start up

Aug 13, 2025

7 Tech Pain Points Every Startup Faces While Working With A Software Development Agency

Discover the 7 most common technology challenges businesses face — from outdated systems to security risks — and learn practical ways to overcome them for smoother operations and sustainable growth.

Better Software

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This article was originally published on our Medium channel. For more insights, visit our company website at BettrSW.com.

Startups don’t have time to waste.

You’re either building MVPs, chasing product-market fit, or scaling fast enough to break something. And in every stage, you’re probably leaning on a software development agency to help you move quicker.

But here’s the thing: not all agencies are built for startups. In fact, most carry baggage from working with enterprises such as bloated scopes, clunky processes, and over-engineered solutions you didn’t ask for.

That’s where things break.

Let’s talk about the seven tech issues we see startup founders run into when working with software development agencies and how to avoid them before they burn your runway.

1. Scoping Chaos and Stack Overkill

You hand over your idea, expecting a lean MVP. A few weeks in, your budget’s bleeding and the codebase looks like it was built to run NASA.

What’s the real issue?

Agencies jump into dev without clear priorities. They stack on frameworks and features that feel impressive but don’t serve your goals.

Why it happens:

  • No structured scoping phase

  • Tech decisions made without founder input

  • Teams chasing trendy tools, not startup velocity

What it costs you:

  • MVPs that take 3x longer

  • Hard-to-maintain code

  • Wasted capital

How to fix it:

You don’t need bells and whistles. You need focus. At Better Software, we use a three-tiered scoping framework (Must-Have, Should-Have, Could-Have) that forces tradeoffs. And we pick tech based on simplicity, speed, and support.

  • Start with a founder-led scoping session to define exactly what “version one” needs to achieve.

  • Break down work into 3-week delivery blocks, each tied to a user-facing goal.

  • Use the Must/Should/Could (MSC) framework to force prioritization and prevent bloat.

  • Choose a tech stack that’s boring and fast — one language per layer wherever possible.

  • Make every new dependency justify its existence. No tech for tech’s sake.

2. Legacy Code Before You Even Have Legacy

Here’s the ironic part. Startups often inherit tech debt before they even scale. We’ve seen MVPs with untestable backends, copy-pasted code, and zero documentation. Not because the founder asked for it because the agency just shipped fast and walked away.

What’s the real issue?

You get locked into a codebase that can’t grow with you.

Why it happens:

  • Short-term thinking

  • No incentive to write clean, extensible code

  • Missing documentation and handoff plans

What it costs you:

  • Expensive rebuilds when you raise

  • Onboarding devs becomes a nightmare

  • Fragile features that break under load

How to fix it:

Build the right foundation, even in an MVP. We modularize early, write high-risk tests from day one, and leave documentation that’s actually usable. No founder should be scared to show their codebase to a future CTO.

  • Enforce a clean, modular code structure from day one. Don’t wait for v2 to organize things.

  • Use README-first development: if you can’t explain it to a new dev in a paragraph, rewrite it.

  • Mandate code reviews focused on long-term clarity, not just short-term correctness.

  • Set aside one hour every other Friday for tech debt cleanup and doc writing.

3. Poor Communication That Leaves You in the Dark

You assumed the product would launch this month. They’re still stuck in QA. And now you’re the one updating investors with vague timelines and crossed fingers.

What’s the real issue?

Agencies speak of “sprints” and “tickets.” Founders need clear answers and tight feedback loops.

Why it happens:

  • Over-reliance on tools like Jira without context

  • No shared language

  • Infrequent, low-fidelity updates

What it costs you:

  • Misaligned expectations

  • Missed demo days

  • Sleepless nights wondering what’s going on

How to fix it:

We go beyond task boards. Our teams use Loom walkthroughs, short voice notes, and clear milestone trackers that show exactly where things stand. You get one dedicated point of contact who speaks with a fluent founder.

  • Require a weekly status update, 5 slides max, with voice or video. No long-winded PDFs.

  • Pick one system (Notion, Linear, etc.) as the single source of truth for work in progress.

  • Every deliverable should come with a brief: What changed, why it matters, what’s next.

  • Your PM should act like a translator turn tech speak into founder speak every week.

4. Remote Teams Without Remote Discipline

Most dev agencies are remote. But remote doesn’t mean efficient.

What’s the real issue?

You’ve got engineers in four time zones, standups that don’t stick, and async updates no one reads.

Why it happens:

  • No system for distributed work

  • Meetings dominate, clarity suffers

  • Burnout or invisibility creeps in

What it costs you:

  • Delayed feedback cycles

  • Duplicate work

  • Ghosted deadlines

How to fix it:

Remote-first ≠ remote-chaotic.

We use structured async rituals such as daily updates, weekly demos, timezone-aware planning, and limit sync calls to what actually matters. Also: in-person meetups. Yes, even for startups.

  • Define mandatory overlap hours. Even 2 hours per day helps tighten feedback loops.

  • Replace live standups with structured async updates (Yesterday — Today — Blockers).

  • Do weekly live demos, no matter how small the progress.

  • Document everything in one place and limit real-time calls to what absolutely needs it.

5. QA as an Afterthought

You launch the MVP.

It works… until it doesn’t.

A bug hits your first paying customer, and suddenly you’re debugging during your pitch meeting.

What’s the real issue?

Testing is skipped or superficial. Bugs slip into production because no one owns quality.

Why it happens:

  • “Move fast” becomes “cut corners”

  • No CI/CD or automated tests

  • Testing isn’t part of the dev definition-of-done

What it costs you:

  • Bad first impressions

  • Early churn

  • Tech debt that compounds

How to fix it:

Shift QA left. We embed testing into the pipeline from the first commit. We use real test pyramids such as unit, integration, and E2E and build CI/CD that catches bugs before your users do. You’ll move faster, not slower.

  • Define “done” as tested, reviewed, and verified on staging, not just merged to main.

  • Set up CI/CD from week 1. Use even basic automation to catch regressions.

  • Apply the testing pyramid: lots of unit tests, fewer integrations, a few E2E flows.

  • Assign a rotating QA lead each sprint. Someone is always accountable for quality.

6. AI Gimmicks Over Real Utility

Every dev agency now claims they “use AI.” But most can’t explain how and worse, they let AI write production code unchecked.

What’s the real issue?

AI gets used without oversight, policies, or testing. That’s a liability, not an edge.

Why it happens:

  • Hype pressure

  • Lack of internal AI standards

  • No review process for generated code

What it costs you:

  • Compliance risks

  • Weird bugs from unvetted code

  • Time wasted fixing AI’s mistakes

How to fix it:

We adopt AI intentionally. That means AI Guidelines such as what’s fair game, what’s not, and what always needs human review. Used right, AI helps us move faster and think clearer. But it never replaces good engineering judgment.

  • Define clear AI usage rules: where it’s helpful (helper scripts), where it’s banned (core logic), and what needs review.

  • All AI-generated code must be flagged in PRs and reviewed like any other critical code.

  • Test AI-powered features internally first. You don’t want to be debugging hallucinations in production.

  • Keep a running log of AI decisions so you know what’s automated and where the risks live.

7. Burnout and Bottlenecks from Poor Resource Planning

Your dev agency crushes one project. Then disappears for a month. Or worse, they take on five startups at once and yours gets backburnered.

What’s the real issue?

Agency bandwidth isn’t managed. It’s luck of the draw.

Why it happens:

  • No resource forecasting

  • Lack of visibility into workloads

  • No breathing room between sprints

What it costs you:

  • Slower iterations

  • Inconsistent output

  • Frustrated founders

How to fix it:

We forecast like a product team. We use heatmaps to track team load and sync it to our pipeline. That way, when we commit to a sprint with you, we actually deliver. And if someone’s burning out, we catch it before it affects your roadmap.

  • Use a heatmap-style workload tracker to see who’s overloaded and who’s free.

  • Lock in realistic sprint commitments. No moving targets once a sprint begins.

  • Limit each dev to one core project plus small support work, max.

  • Run a monthly velocity retro with your agency PM to track consistency and spot red flags early.

The Chain Reaction of Ignoring Tech Pain Points

Here’s what happens when these issues go unfixed, not in theory, but in real startup life:

Unclear timelines: Investors and stakeholders lose faith in your roadmap. Your team gets stuck playing catch-up.

  • Rework after rework: What should’ve taken two weeks now takes two months. Momentum dies. Confidence dips.

  • Blown budget: You burn runway fixing what should’ve been done right the first time. Now you’re cutting features to stay afloat.

  • Client and user distrust: Early adopters hit bugs or see constant changes. They churn. Worse, they stop recommending you.

  • Team burnout and churn: Your devs get stuck in fire-fighting mode. They quit or mentally check out. That slows everything even more.

It’s not just a few bugs or missed deadlines. It’s a compounding mess that threatens your product, your team, and your runway.

But the flip side?
Fix just a few of these upstream problems, and everything else starts to click into place.

Fix It Fast: One Smart Move for Each Pain Point

Every agency faces operational challenges whether it’s outdated systems, unclear communication, or overworked teams. But often, a single focused fix can make all the difference. Below are seven common pain points along with one practical solution for each.

Inconsistent Scoping

When project requirements are vague or change frequently, teams lose time and trust.

Solution: Establish clear scope definitions at the start and agree on a standardized tech stack. This ensures alignment across teams and reduces rework.

Legacy Code

Outdated code slows progress, introduces bugs, and limits flexibility.
Solution: Conduct regular codebase audits and build a roadmap for incremental refactoring. Continuous cleanup reduces risk and supports long-term scalability.

Communication Gaps

Lack of transparency and delayed updates can lead to confusion and duplicated efforts.
Solution: Adopt asynchronous communication paired with shared visibility tools. This keeps all stakeholders informed and aligned, regardless of location or schedule.

Remote Team Struggles

Distributed teams often struggle with collaboration, culture, and consistency.
Solution: Standardize tools, define overlapping work hours, and build cultural rituals that foster connection and accountability within remote environments.

Patchy Quality Assurance (QA)

If testing happens too late or inconsistently, it often results in fire drills before launch.
Solution: Shift testing earlier in the development process and implement automated regression tests. Early QA ensures faster feedback and fewer surprises.

AI Integration Challenges

Poorly planned AI adoption can lead to confusion, inefficiencies, or client mistrust.
Solution: Test and refine AI features internally before deploying them in client-facing environments. This builds confidence and ensures meaningful value.

Burnout Cycles

Consistently overloading teams reduces productivity and increases attrition.
Solution: Track team capacity and velocity. Build in time buffers and prioritize realistic timelines to support sustainable, long-term delivery.

Every agency encounters cracks in its process. The key is to respond quickly and intentionally these focused actions can help seal those gaps and build lasting strength across your teams.

The Real Advantage: Predictability at Startup Speed

You’re not just hiring a software development agency to code. You’re hiring one to accelerate your startup without chaos.

Fixing these seven issues means:

  • MVPs ship on time

  • Your codebase scales with you

  • Investors see traction you can actually back up

That’s how Better Software works. We’ve helped dozens of pre-seed, seed, and bootstrapped teams build with confidence, not confusion.

Because you don’t need more tools.
You need better systems.
And a partner who gets what it’s like to build something from scratch.

To read the original article, please visit the post on Medium. Learn more about our work at BettrSW.

Your next breakthrough starts with the right technical foundation.

better@software.com

Contact us

BetterSoftware

Email

info@bettrsw.com

Socials

Better.

Your next breakthrough starts with the right technical foundation.

better@software.com

Contact us

BetterSoftware

Email

info@bettrsw.com

Socials

Better.

Your next breakthrough starts with the right technical foundation.

better@software.com

Contact us

BetterSoftware

Email

info@bettrsw.com

Socials

Better.