How to Start a Mobile App Business

How to Start a Mobile App Business

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How to Start a Mobile App Business

If you’re looking to start a Mobile App Business, you’ve come to the right place. Since we’re going to show you exactly how to do it.

We’ll start with key Mobile App industry fundamentals like how big the market is, what the key segments are, and how revenues and profits are generated.

Then we’ll discuss keys to not only starting an Mobile App Business, but succeeding in it!

How Big is the Mobile App Industry?

There are currently an estimated 455,835 Mobile App businesses in the US. This industry has experienced rapid revenue growth over the past five years, to reach $16.2 billion.

What are the Key Segments of the Mobile App Industry?

The two largest product segments for the Mobile App industry are Games and Social Networking apps. Smaller product categories include News Apps, Entertainment Apps, and Other Apps.

What External Factors Affect the Mobile App Industry?

A number of factors affect the performance of the Mobile App industry. These drivers include:

Number of mobile internet connections –This corresponds to the number of people who own a smartphone, which in turn affects demand for apps.

Percentage of services conducted online – The increasing number of online purchases and business transactions represents a distinct opportunity for app developers, as more people complete these transactions via smartphone applications.

Time spent on leisure and sports – Since games are a major segment of the industry, it follows that the more time people have for leisure, the more game apps they will download.

Who are the Key Competitors in the Mobile App Industry?

The companies with the greatest market share are King Digital Entertainment, Kabam, Electronic Arts, and Zynga (all game app developers).

What are the Key Customer Segments in the Mobile App Industry?

The Mobile App industry’s largest customer segment is consumers between the ages of 18 and 29. Consumers aged 30 to 49 are the second-largest customer segment, followed by those over the age of 50.

What are the Key Costs in the Mobile App Industry?

Wages – App developers typically have at least an undergraduate degree, and are required to have a specialized skill set. These factors combine to make wages the single largest industry expense.

Purchases – These generally entail development kits, hardware, and software updates.

Royalties – App store royalties are a significant cost for app development businesses, but these costs have been trending downward over the last five years.

What are the Keys to Launching a New Mobile App Business?

Have several ideas. Don’t expect to be successful with the launch of a single app. Someone once said that apps are like releasing a music single. You never know which single will become a hit.

Mock up your ideas. Get the details down on paper, with screen-by-screen wireframes.

Decide which platform you want the app to run on. It takes a completely different set of coding languages to design an app for iOS as opposed to Android.

Keep it simple. Make sure your most useful features are readily visible. The app needs to be simple enough that customers can easily find what they want and complete transactions within minutes.

Get a prototype out on the market. You don’t have to wait for your app to be complete before you release it. In fact, “Beta testers” can offer valuable insight.

Decide how you want to monetize. Do you want a freemium app? A fixed cost app? Free, with ads?

All Things Considered: Finding Success in Mobile App Development



Inside the Android Factory: 5 Ways to Build Profitable Applications



What are the Typical Startup Costs for a New Mobile App Business?

One-time costs for starting an App Development business include:

  • Hardware with enough speed and space to ensure a smooth work environment, and a high-resolution screen
  • Software
  • Finding and hiring the right coder/s, as needed
  • A place to work – lease or purchase costs
  • Office furniture

Ongoing costs include:

  • Upgrading hardware and software
  • Wages
  • Lease/loan payments
  • Marketing
  • Internet and other utilities


How Much do App Developers Make?

About 25% of developers earn over $5,000 per month on the iOS platform, and 18% of developers make this on the Android platform.

According to PayScale, the median salary for a senior Software Engineer/Developer/Programmer is $99,193 per year.

Images



Slide Shares

Steps to Market Your App Before and After Launch

Making your app – from the idea to your hand

The App is Dead – Or, How to Think about the Future of Apps


Helpful Videos

How to build a Billion Dollar app?

Mobile App Development Cost and Design

How to Build a Mobile App from Idea to Build to Monetisation to Scaling



Additional Resources in the Mobile App Industry

For additional information on the App Development industry, consider these industry resources:

 

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