How to build a profitable startup
You probably like watching movies or reading stories about successful apps that brought their developers millions of revenues in a short period of time. It is not surprising, considering how rich and famous some startups have become. However, only 1,6% of all the developers reach incredible revenues, leaving everyone behind. They conquer the market with outstanding ideas, applying the most popular and credible rules to stay afloat.
According to VisionMobile, 64% of Android and 50% of iOS apps bring less than $500 per month, which is called ‘below the poverty line’. Of course, if you are only creating the app as a hobby, such sum may be more than enough. However, what should a developer do if he wants to make real profits, hitting the top ranks of the market? Today I will describe the main steps and tips of creating an app, which will surely drag attention of the audience and will help you place a solid position on the market.
It doesn’t matter, whether you are starting with a free-to-download startup or already have a paid version, this article will guide you through the world of opportunities and will help you to bypass the most common mistakes of competitors.
Steps to create a real moneymaker
Below is the list of the most important and winning strategies, which will surely make any idea shine, bringing you popularity and profits.
Start without any delays
The world of mobile developing is growing its speed every second and you always need to be on guard if you want to enter the market with a relevant product. That is why it is important not to stay on the stage of planning for too long. Someone else may have the same idea and is starting to work on it right now! It doesn’t mean that you should risk everything or take careless decisions. It only means that you should keep moving, making one step at a time, without hesitations and delays. Be passionate about what you do and attract developers, who have the same aspirations!
Look for market opportunities
The main rule of launching a successful app is very simple: you need to present it at a right time and place. You may have a brilliant idea but it will definitely fail if you choose the wrong market or will launch it, when no one needs it.
To make sure that you are hitting the market at the best time and place, you can use a Minimum Valuable Product model of your app. It is a lighter version of your app, which doesn’t require too much space and resources but can give you a fulfilling information on the market, its needs and desires. On this stage, you will easily make necessary changes and will be able to adjust the app according to the market’s needs.
There are various types of MVP, available on the market. You should learn more about them before deciding which option to choose. Some of them are based simply on creating a one web page, giving information on the product and company. Others use door-to-door strategy, which is based on hiring independent users, who test your product and promote it.
The most popular examples of a perfect usage of market opportunities may include Airbnb, which engages users from all over the world, who are looking for accommodation and Instagram, the most popular platform of sharing photos and videos. The last one chose a winning strategy of making profits: it uses indirect advertising strategy by displaying paid videos.
Pay attention to the market and the tools, which are used by the most profitable representatives in your area. They will surely guide you and will give a chance to understand, which strategy of gaining profits may be the most suitable.
Know how to implement the idea
It is more than important to have a brilliant idea but it will never give you a full guarantee of success. Of course, you may think that your app is unique and valuable but the truth is that no one is going to pay for an app, which is not launched in a proper way. Thousands of outstanding ideas are buried under doubts, weak management and lack of time or money, so you need to understand the importance of using the most popular and reliable methods of implementation of the idea.
For example, when WordPress was hitting the market, it was already flooded with similar products. However, the management decided to bet on a community and created everything to make users feel secure and protected. With time, premium themes and other additional services, brought them outstanding revenues and gave way to a winning monetization strategy. But it all started with a proper selection of the niche!
You should pay careful attention to the monetization strategy you choose if you want to launch a profitable startup. Of course, you should always base your actions on the needs of consumers but don’t forget that you will need to pay the developers, managers and researches, so a winning strategy is a must for a long-term and prospering cooperation. In such cases, Most Valuable Product version is more than important and you will have to use it to ensure that you are moving in a right direction.
Subtraction and a free trial mode
These two rules may not be so obvious but they play a crucial part in every project, so you shouldn’t neglect the importance of focusing on details. First, always concentrate on the important things. It is simple to get lost among departments, strategies and lots of paper work, so you should always stick to the plan. Subtract everything, which is not important for the business and concentrate on your strategy.
Make sure that you have selected a proper team, which knows its responsibilities and will not overload you with meaningless data. You may wonder how this step may influence the profitability of the startup. Everything is simple: the more resources you waste, the more time you lose.
There is also a rule of 90 free trial days, which will help you understand whether the strategy is working. Just pick one idea and launch it. If no results arise within 90 days, you should choose another idea. In most of the cases 90 days is more than enough to understand whether the idea is working and whether it is worth using in future.
It is important to remember that we are living in the world, where almost all information is free and easily accessible. If you share important data, which doesn’t cost anything, you will surely drag attention and respect of the target audience. The same applies to the competitors, business partners and the market as a whole.
That is why it is so important to gather a qualified and professional marketing team, which will be able to apply all the recent tools of promoting your app. They should focus on SEO, attract new traffic and update all the platforms in order to enlarge the audience. Such team should also use newsletters, subscriptions, social pages and other platforms to connect the audience and grab its interest! If you give users what they want, they will gladly pay for it.
Pay attention to the growth rate
You probably know how important it is to keep track of the data, coming from your app. It will give you a clear picture of how efficiently your startup works, even if you are not satisfied with the results. There are a few models, which may help you evaluate your growth rate and make changes in the monetizing and overall strategies if needed. One of the most popular and efficient models is called AARRR, which was first introduced by Dave McClure and can be the best option for those, who are only starting their way in a virtual world of startups. This model will help you concentrate on such indicators as activation, acquisition, revenue, retention and referral.
Engage the team
The last but not the least tip of creating a profitable app is to engage the whole team. It may sound complicated at first but you should spend as much resources as needed to create a friendly and close-knit atmosphere. In such a way, you will be able to create bonds of trust and communication. Individuals will share data and important tools, which will greatly contribute to the project’s efficiency and profitability. Every manager, developer or designer should understand the goals of the project and do everything he can to make it happen!
Of course, there is no universal recipe of creating a profitable app with a winning strategy, because it consists of dozen of stages and steps. However, by paying attention to all the tips I have stated, you will get a chance to introduce a great app to the market and reach the target audience without any difficulties.