![How to plan and track the budget of your mobile app development agency [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-2_8569555f-9dc6-4ff7-a7dd-28ef72ce4dd6.png?v=1715856328&width=1100)
If you don’t plan and track your mobile app development budget properly, you're setting yourself up for failure.
When we developed our strategy pack for app developers, we saw a lot of developers struggling with finances and project planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial project revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your app development finances around and set you on the path to success!
Get the budget tracker tailored for mobile app agencies
Most mobile app agency owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for mobile app agencies
Here is an example of a (very) detailed budget for a mobile app development agency, to give you some inspiration
1. Office Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Office Rent | Lease for office space | $4,000 | $48,000 |
| Electricity | Power consumption for computers and servers | $500 | $6,000 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | High-speed internet and business phone lines | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Project Manager | 1 | $6,000 | $6,000 | $72,000 |
| Senior Developer | 2 | $5,000 | $10,000 | $120,000 |
| Junior Developer | 3 | $3,000 | $9,000 | $108,000 |
| UI/UX Designer | 1 | $4,000 | $4,000 | $48,000 |
| QA Tester | 1 | $3,500 | $3,500 | $42,000 |
| Marketing Specialist | 1 | $3,000 | $3,000 | $36,000 |
| Office Manager | 1 | $3,000 | $3,000 | $36,000 |
3. Software & Tools
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Development Tools | IDE, version control, etc. | $500 | $6,000 |
| Design Software | Adobe Creative Cloud, Sketch, etc. | $300 | $3,600 |
| Project Management | Jira, Trello, Asana, etc. | $200 | $2,400 |
| Testing Tools | Automated testing software | $150 | $1,800 |
| Cloud Services | Hosting, storage, and computing | $1,000 | $12,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, LinkedIn Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $400 | $4,800 |
| Content Marketing | Blog posts, articles, etc. | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Webinars, conferences, etc. | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of office equipment | $200 | $2,400 |
| Office Supplies | Stationery, printer ink, etc. | $100 | $1,200 |
| Licenses & Permits | Software licenses, business permits, etc. | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $300 | $3,600 |
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What are the biggest expenses for a mobile app development agency?
Be mindful of these critical expenses. Here are five major costs every mobile app development agency needs to consider, along with some tips on how to manage them effectively.
- Development Tools and Software These can take up a significant portion of your budget. You're dealing with licenses, subscriptions, and updates that can vary in cost. To keep these expenses in check, focus on using open-source tools where possible, negotiate better deals with software providers, and regularly review your subscriptions to ensure you're not paying for unused services. It's easy to overspend by opting for premium tools that don't add enough value.
- Your Development Team Your team is your backbone, but paying for their salaries, benefits, and training can be costly. This expense is always high because you need skilled developers to deliver quality apps and keep projects on track. You can optimize labor costs by hiring efficiently, cross-training team members, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor-quality work.
- Office Space and Utilities Prime office locations come with high rent, but they can enhance your company's image. Utilities like electricity, internet, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient office equipment. Overspending often happens when you choose a location that's too large or too luxurious for your needs.
- Marketing and Client Acquisition You need to attract clients, but marketing can be expensive, whether it's online ads, social media campaigns, or attending industry events. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Hardware and Maintenance Costs This includes everything from computers to servers. These are expensive because quality hardware and regular maintenance are crucial for smooth operations and client satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don't really need.
How to spend less with your mobile app development agency?
Here are practical tips to help you, as a mobile app development agency owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Software Licenses | Consider open-source alternatives and negotiate bulk licensing deals for essential software. |
| Labor Costs | Utilize project management tools to optimize team productivity and consider remote work to reduce overhead. |
| Utilities | Implement energy-efficient practices in your office, such as using LED lighting and energy-saving devices. |
| Marketing | Run social media campaigns for your apps and collaborate with tech influencers for organic reach. |
| Office Supplies | Go paperless with digital documentation and purchase office supplies in bulk to save costs. |
| Equipment Maintenance | Set up a maintenance schedule for regular checks and servicing of your hardware and devices. |
| Rent/Lease | Negotiate lease terms during renewal or consider a co-working space to reduce rental expenses. |
| Insurance | Regularly review your insurance policies to ensure they meet current needs and compare rates annually. |
| Cloud Services | Optimize your cloud usage by regularly reviewing and adjusting your service plans to match your needs. |
| Hardware | Invest in high-quality, durable hardware that can withstand frequent use and consider leasing options. |
| Project Management Tools | Choose a project management tool that offers essential features with a cost-effective pricing plan. |
| Staff Training | Conduct regular in-house training sessions and utilize free online resources to keep your team updated. |
| Waste Management | Implement a digital waste tracking system to minimize e-waste and recycle old devices responsibly. |
| Technology | Invest in multi-functional devices and utilize software that integrates various aspects of your business operations. |
| Subscriptions | Regularly review and cancel unused subscriptions to avoid unnecessary recurring costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan business travel efficiently and consider virtual meetings to reduce travel expenses. |
| Inventory Management | Use inventory management software to track hardware and software assets and reduce unnecessary purchases. |
| Security | Invest in robust cybersecurity measures and conduct regular audits to prevent data breaches. |
| Client Entertainment | Opt for virtual client meetings and events to save on travel and hospitality costs. |
| Uniforms | Choose durable, easy-to-clean uniforms for your team and offer a stipend for maintenance instead of using an external service. |
Copy the tactics of the best mobile app agencies in the world!
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Expenses that are just useless for a mobile app development agency
Yes, some expenses for your mobile app development agency are just unnecessary. They don't contribute to increasing revenue or improving client satisfaction.
| Agency Expense | Reason It's Useless |
|---|---|
| Luxurious Office Space | High-end office spaces don't necessarily attract more clients and can be a drain on the budget. |
| Premium Software Licenses | Unless you need specific advanced features, most mid-range software options are sufficient. |
| Excessive Tool Subscriptions | Paying for multiple tools with overlapping features increases costs without adding value. |
| High-End Hardware | Top-of-the-line hardware is not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Paper ads often have a lower return on investment. Focus on digital marketing strategies instead. |
| Multiple Branding Materials | Having various branding materials increases costs without adding significant value to the client experience. |
| Overstaffing | Having more staff than needed leads to higher labor costs without necessarily improving service quality. |
| Expensive Training Programs | Costly training programs often go unnoticed by clients. Opt for more affordable, effective training options. |
| Exclusive Software Features | Using rare software features can inflate costs and complicate workflows. |
| Costly Office Furniture | High-end furniture is not always appreciated by clients and can be a significant expense. |
| Custom Printed Stationery | Personalized stationery is a minor detail that most clients overlook, and it can be expensive. |
| Unnecessary SaaS Subscriptions | Paying for software with features you don’t use is a waste of resources. |
| Premium Coffee Brands | Most employees are content with standard coffee options, making expensive brands unnecessary. |
| Extra Office Space | Maintaining more office space than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Frequent Office Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Office Decor | Elaborate decor is often ignored by clients and adds to the cost. |
| Luxury Office Supplies | High-end office supplies are prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Marketing Materials | Frequently redesigning marketing materials is costly and often unnecessary. |
| Unused Promotional Items | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| Specialized Development Equipment | Specialized equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your mobile app development agency!
Managing a budget for a mobile app development agency when funds are tight can feel like a nightmare. It's like being trapped in a cycle where any unexpected expense can derail your projects.
This constant pressure makes it nearly impossible to invest in innovative solutions, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your agency's growth.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of mobile app development agencies just like yours. Get them now!
Make your mobile app development agency more profitable
We have studied the strategies of the best mobile app agencies in the world. All their tactics are explained in our pack!
