How to Manage Software Development in Fast-Growing Startups? A Practical Guide

how to Manage Software Development in Fast-Growing Startups

by | 29-07-2022


Fast-developing startups, specifically after the primary spherical of outside financing, regularly come across the task of transferring from an MVP to a completely advanced product. The purpose of this manual is to assist start-up founders in greater arranged software program improvement of their companies.

In this sensible manual, I’ll spotlight the fundamental demanding situations that start-up founders come across on their path to sustainable and strong growth. You’ll locate descriptions of answers to be had available in the marketplace for software program improvement – relying on the monetary ability of your start-up and enjoy with software program improvement – with a bit of luck, one in every one of them can also additionally fit your needs.

In this blog, you’ll find:

  • Challenges faced during software development management in startups
  • Solutions for these challenges


Minimum viable product or service

The MVP is minimum due to the fact its cause becomes to show that it works, and now you want to offer your clients the actual thing. Probably even Steve Jobs ought to have proven a mock-up iPhone at some stage in his first presentation; however, he wanted something greater to supply to the shops and clients later on.

Investors’ attitudes and expectations

Investors need milestones, deadlines, and key overall performance indicators and then go back on their investment. The stress is strong, so you want to expose solid and predictable development to keep their trust.

Challenges faced during software development management in startups

Limited time frame

You generally aren’t in a position or allowed to expand your products or services for as long as you’ll want. Limited time is a prime constraint for maximum startups.

Finding the right people to develop your software

Recruiting software program builders is a mission itself; however, turning a gaggle of specialists right into a seamlessly operating crew is a very special story. Do you’ve got time and assets to do it on your own?

Choosing the right tech stack

Various technology have exceptional perks and constraints, or even small choices will have a large effect on destiny. Having a relied-on improvement group will assist you’re making better, well-knowledgeable choices approximately the era and destiny boom of your startup.


There isn’t any query of sustainable increase without skilled specialists. But how and wherein to discover them and lead them to paintings efficaciously on your enterprise? As usual, you want to don’t forget costs, effort, and the group enjoys. Moreover, you have to consider getting a complete group that consists of now no longer simplest builders but additionally pleasant guarantee specialists, Scrum masters, UX and picture designers, task control and trying out professionals, etc.

Furthermore, if you make a decision to outsource the group but don’t enjoyment in coping with software program development, it might be extraordinary in case your group turns keen to percentage their understanding and provide relevant advice. Not all companies – irrespective of their real expertise – need to percentage their know-the way to beautify their clients’ enterprise success.

In-house team

It’s the full contrary of an outsourced crew – all of the builders and different software program professionals paintings full-time for your company. As an instantaneous employer, you’ve got lots greater management over their paintings; however, you furthermore may need to cope with all of the HR issues, like payrolls, ill depart, or holidays. Moreover, you can’t ensure that nobody will depart your startup – such things as that happen. That takes us to every other issue: you need to cope with your employees, make certain they’ve got the entirety they want to do their jobs, and that they’re glad about what they do.

But first, you want to construct the crew: look for professionals, appeal to them, test their expertise, hire them, and make certain you’ve got all of the skillsets needed, after which rework this institution of professionals right into a crew. However, earlier than you even do that, you want to determine your tech stack – it could pose a problem due to the fact viable answers may be confined to your crew’s expertise. You may even want a relied-on software program architect who will guide you in layout and tech stack selection.

Scaling an in-residence crew is every other challenge. On the brilliant side, however, there also are some benefits – you could right away begin running on any task, and your crew may have a risk to benefit from deeper information about your needs, in addition to broadening their capabilities because the venture progresses.

Dedicated team

In this version, you – as a founder – participate within side the process, running collectively together along with your software program improvement company at the group advent mission. You’re nonetheless concerned and might pick with whom you need to paint. However, you don’t want to have trouble with the recruitment, the hiring process, or different HR stuff. What does it imply in actual lifestyles? You don’t want to dedicate at least multiple weeks to sourcing expertise from the market.

Check this actual-lifestyles example: currently, we at Insperity have been constructing a group from scratch for our client. It took us approximately a month of everyday paintings – we needed to discover about 60 candidates, interview them, look at their skills, and sooner or later pick six of them (yes – six out of sixty!) for the very last improvement group. Bear in thought that we knew precisely what we had been doing. Your committed group will paintings in your mission handiest and may be to be had for destiny levels of your start-up improvement.

Scaling up and down is an awful lot less complicated than in an in-residence group. The committed group company can usually upload builders from their pool, and, you don’t want to fear approximately that. Also, it’s an awful lot less complicated for one of these companies to develop the tech stack with the professional personnel they already hire. So, a committed group offers you affect and manipulate overall strategies however takes away all of the demanding situations related to developing a group, hiring builders, or ensuring absolutely each person has something to do.


Freelancers are exceedingly clean to locate and lease, and the fee for their paintings can be exceedingly low in case you search for the ones primarily based totally in Asia or Eastern Europe. Especially today, while faraway running permits to decrease your fees even more. Freelancers are a brilliant answer in case you want a short restoration or a smaller capability that isn’t important in your startup. However, we’re approximately constructing your new product – now no longer an MVP – so you want to take into account some demanding situations with hiring unbiased contractors.

Working with freelancers, you lease person gamers who don’t represent a group. It can be your function to manipulate them and increase group spirit – otherwise, they’ll continue to be only a bunch of developers. You want to bear in mind that many freelancers don’t get engaged with customers and projects, and also, you in no way recognize how lengthy they may live with you. According to our experience, freelancers regularly paint on a couple of missions at the identical time, and in the event that they determine handy one in each of them, it’s now no longer certain that they select your startup.


Theoretically, in case you need to have clean thoughts and now no longer interact an excessive amount of within side the software program improvement level on your product or service, you may outsource the complete process. All you want to do is inform your outsourcing companion of what you need and look ahead to the results. There’s no want to care approximately the recruitment of specialists. Possibly, you may desire a pro and complete crew that works efficiently- however, you don’t have a preference – you ought to accept as true with your provider.

Such initiatives typically have constant prices, so at the least, that won’t marvel you. I understand it sounds tempting; however, preserve in thoughts that you’ll have hardly ever any effect on the paintings done. The enterprise of your preference will feature paintings consistent with the specification you provide; however, that’s in which your management ends. As quickly as you get the product, you can discover that it misses your expectations, despite the fact that the deliverables meet the specification.

Adjusting the software program to the actual wishes of your startup may also then be painful and expensive. Moreover, as the second spherical of financing comes around, you can discover that in addition, improvement of the software program could be high priced and inefficient; as a result, you’ll want to rebuild the whole product or service. And it within reason implausible you’ll get the identical crew to paintings on those destiny changes.


As usual, there may be no one-fits-all solution because it all relies upon a selected idea, tech stack, culture, adulthood of the startup, and plenty of different issues. Let’s overview the principle execs and cons of every version as soon as again. A group of freelancers is cost-efficient; however, it can be very volatile and difficult to manipulate. In the outsourcing version, you get a person else to do the job; however, you’ve got little management over the results.

The in-residence group helps you without difficulty manipulate the complete system and achieve the software program high-satisfactory you want; however, it’s miles the maximum expensive solution, and it additionally calls for a number of attempts to set it up properly. A devoted group is cost-efficient, without difficulty scalable, open to adjustments, and it lets you live in management. The simplest pitfall is the connection together along with your issuer and viable dependence.

Finally, the hybrid version made it viable to stability all of the benefits and drawbacks of an in-residence and devoted group – it’s comprehensive, scalable, and stable, at the same time as it additionally helps you to live unbiased within side the long-term. Choosing the proper direction for your startup calls for taking into consideration many factors; however, we are hoping we’ve controlled to make that preference less complicated for you, supplying you with this guide.

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Muhammad Mustafa is a software developer at Ropstam having rich experience of more than 5 years. With a background in software development, Mustafa combines his knowledge of various technology stacks with a passion for DevOps and software quality assurance. Besides coding and writing, he loves cricket and traveling.

Muhammad Mustafa

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