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Is Your App Financially Viable?

Apps are designed to be intuitive and usable, but behind their apparent simplicity lies incredible technological complexity, which costs the largest companies between $500,000 and $1 million to build. You may have a good technical knowledge of web development, but smartphone apps require a different skill set, including competence in Objective-C and Java coding. Even if you have the funds to cover the up front and running costs, you need to find a way to monetize your app to make it profitable. So is your app financially viable? Answer the following three questions to find out.

What is Your App’s Level of Complexity?

If your app’s upfront costs are too high, then it will be difficult to make it worth your while financially. The simplest app with just five screens will likely cost you between $1500 and $3000 dollars to build, while a more complicated app with 5-10 screens will set you back $3000 to $6000. That’s assuming that you have built it for a single operating system. If your app is any more complicated than this, then you may want to scale it back to make it affordable.

What is Your Monetization Strategy?

Once you have roughly figured out the costs to build and maintain your app, you will need a money making strategy. Crediful (www.crediful.com) recommends that you have a financial plan in place ahead of time, in order to improve your credit rating and acquire the necessary upfront cash. If you can prove that your app can make money, then getting funding will be much easier. You can either charge people for the app itself, allow in-app purchases or fund your project through advertising alone. Deciding what makes best financial sense for your goals will determine how viable your app is.

How Much Time Are You Willing to Commit?

Building a single app takes an average of 18 weeks which, for context, is the same amount of time that it takes to manufacture 168 cars. Clearing out bugs and putting out updates is a slow and time consuming process. This is not something you can just spend five minutes a week on. If you are willing to dedicate the time, or can outsource to someone who is, then you have a chance of creating a financially viable app.

Building an app can be extremely rewarding and profitable. However, before you start, make sure that you have thought about three key points. Understanding your app’s level of complexity, your monetization strategy and how much time you have to dedicate to its building and maintenance will help you to determine whether or not you are creating something viable.

About Rohit Shetty

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