3 Methodologies for Startups and Financial Tips to Consider

The market is moving online. More and more businesses develop apps and web services to boost revenue and organise online presence. This has become especially vital after COVID-19, where 50% of businesses that did not have an online presence failed. People prefer apps over physical stores and places. And this applies to almost every industry, starting from food delivery to mHealth solutions.

However, the development process and managing finances are tricky tasks for most companies, especially for startups. Since there are so many development approaches and money-related questions, most companies don’t even know where to start and what to choose, depending on their goals.

What Is Development Methodology?

The software development methodology is a term used to describe a structured process involved when working on a software project. It is also described as a blend of design philosophies and pragmatic realism that contributes to how exactly the team develops the product. The goal here is to provide a systematic approach to software development. 

Since the tech market also moves rapidly, developers have introduced various software development methodologies to capitalise on the available technologies and resources. 

The software development methodology is like a common platform for engineers and other specialists to collaborate more efficiently as a team. The methodology also formalises communication and decides how information and process are shared within the team.

Getting the best results from the chosen methodology depends on the team structure, unique business requirements and goals. It is also worth noting that you can combine several software development methodologies for different projects.

Why Adhere to Software Development Methodology? 

Without structure, rules and guidelines, developers are likely to suffer from customers’ ever-changing requests, while you will also need much more time to finish the product development. When you do not have any structure of the process and work with a remote team, there is a high risk of failure by the end of the development and many costly mistakes.

The result is increased time needed for the development, more money, and resources required with the risk of producing a subpar application that doesn’t bring much value. It is worth noting that modern software development methodologies are specially designed to benefit both teams and businesses, so following them properly can provide great benefits.

Following a specific software development methodology allows you to cut down on inefficiency and provide a more accurate delivery timeline while also reducing costly mistakes and improving project outcomes.

3 Types Of Software Development Methodologies

Agile Development Methodology

Agile methodology is currently the best approach for most companies, especially startups. Startups prefer agile development methodology since it minimises risks (like bugs, cost overruns, and changing requirements) every time they add new functionality. In all agile methodologies, development teams build the software in iterations that have mini-increments of the new functionality. 

Pros

The key benefit of agile development since it allows products to be released in iterations. Iterative releases have been shown to boost efficiency by allowing developers to find and fix defects, which also align expectations early on. They also allow users to test the product earlier, making it easier for companies to get needed feedback.

Cons

Agile development methodology relies on real-time communication and development, which makes new users lack the documentation they need to enter the project and boost the speed.

DevOps Deployment Method

DevOps is not solely a software development methodology. It is a blend of practices that supports the entire organisational culture. DevOps deployment works as a centre of organisational change that improves collaboration between the team responsible for different parts of the development life cycle, including development, quality assurance, design and operations.

Pros

DevOps is designed to speed up time to market, lowering the rate of costly mistakes, shortening the lead time between fixes, and minimising disruption while increasing reliability. This is achieved by automating continuous deployment to make sure the process is smooth and reliable. Organisations that use DevOps methodology greatly benefit by reducing time to market, higher customer satisfaction, better product quality, as well as team productivity and efficiency.

Cons

Modern customers don’t like continuous updates to their systems. Several industries have regulations that require extensive testing before a product will be able to move to the operations phase.

Waterfall Development Method

The waterfall methodology is considered the most traditional software development approach. Waterfall means that each phase must be 100% complete before the next can begin. As a result, developers are usually not able to modify the project or direction.

Pros

The waterfall method is linear, making it easy to understand and manage. The waterfall methodology is best for projects having clear objectives and stable requirements. Its clarity also benefits less experienced project managers and project teams and those development projects whose composition changes frequently.

Cons

The waterfall development method is outdated now. There is a small percentage of projects that can really benefit from it. It can be costly for most software development, and it could be hard to find developers that will work with this method.

Financial Tips for Startups

Just like without a proper development model and accurate list of responsibilities, startups usually fail in finance management processes due to a lack of knowledge and resources in that field. That is why almost 50% of startups live no longer than one year, wasting money on unnecessary things. Luckily, the modern tech market is filled with plenty of applications and services, like credit control software, that are specially designed for startups looking for better money management.

Knowing where your money goes and how they affect the business can provide valuable insights into what works for you and what is worth the investment. This will work like feedback but based on data. This way, you will get a clear picture of the current financial situation and make sure all money is in check, and you can safely run your business knowing accurate accounts receivable metrics.

Summary

There are even more software development methodologies out there among these. Therefore, it can be overwhelming for organisations to feel like you need several months to get your head around them. Considering this overload, most companies try to understand what is the best software development methodology. Knowing their pros and cons and the differences between them can play a vital role in the choice and understanding.