What are the pros and cons of starting a freelance app development business?
A freelance app development business has a few pros and cons, which you should be aware of before getting started.
Here are the high level benefits and drawbacks of a freelance app development business:
|• Ability to start your business from home||• Crowded Space|
|• Little startup costs required||• Security Issues|
|• High customer retention rates||• Work can be inconsistent|
|• Freedom of clients||• Isolation|
|• Quick build time||• Taxes|
|• Rewarding work||• Lack of benefits|
|• Unlimited income potential||• No safety net|
|• Gain exposure and experience|
|• Control of workload|
• Ability to start your business from home
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
• Little startup costs required
The cost to start a freelance app development business costs significantly less money than most businesses, ranging anywhere from 667 to 33,119.
• High customer retention rates
Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your freelance app development business becomes an integral piece of their every day lives.
• Freedom of clients
Freelance App Development Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
• Quick build time
The average time it takes to build your product is quick - typically around 8 months. This will allow you to bring your product to market faster.
• Rewarding work
Starting a freelance app development business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
• Unlimited income potential
As a freelance app development business, there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
• Gain exposure and experience
This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
• Control of workload
With a freelance app development business, you get the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
• Crowded Space
Competition is high when it comes to your freelance app development business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
• Security Issues
With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
• Work can be inconsistent
As a freelance app development business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Often times, as a freelance app development business, you typically work alone and do not have much face-to-face interaction with other team members.
As a freelance app development business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
• Lack of benefits
With a freelance app development business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
• No safety net
Typically, as a freelance app development business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.