A Case Study: How Athena Can Help You Save Thousands of Dollars?
A common question that is asked by many teams and individuals is: “Why would I work with Athena Consulting to help me reach my goals? We already have a strong team and do not need help.”
Although this can be true in some cases, a strong skilled team does not always mean that exterior help is not needed, as it can help the startup or company save tens of thousands of dollars in wasted funds. To explain exactly how that happens, let us go through a simple example.
Setting Up The Environment
Let us assume a company A is working on their main product X, product X has 5 sub-products that needs to be built. Company A has 5 full-time developers working on the project with an average annual salary of 75,000 USD. This leads to an average of 40 USD/hour for each developer. The company needs to deliver a sub-product Z while also working on the main product X. What is the most optimal way for Company A to move forward?
Building Sub-Product Z Internally
First, let us understand the real cost of building project Z internally, while also focusing on the main product X. Assuming that each developer works 40 hours a week, the burn rate on developers for the company is 8,000 USD. According to the project manager after research, the project needs 3 weeks for it to be ready for production if worked on it full-time. The cost of the project will lead to 24,000 USD. If the project is to be worked on while also working on other projects, it may take up to 6 weeks. Considering it takes 40% of the work per week, the cost is 19,200 USD.
Although it may appear to the management of the team that the cost of these developers is fixed and it does not make sense to add further costs for building of the same products, in reality there is an effective cost paid for the development of the project to the total profit of the company. Now let us assume the cost if Company A decides to hire Athena Consulting.
Building Sub-Product Z With Athena
Athena Consulting is hired to take over building Project Z. Due to the nature of how Athena divides projects, it is able to efficiently create an experienced project team that focuses fully on the project with the help of trusted subcontractors that Athena works with.
This strategy that Athena follows is that it breaks down the product to tiny deliverables that can be completed simultaneously by certain team members, this allows to speed up the process of building the product by 25-50%, since 2 or 3 tasks can be done simultaneously. These 3 tasks, when broken down efficiently, can also be done at a much lower cost than full time developers will charge since the team will be able to complete more in less time and since we charge on a project basis, the hourly rate will decrease dramatically.
In this case, the cost can drop to around 10 to 12 thousand USD while completing the project in a faster time and get it ready to production while the main team of company A focuses also on launching other products, making the whole company more efficient into reaching its goals and pleasing investors.
Final Result
The final result is that the company saved 1 week of development and around 7,000 USD in development that can be used to fund other products or projects in the company. Therefor, although it seems as if the company is paying “more”, actually it is saving funds that could be used for other processes.
The actual breakdown depends on the company and product being built, this is why we are working on a video explanation soon on how we can help.
Contact Us if you want to learn more about how we can help your company save money!
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