Building Small-Budget Software: Five Tips for Entrepreneurs

As an entrepreneur, if you have an idea for a software solution, getting funded can be difficult without a prototype to show investors. The common challenge is creating this initial proof of concept when you are working with a limited budget. I've had clients approach me with great web and app ideas and smaller budgets, typically under 15k, to see if we could help.

While working with this type of budget isn't always possible with an agency like ours, I encourage entrepreneurs to use Upwork and work with freelancers. On Upwork, you can find cost-friendly and highly skilled talent to build your software for investor pitching and user feedback.

Even when my agency can't take on a project, I still want to help and give entrepreneurs working with smaller budgets these tips for using Upwork to complete their software projects:

Agency vs. Freelance

At my agency AppEvolve, I offer clients end-to-end software development with a dedicated team, from project managers to developers, to build their solutions. Working with an agency like ours that has experienced senior-level engineers isn't possible when you have a limited budget.

When looking to develop the first iteration of software for investment pitches and user testing, I advise entrepreneurs to hire freelancers on Upwork. You can work with highly-skilled freelance software engineers and build a global team that fits your budget. It takes more time to find the right talent and oversee the progress compared to handing it over to an agency, but it can be a great learning experience.

A senior-level software engineer in San Francisco typically has a higher hourly rate than a senior-level engineer from another country where there is a lower cost of living. You can conduct talent interviews, read client reviews, evaluate quality by looking at portfolios, and find an affordable freelancer with the exact skills you need. It’s not uncommon to find a skilled freelance software developer who charges  $15-$30/hour on Upwork.

Tip 1: Focus on core features

As an entrepreneur, you may not be an expert in software development or understand the technical back end of what goes into turning an idea into a usable product. The first design pitches I see are often feature-heavy and, in order to meet the client’s timeframe and budget, need to be scaled back to maintain quality.

I always recommend focusing on the core features as the first step in this situation. Build a minimal viable product (MVP) that has the most important elements so that you can start user-testing and pitching to investors faster. Here are some of the advantages:

• Reduce build time. Software development takes time, from figuring out exactly what a client wants to testing and debugging. Keeping your features as slim as possible with the first version can help expedite the process.
• Stay under budget. You're better off starting small and adding features based on this feedback rather than using your limited budget to build features that customers may not want or use.  
• Get early feedback. The goal should be to get the product into the user's hands as soon as possible to start analyzing feedback. You may think you know what features your customers want, but I've found that feedback can be pretty surprising.

This is what one of my clients, Gary Turnbulll did as his first step. Gary had a great idea after dealing with the challenges of scheduling construction crews, especially during labor shortages, and wanted to create an MVP of his app to start pitching to other businesses.

His software app CrewBoss simplifies the technology process for construction companies, based on the whiteboarding method commonly used for scheduling. The construction industry isn't typically the first to adopt new technology so Gary knew that the key to success was getting this app into the hands of business owners so they could try it out themselves.

Tip 2: Create the standard documentation

Clearly communicating to a developer what you want helps streamline the build. Before posting your project on Upwork, create the standard project documentation and figure out the more granular details so you can maximize your budget and save time.

The right documentation will guide your developer and let them know exactly what you need them to build, avoiding time and budget spent on unnecessary features and misunderstandings. Instead of multiple long meetings hammering out the details, you can deliver these documents for clarity:

• Business requirements document Outline of the project's scope, budget, and roadmap
• Product requirements document Overview of precisely what the product should do from purpose to features
• Software specifications document Blueprint for how the software will perform and use cases

Creating these documents is an essential first step for any project. If you're an entrepreneur developing your first software solution, this will be a helpful exercise for figuring out what you want down to the smaller details.

You can create these documents yourself using online templates as a guideline. If you need more help, you can use Upwork's Project Catalog and shop fixed-price documentation projects within your budget.

Follow along with these templates

• Project requirements
• Software specifications
• Business requirements

Get help from freelancers in Project Catalog  

• Project requirements
• Software specifications
• Business requirements

Tip 3: Build the wireframes yourself

I also suggest that entrepreneurs create a visual aid to go along with the documentation to help with the front end—what the user will see. The software's look, feel, and navigation is the user interface (UI). If you have a clear vision for the design, building a wireframe yourself makes it easier for the UI designer to get it right the first time.

A wireframe is a visual mock-up of your software solution. You want to focus on the website or app from the user's point of view and experience. Think about their different journeys as they navigate through the pages or buttons and how you'll present information to them.

What to consider

• Navigation
• User-flow
• Buttons
• Functions
• Features
• Call-to-actions
• Content hierarchy

When creating a wireframe, you have a few different options depending on what tools you're comfortable using.

• Freehand. Draw the different UI aspects of your software on paper and take pictures to send to your developers and designers.
• Graphic design. Build visuals online that you can easily share with designers with tools like Photoshop and Canva.
• User flow map. Create a navigation skeleton and outline the user experience using a tool like Lucidchart. You can even invite your designer to comment and collaborate.
• Complete wireframe. Visually lay out your entire user interface with a UI wireframing tool like Balsamiq.

Tip 3: Build your team of freelancers

Before posting your project on Upwork and interviewing independent professionals, I advise entrepreneurs to spend time on budget planning. On Upwork, you can post a project with a set budget and then see what independent professionals submit proposals.

When working with a limited budget, it's important to strategize how to use it to stretch your resources as far as you can. Decide what percent of your budget will go to each project step and how much you can spend on specific talent roles.

Here is an example of how to allocate your budget:

• 70% Development
• 15% Software architecture
• 10% Project management
• 5% User interface

I advise clients to make sure they have full admin access to all of their accounts e.g. AWS or code repositories like Bitbucket before hiring any team members and giving new team members user access rather than full admin access for added security.

When building your freelance team on Upwork, these are the priority roles I suggest hiring:

Technical Project Manager

The first role I recommend focusing on is a technical project manager. Unless your background is in tech and you have the time to oversee the project, I highly suggest working with a technical project manager for 2-3 hours per week.

What a Technical Project Manager does:

• Act as the team lead
• Oversee the project with respect to scope, budget, and timeline
• Make sure that everything goes according to plan
• Assign tasks to team members
• Communicate and be a liaison between teams
• Create schedules and deadlines
• Follow up with individual progress and give you updates
• Keep everyone accountable for their piece of the puzzle

UI Designer

Next, hire a UI Designer. The UI designer will take your sketches or wireframe and turn them into a high-resolution design that the software architect and engineers can bring to life. While you may have great ideas for buttons, features, and functions and how you want the software to look, the UI designer will help you turn it into a design that's possible.

What a UI designer does:

• Create the look and feel of the software’s front-end (the part that the users interact with)
• Design user-friendly and aesthetically pleasing software
• Work with you to produce designs that are feasible on the back-end with budget and timeframe in mind

Senior Software Architect (SA)

After the UI designer, I recommend adding a senior-level SA. The SA’s role includes software planning, organization, and acting as a liaison between you and the engineers. They decide what tools you need for the project, determine the best methodology, and create the architectural diagram for the engineer to follow.

How much SA time is needed?

• Plan on 5-10 hours to review your documentation and create the architectural diagram
• As-needed on an hourly basis as a consultant for setting up your cloud account, code repositories, and other tools

Choose the right type of engineer

Full-stack engineers can build both the back-end and front-end of website software instead of hiring a team. Offshore means that the developer lives in another country, often in a different timezone–which can be cost-effective. A nearshore developer would be someone that lives closer by.

I recommend having your software architect assist in determining which course to take here, including writing the job description for the role and interviewing candidates. The software architect will have a better idea of the specific skills needed and will need to work closely with the hired engineer.

Tip 5: Research and experiment with no code solutions

The very first iteration of your idea doesn't have to be perfect. You may be able to build the prototype for your software using a no-code solution. Research various tools to see if any will let you make something similar to what you want. No code tools allow the everyday person, not programmers, to create software without entering a line of code. Many code-free tools are offered for free with a product’s basic plan and have different monthly tiers based on the needed features.

Popular No Code Website Builders

• Glide
• Bubble
• Stacker
• Webflow

Popular No Code App Builders

• Softr
• Google AppSheet
• Adalo
• Thunkable

Many of these tools offer resources on their website, from step-by-step instructions to how-to videos that can help you get started. If you have the time, I suggest exploring these options to see if you can find anything that works. Building the prototype yourself will free up your budget for something else.

Find affordable independent talent for your project

You can maximize your budget when using Upwork to assemble a team of freelancers to build your software solution. Post your project on the Talent Marketplace and set a price, then see which highly-talented independent professionals are interested. Interview our top picks and find the best talent for the role.

When you build your software using freelance talent, you only hire for what you need. Make an account today and see what you can accomplish with the help of independent professionals. If you would like my help with UX/UI design and technical project management, you can send me a proposal on Upwork.