Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$0

$2,250

Total Startup Costs

$6,136

$40,311

Cloud Computing Services

azure.com

523

Power Bi

powerbi.com

1,088

Expo

expo.io

6,733

U.S. Customs and Border Protection

cbp.gov

12,720

Appscrip

appscrip.com

39,375

SemiDot Infotech

semidotinfotech.com

141,974

Jelvix

jelvix.com

185,485

Velvetech

velvetech.com

197,121

Imaginovation

imaginovation.net

229,251

Trovend Technology Pvt Ltd

trovend.com

242,812

Mobapp Creator

mobappcreator.com

278,429

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

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!

Rewarding work

Starting a custom app development service 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.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Traffic to your website

A custom app development service gives people a reason to visit your website and to keep coming back to you!

Meaningful business connections

You never know who you will meet as a custom app development service. This could be the start of an incredible business opportunity!

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your custom app development service are typically around 42%, which can make it more challenging to incur new expenses and maintain profitability.

Taxes

As a custom app development service, 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.

Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

High overhead expenses

With starting a custom app development service, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.