We have completed another project recently - its a Basecamp clone project management application. Some design artwork should be done more, but in general project is completed.
In the same time I am sad to see how many of offered projects we just can't take. They are too risky as requirements are not clearly defined and budget is very restricted.
Here is my short suggestion to such clients - if you are tight on money - pay attention to details of specifications: user stories, design screens...
Otherwise you should think on hiring someone professional who can help you with it, because your expenses can be as high as x2-x5 of planned budget.
And this is all not just scary stories at night - i can give you real world examples from our experience.
Also always include support and improvements costs in your budget. Because typical business plan looks like "Ok, I invest two weeks and $,000 in development and then receive $$,000 in the next week, $$$$,000 during next year..."
Good luck,
-Vlad
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