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MenuWhich one to choose? App business or a SaaS business idea?
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I would say don't let the revenue be your deciding factor. Build the idea that you enjoy the most. If you'd really like to try both then go for it.
Just be careful to validate your SaaS business idea early and often, as it can easily become a much more complex project than what it sounds like you've put together on the AppStore. Also, something critical to keep in mind here is how you will obtain customers. You mention that the market for this app isn't very used to working with online tools, how will they find you? A benefit of the AppStore is that it can provide a lot of the traffic on its own. With a SaaS app you need to generate traffic yourself.
I have had experience in both of these arenas and both have their pros and cons. Regardless of the platform FOCUS is key. Apps can be developed at a much lower cost than a SaaS platform. Easier to sell and support. But can be difficult to monetize and reach you market. However, if the app and monetization model is right then then the income spike can be massive in a short period of time. SaaS : Much more investment required up front, but customer retention and long term growth more probable. Both models are risky and both need large marketing budgets. If you need any more assistance feel free to give me a call.
Certain concepts work a lot better as apps and don't make a lot of sense as web services. I would strongly encourage you to read how Trevor succeeded with his Spanish Bible app - as niche as you get:
http://www.trevormckendrick.com/my-first-year-in-the-app-store/
And don't be afraid to charge money for your apps (either upfront or as an in-app purchase). Advertising doesn't work for every vertical.
That will depend on the business model, target market and expected cash flows. Also if the deliverable will be a one time purchase or a recurrent purchase.
If you are targeting mass scale clients, I recommend to go for SaaS . That will help increase your sales very fast, where people can try , pay a monthly fee or per license fee..etc.
If your market is small and you are delivering a high end expensive project, very specialised, I then recommend to go for app .
and you may not even go for a store app. You may then be delivering an on platform app , with even a hardware token or something for licensing , either per user , or a corporate license.
If you want a detailed study I can help you , based on your business plan ( I can help you prepare one ) and assess then and help make models for which one can be better.
Good Luck !
I believe you should invest in App business. The mobile app industry is a vast sector. There are many businesses that not only create and develop innovative applications but also improve their businesses that is why many start-ups are preferring this domain as a profession. There are many reasons to consider this domain, but the COVID-19 pandemic has created a different perspective for the web and mobile app development industry.
Every domain whether it is education, news, retail, banking, gaming, or shopping are demanding the app development, so they deliver their services to their customers. After experiencing the demand for the app development mobile app development industry is booming still having a crisis. The following points are to help businesses how to stay ahead from the pack in this pandemic situation.
If businesses have to develop an app, it is easy to develop an app but to make it visually appealing, having flawless operations, with unique features, designs, options, content is not as easy as it seems. Therefore, always keep in mind that whenever you are going to develop an app always keep your audience views at the topmost because they are the ones who can make your app popular. In the world of smartphones, the app usage is high, and the users have multiple options so make sure your app can entice the users. In the play store, there are many apps introduce every day and due to these users get confused and irritated. So, at this point businesses and developers need to keep this second point in mind that do not put so many features in a single app and don’t make it complicated to use your app for your audience. Therefore, develop an app having limited choices that not only create a place to use for the user but also to think. This trick helps businesses in terms of boosting engagement and the revenue rate for business terms and goals.
In the world of smartphones, the Internet is also counted in the basic need of a human being. Jokes apart, in today’s world everything is dependent on the internet so before developing an app it is crucial to make a proper strategy and make sure you have noted all marketing points because there are many competitors in the market for the app development business. In the pandemic situation, it is important to focus on the skills like content, design, programs, the latest technology should be used to attain the proper attention of the users. There are many apps available on the play store having the same features and characteristics. So before getting into the development process of the app make sure you have jotted down the demands and requirements for that particular app. Because some special apps for special attributes need special attention. It does not matter whatever is your business but tracking your work system is mandatory. To keep your work on track in terms of knowing the updates about the app project and the timeline when it will be done. Some companies and businesses prefer other companies to stream the working pattern and make sure it goes in the right way. On the other hand, many companies used tools to maintain the track of development process.
Staying in the web and mobile app industry as an app development serving company needs proper analysis for the business. This kind of work depends on how much unique work you do as compared to your competitors in the market. There are many chances are in the software industry but to analysing it properly before implementing it into your business.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
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How much equity should I ask as a C-level executive in a new startup ?
As you may suspect, there really isn't a hard and fast answer. You can review averages to see that a CEO typically becomes a major shareholder in a startup, but your role and renumeration will be based on the perceived value you bring to the organization. You value someone's contribution through equity when you think that they will be able to add long-term benefits, you would prefer that they don't move company part way through the process, and to keep them from being enticed by a better salary (a reason for equity tied to a vesting arrangement). Another reason is when the company doesn't have salary money available but the potential is very strong. In this situation you should be especially diligent in your analysis because you will realize that even the best laid plans sometimes fall completely short. So to get the best mix, you have to be very real about the company's long-term growth potential, your role in achieving it, and the current liquidity necessary to run the operations. It should also be realized that equity needs to be distributed. You cannot distribute 110% and having your cap table recalculated such that your 5% turns into 1% in order to make room for the newly hired head of technology is rather demotivating for the team. Equity should be used to entice a valuable person to join, stay, and contribute. It should not be used in leu of salary that allows an employee to pay their bills. So, like a lot of questions, the answer is really, it depends. Analyzing the true picture of your long-term potential will allow you to more easily determine the correct mix.DH
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What is the generally agreed upon "good" DAU/MAU for mobile apps?
You are right that the range is wide. You need to figure what are good values to have for your category. Also, you can focus on the trend (is your DAU/MAU increasing vs decreasing after you make changes) even if benchmarking is tough. Unless your app is adding a huge number of users every day (which can skew DAU/MAU), you can trust the ratio as a good indication of how engaged your users are. For games, DAU/MAU of ~20-30% is considered to be pretty good. For social apps, like a messenger app, a successful one would have a DAU/MAU closer to 50%. In general most apps struggle to get to DAU/MAU of 20% or more. Make sure you have the right definition of who is an active user for your app, and get a good sense of what % of users are actually using your app every day. Happy to discuss what is a good benchmark for your specific app depending on what it does.SG
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Business partner I want to bring on will invest more money than me, but will be less involved in operations, how do I split the company?
Cash money should be treated separately than sweat equity. There are practical reasons for this namely that sweat equity should always be granted in conjunction with a vesting agreement (standard in tech is 4 year but in other sectors, 3 is often the standard) but that cash money should not be subjected to vesting. Typically, if you're at the idea stage, the valuation of the actual cash going in (again for software) is anywhere between $300,000 and $1m (pre-money). If you're operating in any other type of industry, valuations would be much lower at the earliest stage. The best way to calculate sweat equity (in my experience) is to use this calculator as a guide: http://foundrs.com/. If you message me privately (via Clarity) with some more info on what the business is, I can tell you whether I would be helpful to you in a call.TW
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What is a good/average conversion rate % for an e-commerce (marketplace model) for customers who add to cart through to purchase order.
There is quite a bit of information available online about eCommerce conversions rates. According to a ton of sources, average visitor-to-sale conversion rates vary from 1-3%. This does not mean the Furniture conversions will be the same. The bigger problem is that visitor-to-sale conversions are not a good data point to use to measure or tune your eCommerce business. All business have some unique friction factors that will affect your final conversion rate. It's very important to understand each of these factors and how to overcome them. The best way to measure and optimize is to take a conversion funnel approach. Once you have defined your funnel you can optimize each conversion rate to better the total effect. For example: Top of the funnel: - All web site visitors, 100,000 / month First conversion: View a product page, 50% of all visitors Second Conversion: Add to Cart, 10% of people who view products Final Conversion: Complete Checkout, 80% of people who put items in a cart In this example we see that only 10% of people who actually view products put them in to a cart, but 80% of those people purchase. If you can figure out why visitors are not adding items to their cart and fix the issue to increase the conversion rate, revenue should increase significantly because of the high checkout rate. You can use free tools like Google Analytics to give you a wealth of information about your site visitor and their behavior or there are some great paid tools as well.DM
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Whats are some ways to beta test an iOS app?
Apple will allow a developer to register 100 UDID devices per 12 month cycle to test via TestFlight or HockeyApp. Having started with TestFlight, I would really encourage you NOT to use it, and go directly to HockeyApp. HockeyApp is a much better product. There is also enterprise distribution which allows you far more UDID's but whether you qualify for enterprise distribution is difficult to say. As part of your testing, I'd encourage to explicitly ask your testers to only register one device. One of the things we experienced was some testers registering 3 devices but only used one, essentially wasting those UDID's where we could have given to other testers. Who you invite to be a tester should be selective as well. I think you should have no more than 10 non-user users. These people should be people who have either built successful mobile apps or who are just such huge consumers of similar mobile apps to what you're building, that they can give you great product feedback even though they aren't your user. Specifically, they can help point out non obvious UI problems and better ways to implement particular features. The rest of your users should be highly qualified as actually wanting what you're building. If they can't articulate why they should be the first to use what you're building, they are likely the wrong tester. The more you can do to make them "beg" to be a tester, the higher the sign that the feedback you're getting from them can be considered "high-signal." In a limited beta test, you're really looking to understand the biggest UX pain-points. For example, are people not registering and providing you the additional permissions you are requiring? Are they not completing an action that could trigger virality? How far are they getting in their first user session? How much time are they spending per user session? Obviously, you'll be doing your fair share of bug squashing, but the core of it is around improving the core flows to minimize friction as much as possible. Lastly, keep in mind that even with highly motivated users, their attention spans and patience for early builds is limited, so make sure that each of your builds really make significant improvements. Happy to talk through any of this and more about mobile app testing.TW
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