There are literally millions apps for both Android and iOS. Everyday, a new app comes out on one platform or another and most go completely unnoticed. The reality of the situation is that those “appreneurs” who succeed are rarer than those who didn’t. But we know that apps can make money, so what’s going on here?
This is a question our market strategists have struggled with for sometime now. We’ve mastered the science of app development and the art of app design. SDI has launched apps that are successful, have high money making potential, achieve download goals and yet the app owner fails in the end. On the flip side, we’ve had the same factors, and the appreneur not only survived, but they thrived!
After years in the industry, SDI has figured it out. Its not the app, or the service, or even the development principle. The difference more often than not, lies in the entrepreneur.
An entrepreneur is a unique individual. It requires more than a desire to make cash (though let’s be honest, it’s a nice perk!). Entrepreneurs need to know themselves through and through – are you the type who is okay working 7 days a week, 15 hours a day, for years, as a startup requires? Or do you have a keen sense of business, a good entrepreneur idea and some extra investment cash, but aren’t interested in running an entirely new business?
Apps can have a huge ROI for both types of entrepreneurs, but you need to know in advance what you want from an app. Appreneurs need to be prepared for what lies ahead and how they can succeed. At SDI, we’ve got some pointers for those who are looking into app development – what you need to know, what leads to failure, and what leads to success.
What You Need to Know
As an appreneur, there are several things you need to know before you even begin:
1. Do you want to make an app startup, or a standalone app that you sell?
- a. If you want to make an app startup, you need to focus on branding and driving loyalty. App startups thrive based on brand recognition; when consumers recognize a favored brand, they’re more likely to download the app. You also need to be prepared to be exceptionally dedicated and committed, even after your startup picks up steam. A final point to consider is that startups at times need venture capitalist and angel investment to succeed.
- b. If you are looking to create a standalone app that gets a bunch of downloads, what’s your exit strategy? Don’t go in with some nebulous idea of how you’re going to get out once you reach your download goal. Figure out who would be interested in your idea and figure out how to go about selling your successful app to them.
- c. Both are viable options, but decide between them before your app is developed! An app startup requires more investment (both financially and temporally), but has a higher long term ROI potential. A standalone app requires less investment and a quicker ROI. Decide which works best for you, and go from there.
2. What is your market strategy?
- a. No matter what your long term app goals are, your app needs downloads. An appreneur needs to know how they will market their app, both before and after launch.
- a. No matter what, you need to make money to succeed. Even if you aren’t looking for a huge profit, you at least need cash to keep the lights on. Determine how you want your app to make money, and be ready with steps to implement your strategy.
So we’ve covered the important questions than an entrepreneur needs to ask before they get started on their app; now we can talk about what doesn’t work.
- Ignoring the desires of the consumer More often than not, appreneurs put the cart before the horse and focus on creating a revenue stream, or focusing solely on marketing or getting downloads. With so many apps on the market, yours will need to stand out! One of the best ways to attract users is to have fresh, updated content with perfect functionality. We all want to make money, but focusing on developing a customer base first is key
- Don’t rely upon Madison Avenue-style marketing techniques. They’ve got a great track record, they’re flashy, and they used to work. Today, marketing is different. A wide-net ad campaign is not an effective tool in a world of customization and overwhelming personal data mining. Step by step guides and there are tools that help target customers who are actually interested in what you are selling. Know them, use them, love them!
There are many factors that contribute to a successful entrepreneurial venture. Some carry more weight, but all are equally important. We’re just going to cover a couple big ones here, but we encourage you to email us for a free consultation and free business plan.
First, start small, but be ready to grow, and grow quickly. For those interested in running an app company, this means to have funding resources lined up, a list of potential new hires ready to go, and be prepared to handle lots of users and traffic.
For those who want to sell their app, be ready with an exit plan that gets you out quickly. If you wait too long, you need to start concerning yourself with app maintenance and updating, which will eat into your eventual profits.
All entrepreneurs should have a marketing strategy that utilize best internet practices, including a diverse Social Media Marketing platform. This means a different marketing strategy, based on your target population. You also need to be aware of how you want to make money off your app. Successful entrepreneurs have an implementation plan ready before launch.
Picking the right idea is obviously important. Successful entrepreneurs are those who sit down and figure out the cost of attracting downloads and the value of each download. This is an age old business concept, but one that is still very valid. Successful apps are ones that are applicable to a wide variety of people (thus driving acquisition cost down) for either a long time or a significant charge (either of which increases the value of a download).
Finally, the last tip we have for success is to find a reliable development partner. Software Developers India has an amazing app development and design team and we specialize in creating apps for entrepreneurs – apps that make money!
We believe in a collaborative process from beginning to the end of a development project – and even beyond. Just think – over 80% of our business is from repeat customers. That’s no accident. Please take a look at our portfolio, and then give us a call at 408.802.2885 or email firstname.lastname@example.org for a free consultation.