Starting An App Design Business

How to Start a Mobile App Business

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How to Start a Mobile App Business
How Big is the Mobile App Industry?
What are the Key Segments of the Mobile App Industry?
What External Factors Affect the Mobile App Industry?
Who are the Key Competitors in the Mobile App Industry?
What are the Key Customer Segments in the Mobile App Industry?
What are the Key Financial Metrics and Costs in the Mobile App Industry?
How Long Does It Take to Make an App?
What are the Keys to Launching a New Mobile App?
9 Differences Between iOS and Android App Development
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?
How Much do App Developers Make?
Images
Slide Shares
Helpful Videos
Additional Resources in the Mobile App Industry

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!

Importantly the most important step in starting a mobile app business is to complete your business plan. To help you out, you should download Growthink's Ultimate Mobile App Business Plan Template here.

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

All Things Considered: Finding Success in Mobile App Development infographic />

Inside the Android Factory: 5 Ways to Build Profitable Applications

5 ways to build profitable android applications infographic />

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

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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:

The Application Developers Alliance: appdevelopersalliance.org
Gartner: www.gartner.com
The Verge: www.theverge.com/apps

How to Finish Your Mobile App Business Plan in 1 Day!

Don't you wish there was a faster, easier way to finish your business plan?

With Growthink's Ultimate Mobile App Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your business plan today.

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.