Why do people start a small business? Some people want to spend time with their family, some want to be outside all day dealing with co-workers, traffic, meetings. Some hate working under the boss and answering their questions. Not all tech startup founder is a developer. And eventually, they don’t need to be. As an entrepreneur, you would have been doing more than programming. You have to deal with Marketing, service validation, engagement and retention of customers, managing accounts and finances, customer services and much more.
The Growth of Mobile computing technologies such as cloud computing helped in bringing a high tech leadership in creating Mobile applications. Few Products and companies make it, but listening to the characteristics of most successful and developed tech companies will be a good way for making your startup ideas into a great company. The app industry is highly competitive one. A successful Mobile app will give more pride for its developers and creators.
Startup app Business success, Risk, and Rewards
Apps are the very large profit centers. According to AAPL Report by Apple that around $10 billion people spend in its app store. Today there are thousands of app developers around the world working independently, with startup business or with large enterprises working to come up with next booming thing. The competition among the mobile app world is so aggressive. Some apps have made their owners as multi-millionaires, and the majority of developers failed in it. Less than one percent of apps will get financial success among millions of apps.
There are top three factors that need be considered before building a product that is capable of generating revenue.
- The right timing
- The right Market
- The right Place
As per Forbes, average app developers develop 3 to 5 apps, bringing an average revenue of $4,000/year on Apple’s platform and $1,125 on Google’s Platform. A dedicated developer with 5 apps can expect around $20,000 /year. This amount doesn’t account for the effort and money invested while creating those apps. With a limited earning power, it is difficult to create a team of knowledgeable developers and to create an ad campaign and boosting the download numbers, along with an outside competition. There are numerous options that exist for each category and subcategories. Standing out among them can hit or miss.
Success may be too fleeting. The maker of Angry Birds, Rovio, was touted to be a worth of around $d to 8billion as per the analyst in 2012, but after October 2024 the Angry bird company planned to lay off 16% of its total workforce.Several different apps have seen their drop on valuations as end user’s short attention within the span and improving the access to many new offerings. A study published by Techcrunch on 2013 states that around 80 – 90 % of apps were downloaded and used only once and then uninstalled.
Keys to a successful Mobile app startup business
The better place is to start with a very good idea. As this may appear clear, nothing is worse than a bad idea. There may an imperfection in the logic of the idea, or else it may have hurdles when it is open to use in the real world. Building and improving an already existing idea can also be profitable. Much Small business Entrepreneur found themselves overwhelmed by other better copies.
Once the startup ideas are clear, next the Startup business plan should be written and followed. A clearly defined business strategy or plan does not need to be more complex or imaginative. It should be in a very easy way to understand, to implement and describes how the overall business will work, grow and earn money. A good financial control with budgets, cost-benefit analysis and deadlines are more critical. Several successful mobile apps are free and may generate revenue by providing in-app purchase or with hosting advertisements.
Some of the app developers offer a free download initially and then allow users to upgrade to the premium version which they can update after purchasing.
Startup co-founders, advisors and employees and all the members of the business are formed to operate and to manage the company. Having outside advisors those who can give unbiased, good advice will help in taking your Startup business to the next level. New employees should be more talented and to be ambitious, and to be a good fit for developing the company to a corporate culture.
Implementation is everything
Apart from having the best idea, implementation plays a vital role in it, even if the idea is most innovative there is a huge probability that this idea may already exist. When WordPress started they had lost of competitor blogging sites, but WordPress come out with the best and on the top. The reason behind its success is choosing the correct community. They gave rise to the most premium Theme ideas, that became a more viable business model. The one and the only reason a small business startup exist is to serve its users. Many Entrepreneurs gets distracted by fundraising, that usually takes their takes their attention and time in building a great product. A great team, a great business plan and paying customers are the needed things for a successful mobile app startups.
For a Mobile application business developers, computer programmers are important for creating reliable and bug-free software and that can be installed on platforms like Android, iOS, Amazon Kindle and Microsoft Phones. Skilled designers those who understand the customer requirements are an essential one. The developed app must be easy to use, intuitive and good in look. With a heavy competition the app shouldn’t just look good it shouldn’t be more attractive and amazing. Promotion and branding is another important aspect. If many companies offer the same services, then the individual application can be separated by the look and feel, design and the user experience.
People also demand apps that should be more easy to use and install. Customers don’t have patience and time in navigating a complicated app when your competitor offers it in a more intuitive way. The app can be made as so simple by keeping its design features and usefulness as simple. Make your app session short, give them a very good user experience.
Start with a good idea, that followed by most effective execution of and stand out mobile app service. By learning the losers and winners stories, a new startup can be equipped in a better way to achieve success in a competitive environment. Mobile apps all sizes and shapes now have a common place, users interact with multiple apps and daily basis. Some mobile apps bring in millions or even billions of dollars for their developers.