How to Start an App Business

Have you got a great idea for a new mobile app? While the market for mobile applications is highly competitive — in September 2020 there were an estimated 111 thousand new apps released on the Google Play Store — demand for new apps is also voracious. To create an app business you need a good idea for sure, but you don't need to be an expert developer yourself. It's a business like any other, so you have to work hard to create a decent app and you need to know your market. We’ll share what skills you need to start an app business, considerations to make and how to legally establish your business for success.

What Is a Mobile App Business?

Mobile is a growing industry that attracts businesses from every marketplace. Since the launch of the iPhone in 2007 and the resultant boom in smartphones, mobile apps have become the hot spot for new businesses.

So what is a mobile app business?

A mobile application (also called a mobile app) is a type of application designed to run on a mobile device, which can be a smartphone or tablet computer. Even if apps are usually small software units with limited function, they still manage to provide their users with quality services and experiences. They can be created by individuals or by big corporate companies and can be sold through mobile stores such as Apple’s App Store. With the mobile app market estimated to be worth £30 billion in the UK by 2025, it is a sector with huge potential for growth and investment.

What Skills Do You Need to Start an App Business?

With mobile being one of the most lucrative industries today, many entrepreneurs are launching their own applications despite having no background in technology. The good news is you can get started in the mobile application industry by learning new skills and creating the right team.

In the broad sense, developing an app takes so much more than technical knowledge. Of course, knowing coding will allow you to design and launch your product, speeding up your sales process and increasing revenue at the same time. However, it is not a necessity. It is also worth considering whether you want to hire a development team to build your app or partner with a developer to launch your business. Both of these options will require strong teamwork and communication skills. You could say one of the most important skills required for building an app is the ability to build a great team.

How to Start an App Business

Building a mobile application with no prior programming or tech background takes a lot of time, planning and patience. Acquiring the right skills, team and tools will put you on the right path to creating a successful and profitable first mobile application. Here are some areas you need to consider in your business plan before starting your app business:

• Understand Your Investment Costs — Before you launch into the app world, be prepared: developing a mobile app is not cheap whether you put the hours in yourself or commission a pro to develop your product. Figures will vary according to the complexity of your app, but regardless, development costs can be fairly high.
• Define Your App’s Unique Selling Point — Is your app provisioning a service that people want to buy? Is it something new to the market? The app industry is huge so you want your app to fill a gap in the market.
• Know Your Customer — When creating your business plan, come up with a couple of target customers. Create a profile of each, including their age range, education, occupation, hobbies, shopping habits and the like so you can build your brand and marketing materials to appeal to those target customers.
• Decide on a Selling Platform — Symbian, Android, Windows Mobile, Blackberry, iPhone… many platforms are vying for developers' attention. The App Store for Apple and Android Market are the primary markets right now. Consider which platform you’re going to sell your app on. Each platform system is so different that each one you choose will require a new build of your app. In terms of revenue and pricing, the platform generally takes a percentage: Apple and Android, for example, take 30 per cent of sales revenue.
• Know Your Pricing Strategy — Deciding on how much you charge for your app can be tough. Many companies struggle to make the numbers tally even if they ask customers to pay for their apps; many others choose not to charge for their app in order to get higher numbers of downloads. This is so that they can charge a higher price for advertising on their app later down the line. Often, you can adjust the price and monitor the reaction, so you can make the decision through trial and error and learning what sells and what doesn't.
• Outline Your Marketing Plan — You need to take some time to consider how you will market your app and get it seen by your target audience. Will you use social media, or will you opt for alternative advertising paths?

Having an app business can only be successful if you put in the time to plan out all these details so that nothing sneaks up on you later. With millions of apps already on the market, you have to set yourself apart and be a step ahead of your competitors.

How to Develop Your App?

You do not need to be an expert developer to take a mobile app to market, although it could certainly keep costs down. If you are developing the app yourself, you need technology appropriate to the platform on which you'll be launching too. You may need to buy a platform-specific developer license for certain other platforms too.

But whether you build and test the app yourself or work with a developer, you need to invest a great deal of time in the development stage. You could mock something workable up in a week or two, but if you are serious about things, two months is the minimum. Many apps take six months (and more) to work up to a finished product.

Ready to Form Your App Company?

If you are ready to start an app business, it’s time to form your company. You can form a limited company or go the sole-trader route. Deciding and completing your company formation can be the most challenging part of starting a business, but it’s crucial to your success.

Are you ready to start an app business? At Mint Formations , we help you form your limited company and take away all the stress that comes with starting a business. We’ll secure your brand name and get your company registered fast so that you can start doing what you love.

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