Key Misunderstandings in App Development That Lead to Project Failure
These days, it seems like almost any business idea can turn into an app.
This prospect is super tempting for entrepreneurs who jump at the chance to make their ideas digital.
But why do so many of these projects fail? Let's explore the common pitfalls and how to dodge them.
In most cases, app development hits a dead end because:
1. The entrepreneur misunderstands the app creation process itself,
2. The entrepreneur doesn't understand what components should be in the app.
Let's dive into these points with some examples.
Example 1:
Some guys came to us wanting to create a Shazam-like app for tracking what songs are playing in bars, cafes, hotels, etc. They said, "We've got an investor, but we're not sure if the Shazam algorithm can be replicated — other development studios couldn't do it for us."
(Actually, by 2024, song recognition like Shazam is a trivial task, but it seems those they approached lacked the skills to handle it.)
We had no problem with this; we quickly made a demo version that could recognize songs.
"Great!" said the client, "Now how do we store and analyze all this information?"
"Well, you need a server side for that, obviously," was our logical reply.
"Oh, we hadn't thought about that at all... We didn't plan for any server infrastructure... Oh, we're not ready for this, and it's not in our budget."
This story highlights one of the most common points where misunderstandings, miscalculations, and disappointment occur for entrepreneurs trying to create a mobile app for business.
So, Key misunderstanding #1:
Most entrepreneurs dreaming of creating an app only see the tip of the iceberg, that is, just the key feature of the future app (in this case, music recognition).
But they don't know (or forget) that to provide this feature and develop a full-fledged product, you need at least a backend (in this example, a server part where the collected information will be accumulated and analyzed).
Moreover, in many projects, the backend will take up most of the development time.
Most entrepreneurs dreaming of creating an app only see the tip of the iceberg, that is, just the key feature of the future app (in this case, music recognition).
But they don't know (or forget) that to provide this feature and develop a full-fledged product, you need at least a backend (in this example, a server part where the collected information will be accumulated and analyzed).
Moreover, in many projects, the backend will take up most of the development time.
And the entrepreneur is not prepared for this, either morally or financially.
Their illusions of "quickly and cheaply making an app with this function and it will take off" are shattered by the reality that a full development of backend, frontend, and other functions they hadn't thought about at the start, but without which the product won't work, is required.
The situation is worsened by mobile development agencies themselves often being part of creating these illusions.
Because when clients come to them asking, "How much to make such a function as an app?" they often give an estimate just for that function instead of asking about the whole business model.
And the client, having visited several such agencies, starts to believe that's all the budget needed.
Of course, when they finally choose a contractor and start development, they inevitably face a constant increase in budget.
Or, alternatively, the agency does ONLY the pre-agreed functions, and the client ends up with a solution that doesn't really work — though formally, the agency did exactly what was agreed upon.
In the end, the entrepreneur thinks they're being scammed and looks for other contractors, only to find the same story repeating.
As another illustration:
Example #2:
A client came to us who had already tried twice to create an app, spending 40,000 and then 50,000 pounds with different developers, and both times ended up with non-functional solutions.
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Why non-functional?
Let's quote the client: “The app was made, but I can't even see if users are registering or not, I have no view of user growth statistics, and I don’t know how I can manage the whole system."
And mind you, this is supposed to be a small specialized social network. The client couldn’t even basically tell if his ad campaigns to attract new users were successful, not to mention everything else.
And about meeting GDPR requirements or even minimal moderation?
That wasn't even discussed in the initial project talks. Simply because neither he nor the agency talked about any of these backend elements at the start.
As a result, the client got exactly what he asked for.
Naturally, an entrepreneur who has faced such situations a couple of times becomes frustrated and starts to think everyone around is trying to scam him.
Agencies, by the way, aren’t happy either. They often think all clients are clueless idiots trying to get a bargain for what market leaders spend millions on.
How do we break this vicious cycle?
We will address this question shortly, but first, let's look at another example that will illustrate a few more key misunderstandings.
Example #3:
A client wanted to create a platform that would help solve minor household issues, like a broken faucet or a leaking roof. The idea was to connect end-users with relevant home improvement specialists, like carpenters or plumbers.
Within the app, you could see the specialist moving towards your location on a real-time map. Plus, it was assumed you could make calls within the app.
To the client, the idea seemed pretty simple to implement — the app only had a few features.
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However, here we see Key misunderstanding #2 in all its glory :)
Key misunderstanding #2:
In such projects, you actually need to build not one but at least three apps: one for the end-user, one for the specialists handling various repairs, and a web application with an admin panel to manage the service.
(And that's not even mentioning that we need apps for both Android and iOS.)
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It’s not hard to guess that this is a much larger scope of work than the client initially thought.
But the real kicker is when we started asking about how the business model would work and how profits would be generated, it turned out that the client was still pondering these issues.
And this is probably the most critical point of misunderstanding - Key misunderstanding #3:
Key misunderstanding #3:
An app is not just a set of features.
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First and foremost, it's a business model. Based on the chosen model, you should build the configuration of features and their priorities.
If you start developing an app without a clear understanding of how your business model will work, you risk ending up with a piece of code that will never become a profitable business for you.
Keep in mind, when you think something like "Then I'll just quickly add Stripe payments and start making money on the app," you're probably underestimating the task.
Yes, adding a “Pay for the order” button that redirects to an external payment system (like Stripe) can be relatively simple.
But what if (as it turned out in the case we’re discussing) you eventually decide that you want all payments to be processed within the app and plan to take a commission from each transaction?
Well, such a module is quite a large and complex piece of work.
It’s better to understand this at the very beginning. And there are many such moments — that’s why it’s essential to figure out the business model first.
As a result of all the misunderstandings mentioned above, there arises
Key misunderstanding #4:
an unrealistic assessment of the overall project budget.
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And it’s not surprising—when you try to estimate specific features without considering the backend or how the entire business model will be structured, budget assumptions are likely to be far from reality.
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Let's show you right now an approach that can help you make a rough estimate of the budget for your future app.
​* A small clarification: here we're talking exclusively about the very first release (MVP - Minimum Viable Product). As the app develops and becomes a working business (or part of your existing business), the investments might significantly depend on the strategy you choose. But for the initial stage, when you’re essentially testing the idea and market reaction, this approach should work well.
So, let’s look at the most common case — when the app is envisioned as a SaaS solution that deals with multiple types of users.
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What do we mean by "types of users"?
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Let’s take an example we’ve already mentioned — suppose you want to set up a service that connects customers with local carpenters or plumbers — a hub where plumbing needs meet professional services.
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In this app, there would be three types of users: the homeowners in need of repairs, the plumbers offering their services, and the admin team that manages the app’s operations.
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Such apps are actually quite sophisticated, complex platforms.
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They need a backend system for data storage, request handling, user management, payment processing, advanced analytics, and sometimes, for example, real-time tracking.
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Of course, in such complex apps, a lot depends on the set of features you plan to implement in your app.
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However, for a preliminary budget estimate, you can use a simple approach that helps you understand the approximate range of figures.
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Essentially, for each type of user, you'll have your app.
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Yes, you probably see it as one whole thing. But from a development standpoint, these are different apps - each user type will have their own UX/UI, internal logic, and set of features.
To continue with our example of a plumbing service marketplace:
1) the customer app would display one interface and set of features,
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2) plumbers would have access to a different set tailored to their needs,
3) and system administrators would manage operations with a separate set of tools, usually on a website, to handle everything that goes on behind the scenes.
Additionally, there's what you might call the foundation of all these apps - the backend (Servers and Server-Side Logic, Database, APIs, User Authentication, Storage, and more).
So, it's simpler to assess your future mobile app as a sum of these key components.
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And the logic for estimating a basic MVP version is this:
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you can roughly calculate the budget as €10-20K per user type + another €10-20K for the backend.
Therefore, for example, an MVP app with three user types would range from €40K to €80K (this estimate usually covering all three platforms: iOS, Android, and Web).
Of course, if you're thinking of adding fancy features, like built-in voice calls without using third-party apps, that’s going to cost extra, depending on the exact requirements.
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But you really need to think carefully: are such features critical for your MVP (Minimum Viable Product) release?
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This is because some features can be quite complex to implement and you might not need to fully develop them in the first stage of testing your app concept.
So, for the first release of your app (the MVP), you can keep in mind the formula of €10-20K per user type + another €10-20K for the backend.
So, to sum up: how can you avoid failing when setting out to create an app?
In our view, the best analogy here is building your own house.
Would you start construction without a plan? Without knowing how many floors you want, what its area will be, what materials will be used? What about the heating, water supply, and ventilation systems? And a myriad of other critically important details?
And overall, how long will this construction take and what's the total budget?
We think you wouldn't start building without answers to these questions and a specific architectural and technical plan.
Actually, app development is a lot like building a house.
It’s important to lay down the key elements (which stem from the business model) in the project’s architecture from the start.
Of course, unlike building a house, creating and developing an app is an ongoing process. Because essentially, it’s a business, not just code. And a business without continual development dies.
However, to have the ability to quickly and seamlessly add new elements later on, it’s crucial to build a strong foundation, that is, to design the app architecture wisely.
That’s exactly why we always start working with clients by discussing their business model, to understand what kind of "house" they are planning to build.
And to form a clear picture of the future app, it’s best not to dive straight into development but to start with creating a detailed blueprint + a clickable prototype that can be explored like a real app.
This step is what we do at the beginning of most of our client projects.
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This will help you:
1. See the entire project as a whole, with all the necessary blocks (not just the key function)
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2. Understand the real scope of work and the cost of the project
3. Get a preliminary user experience thanks to the clickable prototype.
4. It’ll also be much easier to find investors, partners, or future team members because you’ll have a document detailing all aspects of the app, including main mockups and the prototype.
Let's delve into this in more detail.
Our Approach to Blueprint and Prototype Creation
01.
We'll dive deep into your app's business logic and turn it into a mobile application User flow / Screen flow.
What is a User flow?
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The User flow of a mobile application is essentially the path a user takes within the app to reach their end goal.
This includes all buttons, forms, menus, and screens they interact with, as well as the transitions between them.
02.
Based on the User flow, we'll create a clickable prototype of your mobile app in Figma.
What is a prototype in Figma?
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A mobile app prototypes in Figma is a model or mockup of your app that lets you test out your ideas before you build the real thing.
We will create a prototype by linking together different screens of your app and adding interactive elements like buttons, menus, and forms.
This way, you can simulate how your app will work and get a feel for the user experience before you start coding.
Plus, it's a great way to get feedback from others and make improvements to your design before you invest time and money in development.
03.
We'll suggest the technologies that your mobile app can be built on.
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We'll provide an estimate of the budget and timeline needed for developing an app of this caliber.
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Backend Architecture - we'll design a scalable and secure backend structure tailored to your app's needs, ensuring efficient data management and integration.
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High-Level Calendar Plan - we'll outline a clear and realistic timeline for your project, highlighting key milestones and estimated completion dates.
So, you'll be all set to begin the actual app development, having fine-tuned and tested your ideas, ultimately saving you time and resources down the line.
What is the price for preparing the blueprint and prototype?
​We've made the cost as affordable as possible. In fact, we invest much more time into these tasks than the cost we're quoting you here.
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However, we believe that this will allow you to test-drive working with us - all comfy and cost-effective.
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The cost of creating the blueprint and clickable prototype is just €2,700.
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This is a fixed price and won’t change regardless of the actual time we spend preparing the blueprint and prototype for your project. We believe this makes the first step in our collaboration simpler and safer.
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(And if after this you feel comfortable working with us and you're now confident in our professionalism, then we can move on to full-fledged development)​
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We'd like to highlight that you're not taking any risks because we offer a clear money-back guarantee if you're not satisfied with our work.
We're really confident in the quality of our work, which is why we provide these guarantees so readily.
Why does it make sense to work on your blueprint with us?
- We are the oldest mobile development studio in Europe, working in the industry since its inception.
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- Our company is led by experienced entrepreneurs.
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- This leads to our key difference: we help the customer create a business model, not just a set of features.
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- It's comfortable and efficient to work with us because we speak like real people, not like IT nerds.
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- With us, there are no "black boxes" - no situations where developers are coding something unclear to the client. We make the development process transparent and easy to understand.
To get started, schedule a brief introductory call with us:
Some facts about our company:
5Pro App Development is a division of our company, 5Pro Software, which was started in 2001 in Frankfurt/Oder, Germany.
We've been in the mobile development market for over 20 years, pretty much since the industry began.
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We have clients in 28 countries around the globe.
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On one hand, we know how to work with big, complex projects for large companies:
Our first client was Deutsche Telekom :)
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For a long time, we were an official partner of Nokia (during their heyday in the mobile device market)
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Among our clients are:
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On the other hand, we've got a bunch of clients who are small and medium-sized business owners, and with our help, they've launched and grown their very first mobile app or business software.
​What really gets us excited are those challenging tasks that demand out-of-the-box solutions and seem like mission impossible at first.
And few words about our managing partners:
Alex:
Serial entrepreneur, started his first business in 1993.
Since then, he's launched successful ventures across different industries - wholesale trade, commercial real estate, business process consulting, language school, countryside property development, marketing agency, and more.
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He implemented his first IT project in 2002, which was the simplest and most user-friendly CRM system in its market segment.
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Thanks to his extensive experience in business process and marketing consulting, he knows many industries inside out.
This allows him to quickly understand and finds common language with entrepreneurs from different businesses
Konstantin:
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If IT had belts like martial arts, Konstantin would undoubtedly have a black belt and a guru status.
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Initially, a skilled applied mathematician and cybersecurity expert, he's been in the mobile tech industry from the beginning.
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One of his killer skills is finding optimal solutions to complex problems that are also several times cheaper than what other companies may offer.
Such high-level specialists are rare - probably only 2-3 in Europe and a few more in the US.
To start creating your app's blueprint, just schedule a brief call with us: