The world of smartphones is pretty exciting with constant changes in their landscape. With the arrival of a new device every week, the scope of these life-changing devices seems to be never-ending.
Along with the evolving changes in smartphones, we’re also bombarded with several applications. Whether you want to book a taxi or purchase a rug, there’s a mobile application available for every purpose.
If you’re a budding entrepreneur with an innovative and developing app idea and are looking to make billions, you’ve surely found a sweet spot. Let’s take a look at the detailed guide to build a billion-dollar application.
How to Build a Billion Dollar App?
1. Building a team and raising funds
If you have a revolutionary idea to build a next million dollar app that you believe will be loved by millions of people, the first thing you should do is avoid any type of post launch mistakes and test your great idea for an app by stating it on a paper and getting feedback from the public. Figure out a problem, a solution, and translate it into an application.
Whether you use paper or photoshop, make sure your billion dollar business idea can be easily communicated and explained to others. Once you’ve made a great design, make a prototype out of it. As soon as your app gets into users’ hands, you can start getting feedback.
To start building a team, all you need to do is find people who share the same vision as you and have the required skills to make your dream achievable. Recruitment will be a game-changing task, and you must do everything to get skilled and enjoyable people on board.
Ask your friends, family, and even your enemies to download and use your app – and provide brutally honest feedback. Analyze your targeted audience and brainstorm different routes to reach them and use your application.
2. Capturing the product market
As of now, you should have a prototype ready and used by people. If you have a simple business model such as gaming, you may consider releasing the first version of your app startup idea on the app stores. Otherwise, for a complicated model, you need investment for further development.
At this point, the only thing you should care about is achieving a solid product-market fit and making sure people love your app up to an extent where they’re willing to pay for it. Keep developing a reliable user acquisition strategy.
You also need to determine the cost of acquiring a user and how you can make it profitable. The billion dollar app idea that started as a basic model will evolve quickly now, and you need to keep validating it by testing, measuring, and analyzing with users.
Although it may be hard to make an app that people love and pay for, you must keep patience and perseverance. Once you’ve gone through this stage of hardship, the valuation of your app should be on an average near $10 million.
3. Generating revenue streams
Now when you’ve achieved product-market fit and have an app ready that users love, your aim should be to keep growing and achieving traction by improving all the aspects of your app and figuring out how to monetize it and generate revenue.
If you have a gaming, eCommerce, or marketplace business model, you’ve already convinced users to pay for your app. All you need to do now is improve the lifetime value of your app by holding and retaining users along with keen increments in your margins.
In addition to providing a satisfying user experience, you also need to work your way to optimize the price points and lower the cost of customer acquisition. Keep adding new features and revenue streams to your app without compromising on usability.
By this time, you should also land your first investor, and finally join the big bulls. This also means you should have at least a million dollars or more in your bank account, depending on your negotiation skills and traction.
4. Scaling like crazy
After signing your first investor, you continue gaining great reviews about your app and have a clear process to address user feedback. Your team also continues to grow at an enormous rate, and you may even hit a hundred people or even more.
Moreover, your user base should also be growing steadily and the user-retention strategy should be in place. As you reach this stage, you’ll notice that user acquisition has become predictable and systematic, along with the drowning cost of acquiring new users.
Your company is also becoming increasingly profitable and revenues are growing at an exponential rate. This calls for the need to constantly look for product innovations and introduce more revenue streams in your business.
Talking about the valuation of your app, everything seems to be different and you’ll no longer be treated as a startup. You’re now an established company with a very complex valuation based on your financial performance and uniqueness.
5. The big billions
While you keep making constant progressions in the app and follow the momentum, you also need to have a clearly defined vision for your product with practical and systematic steps to realize it. The core mantra is to keep your users happy and satisfied with your app.
The business model at this point also requires to be tuned constantly, and even small fractional improvements can yield big profits. The valuations will still be complex and you must keep a keen eye on your profits, growth, and products.
How Much Does It Cost To Build An App?
Prior to leaping directly into the cost, first of all else, you need to choose the niche of the application and its features. The prerequisite of the overall population or the demand of the user ought to be profoundly understood, and a thorough thought should be given to respond to various inquiries.
Features and functionality
Knowing the cost of development is an ideal opportunity to find what features impact the intricacy of the entire application. Execution of certain features can be a lengthy process, while others are moderately short and simple. Based upon the complexity of solutions, mobile app developers need to utilize third-party API or code from the scratch. Less complex solutions, thus, require standard instruments and connect with native features.
Product design
Making a special UI design is a complicated process that produces extra cost to your task. The less expensive variation suggests utilizing OS-provided things and building screens of standard components. The quantity of screen is likewise a deciding variable. Thus, cost strategies and models need to be decided before implementing any decision.
Number of platforms
It is obvious that you need to make a decision on which platform to begin from. Making a decision for the platform is the most significant and difference making character for creating mobile applications. These platforms take over various programming languages, have diverse SDKs and use distinctive development tools. Thus, the cost varies differently if one has to develop on iOS or Android.
Backend infrastructure
When it comes to mobile app development, backend is normally an OS that provides developers with APIs to have a data trade between an application and a database. To follow user activity and access the performance of your consumer application, it is outfitted with examination. Depending on the quantity of parameters you will track and how detailed and specific the tracking will be, expenses vary.
App administration
The organization board is unquestionably an extremely helpful tool for dealing with application content, customers, and statistics. There are alternatives to adopt existing admin panel formats for your necessities, yet tracking down a good one is an issue. So it makes sense to create a satisfactory board to meet your business prerequisites.
Location and structure of team
The location of your application development team is a crucial factor affecting the product’s last cost. The expense of making an application in the US will contrast from the expense of mobile app development services in Europe or other different areas. If you want, you can opt for companies in your area like mobile app development company in USA if you live in the US or any other area where you reside. But you have to be careful while choosing a company or developer to get quality results.
Summing Up
Today, billions of people across the world are using smartphones and their applications daily. Moreover, in a few years, the figures will simply multiply themselves, and that’s because technology has never been so accessible and powerful before. People are making the most to develop a billion dollar app and get the best idea to satisfy customers.