugging, and support.</p>



<h4 class="wp-block-heading">Quick Deployment</h4>



<p>Deploying local applications within a company can take months. With SaaS, it’s enough to set up the application once to meet the company’s requirements and then distribute logins and passwords to its employees. This leads to another advantage — a short sales cycle. With SaaS, there’s no need to spend weeks or months building customer relationships and planning deployment. The time saved can be used to improve the product and enhance customer service.</p>



<h4 class="wp-block-heading">Multi-User Architecture</h4>



<p>All application’s users share a centralized infrastructure and code. It allows for a quick update release and saves time on code enhancements.</p>



<h4 class="wp-block-heading">Database Security</h4>



<p>Standard security protocols provided by SaaS database providers include SSL and TLS encryption. They secure user messages and data. On top of that, the SaaS model allows for easy and fast integration of additional protocols to enhance security.</p>



<h2 class="wp-block-heading">SaaS Development: What You Need to Know Before Hiring a Tech Vendor</h2>



<p>The point of delegating a complex tech project to a third party is to find a professional team that would bring the necessary expertise to the table. While you don’t have to be really dev-savvy to outsource SaaS development, you’ll have better chances to choose the right vendor if you at least understand the development process basics. Here are the most essential aspects of a SaaS development project.</p>



<h3 class="wp-block-heading">SaaS Architecture</h3>



<p>SaaS applications’ architecture is designed to meet business needs like requirements for <strong>reliability</strong>,<strong> fault tolerance</strong>, and <strong>financial</strong> <strong>capabilities</strong>.</p>



<blockquote class="wp-block-quote">
<p></p>
<cite>Today, multi-tenancy architecture serves as the foundation for nearly every SaaS product operating in the cloud. It helps reduce costs, improve the efficiency of resource utilization, ensure scalability, and enable rapid deployment of updates.</cite></blockquote>



<p>In <strong>cloud computing</strong>, there is a concept called “<strong>multi-tenancy</strong>,” where multiple customers (tenants) of a cloud service provider use the same computing resources and operate within a shared environment. Even though tenants share the infrastructure and resources, they are isolated from each other.</p>



<p>In other words, each company is physically integrated but logically separated. You can think of it like real estate.</p>



<p>Imagine the cloud as a building. Living in a private house far from neighbors isn’t land efficient and requires property maintenance.</p>



<p>Multi-tenancy is like living in an apartment building. Everyone has the same security system, but each tenant has their own key to their apartment, ensuring their privacy. Tenants can make modifications or furnish their apartments according to their requirements and preferences, just as a company configures its portion of the cloud infrastructure.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Let’s discuss your project in detail.<br>Launch with Rocketech.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>



<h3 class="wp-block-heading">Key Components</h3>



<p>An application’s main features set one app type apart from another. However, there are key components every SaaS solution must have.</p>



<ul>
<li><strong>Customizable Infrastructure</strong></li>
</ul>



<p>One of the advantages of using SaaS architecture is the customizable infrastructure that can be <strong>expanded or scaled down based on business requirements</strong>. For example, customers can decide which components benefit their business and pay only when necessary. At the end of a paid period, customers can return to their previous infrastructure model.</p>



<p>SaaS users purchase their software in a billing system on a monthly or yearly basis. Their requirements may increase or decrease depending on their business needs and consumer demand, so having a customizable infrastructure is essential.</p>



<ul>
<li><strong>Subscription-Based Pricing Model</strong></li>
</ul>



<p>The SaaS application’s essence lies in its high availability. This service is extended through a <strong>flexible billing cycle</strong> that allows customers and business users to use what they want, as much as they want.</p>



<ul>
<li><strong>CRM System</strong></li>
</ul>



<p>A Customer Relationship Management (CRM) system is what sets a SaaS application apart from other applications. Since SaaS offers a shared platform for multiple tenants, it requires a <strong>unified repository for multiple customer accounts</strong> and their account information for management purposes.</p>



<ul>
<li><strong>Automated Provisioning</strong></li>
</ul>



<p>Automated provisioning in SaaS means delivering the application to customers automatically, <strong>without manual steps</strong>, for smoother operation. This automation streamlines the setup and delivery of the software, making it more efficient and user-friendly.</p>



<ul>
<li><strong>Support and Analytics</strong></li>
</ul>



<p>The support and analytics module of a SaaS application provides <strong>a set of tools for platform management and performance tracking</strong>. As a result, SaaS providers satisfy customer expectations, and business providers can improve customer service quality and meet market requirements.</p>



<h3 class="wp-block-heading">Cloud</h3>



<p>There are three ways to deploy a SaaS application.</p>



<ol style="list-style-type:1">
<li><strong>Public Cloud</strong>: The service is hosted in <strong>a general-use</strong> <strong>infrastructure</strong>. For example, multiple companies can use the same server, and the device’s capacity is shared proportionally based on the business needs of each.</li>



<li><strong>Private Cloud</strong>: The software is hosted in <strong>an infrastructure exclusively used by one company</strong>. Typically, the equipment is within the company’s own network. Private clouds have limitations in scalability compared to public or hybrid clouds, which may require significant infrastructure investments when launching the application in the market.</li>



<li><strong>Hybrid Cloud</strong>: This is a <strong>combination of public and private clouds</strong>. For instance, a bank might store customer data in a private cloud and expand its computing power using a cloud provider.</li>
</ol>



<h3 class="wp-block-heading">Tech Stack</h3>



<p>The choice of a technology stack is a critical decision that can significantly impact the success, cost, and performance of your software development project. <strong>Choosing the wrong tools can lead to project failure</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2023/10/what-is-tech-stack.png" alt="A visual explaining what a technological stack is." class="wp-image-6330"></figure>



<p><strong>A wise choice of the technical stack is one of the key criteria for the successful launch of any product</strong>, especially when it comes to SaaS services. Opting for exotic development tools can make the software complex to update and support in the long run.</p>



<p>A prime example is the Ruby on Rails framework. When it first came out, clients worldwide urged providers to use this new and trendy platform for their projects, even migrating their existing applications to RoR. However, it soon became apparent that working with it wasn’t as straightforward as everyone thought.</p>



<p>Once more user-friendly frameworks started to emerge, the popularity of RoR significantly declined. Today, most Ruby projects are maintained at a high cost, as demand for support remains, while the number of developers in this stack has dwindled.</p>



<figure class="wp-block-table"><table class="has-primary-color has-gray-100-background-color has-text-color has-background"><tbody><tr><td>The most reliable way to avoid making a wrong choice is to start with a <strong><a href="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" data-type="link" data-id="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" target="_blank" rel="noreferrer noopener">discovery phase</a></strong>. If done correctly, the developers experienced in the same niche or product type create the project’s detailed roadmap that also includes technical requirements and the instruments necessary to meet them — the <strong>tech stack</strong>.</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">The Bonus: Code Blueprints to Cut the Time</h2>



<p>The more competitive your business environment is, the more critical <a href="https://rocketech.it/blog/post/from-idea-to-launch-the-startups-guide-to-reducing-time-to-market">the time it takes you to deliver your product to your end user</a> becomes. One of the most efficient ways to cut time to market is to use already existing instruments and their proven mixes to avoid reinventing the wheel while implementing standard, most-required functionality.</p>



<p><strong>Our Technical Lead, Olexandr, explains this process with specific examples</strong>.</p>



<p>“Consider this scenario. You have a mobile application. And the task is to integrate a payment system for both Apple and Android platforms. If, let’s say, you’re venturing into this for the first time, the <strong>traditional approach</strong> would be to delve into the intricacies of the Apple Store and Google Play specifications. You’d need to develop and test the integration for each platform separately, which can be quite time-consuming.</p>



<p>However, there is an <strong>alternative approach</strong>. You could opt for a ready-made service like <a href="https://www.revenuecat.com/" target="_blank" rel="nofollow noreferrer">RevenueCat</a>, which offers a more streamlined solution. RevenueCat can seamlessly work with both Apple and Android platforms right out of the box, and it even supports various payment services as a bonus. This approach saves you a considerable amount of time and minimizes the testing effort. Additionally, it provides valuable statistics on all purchases and transactions.</p>



<div class="wp-block-blog-quote wp-block-quote"><div class="wp-block-quote__text"><p>So many instruments were written before us. We just need to learn how to use them efficiently in our favor.</p></div><div class="wp-block-quote__author"><div class="wp-block-quote__author__aside"><div class="wp-block-quote__author__image" style='background-image:url("https://wp.rocketech.it/wp-content/uploads/2023/10/sasha-kulik-2.jpg")'></div></div><div class="wp-block-quote__author__content"><div class="wp-block-quote__author__name">Olexandr Kulyk</div><div class="wp-block-quote__author__info">Solutions Architect, Technical Lead, Rocketech</div></div></div></div>



<p>Let’s explore another example. A client comes to you with the idea of creating a cryptocurrency exchange platform. The platform needs to handle the conversion of dollars into cryptocurrencies and vice versa. But this venture also requires some form of basic accounting software to manage transactions, account balances, tax calculations, and profit margins.</p>



<p>You have two options here. The first option is to build this accounting software from scratch, which would consume a significant amount of time and risk introducing errors, particularly in the financial calculations. Alternatively, you can integrate an existing service that simplifies the process. With such a service, you can execute commands like:</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="816" height="250" src="https://wp.rocketech.it/wp-content/uploads/2023/10/image.png" alt="An extract of programming code to explain an example" class="wp-image-6334"></figure>



<p>Here, you specify the currency, amount, source, destination, and percentage, and the service will handle all the calculations for you. Moreover, it typically provides a ready-made dashboard with built-in statistics.”</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3840" height="1320" src="https://wp.rocketech.it/wp-content/uploads/2023/10/image-1.png" alt="A screenshot to illustrate an example." class="wp-image-6336"></figure>



<p>In both of these examples, the key takeaway is the advantage of leveraging existing services to expedite the development process, reduce the potential for errors, and gain access to valuable data insights.</p>



<h2 class="wp-block-heading">Outsourcing SaaS Development: Why Rocketech?</h2>



<p>Once SaaS product development outsourcing becomes one of the near-future plans, you need to find a reliable tech vendor to execute the project. As a full-cycle custom software development services provider, Rocketech takes projects at any stage and walks the extra mile to ensure the client’s success.</p>



<p>We don’t just promise; we deliver results. Considering SaaS website design and development outsourced? We are here. Have only a business idea and need to test its feasibility? We’ll guide you all the way through the process.</p>



<p><strong>With our proven strategies of reducing time to market, we guarantee our clients early market entry and fast delivery of even the most daring ideas</strong>.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Curious how we deliver faster than the competitors keeping the highest quality?<br>We are happy to share.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


SaaS Development Outsourcing: What Vendors Don’t Tell You

<p>Typically, just one in ten <a href="https://rocketech.it/blog/post/5-reasons-why-your-business-needs-a-mobile-app">mobile app development</a> projects turns out profitable. While the usage of smartphones is on the rise, the number of mobile products is also increasing. At the same time, the average session time is decreasing, and user attention is becoming progressively more valuable with each passing year. <strong>In these highly competitive environments, custom mobile app development for startups turns from a luxury option into a business requirement</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2023/10/app-dev-for-startups.png" alt="Developers discussing wireframes and designs for a new mobile app for a startup." class="wp-image-6250"></figure>



<p>Do you have a startup product idea but don’t know what to begin with? Our <strong>guide on app development for startups</strong> will help you get your ducks in a row.</p>



<h2 class="wp-block-heading">Why Does a Startup Need a Mobile App?</h2>



<p>Essentially, startups are projects with low budgets and high risks. That’s why mobile app development for startups is an instrument they use to test business hypotheses and, ideally, find investors for further rapid expansion. Here are <strong>seven reasons why your startup does need a mobile solution</strong>.</p>



<ul type="1">
<li><strong>Quick Market Presentation</strong><strong></strong></li>
</ul>



<p>With a well-designed app, they can showcase their products or services, highlight their unique selling points, and create a lasting impression on potential customers.</p>



<ul>
<li><strong>Convenient Sales Channel</strong></li>
</ul>



<p>Mobile apps provide a convenient method for startups to sell their products or services directly to their target audience. By offering a seamless and user-friendly purchasing experience, startups can maximize their reach and increase their sales potential.</p>



<ul>
<li><strong>Constant Customer Engagement</strong></li>
</ul>



<p>Mobile apps enable startups to establish and maintain constant communication with their customers. Through push notifications, personalized offers, and in-app messaging, startups can keep their customers engaged, informed, and loyal to their brand.</p>



<ul>
<li><strong>Direct Feedback</strong></li>
</ul>



<p>Mobile apps allow startups to gather direct feedback from their customers. This valuable feedback helps them understand customer preferences, identify areas for improvement, and make informed business decisions.</p>



<ul>
<li><strong>Simplicity and Accessibility</strong></li>
</ul>



<p>Compared to a website, mobile apps offer a simpler and more accessible user experience. With a few taps on their smartphones, users can access the app and find what they need quickly.</p>



<ul>
<li><strong>Streamlined Business Processes</strong></li>
</ul>



<p>Developing a mobile app enables startups to automate internal business processes like inventory management, order processing, or customer support. This automation saves time and resources.</p>



<ul>
<li><strong>Data Collection and Analysis</strong></li>
</ul>



<p>By collecting user behavior, preferences, and demographics, startups can gain insights into customer trends and make data-driven decisions to enhance their products or services.</p>



<h2 class="wp-block-heading">Why Your App Won’t Pay Off</h2>



<p>While app development for a startup no longer seems extraordinary, there are many ways to do it wrong and fail. We summed up the <strong>five most common reasons</strong> why it happens.</p>



<p><strong>#1 The problem you’re solving doesn’t exist or has already been solved.</strong></p>



<p>Co-founder of Y Combinator, Paul Graham, once said that the most common mistake startups make is solving problems that don’t exist. While we have seemingly the best ideas in our imagination, in reality, potential customers mostly simply don’t need them.</p>



<p><strong>#2 The hypothesis hasn’t been tested.</strong></p>



<p>It’s difficult to speculate about risks without initial customers and figures to base developmental models on. Testing the hypothesis allows for ample maneuvering room for ideas in the early stages when their cost is close to zero.</p>



<p><strong>#3 <strong>You’ve planned too many features</strong>.</strong></p>



<p>Building a full-fledged starship ready for a Mars mission right from the start is not the best strategy. However, some entrepreneurs think adding more features to a product will make it more appealing to customers. It’s not true.</p>



<p><strong>#4 You didn’t define your goals.</strong></p>



<p>It’s crucial to forecast the outcomes the development and growth of an IT product will bring. What indicators need to be achieved within six months to justify the investment risk? What about a year?</p>



<p><strong>#5 <strong>Your monetization method is overly aggressive.</strong></strong></p>



<p>Attention from users is the primary asset in the digital world. Even in a financially unprofitable project, having a large community is a success. Attracting attention is harder than converting it into profitability. Aggressive monetization at the early stages of a service’s life cycle often leads to an inability to gather a sufficient user base.</p>



<h2 class="wp-block-heading">App Development for Startups: The 2-Phase Approach</h2>



<p>In general, the development process can be broken down into understandable phases that make up a plan. Approaches to process-building may differ from vendor to vendor. At Rocketech, we believe that startups require a slightly different and almost always tailored approach. For simplicity, let’s <strong>divide the entire development process into</strong> <strong>three large steps</strong>.</p>



<h3 class="wp-block-heading">1. Start with a Discovery</h3>



<p>Effective planning is half the battle. If you only have what you believe to be a genius idea and a half-written business plan, you are likely to fail. To prevent this scenario, meticulous planning is necessary. We have found that conducting a <a href="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success"><strong>project discovery</strong></a> is the best way to set sail.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2023/10/what-is-a-discovery-phase-2.png" alt="An infographic briefly explaining what a discovery phase is in custom software development." class="wp-image-6242"></figure>



<p>In simple words, it’s an essential phase for startups as it helps them <strong>understand what their customers want</strong>, which is the key to achieving success in the market. In short, a <strong>discovery phase has three main advantages</strong>.</p>



<ul type="1">
<li><strong>It saves time and money.</strong></li>
</ul>



<p>The main goal is to create the most in-depth and budgeted startup development plan possible. The more detailed your plan is, the fewer problems you’ll have on the way. Scrupulous planning also helps you avoid redundant functionality and see where you can save time and, as a result, money.</p>



<ul>
<li><strong>It d</strong><strong>efines the product.</strong></li>
</ul>



<p>It’s impossible to make a good plan if you don’t understand what exactly needs to be done. Another big objective of this stage is to define the product’s features and functionality. And it requires proper market research — it also prepares you for the real-market environment.</p>



<ul>
<li><strong>It reduces risks.</strong></li>
</ul>



<p>The discovery phase helps identify potential risks and challenges early in the project, allowing startups to mitigate them before they become bigger problems. In other words, developers with experience in similar projects will consider the risks and issues (and the ways to solve them) even before they happen.</p>



<p>Like any other project, the discovery phase includes several steps. If done right (and systematically), this stage’s outcome will be a solid roadmap and a clear picture of the near future, minimizing the uncertainty.</p>



<h4 class="wp-block-heading">#1 Do Your Market Research</h4>



<p>First things first: before you make any plans and, even more so, start developing your app, it’s vital to explore the environment and define the real market situation. Here are the questions covered by proper market research:</p>



<ul>
<li>What products exist in the chosen niche and make up your competition?</li>



<li>Why do some products succeed while others fail?</li>



<li>What strong sides and weaknesses do your competitors have?</li>



<li>Which unique features can your product offer that your competitors don’t have (yet)?</li>
</ul>



<h4 class="wp-block-heading">#2 Make Accurate Estimations</h4>



<p>A precise budget prediction is the unicorn of the custom software development world. In very few cases, everything goes as planned. However, the best app developers for startups are distinguished by experience — they’ve already solved whatever problem may await your project on the way.</p>



<p>In short, here are the seven most common agile <a href="https://rocketech.it/blog/post/agile-project-estimation-challenges">project estimation challenges</a>:</p>



<ol type="1">
<li>Uncertainty</li>



<li>Incomplete requirements</li>



<li>Complexity</li>



<li>Limited resources</li>



<li>Time constraints</li>



<li>Scope creep</li>



<li>External factors</li>
</ol>



<p>While these problems are familiar even to non-dev people, there are also specific <a href="https://rocketech.it/blog/post/how-to-avoid-common-project-estimation-mistakes">estimation mistakes</a> only experienced developers can help you avoid. Here’s where expert risk assessment comes into play.</p>



<p>Such probability analysis is essential for making accurate estimates and building a repository of potential future risks. By analyzing past project issues, software development providers create a list of possible problems that can occur. When starting new projects, they refer to this list to identify relevant risks.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Looking for a transparent and accurate project estimation? We can help.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Talk to us</button></div>



<h4 class="wp-block-heading">#3 Make a Hypothesis</h4>



<p>Startups make business hypotheses by formulating educated guesses about market dynamics and their business model’s various aspects. These hypotheses serve as the foundation for their strategy and decision-making process. Here’s a general <strong>framework for how startups develop business hypotheses</strong>.</p>



<ul type="1">
<li><strong>Identify the problem.</strong></li>
</ul>



<p>Start with identifying a problem or pain point in the market. Conduct research, gather data, and analyze trends to understand the needs and challenges of potential customers. The results will form the basis of your problem hypothesis.</p>



<ul>
<li><strong>Propose a solution.</strong></li>
</ul>



<p>Once the problem is identified, propose a solution or product that addresses the issue. Outline key features, benefits, and value propositions of your crafted solution. The results will form the basis of your solution hypothesis.</p>



<ul>
<li><strong>Target the market and segment customers.</strong></li>
</ul>



<p>Define your target market and segment it into specific customer groups based on demographics, psychographics, or other relevant characteristics. Develop hypotheses about the customer segments most likely to adopt your solution and provide the highest growth potential.</p>



<ul>
<li><strong>Make your value proposition.</strong></li>
</ul>



<p>Articulate the unique value you offer to customers compared to existing alternatives. Formulate hypotheses about your solution’s specific aspects that will resonate with customers and differentiate your offer from competitors.</p>



<ul>
<li><strong>Define the revenue model.</strong></li>
</ul>



<p>Explore existing ways to generate profit — subscriptions, advertising, licensing, or transaction fees. Test assumptions about pricing, customer willingness to pay, and overall revenue potential.</p>



<ul>
<li><strong>Specify customer acquisition and distribution channels.</strong></li>
</ul>



<p>Consider different marketing channels — digital advertising, social media, content marketing, partnerships, or direct sales. Analyze the cost of customer acquisition and experiment with different channels to validate your hypotheses.</p>



<ul>
<li><strong>Test and validate.</strong></li>
</ul>



<p>Naturally, hypotheses are created to be validated. Once you have them ready, start designing experiments and conducting tests. At the very beginning, startups use <a href="https://rocketech.it/blog/post/the-guide-for-perfect-customer-development-problem-interview-checklist">problem</a> and <a href="https://rocketech.it/blog/post/what-is-a-solution-interview-in-customer-development">solution interviews</a> and surveys to gather the data necessary to come up with development requirements. Eventually, the best and fastest way to confirm or refine your idea is <strong>to launch an MVP</strong>.</p>



<h3 class="wp-block-heading">2. Build an MVP to Validate Your Idea</h3>



<p>Essentially, there are two main ways to make and launch a mobile app. You can spend a long time and all your resources working on a single business idea and polishing numerous features to perfection. While it sounds good to some business owners, the outcome of such projects is unknown at best. In many cases, that perfection turns out not needed by real users.</p>



<p>The alternative way app developers for startups mostly take — you can launch the first, limited yet fully functional product version and refine and improve it according to your customer feedback and real-market environment.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2023/10/what-is-an-mvp-term.png" alt="An infographic briefly explaining what an MVP in custom software development." class="wp-image-6246"></figure>



<p>Imagine a unique-to-market product idea for an <a href="https://rocketech.it/case/lev">app that will revolutionize pet ownership</a>. Complex ambitious solutions like this combine features and functionality of various types — a marketplace, social network, and interactive map, in this case.</p>



<p>Instead of gambling on hypothetical ideas, decision-makers launched an MVP with simple functionality four months after the project had started. This approach helped them build a highly interactive, full-fledged mobile application with great market potential within just eight months, well ahead of the competition.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/10/mvp-for-startups.png" alt="An infographics naming 4 manin benefits of building an MVP for startups." class="wp-image-6248"></figure>



<p><a href="https://rocketech.it/blog/post/the-strategic-advantage-of-mvp-development-for-startups">Startup MVP development</a> is a strategic instrument (and a particular mindset, for that matter) to stay afloat in highly competitive markets where every day can be game-changing. After launching the first stable and functional version, you can then focus on your customers and their needs. And develop and improve your offer accordingly.</p>



<blockquote class="wp-block-quote">
<p></p>
<cite>In other words, let your MVP “run free” and bring the data that will tell you where to head next.</cite></blockquote>



<h2 class="wp-block-heading">Launch with Rocketech: Development Starts with the Release</h2>



<p>When you decide to find an app developer for your startup, most tech vendors will tell you that you need to start with multiple customer interviews, extensive target audience analysis, and competitor investigation. While they are not wrong, and all these steps are vital for a proper project discovery phase, there’s more to it.</p>



<p>Contrary to popular opinion, we’ve learned that <strong>development starts upon the release</strong>. You can test your hypothesis with a lot of theoretical moves. But <strong>you’ll only really validate your business idea once your product is delivered to its intended users</strong>.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">We know how to bring your idea<br>to market in the shortest possible time.<br>Talk to our specialist.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>


Developing a Startup App in 2023: How to Win the Competition Race

<p>Launching a product-based startup is overwhelming, and many aspiring entrepreneurs end up losing focus and burying seemingly brilliant ideas. The discovery phase (especially in the agile approach to software development) can help you stay on track, define your business goals, and find ways to achieve them.</p>



<p>Clients often approach custom software development companies with minimum information about what they want and why. <strong>The discovery phase helps both sides understand what the business actually needs and how different the real goals are from the client’s desires</strong>. Here’s what you need to know about the project kick-off and how to get maximum value from it.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2023/02/discovery-phase.png" alt="A man holding a magnifying glass looking at a symbolic representation of Earth." class="wp-image-5055"></figure>



<h2 class="wp-block-heading">What is a Discovery Phase, and Why Do You Need It?</h2>



<p>Most Internet sources will explain the discovery phase definition as a “process of information gathering.” Although technically, it’s not wrong, an effective project initiation implies much more than just listening to the client’s wishes and desires and looking up what potential competitors are doing.</p>



<p><strong>The discovery phase in software development is a preliminary stage helping a project team understand the software project’s scope, requirements, goals, and objectives. </strong>The discovery phase’s purpose is to establish a shared understanding between the <a href="https://rocketech.it/blog/post/dedicated-team-the-future-of-software-development" data-type="URL" data-id="https://rocketech.it/blog/post/dedicated-team-the-future-of-software-development" target="_blank" rel="noreferrer noopener">development team</a> and the stakeholders (e.g., the business, end-users, or customers). Ideally, everyone involved should know what the project will entail and deliver and how to meet the needs of all parties.</p>



<blockquote class="wp-block-quote">
<p><em>The discovery phase is the first crucial development stage designed to set business goals and draw a roadmap toward achieving them. It’s aimed at defining the product, analyzing the market, and learning what the target audience needs. As a result, it helps all stakeholders understand each other’s expectations and establish efficient cooperation.</em></p>
</blockquote>



<p>So, what is a project discovery? In real-life projects, this stage goes beyond simply discussing ideas and writing a technical specification. It helps the client and the service provider to:</p>



<ol>
<li><strong>Clarify project objectives</strong>: It helps identify and formulate project objectives to ensure that the software project will bring the desired results.</li>



<li><strong>Reduce project risks</strong>: By thoroughly defining the project requirements and scope during the discovery, businesses can reduce the risk of misunderstandings during the development phase. Miscommunication always leads to financial losses.</li>



<li><strong>Improve project efficiency</strong>: It helps predict potential technical challenges and obstacles early on, allowing the project team to plan and prepare accordingly, improving project efficiency.</li>
</ol>



<p>In other words, every piece of information collected during the discovery stage helps the tech vendor determine the scope of work and time frames and plan the project tasks. It has one big ultimate goal — <strong>to create a quality software product designed for the client’s needs</strong>.</p>



<h3 class="wp-block-heading">Project Discovery: What Is Included?</h3>



<p>While the initial activities are about planning, the first stage itself must be well-planned. The discovery phase steps typically cover the main aspects of project management, <strong>from ideation to the implementation roadmap</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/04/dph-goals-infogrcs.png" alt="The infographics listing the main discovery phase goals." class="wp-image-5319"><figcaption class="wp-element-caption">Discovery Phase Objectives</figcaption></figure>



<h3 class="wp-block-heading">The Discovery Phase of a Software Development Project: Who Is Involved?</h3>



<p>Naturally, discovery teams may vary depending on the project’s size and complexity and the client’s specific needs. However, based on our experience, the following specialists make up the best combination.</p>



<h4 class="wp-block-heading">Business Analyst</h4>



<p>A business analyst gathers and analyzes market- and product-related data and makes recommendations to decision-makers. Use cases, user stories, reports, and business processes are right up their alley. BAs bridge the gap between technical and non-technical stakeholders and ensure that the project’s tech sides align with the client’s business goals.</p>



<blockquote class="wp-block-quote">
<p><em>For example, the client needs an online booking system integrated into the product. If the vendor starts with technical questions about the functionality, they may miss some crucial requirements. Why does the client need it? What does it solve? Here, the BA’s task is to listen carefully, build logical connections, and clarify controversies.</em></p>
</blockquote>



<h4 class="wp-block-heading">Solution Architect</h4>



<p>A solution architect is an experienced specialist who sets goals and objectives for the project execution, finds the best technical solutions, describes the software’s structure and behavior, and distributes functions between developers. They also consider cost, scalability, and compatibility with existing systems while making decisions.</p>



<h4 class="wp-block-heading">Developers</h4>



<p>Software developers with diverse expertise help the discovery team make more precise <a href="https://rocketech.it/blog/post/how-to-estimate-the-cost-of-sofware-development" data-type="URL" data-id="https://rocketech.it/blog/post/how-to-estimate-the-cost-of-sofware-development" target="_blank" rel="noreferrer noopener">estimations</a>. Professionals who have participated in several similar projects (comparable functionality, the same frameworks, domains, product types, etc.) evaluate the project’s potential based on their hands-on experience.</p>



<h4 class="wp-block-heading">UX/UI Designers</h4>



<p>User experience and user interface specialists can create wireframes and clickable prototypes if those are part of the discovery. Their main task is to show what the future application will look like. However, they also help the team assess the project’s complexity.</p>



<blockquote class="wp-block-quote">
<p><em>For a B2C product targeting mainstream users, UX designers would be an essential part of the discovery team — user experience is crucial for such solutions. Now let’s take entirely technical projects focusing on professionals in a particular niche. Here, UX plays a secondary role, while purely technical requirements become the first priority. The discovery phases for these examples will be different.</em></p>
</blockquote>



<h4 class="wp-block-heading">Scrum Master</h4>



<p>The formula <strong>Business Analyst+Scrum Master</strong> proves to be more efficient than a single Project Manager who, in the end, takes on too many tasks and often loses focus. While the BA connects business and development, the Scrum Master is responsible for efficiency, transparency, timing, and evaluation.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="823" height="690" src="https://wp.rocketech.it/wp-content/uploads/2023/02/dph-team.png" alt="The discovery phase in agile software development relies on a well-organized and professional team.
" class="wp-image-5071"><figcaption class="wp-element-caption">Discovery Phase Team</figcaption></figure>



<h3 class="wp-block-heading">The Main Benefits of a Discovery Phase</h3>



<p>Successful project management and discovery must bring tangible advantages to all stakeholders. For example, businesses can predict risks and minimize financial losses in the long run. Here’s the list of the <strong>key benefits of a discovery phase</strong>:</p>



<ul>
<li>A better understanding of project requirements;</li>



<li>Defined project scope and evaluated project complexity;</li>



<li>Detailed and simplified budgeting and planning;</li>



<li>Project estimations based on the team’s hands-on experience;</li>



<li>Improved team efficiency;</li>



<li>Enhanced project alignment and agreement;</li>



<li>Improved communication and collaboration between all stakeholders;</li>



<li>Reduced and mitigated risks (first of all, financial);</li>



<li>The balance between business objectives and the market need;</li>



<li>A clear technical description;</li>



<li>Visualized product vision.</li>
</ul>



<p>The main advantage of any discovery phase is <strong>a detailed action plan</strong> created by people who will follow it. By taking the time to plan and communicate effectively, you and your tech contractor turn an abstract idea into a real roadmap based on your business needs, market conditions, and budget.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Can’t estimate your idea’s feasibility?<br>We can provide support and expertise.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>



<h2 class="wp-block-heading">What Will Happen if You Skip the Discovery Phase Activities?</h2>



<p>In a nutshell, make a list of the things that can go wrong and imagine that most of them did go wrong. <strong>Lack of planning</strong> — and efficient planning is the purpose of any discovery phase — <strong>always has significant consequences</strong>. We’ve summed up the most common of them.</p>



<h3 class="wp-block-heading">Misaligned Expectations</h3>



<p>Without a discovery phase, you may end up having a conflict of “three products”: what you expected, what the development team created, and what your target audience is ready to pay for. Most often, they are completely different.</p>



<h3 class="wp-block-heading">Scope Creep</h3>



<p>Without a clearly defined plan, projects easily grow beyond the original objectives and goals. It leads to missed deadlines, increased costs, and often even wasted budgets.</p>



<p><em>Related article:</em> <a href="https://rocketech.it/blog/post/how-to-avoid-common-project-estimation-mistakes" data-type="URL" data-id="https://rocketech.it/blog/post/how-to-avoid-common-project-estimation-mistakes" target="_blank" rel="noreferrer noopener">How to Avoid Common Project Estimation Mistakes</a></p>



<h3 class="wp-block-heading">Technical Issues</h3>



<p>The discovery phase helps you identify and address technical challenges and limitations before development starts. For example, different programming languages, libraries, or APIs are not fully compatible with each other. It requires finding alternative solutions or making changes to the code. Experienced developers will consider such issues and the time to solve them before encountering them.</p>



<h3 class="wp-block-heading">Increased Project Risks</h3>



<p>Unexpected technical difficulties, lack of resources, changes in requirements, or miscommunication between team members lead to delays in delivery. In turn, every delay leads to increased costs and frustration among the stakeholders. Risk mitigation is one of the discovery phase’s main purposes.</p>



<h3 class="wp-block-heading">Unclear Budget and Time Frames</h3>



<p>Imagine your development team increasing the bill after every iteration, while you are still not seeing the results. It’s a likely scenario in terms of budget and deadlines if you skip the discovery phase. The developers don’t have a well-articulated goal and can’t keep track of smaller objectives while the time is running out.</p>



<h3 class="wp-block-heading">A Product Nobody Needs</h3>



<p><a href="https://www.failory.com/blog/startup-failure-rate" data-type="URL" data-id="https://www.failory.com/blog/startup-failure-rate" target="_blank" rel="noreferrer noopener">9 out of 10 startups fail</a>. Most of them fail because the founders think they know what their target audience needs and wants. In reality, they don’t. The discovery phase is an instrument devised to find product-market fit through customer development activities like <a href="https://rocketech.it/blog/post/the-guide-for-perfect-customer-development-problem-interview-checklist" data-type="URL" data-id="https://rocketech.it/blog/post/the-guide-for-perfect-customer-development-problem-interview-checklist" target="_blank" rel="noreferrer noopener">problem </a>and <a href="https://rocketech.it/blog/post/what-is-a-solution-interview-in-customer-development" data-type="URL" data-id="https://rocketech.it/blog/post/what-is-a-solution-interview-in-customer-development" target="_blank" rel="noreferrer noopener">solution </a>interviews and working directly with real customers’ feedback.</p>



<h2 class="wp-block-heading">The Discovery Phase Deliverables</h2>



<p>Many startup founders are skeptical about the discovery phase as it may seem like an abstract discussion of possible ways of doing things. However, by the end of this stage, <a href="https://rocketech.it/blog/post/how-to-choose-your-tech-vendor-the-insider-guide" data-type="URL" data-id="https://rocketech.it/blog/post/how-to-choose-your-tech-vendor-the-insider-guide" target="_blank" rel="noreferrer noopener">your tech vendor</a> must provide you with actual and well-documented results. <strong>It’s a ready action plan</strong>.</p>



<p><strong>The discovery phase’s main outputs </strong>typically include:</p>



<ol>
<li>A clear and agreed-upon <strong>project scope</strong> that outlines the project goals and objectives, requirements, and constraints.</li>



<li>A detailed <strong>project plan</strong> that outlines the timeline, budget, and resources required to complete the project.</li>



<li>A high-level <strong>solution design</strong> that defines the architecture and technical approach to the project.</li>



<li><strong>Alignment</strong> <strong>and approval</strong> between the stakeholders, business, and development team on the project goals, requirements, and solution design.</li>



<li><strong>Identification and mitigation of potential project risks</strong> and challenges and the ways of solving them.</li>



<li><strong>Improved communication and collaboration</strong> between the stakeholders, business, and development team ensuring the project is executed smoothly and efficiently.</li>
</ol>



<figure class="wp-block-table"><table class="has-light-color has-primary-background-color has-text-color has-background"><tbody><tr><td>Our most experienced specialists designed the three Discovery Phase Packages covering all project initiation aspects and devised for different budgets and levels of involvement.</td></tr></tbody></table></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="2500" src="https://wp.rocketech.it/wp-content/uploads/2023/02/dph-packages-infographics-1.png" alt="" class="wp-image-5081"><figcaption class="wp-element-caption">Rocketech Discovery Phase Packages</figcaption></figure>



<h2 class="wp-block-heading">The Discovery Phase with Rocketech</h2>



<p>At Rocketech, we start every project with a <strong>discovery sprint</strong> — a workshop with a seasoned business analyst experienced in the customer’s industry or niche. The BA gathers business requirements and helps the client prioritize tasks based on business goals and vision, build a development team, and make initial development investments as clear and relevant as possible. <strong>A discovery phase project plan with Rocketech is a thought-through roadmap to launching a successful marketable digital product</strong>.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Got a product idea but don’t know where to start? We can help. </div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


The Discovery Phase: Why Is It Crucial for Your Project Success?

<p>For a month, the Rocketech Team has been trying to adjust to the horrifying impact of the unprovoked Russian military invasion of Ukraine. We are grateful for the understanding and support from our clients, partners, and friends.</p>



<p>With a significant part of our Team remaining in Ukraine, our first and foremost priority has been their safety and wellbeing. At the same time, we keep working on all current projects following our standard operating procedure and remaining the reliable partner to all our clients who stand with us for peace.</p>



<h2 class="wp-block-heading"><strong>Emergency Operations Centre and Employee Support</strong></h2>



<p>From the outset of the crisis, Rocketech developed the emergency response plan to ensure communication and all possible support to our Team members and their families in Ukraine.</p>



<ul>
<li>We created an internal emergency operations centre to help our Team members trapped close to the front line relocate to Western Ukraine, the Polish border, or Poland. It is a volunteer initiative of our colleagues located in safer areas of Ukraine or residing in other countries.</li>



<li>Our volunteers assist the Team members and their families in relocation, provide food and medical aid, and help colleagues and their relatives who remain in the hot spots.</li>



<li>We search for lost relatives, organise temporary homes for pets, and look for other ways to support our colleagues and their families close to the front line.</li>



<li>Through the internal fund, the company provides financial assistance to those who temporarily cannot work until they can get back to their regular work routines.</li>



<li>With the help of the Team members residing in other countries, we organised a network of people and organisations providing information and help in Poland, Hungary, Iceland, Austria, Georgia, Moldova, Armenia, and Turkey.</li>



<li>We organised psychological help with professional counselling free for our Team and 24/7 volunteer support to fight anxiety and emotional distress.</li>
</ul>



<h2 class="wp-block-heading"><strong>Business Operations</strong></h2>



<p>Rocketech is withdrawing from the Russian market to end direct or indirect support for the aggressor country’s economy. We have completely stopped cooperation with Russian banks and companies – we no longer transfer money and accept payments.</p>



<p>We have discontinued all marketing and advertising operations targeting the Russian market. Among other things, we have withdrawn from the top-rated companies of the Russian market on Clutch and closed the company’s visibility to users from Russia in search results on the platform.</p>



<h2 class="wp-block-heading"><strong>Team</strong></h2>



<p>Currently, about forty of our colleagues remain on the territory of Ukraine. We contact each employee regularly to verify their location and safe conditions. From the 28th of February, we strategically reassigned the teams dedicated to all our projects to ensure that we fulfil all our contract obligations.</p>



<p>We had to adjust our recruiting strategy. Rocketech no longer considers applicants from Russia and Belarus as we do not support these countries’ economies. We, however, stand against any human discrimination and are willing to onboard new talents who make a decision to relocate to countries that do not support the war in Ukraine.</p>



<p>We value all our current employees, appreciate their professionalism and experience, and want to continue cooperation. In these complicated circumstances, we establish a dialogue with each employee from Russia and Belarus and discuss their personal and family situations to find solutions to keep them as our Team members.</p>



<h2 class="wp-block-heading"><strong>Concluding Statements</strong></h2>



<p>We are shocked and deeply affected by the human tragedy of some of the darkest days in European history and condemn the military actions launched by the Russian armed forces in Ukraine. We are witnessing unprecedented and tragic events that will forever reshape the world.</p>



<p>In this new reality, we find it crucial to be united by the common principles and the company’s core values. At Rocketech, we are proud of our international and multi-language Team based on mutual respect, support, and trust. Having said that, we decry any bullying of Russian citizens who do not support their government’s actions. We stand against any act of aggression and discrimination on the ground of nationality.<br></p>


Software development practices blog

Top

The Discovery Phase: Why Is It Crucial for Your Project Success?

Rocketech Operations During the War

Popular

Rocketech Receives the Manifest’s Recognition as One of Kyiv's Most Reviewed Software Developers

Developing SaaS Applications for Startups: How to Build a Successful Solution

Signing a Contract with an Agency: Pitfalls and Industry Insights

Mobile Development Trends and Approaches

6 Levers Of Growth For Successful Development Of Your Company

How to Avoid Difficulties Building an MVP for Utility Tools

Latest

How to Create a Marketplace Platform in 2024

From Niche to Scale: How to Expand a Marketplace

Smart Startup Scaling: Challenges and Solutions

SaaS Development Outsourcing: What Vendors Don’t Tell You

Developing a Startup App in 2023: How to Win the Competition Race

Rocketech Receives the Manifest’s Recognition as One of Kyiv's Most Reviewed Software Developers

Get a bi-weekly email with the most popular stories

Talk to us!