<p>Trust is the foundation of every successful business relationship. We have always taken pride in the reputation we’ve built — one of professionalism, expertise, and unwavering commitment to delivering the best possible solutions to our clients.</p>



<p>Recently, we’ve learned that certain individuals and agencies have been reaching out to our clients (both current and former) <strong>falsely claiming they were involved in the development of projects we have delivered</strong>. Let’s be clear: this is completely untrue. <strong>We do not outsource our work, nor do we rely on third-party developers</strong>. Every project we undertake is executed entirely in-house by our carefully selected, highly skilled team.</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/2025/03/false-claims.png" alt="Edited screenshot of a direct message containing false claims about contributions to a project involving a Custom AI-based tool for executive management. The message itself is misleading and prompted this press release to address and correct the misinformation." class="wp-image-10590"></figure>



<p>We have worked hard to establish a world-class recruitment and HR process, ensuring that only the best professionals become part of our company. Our hiring standards are rigorous, and we take great care in assembling teams that uphold our values and deliver the level of quality we stand for. When we promise our clients expertise, dedication, and reliability, we mean it. Because <strong>we know exactly who we are working with</strong>.</p>



<p><strong>It is deeply concerning to see attempts to mislead our clients and undermine the trust we’ve built</strong>. If you receive any such claims, please know that they are false. And if you ever have any doubts, we encourage you to reach out to us directly. Your trust means everything to us, and we are committed to protecting it.</p>



<p>To our clients and our team — we appreciate you. Your support and dedication are what make our work meaningful, and we will continue to uphold the high standards that have defined our company from the very beginning.</p>


Protecting Integrity: A Message to Our Clients and Partners

<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>



<ul class="wp-block-list">
<li><strong>E-commerce platforms</strong>:<br>Powering online stores with everything from product listings to secure payments.<br>Examples: Shopify, BigCommerce.</li>



<li><strong>Communication and collaboration tools</strong>:<br>Helping teams work together in real time, no matter where they are.<br>Examples: Slack, Microsoft Teams.</li>



<li><strong>Text, graphics, and video editors</strong>:<br>Cloud-based solutions for content creation, design, and media production.<br>Examples: Canva, Adobe Creative Cloud.</li>



<li><strong>CRM platforms</strong>:<br>Managing customer relationships, sales pipelines, and marketing automation. AI is playing an increasingly important role in CRM, shaping the way businesses interact with their customers. <a href="https://www.goodfirms.co/resources/know-ai-crm-know-your-customers-expert-insights-crm-professionals?utm_source=survey_team&amp;utm_medium=email&amp;utm_campaign=ai_powered_crm_published" target="_blank" rel="noreferrer noopener">Know AI CRM to Know Your Customers</a> research conducted by GoodFirms explores the latest trends and challenges in AI-powered CRM adoption. Examples: Salesforce, HubSpot.</li>



<li><strong>Automated HR software</strong>:<br>Streamlining recruitment, payroll, and employee management.<br>Examples: BambooHR, Workday.</li>



<li><strong>Project management tools</strong>:<br>Keeping teams organized with task tracking, timelines, and collaboration features.<br>Examples: Asana, Trello.</li>



<li><strong>Accounting and billing software</strong>:<br>Automating financial operations like invoicing, expense tracking, and tax compliance.<br>Examples: QuickBooks, Xero.</li>



<li><strong>ERP platforms</strong>:<br>Comprehensive business management tools that integrate finance, supply chain, and operations.<br>Examples: SAP, Oracle NetSuite.</li>



<li><strong>Fintech services</strong>:<br>Cloud-based solutions for payments, lending, and financial analytics.<br>Examples: Stripe, PayPal.</li>



<li><strong>E-learning platforms</strong>:<br>Enabling online education through course hosting, assessments, and interactive learning tools.<br>Examples: Coursera, Udemy.</li>
</ul>



<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"><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 Five 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 five-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 nofollow">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" 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="Understanding how Rocketech addresses common misunderstandings in tech product development." class="wp-image-4818" title="Rocketech’s Approach to Resolving Misunderstandings with Tech Product Development Agencies"></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 is-layout-flow wp-block-quote-is-layout-flow">
<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 is-layout-flow wp-block-quote-is-layout-flow">
<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 is-layout-flow wp-block-quote-is-layout-flow">
<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

<p>Growing a business isn’t just about working harder but making the right moves at the right time. Just like people, companies go through different stages of development. Skipping steps or rushing ahead can lead to chaos instead of success.</p>



<p>That’s where the <strong>Six Levers of Growth</strong> framework comes in. These levers help businesses scale smoothly by focusing on key areas like revenue models, marketing, business processes, team structure, and <a href="https://rocketech.it/blog/post/hyperautomation-as-a-strategic-business-requirement" target="_blank" rel="noreferrer noopener">automation</a>. When used correctly, they create a strong foundation for sustainable growth.</p>



<p>In this article, we’ll break down each lever and show you how to apply them to your business.</p>



<h2 class="wp-block-heading">Why Growth Needs a Systematic Approach</h2>



<p>The <strong>Adizes model</strong> explains that every company moves through <strong>10 stages</strong>, from ‘Courtship’ and ‘Infancy’ to ‘Prime’ and eventually ‘Bureaucracy’ or even ‘Death.’ These stages reflect how a business matures, adapts, and either thrives or declines.</p>



<p>Many companies try to skip steps, jumping straight to automation, scaling, or process optimization without a strong foundation. But just like a child can’t become an adult overnight, a company can’t leap from ‘Infancy’ to ‘Prime’ without going through critical growth phases.</p>



<p>The <strong>Six Levers of Growth</strong> ensure businesses transition through these stages in the right order, avoiding costly mistakes and setting themselves up for long-term success.</p>



<p>Now, let’s break down each lever and how it contributes to sustainable growth. </p>


<div class="wp-block-image is-style-default">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="838" height="616" src="https://wp.rocketech.it/wp-content/uploads/2021/09/image.png" alt="This image illustrates the life cycle of a business (the Adizes model), highlighting the transition from growth to aging. It includes stages such as 'Courtship,' 'Infancy,' 'Go-Go,' 'Adolescence,' 'Prime,' 'Stability,' 'Aristocracy,' 'Recrimination,' 'Bureaucracy,' and 'Death,' along with potential challenges at each stage. The visual is color-coded to differentiate growth stages (green) from aging stages (red), providing a clear overview of the business life cycle and its critical points." class="wp-image-979" style="width:692px;height:508px"><figcaption class="wp-element-caption"><strong>Adizes Model</strong></figcaption></figure></div>


<h2 class="wp-block-heading">Is Skipping Stages a Problem?</h2>



<p>Many companies rush into digital transformation to keep up with trends, but without proper preparation, this often leads to chaos instead of progress.</p>



<p>Take automation, for example. If a company’s data is already a mess before implementing a CRM system, that chaos won’t magically disappear after integration. Employees who weren’t entering data before won’t suddenly start just because a new system is in place.</p>



<p>Without analysis and preparation, a business can’t build a solid, functional model. Improvisation often does more harm than good. Growth needs <strong>consistency </strong>— it helps prevent costly mistakes and keeps the company on track.</p>



<p>Now, let’s break down each lever and how it contributes to sustainable growth.</p>



<h2 class="wp-block-heading">First Lever: Income Generation Model</h2>



<p>This lever helps you understand how to make money and maximize profit. According to <strong>Porter’s Five Competitive Forces model</strong>, five key factors affect a company’s profitability:</p>



<ul class="wp-block-list">
<li><strong>Industry competition</strong>: The level of rivalry among existing businesses.</li>



<li><strong>Clients</strong>: Customers’ power to influence pricing and demand.</li>



<li><strong>Substitutes</strong>: Alternative products or services that could replace yours.</li>



<li><strong>Suppliers</strong>: Their control over pricing and availability of materials.</li>



<li><strong>New entrants</strong>: Emerging businesses trying to capture market share.</li>
</ul>



<p>These forces constantly interact. <strong>Digitalization</strong> has made it easier for customers to compare options, increasing the importance of competitive pricing and unique value. Suppliers aim to dominate supply chains, while new players fight for niche markets. Even substitutes — products that aren’t direct competitors — can take a share of your market.</p>



<p>The balance of these forces shapes the <strong>profit-making zone </strong>— the part of the market where a company generates revenue. In the past, market share determined profitability, but today, success depends on <strong>innovation, new management models, and creative strategies</strong>.</p>



<p>Businesses that leverage these tools expand their presence in the profit-making zone and achieve long-term growth. To do this effectively, companies must <strong>analyze market opportunities and position themselves accordingly</strong>.</p>



<h3 class="wp-block-heading">10 Strategies to Protect Profits</h3>



<p>To safeguard revenue, businesses can use the following 10 key strategies:</p>



<ol class="wp-block-list">
<li><strong>Product Differentiation</strong>. While many companies strive to stand out, differentiation alone isn’t always profitable. Without clear demand, finding the right customers for a unique product can be difficult.</li>



<li><strong>Differentiation with Cost Parity</strong>. A more efficient approach — a company differentiates its product while keeping costs aligned with competitors.</li>



<li><strong>Differentiation with Cost Leadership</strong>. A strong strategy for profit protection. By optimizing production costs, businesses can identify and eliminate high-cost, low-value elements, improving margins.</li>



<li><strong>One-Year Technological Lead</strong>. Investing in R&amp;D can help develop innovative solutions that competitors won’t have access to for at least a year. This offers moderate profit protection.</li>



<li><strong>Two-Year Technological Lead</strong>. A more effective long-term strategy. With the right execution, businesses can secure user loyalty and sustain profitability.</li>



<li><strong>Brand and Copyright Protection</strong>. A recognizable brand gives a competitive edge, while copyrights and patents prevent competitors from copying innovations.</li>



<li><strong>Customer Relationship Ownership</strong>. Companies that collect user data and build loyalty programs can create stable, recurring revenue through targeted offers and personalized experiences.</li>



<li><strong>Dominant Market Position</strong>. Larger companies with a broad range of services hold stronger market positions, making them more resilient to competition.</li>



<li><strong>Value Chain Management</strong>. Vertical integration, where a company controls the entire production cycle, is a highly effective way to protect profits.</li>



<li><strong>Establishing an Industry Standard</strong>. Launching a niche product with no direct alternatives can be a winning strategy, but it requires proper investment and market research to succeed.</li>
</ol>



<p>These strategies <strong>work best when combined</strong>, allowing businesses to <strong>maximize profitability and strengthen their competitive edge</strong>.</p>



<h2 class="wp-block-heading">Second Lever: Marketing Strategy</h2>



<p>To reach the <strong>profit-making zone</strong>, a company needs a well-defined marketing strategy, including:</p>



<ul class="wp-block-list">
<li><strong>Pricing strategy</strong>: Setting prices based on market conditions, competition, and consumer expectations.</li>



<li><strong>Quality strategy</strong>: Ensuring product quality and optimizing production processes to meet international standards.</li>



<li><strong>Service strategy</strong>: Maintaining customer relationships beyond the initial sale.</li>



<li><strong>Positioning strategy</strong>: Identifying and targeting the ideal market niche while staying aligned with industry trends.</li>



<li><strong>Functionality strategy</strong>: Offering product features that directly address customer needs.</li>



<li><strong>Product strategy</strong>: Managing product categories and variations to optimize the assortment.</li>



<li><strong>Distribution strategy</strong>: Organizing sales channels and managing product availability.</li>



<li><strong>Partnership strategy</strong>: Selecting business partners with complementary products and solutions.</li>
</ul>



<p>By implementing these strategies, a company gains the necessary tools to move closer to <strong>sustainable profitability</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/2021/09/business-growth-1.png" alt='"Explore effective strategies for business growth with this visual, showcasing a hand-drawn bar graph and upward trend line, accompanied by a laptop, calculator, glasses, and sticky notes. Enhance your financial and strategic planning skills to drive positive business growth.' class="wp-image-10038"></figure>



<h2 class="wp-block-heading">Third Lever: Business Processes</h2>



<p>A company’s <strong>positioning</strong> must be reflected in its daily operations. Positioning isn’t just a branding decision — it should be <strong>visible at every customer touchpoint</strong>.</p>



<p>Each customer interaction aligns with a specific <strong>business process</strong>, making positioning an active, ongoing element in company operations. If a customer expects certain standards from a company, those expectations should be consistently met at each touchpoint.</p>



<p><strong>Online Touchpoints</strong></p>



<ul class="wp-block-list">
<li>Advertising</li>



<li>Website</li>



<li>Blog</li>



<li>Social media</li>



<li>Chatbots</li>



<li>Customer reviews</li>



<li>Mobile apps</li>



<li>Content strategy</li>



<li>Email campaigns</li>
</ul>



<p><strong>Offline Touchpoints</strong></p>



<ul class="wp-block-list">
<li>Business operations</li>



<li>Advertising</li>



<li>Physical office</li>



<li>Products</li>



<li>Technologies</li>
</ul>



<p>This <strong>connection between the customer journey and business processes</strong> means that every interaction plays a role in revenue generation. Since each step of the <strong>customer journey</strong> impacts profitability, the <strong>Customer Journey Map</strong> effectively becomes a <strong>visual representation of a company’s profit model</strong>. In turn, business processes serve as the internal framework that ensures this model functions effectively.</p>



<h2 class="wp-block-heading">Fourth and Fifth Levers: Organizational Structure and HR Policy</h2>



<p>The <strong>organizational structure</strong> reflects the company’s business model. According to the <strong>competency model</strong>, employees are assigned roles based on their expertise and are responsible for tasks aligned with customer needs and their ability to pay.</p>



<p>Tools like <strong>RASCI</strong> and <strong>FTE</strong> help define responsibilities, allocate tasks, and organize workflows with clear schedules. The key idea is that <strong>business processes</strong> should guide the allocation of resources and the assignment of roles, ensuring that functions are effectively distributed among employees.</p>



<h2 class="wp-block-heading">Sixth Lever: Automation</h2>



<p>One of the most important levers for success is the <strong>automation</strong> of company processes. It speeds up work, saves resources, and improves quality.</p>



<p>Every organization needs an executive function along with tools for <strong>process monitoring</strong>. These tools help analyze and optimize internal procedures. A <strong>digital twin</strong> of the company can be used to implement this by creating a virtual model of enterprise processes. Businesses can analyze every aspect of their operations and plan future development based on data-driven insights.</p>



<p><strong>Digital representations</strong> of all processes are critical for better monitoring because they connect the company’s IT infrastructure with its day-to-day operations.</p>



<p>The <strong>strategy</strong> and <strong>marketing models</strong> should be integrated with <strong>business analytics systems</strong>, which support decision-making based on data. Additionally, <strong>ERP systems</strong> are essential for managing finances, including assets, debts, and balance sheet indicators.</p>



<p>For production management, <strong>MES systems</strong> (Manufacturing Execution Systems) help coordinate production processes, track product quality, allocate resources, and manage maintenance. Automation in production is also enhanced by <strong>SCADA systems</strong>, <strong>dispatching systems</strong> (ADTCS), and <strong>automated control systems (ACS)</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/2021/09/business-growth.png" alt='"Discover key strategies for business growth with this engaging image featuring a laptop and hands interacting with rising financial graphs and arrows. This visual effectively highlights increasing market trends and successful business strategies, making it ideal for topics related to financial analysis and business development.' class="wp-image-10040"></figure>



<h2 class="wp-block-heading">Bottom Line</h2>



<p>Success is creating a system that works for your unique business. Each lever we’ve discussed is a critical piece in building a framework that helps your company move from chaos to clarity. By aligning your pricing, business processes, and automation with a clear vision, you can create real, measurable value for both your customers and your bottom line. Building a strategy will help you actively drive growth, minimize waste, and turn potential into profit.</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">Stuck in the growth phase? We can help.<br>Get a free discovery session.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>


6 Levers of Growth: A Smarter Approach to Business Development

<p><strong>Jim York,</strong> the often-cited guru of Scrum, an agile methodology for managing and completing complex projects, once <a href="http://www.agileleanhouse.com/lib/lib/People/PeterHundermark/InfoQ-Do-Better-Scrum-Minibook.pdf" target="_blank" rel="noreferrer noopener nofollow">said</a>, “<strong>Scrum is simple. Doing Scrum is hard</strong>.” Indeed, <a href="https://scrumguides.org/scrum-guide.html" target="_blank" rel="noreferrer noopener nofollow">The Scrum Guide</a> is easy to grasp. However, many businesses don’t follow the framework strictly. Although implementing the framework might appear a reasonable action to adjust workflows, it frequently leads to serious and negative outcomes.</p>



<p><strong>ScrumBut is one of the most widespread and controversial examples</strong>. It resulted from many misconceptions about Scrum and the impact of its adoption. Stemming from a misinterpretation or selective adoption of Scrum principles, ScrumBut represents a diluted version that undermines the intended benefits. We explained the phenomenon, its meaning, and <strong>why you should avoid it</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/scrumbut.png" alt="Team discussing Scrum methodology, highlighting challenges of ScrumBut and its misconceptions.
" class="wp-image-4696"></figure>



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



<p>According to <strong><a href="https://www.scrum.org/resources/what-scrumbut" data-type="URL" data-id="https://www.scrum.org/resources/what-scrumbut" target="_blank" rel="noreferrer noopener nofollow">Scrum.org</a></strong>, “ScrumButs mean that Scrum has exposed a dysfunction that is contributing to the problem, but is too hard to fix. A ScrumBut retains the problem while modifying Scrum to make it invisible so that the dysfunction is no longer a thorn in the side of the team”.</p>



<p>To simplify this, a ScrumBut has a specific <strong>syntax</strong>:</p>



<p><strong>(ScrumBut)(Reason)(Workaround)</strong>.</p>



<p>Here are some <strong>real-life ScrumBut examples</strong>.</p>



<ul class="wp-block-list">
<li>(We use Scrum, but) (having a Daily Scrum is too expensive,) (so we only have it once a week.)</li>



<li>(We use Scrum, but) (Retrospectives are a waste of time,) (so we skip them.)</li>



<li>(We use Scrum, but) (we can’t create the functionality within a month) (so our Sprints last six weeks.)</li>



<li>(We use Scrum, but) (sometimes our managers give us special tasks,) (so we don’t always have time to match our Definition of Done.)</li>
</ul>



<p>In a broader sense, <strong>ScrumBut</strong> <strong>is</strong> <strong>a methodology one can call</strong> <strong>a restricted Scrum</strong>. It’s the framework’s deviation that implies that the team only uses parts of it while leaving aside other elements (the ones you think you don’t need). However, to see what you need and what you don’t, you must understand the principles of classic Scrum. And that’s where troubles begin.</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/2023/07/scrumbut.png" alt="A schematic drawing visualizing ScrumBut." class="wp-image-5944"></figure>



<h3 class="wp-block-heading"><strong>What Triggers ScrumButs?</strong></h3>



<p>While ScrumButs are reasons themselves, they also have the rationale behind them.</p>



<h4 class="wp-block-heading"><strong>#1 Misinterpretation of The Scrum Guide</strong></h4>



<p>Remember, Scrum is compact and easy to understand but difficult to master. Although the elements are described straightforwardly, many companies misread the guide or (often) skip its parts, which leads to framework dysfunctions.</p>



<h4 class="wp-block-heading"><strong>#2</strong> <strong>Inappropriate Context for Scrum</strong></h4>



<p>It’s a framework designed to develop, deliver and support complex products. Sometimes it’s simply not suitable for solving your problems. You may not need all Scrum Ceremonies to redesign a few pages of your corporate website.</p>



<h4 class="wp-block-heading"><strong>#3 Conscious Simplification of the Rules</strong></h4>



<p>Some executives ignore parts of the Scrum process or consider them secondary. Meanwhile, all Scrum roles, events, and artifacts are closely linked and aimed at achieving the common goal — to provide customers with a product of maximum value.</p>



<ul class="wp-block-list">
<li>
</ul>



<h2 class="wp-block-heading"><strong>What Hinders Scrum Adoption?</strong></h2>



<p>About a decade ago, the Internet was somewhat positive towards ScrumBut practices. Nonetheless, <strong>Ken Schwaber</strong>, one of the leaders of the agile software development movement first <a href="https://www.barnesandnoble.com/w/scrumbuts-ken-schwaber/1131877888" target="_blank" rel="noreferrer noopener nofollow">used</a> the term “ScrumBut” to describe <strong>a misinterpretation or a deliberate modification of the rules of Scrum to escape from the painful truth about the process it helps discover</strong>.</p>



<p>Certainly, some deviations are common in the early stages of the agile methodology adoption. They are part of the process evolution. For example, if you use Scrum but don’t practice TDD (test-driven development), pair programming, or collective code ownership, maybe you’re just at the beginning of the agile journey. It takes time.</p>



<p>However, <strong>“we use Scrum, but” in mature teams should raise questions about the actual causes that drive this modification</strong>. And often, there are a few valid reasons. Rather, it’s a misunderstanding of the agile process values or a lack of the courage and consistency to follow them.</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/2023/07/scrumbut-quote.png" alt="Quote &quot;Early deviations in agile methodology adoption are common and part of the process evolution. For instance, if you use Scrum without practicing TDD, pair programming, or collective code ownership, it may indicate that you're at the beginning of the agile journey, which takes time.&quot; - A text block against a blue background and a schematic drawing of development team in a meeting discussing a project." class="wp-image-5948"></figure>



<h3 class="wp-block-heading"><strong>25 Common Mistakes Disrupting the Scrum Process</strong></h3>



<p>Depending on the project’s context, some points may have varying impacts. But every element of this list leads to a distortion of agile and Scrum values and principles.</p>



<ol class="wp-block-list">
<li>The team is not authorized to change the development process.</li>



<li>There is no list of problems and a systematic working process to resolve them.</li>



<li>There is no investment (time, money) to work on problems.</li>



<li>The Sprint length increases on the go or changes frequently.</li>



<li>Developers have inconsistent development rhythms with pauses between Sprints.</li>



<li>There are no Working Agreements.</li>



<li>The team doesn’t use vision and business value techniques (Product discovery, Value Proposition, User Personas, User Story Mapping, etc.).</li>



<li>Product vision, release, and Sprint goals are not communicated to all team members.</li>



<li>The team doesn’t adjust iteration targets based on market feedback after launch.</li>



<li>Product Backlog does not reflect on the element value.</li>



<li>The Definition of Done is not defined or communicated to the team members.</li>



<li>Testing is not included in development Sprints and is not automated.</li>



<li>The Product Owner manages Scrum Master.</li>



<li>The Product Owner doesn’t know the product’s target audience.</li>



<li>The Product Owner doesn’t provide the team with constructive feedback.</li>



<li>There are different Scrum Masters in every Sprint.</li>



<li>One team member functions as both Product Owner and Scrum Master.</li>



<li>The development team is divided into sub-teams.</li>



<li>The team members are involved in multiple projects simultaneously.</li>



<li>A Daily Scrum takes much longer than 15 minutes.</li>



<li>The team works on the backlog arbitrarily and doesn’t consider the Product Owner’s priorities.</li>



<li>There are no metrics or assessment methods.</li>



<li>The Sprint Retrospective turns into finger-pointing.</li>



<li>There’s a lack of task planning before the Sprint.</li>



<li>There are additional roles like release managers or development managers responsible for parts of the project’s success.</li>
</ol>



<p><strong>And this list can be endless</strong>. The researchers from Tampere University and the University of Helsinki conducted an <a href="https://www.researchgate.net/publication/287374379_Exploring_ScrumBut_-_An_Empirical_Study_of_Scrum_Anti-Patterns" target="_blank" rel="noreferrer noopener nofollow">empirical study</a> on the cases of Scrum deviations in real-life conditions. The paper concludes that while some of them are “seemingly attractive”, they “may nevertheless have unpleasant consequences”.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="423" src="https://wp.rocketech.it/wp-content/uploads/2023/07/relationships-of-scrum-anti-patterns-and-scrum-concepts-presented-as-a-graph_w640.jpg" alt="Relationships of Scrum anti-patterns and Scrum concepts presented as a graph. " class="wp-image-5946"></figure>



<p><a href="https://www.researchgate.net/publication/287374379_Exploring_ScrumBut_-_An_Empirical_Study_of_Scrum_Anti-Patterns/figures?lo=1" data-type="URL" data-id="https://www.researchgate.net/publication/287374379_Exploring_ScrumBut_-_An_Empirical_Study_of_Scrum_Anti-Patterns/figures?lo=1" target="_blank" rel="noreferrer noopener nofollow">Source</a></p>



<h2 class="wp-block-heading"><strong>Why ScrumBut Is Ineffective</strong></h2>



<p>ScrumBut is essentially using only a fraction of the Scrum principles. However, <strong>you can only leverage all advantages of Scrum software development methodology if you follow the framework strictly</strong>. Many founders think skipping one or two Daily Sprints won’t affect the overall process. In reality, even the slightest deviation makes it “non-Scrum”. The official Scrum guide says: “While implementing only parts of Scrum is possible, the result is not Scrum. Scrum exists only in its entirety”.</p>



<p>Many founders try to invent their own approaches and methods while adopting the classic textbook Scrum can help them reach the desired results faster and more effectively. Scrum is more than just managing a development team. <strong>It’s about the functional business and resource planning that helps you create products that customers need</strong>. And no strategy can guarantee the outcome if not followed entirely.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p></p>
<cite><strong>You can only leverage all advantages of Scrum software development methodology if you follow the framework strictly</strong>.</cite></blockquote>



<p>At Rocketech, we believe that Scrum is the best fit for startups. It helps founders analyze team efficiency and adjust flexible release planning, which is essential in highly competitive markets with ever-changing demands. After 150+ successful projects, we see Scrum as a mindset and apply its best practices accordingly. And we are happy to share our 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">Need more details about our processes?<br>Talk to us.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


What Is ScrumBut, and Why Should You Avoid It?

<p>Building an app starts with one critical question: <strong>native or cross-platform?</strong> Each path affects performance, scalability, and, most importantly, your budget. Pick wrong, and you could end up rewriting your entire codebase in a year.</p>



<p>In this article, <strong>Maksim Atiutskii, </strong>our <strong>Business Development Manager</strong>, breaks down the <strong>mobile app development process</strong> with zero fluff. You’ll learn how to choose between native and cross-platform mobile development based on real <a href="https://rocketech.it/blog/post/5-reasons-why-your-business-needs-a-mobile-app" target="_blank" rel="noreferrer noopener">business needs</a>, not tech buzzwords.</p>



<p>Let’s cut through the noise and figure out what actually makes sense for your product by exploring the latest <strong><a href="https://www.goodfirms.co/resources/app-development-trends-change-how-you-develop-an-app?utm_source=survey_team&amp;utm_medium=email&amp;utm_campaign=app_trends_2025_published" target="_blank" rel="noreferrer noopener">mobile development trends and approaches</a></strong> that drive real impact.</p>



<figure class="wp-block-image size-large"><img decoding="async" src="https://wp.rocketech.it/wp-content/uploads/2021/03/mobile-app-dev-1.png" alt="Two people are collaborating on the mobile app development process. One person is holding a smartphone displaying a mobile banking app login screen, while the other person is pointing at a paper with sketches and wireframes of the app's interface. In the background, there are computer screens with code and a laptop, indicating a work environment focused on app development."></figure>



<p><strong>Maksim</strong>:</p>



<p>In this article, I will cover the main methods of developing mobile applications in 2025. I will focus on the most common options in the startup market due to two key factors: development costs and the speed of building a team. Early-stage companies need solutions that are efficient, affordable, and proven to work.</p>



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



<ul class="wp-block-list">
<li>Native</li>



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



<h2 class="wp-block-heading">Native App Development</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 Development</h3>



<p>All native <strong>iOS apps</strong> are built using <strong>Swift </strong>or <strong>Objective-C</strong>. However, all new applications are developed exclusively in Swift, while Objective-C is used only for maintaining legacy code and libraries, which are often costly to refactor.</p>



<p>Many modern iOS developers have only a basic understanding of Objective-C. To work with older codebases and Obj-C classes, Swift provides bridging mechanisms.</p>



<p>In short, native iOS development is straightforward — you need Swift. That’s no surprise, given that Apple designed it specifically for iOS and macOS development.</p>



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



<p>Android apps are primarily developed using <strong>Kotlin </strong>or <strong>Java</strong>. Kotlin is fully backward-compatible with Java, allowing seamless interoperability between the two languages. Developers can call Java code from Kotlin and vice versa.</p>



<p>While many developers still use Java, Kotlin is becoming the preferred choice for building new applications from scratch. However, unlike iOS developers, who can largely ignore Objective-C, Android developers are typically expected to have experience with Java.</p>



<p>Kotlin was created by Russian students at ITMO University to address Android development needs. It’s easier to learn and integrates more smoothly with the Android SDK, which is why its community is growing so rapidly.</p>



<h3 class="wp-block-heading"><strong>Benefits of native development</strong></h3>



<p>Let’s go through the main advantages of native app development here.</p>



<ul class="wp-block-list">
<li><strong>The application is integrated into the system’s UI/UX</strong>. 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><strong>Performance</strong>. The development uses tools for a specific platform to the maximum, thereby ensuring the app’s performance. 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 smooth user experience.</li>



<li><strong>Quality</strong>. Typically, there are much fewer bugs and crashes in native applications. Naturally, developers are responsible, too, but developing a solution for one platform is usually much easier.</li>



<li><strong>There are no restrictions</strong>. 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 to the camera, microphone, GPS, accelerometer, notifications, etc., with no problems.</li>



<li><strong>Native applications are more flexible and scalable</strong>. You can safely expand the functionality without worrying about the application slowing down or experiencing failures. Native development tools have virtually no limitations.</li>
</ul>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2021/03/mobile-app-dev-3.png" alt="Two developers are engaged in a discussion about native or cross-platform app development." class="wp-image-10015"></figure>



<h2 class="wp-block-heading">Cross-Platform App Development</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">PWA </h3>



<p>PWA (<strong>Progressive Web Application</strong>) is a cross-platform web application. This solution can be opened on any device but needs 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, it will take some part of the mobile app market.</p>



<p><strong>BUT! </strong>I strongly advise against developing mobile applications using PWA at the moment. Here are a few reasons why:</p>



<ul class="wp-block-list">
<li>Unlike Android, Apple heavily restricts this technology. Without native code and plugins, you won’t be able to release a PWA in the App Store. Although Apple supports PWA in Safari, they remain largely hostile toward the technology. Your app must appear native to be accepted.</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, <strong>PWA is an interesting philosophy that may push native apps out of stores in the future, but so far, there are more questions than answers</strong>. 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><strong>Hybrid apps are a cross-platform approach to native app development</strong>. These apps are built using the same technology for multiple platforms but are packaged as separate native applications. This development typically relies on libraries that include native code within them.</p>



<h4 class="wp-block-heading">Hybrid App Development: Pros </h4>



<ul class="wp-block-list">
<li><strong>Shared codebase for most features.</strong> For tasks like accessing the server API, developers across platforms write similar code. With a hybrid approach, this functionality can be written once and shared across all platforms, saving significant development time — often cutting the hours in half compared to native development.</li>



<li><strong>Resource optimization.</strong> For simple projects, hybrid apps are typically faster to build and can often be handled by a single developer. This is one of the main advantages of hybrid development.</li>
</ul>



<h4 class="wp-block-heading">Hybrid App Development: Cons</h4>



<ul class="wp-block-list">
<li><strong>UI/UX Design</strong>. Each platform has its own design guidelines to ensure that applications stay consistent with the platform’s style and don’t frustrate users. In cross-platform development, you either design once for all platforms or create a separate design for each OS. Both approaches require significant resources, which can diminish the advantages of going cross-platform.</li>



<li><strong>User experience</strong>. Performance, interface responsiveness, and speed are generally lower in cross-platform apps compared to native ones.</li>



<li><strong>Functionality</strong>. Almost every cross-platform solution has limitations. Some technologies struggle with features like camera access, geolocation, offline capabilities, and device memory. There’s a high risk of having to implement certain features 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 with developing a complex product is that <strong>you’ll have to support and extend three codebases instead of two</strong>, like with native development. While the functionality and performance limitations can be addressed, it’s not easy and will likely require two more developers. There’s also a risk of hitting a dead end, and fixing it might end up being more expensive than developing the app separately for each platform from the start.</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 <strong>Facebook </strong>and is actively used in its apps. <strong>Flutter </strong>was invented by a team inside <strong>Google</strong>.</p>



<ul class="wp-block-list">
<li>React Native is older; development takes longer but has fewer risks.</li>



<li>Flutter is more progressive; it’s possible to build an <a href="https://rocketech.it/blog/post/the-strategic-advantage-of-mvp-development-for-startups" data-type="link" data-id="https://rocketech.it/blog/post/the-strategic-advantage-of-mvp-development-for-startups" target="_blank" rel="noreferrer noopener">MVP</a> faster, but since the technology is still relatively new, the risks remain 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 come with the risk of expensive and complex support and development. As the app’s functionality grows, maintaining high quality and performance becomes harder. For example, Airbnb eventually abandoned React Native — not in favor of Flutter, but for native code. However, they used React Native for a long time and made a significant contribution to the RN community.</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/2021/03/mobile-app-dev-2.png" alt="Two individuals are collaborating on cross-platform app development. They are reviewing and discussing various design layouts and wireframes for a mobile application. One person is holding a sheet with three different app screen designs, while the other is pointing at a tablet displaying a similar design. On the table, there are a smartphone and a laptop, along with several printed sheets featuring app layouts and color palettes. This image highlights the collaborative process of designing and developing applications that work across multiple platforms, ensuring a consistent user experience." class="wp-image-10013"></figure>



<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 like Flutter, React Native, and even PWA can save resources on simpler projects. Founders just need to decide on their priorities — whether it’s quality or saving resources for marketing.</p>



<p>We always recommend considering your requirements and the situation in your market. During the discovery stage, based on your needs and plans, our team will help select the appropriate tech stack and discuss the risks associated with each option, making it easier for you to make the final decision.</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 mobile app development services?<br>Contact us for a free discovery call.</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">FAQ: Mobile Development Approaches &amp; Trends</h2>



<h3 class="wp-block-heading">1. What is the best mobile app development approach in 2024?</h3>



<p>The best approach depends on your project goals. <strong>Native development</strong> offers the best performance and user experience, while <strong>cross-platform frameworks</strong> like Flutter or React Native help reduce costs and development time. If you need a <strong>web-based solution</strong>, a <strong>PWA (Progressive Web App)</strong> might be an option, though it has limitations.</p>



<h3 class="wp-block-heading">2. Is it better to build a native or cross-platform app?</h3>



<p>If <strong>performance, security, and user experience</strong> are top priorities, go <strong>native</strong> (Swift for iOS, Kotlin for Android). If you need <strong>faster development</strong> and a <strong>shared codebase</strong>, cross-platform tools like <strong>React Native or Flutter</strong> may be a better choice.</p>



<h3 class="wp-block-heading">3. What are the disadvantages of hybrid app development?</h3>



<p>Hybrid apps can struggle with <strong>performance, UI responsiveness, and native features</strong> (e.g., camera, GPS). They may also require extra work to ensure a consistent experience across platforms, reducing the initial cost savings.</p>



<h3 class="wp-block-heading">4. How does Flutter compare to React Native for mobile development?</h3>



<ul class="wp-block-list">
<li><strong>Flutter</strong> (by Google) offers better <strong>UI customization and performance</strong>, but it’s newer and has a smaller talent pool.</li>



<li><strong>React Native</strong> (by Facebook) is more established, has a larger community, and integrates better with existing web technologies.</li>
</ul>



<h3 class="wp-block-heading">5. Can a PWA replace a native mobile app?</h3>



<p>Not entirely. <strong>PWAs work well for lightweight applications</strong>, but they have <strong>limited access to device features</strong> (especially on iOS) and may not provide the same level of performance as native apps.</p>



<h3 class="wp-block-heading">6. How much does it cost to develop a mobile app in 2025?</h3>



<p>Costs vary based on <strong>complexity, platform, and team location</strong>:</p>



<ul class="wp-block-list">
<li><strong>Basic apps</strong> (e.g., MVPs) may start at <strong>$20,000–$50,000</strong></li>



<li><strong>Mid-range apps</strong> with custom features cost <strong>$50,000–$150,000</strong></li>



<li><strong>Enterprise-level apps</strong> can exceed <strong>$250,000</strong></li>
</ul>



<h3 class="wp-block-heading">7. What are the latest trends in mobile app development?</h3>



<ul class="wp-block-list">
<li><strong>AI-powered apps</strong> for automation and personalization</li>



<li><strong>5G-ready applications</strong> for faster performance</li>



<li><strong>Super apps</strong> (multi-functional platforms like WeChat)</li>



<li><strong>Low-code and no-code app development</strong></li>



<li><strong>Increased use of Flutter for cross-platform apps</strong></li>
</ul>



<p></p>


Native, Hybrid, or PWA? A Practical Guide to Mobile App Development

Custom Software Development vs. SaaS Solutions: The Fundamental Differences

<p>Interesting fact: Accounting is seldom the first item you want to consider when starting a company. You are probably balancing funding rounds, customer acquisition, and product development. The problem is that your company could fall off the rails without a good <strong>accounting system</strong>.</p>



<p>Whether you are just starting with bootstrapping or have just obtained venture capital funding, a well-organized accounting system is essential. </p>



<p>This article will walk you through how to set up an <strong>effective accounting system</strong> for your startup, choose the right software, and avoid frequent mistakes.</p>



<h2 class="wp-block-heading"><strong>What Are The Benefits Of Accounting Software For Startups?</strong></h2>



<p>It is easy to forget about the day-to-day operations of running a business amidst all the hoopla surrounding product development, networking, and marketing campaign launches. There can be problems if you put off handling your finances. Here’s why you should prioritize accounting.</p>



<ul class="wp-block-list">
<li><strong>Improving your financial decisions</strong>: Accounting helps you see how healthy your company’s finances are. Reliable financial data allows you to spend wisely, invest in new employees, and know when to scale your business.</li>



<li><strong>Compliance with taxes</strong>: One of the most frustrating parts of managing a company is dealing with taxes, but with a good accounting system, filing your taxes is a breeze. With real-time income, deduction, and cost tracking, filing accurate tax returns and avoiding penalties becomes easy.</li>



<li><strong>Tracking business expenses</strong>: Maintaining a record of all of your company’s outlays is essential. You risk damaging your bottom line if you don’t have a good strategy in place to ensure that you don’t neglect or ignore critical expenses. From office supplies to staff compensation and beyond, a solid accounting system helps you record it all.</li>



<li><strong>Cash flow management</strong>: Knowing how money is coming in and going out is essential for any startup manager. If you look at your cash flow statement, which details the money coming into and going out of your business, you can be ready for periods of low cash flow and stay out of financial trouble.</li>
</ul>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="1119" src="https://wp.rocketech.it/wp-content/uploads/2025/05/1.png" alt="startup-accounting-system" class="wp-image-11014"></figure>



<h2 class="wp-block-heading"><strong>What Should Your Startup Accounting System Feature?</strong></h2>



<p>You still require a fundamental framework that manages the basics, even if you’re not a numbers person. To set up an effective accounting system for your startup, it should cover the following key elements.</p>



<p><strong>Fundamentals of Bookkeeping</strong></p>



<ol class="wp-block-list"></ol>



<p>This involves noting every financial action your company takes: income, credit card transactions, subscriptions, rent, wages, etc. You need this even if it’s only you right now. Proper bookkeeping helps you create important financial reports, monitor profitability, and get ready for audits.</p>



<p><strong>Accounting via Double Entry </strong></p>



<ol start="2" class="wp-block-list"></ol>



<p>There’s a reason this antiquated technique has persisted. Every transaction influences two accounts—say, purchasing software with your credit card raises your costs and your obligations. It guarantees your records are always in balance and helps to avoid mistakes in accounting.</p>



<p><strong>Tracking Cash Flow</strong></p>



<ol start="3" class="wp-block-list"></ol>



<p>Forget profits for a while; cash flow is what keeps the lights on. Tracking it regularly helps to avoid unpleasant surprises, like running out of money when expecting a client to pay. Track how much money is available to pay bills, operate payroll, and invest in expansion using a cash flow statement.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="866" src="https://wp.rocketech.it/wp-content/uploads/2025/05/2.png" alt="tracking-cash-flow-template" class="wp-image-11016"></figure>



<ol class="wp-block-list"></ol>



<p><strong>Tax Preparedness</strong></p>



<p>Have a category for every kind of business expense and income. Tax season will let you know precisely what is deductible—and what is not. Tracked correctly, for instance, SaaS subscriptions, equipment purchases, and even specific trip costs could qualify for deductions.</p>



<p><strong>Categorizing Expenses</strong></p>



<ol start="2" class="wp-block-list"></ol>



<p>One thousand small expenses add up. While the $7 coffee may not seem significant, correctly classifying costs enables you to examine expenditures, maximize budgets, and make sure you aren’t unknowingly overspending in one area.</p>



<p><strong>Integration with Other Tools</strong></p>



<ol start="3" class="wp-block-list"></ol>



<p>Software like a CRM system or a POS system will likely become necessary as your business expands. For example, if you utilize <a href="https://www.magestore.com/products/magento-pos/" target="_blank" rel="noreferrer noopener">Magento POS software</a> for sales and inventory, be sure it’s compatible with your accounting system. You can save time and avoid mistakes by having sales information sent straight to your accounting system using this link. Keeping your finances in order is a breeze with this.</p>



<p><strong><em>&gt; Read more: </em></strong><a href="https://rocketech.it/blog/post/smart-startup-scaling-challenges-and-solutions" target="_blank" rel="noreferrer noopener"><strong><em>Startup Scaling: Challenges &amp; Fixes</em></strong></a></p>



<h2 class="wp-block-heading"><strong>Top Accounting Tools for Startups in 2025</strong></h2>



<p>The truth is, you don’t have to spend thousands on software. Some of the finest <strong>accounting software for startups</strong> is free or at least reasonably priced for early-stage businesses. Here’s a rundown of some popular accounting software options, along with their features, pros, and cons.</p>



<h3 class="wp-block-heading"><strong>1. Sage Accounting </strong></h3>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="732" src="https://wp.rocketech.it/wp-content/uploads/2025/05/sage.png" alt="sage-accounting-software" class="wp-image-11022"></figure>



<p><strong>Features:</strong></p>



<ul class="wp-block-list">
<li>Invoicing and billing</li>



<li>Expense tracking</li>



<li>Financial reports (profit and loss, balance sheet)</li>



<li>Bank and credit card sync</li>



<li>Payroll management</li>



<li>Multi-currency support</li>



<li>Tax filing and compliance</li>
</ul>



<p><strong>Pros:</strong></p>



<ul class="wp-block-list">
<li>Scalable solution, ideal for startups and small to medium-sized businesses</li>



<li>User-friendly interface with cloud-based access</li>



<li>Comprehensive accounting tools, including payroll and tax compliance</li>



<li>Supports multiple users and role-based permissions</li>



<li>Customizable invoicing and financial reporting</li>
</ul>



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



<ul class="wp-block-list">
<li>Some advanced features are only available in higher-tier plans</li>



<li>Pricing can be a bit steep for very small startups or sole proprietors</li>



<li>Limited mobile app functionality compared to the desktop version</li>
</ul>



<p><strong>Best for:</strong> Startups that need a comprehensive accounting solution and are looking for scalability as their business grows. Ideal for businesses needing payroll and tax support right from the start.</p>



<h3 class="wp-block-heading"><strong>2. QuickBooks Online</strong></h3>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="764" src="https://wp.rocketech.it/wp-content/uploads/2025/05/quickbooks.png" alt="quickbooks-online-accounting-software" class="wp-image-11020"></figure>



<p><strong>Features:</strong></p>



<ul class="wp-block-list">
<li>Invoicing and payment tracking</li>



<li>Expense management</li>



<li>Tax management and reporting</li>



<li>Customizable financial reports</li>



<li>Payroll processing (for an extra fee)</li>



<li>Mobile app for accounting on the go</li>



<li>Integration with a variety of third-party tools</li>
</ul>



<p><strong>Pros:</strong></p>



<ul class="wp-block-list">
<li>Very scalable, suitable for growing businesses</li>



<li>Excellent customer support</li>



<li>A wide range of features that cover accounting, payroll, and tax filing</li>



<li>Strong reporting and dashboard features</li>
</ul>



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



<ul class="wp-block-list">
<li>Can be expensive for small businesses (monthly fees start at $35)</li>



<li>Has a learning curve for new users</li>



<li>Some features, like payroll, cost extra</li>
</ul>



<p><strong>Best for</strong>: Startups that expect rapid growth and need scalable features or have complex accounting needs.</p>



<h3 class="wp-block-heading"><strong>3. Xero</strong></h3>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1400" height="744" src="https://wp.rocketech.it/wp-content/uploads/2025/05/xero.png" alt="xero-accounting-software" class="wp-image-11024"></figure>



<p><strong>Features:</strong></p>



<ul class="wp-block-list">
<li>Bank reconciliation</li>



<li>Invoicing and quoting</li>



<li>Payroll (available in select countries)</li>



<li>Financial reports</li>



<li>Multi-currency support</li>



<li>Mobile app for accounting on the go</li>



<li>Integration with over 800 third-party apps</li>
</ul>



<p><strong>Pros:</strong></p>



<ul class="wp-block-list">
<li>User-friendly interface</li>



<li>Excellent customer support</li>



<li>Very good for businesses that need multi-currency support</li>



<li>Can integrate with a variety of third-party tools, making it highly customizable</li>
</ul>



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



<ul class="wp-block-list">
<li>The basic plan has limitations, especially for larger businesses</li>



<li>Lacks some advanced project management features</li>
</ul>



<p><strong>Best for</strong>: Startups that plan to scale internationally or have diverse accounting needs.</p>



<h3 class="wp-block-heading"><strong>4. FreshBooks</strong></h3>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="1113" src="https://wp.rocketech.it/wp-content/uploads/2025/05/freshbooks.png" alt="freshbooks-accounting-software" class="wp-image-11018"></figure>



<p><strong>Features:</strong></p>



<ul class="wp-block-list">
<li>Time tracking and invoicing</li>



<li>Expense tracking</li>



<li>Payment reminders</li>



<li>Client communication tools</li>



<li>Financial reports</li>



<li>Mobile app for managing accounting on the go</li>
</ul>



<p><strong>Pros:</strong></p>



<ul class="wp-block-list">
<li>Excellent for service-based businesses and freelancers</li>



<li>User-friendly and intuitive interface</li>



<li>Strong invoicing and client management tools</li>



<li>Good customer support</li>
</ul>



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



<ul class="wp-block-list">
<li>Limited features for larger businesses</li>



<li>Not ideal for businesses that need extensive inventory management</li>



<li>Can be more expensive for growing businesses</li>
</ul>



<p><strong>Best for</strong>: Startups that offer services and need simple, user-friendly accounting software.</p>



<h2 class="wp-block-heading"><strong>A Step-by-Step Approach to Establishing Your Startup’s Accounting System</strong></h2>



<p>You’re prepared to begin to set up an effective accounting system for your startup, but unsure about the method. Let’s break it down. Here’s how to start accounting for startups without overcomplicating it.</p>



<h3 class="wp-block-heading"><strong>Step 1: Select Your Accounting Approach</strong></h3>



<p>Record money when it comes in or goes out under cash accounting. Easy, obvious, and perfect for most small businesses.</p>



<p>If you need to record income or expenses, even if they haven’t moved yet, use accrual accounting. This is needed for companies with longer sales cycles or larger contracts. Consult a tax professional if you’re unclear which to choose.</p>



<h3 class="wp-block-heading"><strong>Step 2: Apply for a Credit Card and Business Bank Account</strong></h3>



<p>Always keep your personal finances separate from your business. It’s not only untidy; it may land you in court. A business-only credit card lets you monitor costs neatly and develop company credit as well.</p>



<h3 class="wp-block-heading"><strong>Step 3: Create a Chart of Accounts</strong></h3>



<p>Every type of transaction you will encounter is included here in category form. It simplifies reporting and helps your software organize data. Categories include: Equipment, Payroll, Subscriptions, Marketing, Revenue.</p>



<h3 class="wp-block-heading"><strong>Step 4: Select and Configure Your Software</strong></h3>



<p>Choose a platform (see above), then add your payment systems like Stripe or PayPal, credit cards, and bank accounts.</p>



<h3 class="wp-block-heading"><strong>Step 5: Automate Everything You Can</strong></h3>



<p>Plan payment reminders, regular invoicing, and monthly reports. If feasible, automate payroll. With the right configuration, these processes take minutes rather than hours to do manually.</p>



<h3 class="wp-block-heading"><strong>Step 6: Reconcile and Review Often</strong></h3>



<p>Set aside time each month to examine transactions, reconcile bank statements, and rectify any discrepancies. Consistent bookkeeping maintains your reports and prevents year-end anxiety.</p>



<h2 class="wp-block-heading"><strong>Pro Accounting Tips For Startups</strong></h2>



<p>Your intelligence won’t save you from accounting errors if you are not vigilant. Here are some accounting tips from entrepreneurs who have experienced it.</p>



<ul class="wp-block-list">
<li><strong>Delaying your accounting</strong>: Waiting six months to complete your books? That’s a disaster waiting to happen. You forget what the cost was for, receipts vanish, and taxes turn into a guessing game.</li>



<li><strong>Combining personal and company money</strong>: Simply don’t. Ever. Even something as small as using your own card to pay for meals or gas can cause a nightmare.</li>



<li><strong>Not setting aside money for taxes</strong>: You earned $100,000? Wonderful. The IRS will spoil your day if you didn’t save tax funds. Set aside 20–30% of income into a distinct account for tax purposes.</li>



<li><strong>Hiring too late</strong>: Eventually, you will require an accountant or bookkeeper. Outsource early so you can concentrate on building.</li>



<li><strong>Ignoring cash flow</strong>: Revenue is nothing if you lack cash in the bank. Late payments from clients can destroy your drive.</li>
</ul>



<p><strong><em>&gt; Explore more: </em></strong><a href="https://rocketech.it/blog/post/from-idea-to-launch-the-startups-guide-to-reducing-time-to-market" target="_blank" rel="noreferrer noopener"><strong><em>Time to Market: Startup’s Fast-Track</em></strong></a></p>



<h2 class="wp-block-heading"><strong>Create a Financial System Supporting Your Development</strong></h2>



<p>The reality is that establishing good accounting systems for startups does not require financial brilliance. Starting early, being consistent, and selecting the right tools will help you. </p>



<p>Every aspect of your accounting system contributes to your performance, from monitoring business expenses and keeping cash flow statements to managing bookkeeping and tax preparation.</p>



<p>Get your numbers in order now; don’t wait until tax season or investment meetings.</p>



<p>Ready to build your startup’s financial foundation and scale your business? At <strong>Rocketech</strong>, we specialize in helping startups succeed at every stage. From assessing ideas to building MVPs, raising capital, and growing your business, we’re your trusted tech partner. Our team of experts will work with you to create a tailored accounting and tech infrastructure that <a href="https://rocketech.it/software-development-for-startups" target="_blank" rel="noreferrer noopener">supports your startup’s growth</a>.</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 internal finance system to keep<br>your startup on track?<br><br>We can help. Get a free discovery call.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


Tips and Process of Setting Up an Effective Accounting System for Your Startup

<p>When a business needs a digital product, there are usually two ways to approach this: buying a ready solution or building one from scratch. The second option often scares business owners as <a href="https://rocketech.it/software-development" target="_blank" rel="noreferrer noopener">custom software development</a> is still associated with large bills and long, tiring projects. But is this the reality today? <strong>What is the total cost of ownership for software?</strong> </p>



<p>We summed up everything you need to know about how much it all costs in the long run — the <strong>TCO of software</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/2024/07/tco-1.png" alt="Iceberg with visible underwater surface, illustrating the concept of TCO (Total Cost of Ownership)." class="wp-image-7391"></figure>



<h2 class="wp-block-heading"><strong>What is the Total Cost of Ownership (TCO)?</strong></h2>



<p>In business, the <strong>Total Cost of Ownership</strong> (<strong>TCO</strong>) for software means looking at all the expenses beyond the initial purchase price. It covers everything <strong>from installation and training to ongoing maintenance, upgrades, and support</strong>.</p>



<p>TCO helps companies make informed decisions by considering the full cost of owning and using software over its entire lifespan, not just the upfront cost.</p>



<p><strong>The total cost of ownership includes:</strong></p>



<ul class="wp-block-list">
<li>The initial purchase price of the item;</li>



<li>Ongoing license fees;</li>



<li>Maintenance and repair costs;</li>



<li>Indirect expenses like installation, training, and support.</li>
</ul>



<p>These costs can add up significantly over a product’s or system’s lifespan. The total cost of ownership (TCO) idea is usually attributed to the Gartner Group which applied it to the computer and software industries in the late 1980s. The term has since spread to other industries. Accurately calculating TCO is crucial, especially when choosing corporate IT systems, which are becoming more complex and include many components.</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/2024/07/tco-term.png" alt="TCO explained: Text overlay on blue background clarifies Total Cost of Ownership as a concept, considering all expenses beyond the initial purchase price. The text goes as follows: TCO stands for Total Cost of Ownership. It's like looking beyond the sticker price to see the full bill for keeping something over time, whether a single tool, a complex solution, professional services, or entire IT infrastructure. This includes things you might forget, like training, fixes, and upgrades." class="wp-image-7393"></figure>



<h3 class="wp-block-heading"><strong>Breaking Down the TCO in Detail: What Are the Cost Types?</strong></h3>



<p>If put simply, the TCO of software includes all costs associated with a product throughout its entire lifecycle — software, hardware, training, and support.</p>



<p>When buying new IT products, you can expect higher expenses in three key areas: <strong>acquisition, operational, </strong>and<strong> human resource costs</strong>. Here’s about it in more detail.</p>



<h4 class="wp-block-heading"><strong>1. Acquisition Costs</strong></h4>



<p>Acquisition costs cover the initial purchase price and setup expenses for software or apps. These costs can also cover:</p>



<ul class="wp-block-list">
<li>Software licenses or subscriptions</li>



<li>On-site equipment installation</li>



<li>Employee training</li>
</ul>



<p>Additional acquisition costs might include:</p>



<ul class="wp-block-list">
<li>IT infrastructure migration</li>



<li>Research and development</li>



<li>Legal services</li>



<li>Testing</li>



<li>Setup and installation</li>
</ul>



<h4 class="wp-block-heading"><strong>2. Operational Costs</strong></h4>



<p>Operational costs are the recurring expenses needed to keep the software running throughout its lifecycle. These include:</p>



<ul class="wp-block-list">
<li>Maintenance</li>



<li>Support services</li>



<li>Software updates</li>



<li>Security measures</li>



<li>Data backups</li>



<li>Bug fixes</li>



<li>License renewals</li>
</ul>



<h4 class="wp-block-heading"><strong>3. Human Resource Costs</strong></h4>



<p>Often overlooked, human resource costs are essential to consider. You need skilled personnel to manage and operate the software continuously. This results in additional expenses for:</p>



<ul class="wp-block-list">
<li>Training</li>



<li>Onboarding</li>



<li>Compensation</li>
</ul>



<p>Understanding the types of costs associated with TCO makes it clear that TCO is far more comprehensive than just an initial one-time payment for a SaaS product or any IT solution. <strong>When a business starts using a seemingly ready product, there are numerous additional expenses to consider beyond the initial purchase</strong>.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="512" height="384" src="https://wp.rocketech.it/wp-content/uploads/2024/07/tco-parts.png" alt="Diagram illustrating the breakdown of Total Cost of Ownership (TCO). The component parts include: Purchasing, Maintenance, Training, Repairs, Security, Support, Upgrades, and Service." class="wp-image-7395"></figure></div>


<h2 class="wp-block-heading"><strong>How is the Total Cost of Ownership Calculated?</strong></h2>



<p>Calculating the total cost of ownership for enterprise software involves understanding and accounting for all costs associated with acquiring and operating an IT system throughout its lifecycle. <strong>The two most common methodologies for calculating TCO are the Microsoft and Interpose method and the Gartner Group method</strong>.</p>



<h3 class="wp-block-heading"><strong>Microsoft and Interpose Method</strong></h3>



<p>This method divides all costs into <strong>direct</strong> and <strong>indirect</strong>. </p>



<p><strong>Direct costs</strong> are clear expenses that decision-makers typically consider when budgeting:</p>



<ul class="wp-block-list">
<li>Software purchase or rental, implementation, configuration, and upgrades</li>



<li>System and network design and administration</li>



<li>Support staff salaries, employee training, outsourced support services</li>



<li>Application development and testing, technical documentation preparation</li>



<li>Establishing and maintaining communication channels</li>
</ul>



<p><strong>Indirect costs</strong> are often overlooked in budgeting but can account for over 50% of a company’s IT expenses according to Interpose:</p>



<ul class="wp-block-list">
<li>Informal user training and personal support for key clients</li>



<li>Costs from temporary work disruptions, such as equipment failures or planned maintenance</li>
</ul>



<h3 class="wp-block-heading"><strong>Gartner Group Method</strong></h3>



<p>This method divides costs into <strong>capital expenses</strong> (<strong>CAPEX</strong>) and <strong>operational expenses</strong> (<strong>OPEX</strong>).</p>



<figure class="wp-block-table aligncenter is-style-regular"><table class="has-fixed-layout"><thead><tr><th><strong>CAPEX</strong></th><th><strong>OPEX</strong></th></tr></thead><tbody><tr><td>Development and implementation project costs</td><td>System updates and upgrades</td></tr><tr><td>Consultant fees during project creation</td><td>Management costs</td></tr><tr><td>Purchase, installation, and configuration of hardware/software</td><td>Costs related to user activity</td></tr></tbody></table><figcaption class="wp-element-caption">The capital (CAPEX) and operational (OPEX) expenses breakdown</figcaption></figure>



<p>While capital expenses are one-time costs to set up an IT system, the business will have operational expenses throughout the software’s lifecycle to keep it running. </p>



<h3 class="wp-block-heading"><strong>Total Cost of Ownership Formula</strong></h3>



<p>There are different ways of calculating the TCO for software, but the general formula is:</p>



<p class="has-primary-color has-gray-50-background-color has-text-color has-background has-link-color wp-elements-436d201ee977c07ea948b6d48f231532"><strong>TCO = Purchase Cost + (Operational Expenses × Time)</strong></p>



<p>While this formula seems simple, multiple internal and external factors affect the final TCO. Here’s what business owners should always keep in mind:</p>



<ol class="wp-block-list">
<li>Identifying all operational cost factors can be complex.</li>



<li>Different software or services might have varied cost structures.</li>



<li>Economic conditions like growth, inflation, or recession can impact TCO.</li>
</ol>



<p>When making IT investments, it’s easy to focus on the initial price tag, but that’s just the tip of the iceberg. Total Cost of Ownership (TCO) reveals the true cost of your investments, from purchase to operation and maintenance.</p>



<p>To get an accurate picture, you need to team up with finance and consider all the expenses involved. With a clear understanding of TCO, you’ll be empowered to make informed decisions that drive your business forward.</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">Confused by software costs?<br>Our experts will calculate them for you.</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"><strong>White-Label and SaaS Vs Custom Software: Is Cost Comparison Possible?</strong></h2>



<p>Imagine a common situation most business owners or C-level execs face today: <strong>Your company is to decide between buying a white-label or SaaS product and investing in custom software development</strong>. Let’s explore a hypothetical scenario and a total cost of ownership example to illustrate the key considerations.</p>



<h3 class="wp-block-heading">💡 <strong>The Scenario</strong></h3>



<p><strong>Your company is in a steady-growth phase and naturally needs a CRM system to manage your sales team’s activities. You’ve received two proposals</strong>:</p>



<p>a) Use a white-label CRM solution for $500 + a percentage of revenue</p>



<p>b) Develop a custom CRM system at a significantly higher cost (10 times more)</p>



<p>Most owners would go straight to a ready product thinking it’ll help them save time and money. While it seems logical, here are <strong>four questions</strong> you should ask yourself before making this decision.</p>



<h4 class="wp-block-heading">📌 <strong>Question 1: What is your company’s long-term strategy?</strong></h4>



<p>Do you prioritize short-term profits (<strong>dividend strategy</strong>) or aim to grow your company for a potential sale (<strong>growth strategy</strong>)?</p>



<p>If you plan to sell your business, owning intellectual property (IP) and assets is crucial. Put simply, if you don’t have your proprietary code, you have nothing to sell.</p>



<p><strong>Conclusion</strong>: A ready solution is not a good option if you plan to sell your business eventually.</p>



<h4 class="wp-block-heading">📌 <strong>Question 2: How well does the white-label solution align with your plans?</strong></h4>



<p>From the developer’s perspective, offering a ready-made solution on a subscription basis is ideal, and additional paid customizations seem like a bonus. However, extensive customizations for a single client can interfere with the development of the core product, complicate support, and distract the team, leading to mutual dissatisfaction.</p>



<p>From the client’s perspective, the situation isn’t ideal either. They end up paying for the development of someone else’s product — the product they will never own.</p>



<p><strong>Conclusion</strong>: A ready-made solution is an excellent choice if it meets almost 100% of your needs. Otherwise, there is a risk of encountering problems within a few months and getting the TCO for SaaS products exceeding the budget.</p>



<h4 class="wp-block-heading">📌 <strong>Question 3: What is your product vision based on?</strong></h4>



<p>If the product relies on assumptions and hasn’t yet been tested on real users, investing in a fully developed, expensive solution will likely be a disaster. The primary goal here is to test hypotheses and gather user feedback quickly and inexpensively.</p>



<p>There are two approaches to choose from in this scenario:</p>



<ol class="wp-block-list">
<li>Finding a ready but flexible and customizable solution;</li>



<li>Quickly <a href="https://rocketech.it/blog/post/when-to-launch-an-mvp-7-scenarios-where-its-crucial" target="_blank" rel="noreferrer noopener">building and launching</a> a <strong>minimum viable product</strong> (<strong>MVP</strong>).</li>
</ol>



<p>The difference here is that when building an MVP, the entire product belongs to your business from the beginning. It means much easier customizations, any pivots dictated by external factors, and proprietary code as your IP asset.</p>



<h4 class="wp-block-heading">📌 <strong>Question 4: How easily can you exit the ready-made solution?</strong></h4>



<p>It’s vital to know that you can easily and painlessly say bye to your ready-made solution. It means a seamless transition out of the solution while being able to extract your data in a convenient format. Be cautious of vendors who may limit your access or data ownership.</p>



<p><strong>Conclusion</strong>: If your business deals with sensitive data, ready products might pose multiple threats connected to its safety.</p>



<h2 class="wp-block-heading"><strong>Expert Insight: User Needs and Product Customization</strong></h2>



<p>When calculating the TCO for IT systems, think not just about money but also about <strong>user experience </strong>and <strong>customization needs</strong>.</p>



<figure class="wp-block-table"><table class="has-gray-50-background-color has-background"><tbody><tr><td>Regardless of your target user base, don’t overlook <strong>distribution</strong>. Effective distribution ensures the system is accessible and usable by its intended audience, significantly impacting its overall cost and effectiveness.</td></tr></tbody></table></figure>



<p><strong>Customizing the product to meet specific client requirements is often more valuable than a ready-made solution</strong>. Many businesses buy off-the-shelf software but neglect <a href="https://rocketech.it/blog/post/why-fixed-price-model-is-not-the-best-option-for-custom-software-development" target="_blank" rel="noreferrer noopener">to tailor it to their needs</a>. And it always has consequences.</p>



<p>Take “ShopEase,” a mid-sized e-commerce company upgrading its inventory management system. They choose a popular off-the-shelf solution, thinking it will save time and money. However, the software doesn’t integrate well with their existing sales platform, leading to data discrepancies and frustrated employees.</p>



<p>💡 ShopEase decides to customize the software. They hire a developer to integrate it seamlessly with their sales platform and add features like real-time stock updates and automated reorder alerts.</p>



<p>This customization incurs additional costs, but the benefits are clear. Employees find the system easier to use, reducing training time and errors. Real-time updates improve inventory accuracy, preventing stockouts and overstock situations. Ultimately, these improvements lead to better customer satisfaction and increased sales.</p>



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



<p>When the time comes for a business to invest in a software product, it’s natural to try to save up, and a ready product may seem like a cost-effective option. However, many startup founders and small business owners overlook SaaS customization costs, maintenance, and even employee training that make up the total ownership cost.</p>



<p>In contrast, <strong>custom software development is an investment</strong>. It offers a tailored solution that aligns with your specific business needs. While the upfront investment may be higher, you avoid paying for unnecessary features and benefit from seamless integrations handled by the same experts who developed your software. This approach also enables continuous feedback and improvement, reducing training costs.</p>



<p>As businesses evolve, SaaS solutions may no longer suffice. Custom software development provides a scalable solution that adapts to your growing needs. When evaluating software options, consider the software ownership’s long-term costs and benefits. </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">Consider building a custom product<br>but unsure about the final price?<br>Get the first estimate for free.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>



<p></p>



<p></p>


Total Cost of Ownership: The Hidden Expenses and How to Calculate Them

<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 well-being. At the same time, we keep working on all current projects following our standard operating procedure and remaining a 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 class="wp-block-list">
<li>We created an internal emergency operations center 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, organize 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 organized a network of people and organizations providing information and help in Poland, Hungary, Iceland, Austria, Georgia, Moldova, Armenia, and Turkey.</li>



<li>We organized psychological help with professional counseling 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 40 of our colleagues remain in 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 fulfill 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 grounds of nationality.<br></p>


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