How to Build a Mobile App Startup that Actually Makes Money

Why would you want to build an app? Mobile apps are a great way to improve processes in the company. Also, mobile applications are a great foundation for building a startup.

No matter what's your tick for creating an app, the final goal of all beginners in this niche is to make money. Some startup owners only dream about it, others make it a reality.

We at TopDevs have a thorough experience supporting and cooperating with startups. So we know what makes them successful from the inside out and are ready to share this knowledge.

8 Tips on How to Build a Mobile App Startup That Actually Makes Money

It doesn't matter whether you have enough skills to create an app or plan to hire mobile app developers to complete this task. You still want to understand how it all works step by step. A fundamental understanding of the processes involved will save much development costs and time.

#1. Develop an Idea

That is probably the most responsible step as it forms the ground for future success. You should think about so many things. One of them is to consider an idea that solves people’s challenges. If your startup takes care of customers from the very beginning, it may gather attention even before the initial launch. 

Your idea should motivate you to develop it further, define the strongest sides, be valuable within the long run, evoke trust, and be sustainable.

If you still haven't found your one-of-a-kind idea, brainstorm it with the following questions:

• Think about the things a certain group of people lacks in their lives. As a viable example, one of our clients has developed an idea of a beauty streaming service that connects beauty experts with those who want to master skills in the industry. Each party received a solution to their main problem - fans required expert advice while beauty professionals gained a chance to monetize their knowledge.
• Reinvent the approach to your hobby. Numerous businesses start from a stellar idea to make profits out of a hobby. For example, if you are a beginning photographer and looking for ways to automate certain processes in your procedures, you can create an application that will make the life of alike people much easier. Well, you know the real needs!
• Find the empty spots on the market. Some brilliant ideas lack competitors as no one has ever thought that such a solution may be in demand.
• Enter a new fast-evolving business niche. The fewer competitors in the emerging market, the more opportunities are there. Fill the gap by developing a new idea.

#2. Research the Market

While some app startups gain millions of dollars, the vast majority get humble results. So be sure to explore the market, check which apps hit the strike and which ones do not. Chasing the app stores may give an image of the situation. 

Does your app idea have chances to attract attention from mobile app users? If you believe it does, continue with researching the direct competitors. Think about how your app can be better, check their users' feedbacks, which feature or app monetization improvements you can implement to beat the competition.

#3. Build an MVP

Move fast with your assumptions, gather feedback with a minimum viable product, and improve the app along the way. It is so common when startup owners try to create an ideal product and spend too much time on polishing the final app version. In the meantime, some enthusiasts simply make steps with raw products, get valuable user reviews, and improve it to satisfy their needs best.

Read more: Prototype vs MVP: What Is the Best Choice for Your Project?

Identify the core features accurately. They should solve your audience challenges which will grant users interest in your application. Listen to your customers to satisfy and anticipate their expectations.

This is the path that one of our clients took - we have started to develop an MVP of a so-called electronic passport for luxury watches. The idea was the project's foundation that was meant to solve an issue of fake watch parts installed during the repair works. Luxury watch owners struggled with continuous insecurity. This MVP helped to present an idea to potential investors and raise funds necessary for its further development.

#4. Monetize Effectively

Once an MVP gets through the first round of applause and raises certain cash, it is the time when startup owners think about implementing monetization strategies. There are three of the best-known ones:

•  Free apps with in-app purchases. These are additional features, items, or subscriptions that a user unlocks after a purchase. This is the most popular monetization method that does not discourage users from downloading an application. They pay only if the app is of their likings and they see reasons to leverage a wider set of features.
• Free apps with in-app ads. This kind of monetization requires a user to either see constant ads or encourages to purchase an ad-free subscription. The app owners get revenue from ad clicks and impressions. There are different variants of tracking the ad success and charge the advertiser per click, mile, install, action.
• Paid apps. While around 90% of mobile apps are free, some users may choose to pay for the app installation. This means that they are loyal to your services and will more likely to continue making payments.

#5. Demonstrate Determination

There are so many brilliant ideas everywhere but a lack of determination ruins everything. Idea execution, fast reactions to market changes, continuous motivation to overcome obstacles, and approach problems creatively is a must for successful startup growth.

When implementing an idea you should be creative. The best example is Airbnb founders who have figured out to rent out their own room with air mattresses. Currently, the startup worth is billions of US dollars. Consumers like non-standard approaches when companies amaze them with their uniqueness.

 #6. Adjust and Update

Even if you have the best value proposition ever, the market changes increasingly. You need to keep pace with innovations and always look for ways to listen to your audience’s requests and make improvements accordingly.

#7. Cultivate People-First Approach

Not only clients are valuable for your startup growth but employees, if you have some, as well. They should share the same drive and motivation you have to help you build a successful startup. 

The vision of a better future after your idea implementation should be the top priority for them. Because if they only hunt after money, in the conditions of a startup you won't be able to retain them and rely on them when uncertain times come.

Besides that, your team should be represented by real professionals who will bring the most results under limited resources. They should be able to help you develop ideas on further product development, its market positioning, etc.

#8. Organize Legal and Financial Model

While a startup is young, you may not think about legal issues or financial flaws. That's a common misconception. You should think about these things from the very beginning:

• Register your business. 
• Take accounting and legal support.
• Create a solid financial model.

In the beginning, startup owners are too busy with the idea implementation though very often startups fail due to an inconsistent approach towards accounting analysis and financial flaws control. Do not make guesses, start counting from the beginning, and see the clear picture instantly.

If you reach to investors such as angel investors, venture funds, or the closest circle of your friends and family, this point is equally important. They need to understand that you are reliable enough to stand solid while facing any possible issues and your financial flaws are under full control.

Conclusions

Not every app makes money so besides developing an application make sure to think through your income channels - from fundraising to in-app purchases integration or any other method that suits your business objectives best.

To actually develop a successful app we recommend you to start with market research and idea brainstorming. Then test it with an MVP containing only core features. Make sure to avoid possible accounting or legal issues. Remember to ask for professional help from technology experts that will make sure your digital product is of the highest possible quality.

Experienced outsourcing mobile app development company will not only ensure the tech side of a startup development but provide you with expert advice on the fitting monetization approach or any other supplementary aspects for your mobile app growth.

Already have a questionable experience while building your startup? Or start fresh with your startup idea? Give it a shot with an experienced TopDevs team that will stand by you at all times!