Business Idea

Start A Custom App Development Service

About

Starting a custom app development service requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell custom app, or selling custom app online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a custom app development service ➜

Key stats

market size
$171B
revenue (monthly)
$225K
starting costs
$26.6K
gross margin
42%
avg product price
$300000
time to build
12 months
growth
SEO
business model
Consulting
time investment
Full time

About

Starting a custom app development service requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell custom app, or selling custom app online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a custom app development service ➜

Key stats

market size
$171B
revenue (monthly)
$225K
starting costs
$26.6K
gross margin
42%
avg product price
$300000

 

time to build
12 months
growth
SEO
business model
Consulting
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $500 $5,000
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,250
Other Expenses $0 $800
Total Startup Costs $7,466 $46,111

Successful Businesses

Business URL Rank
Cloud Computing Services azure.com #523
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Expo expo.io #6,733
U.S. Customs and Border Protection cbp.gov #12,720
Appscrip appscrip.com #39,375
Velvetech velvetech.com #197,121
Imaginovation imaginovation.net #229,251
Trovend Technology Pvt Ltd trovend.com #242,812
Intetics intetics.com #285,616
Mopeak mopeak.com #396,920
AppVerticals appverticals.com #436,379

Pros & Cons

Pros Description
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!
Cons Description
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.

Marketing Ideas

  • 1

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 2

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

  • 3

    Facebook Community

    A Facebook Community refers to a Facebook page dedicated to a topic or an experience owned collectively by the community connected to that page.

    The Community page allows the admin to connect with others who share similar interests and experiences.

    Facebook communities are a great platform for growing brand awareness and marketing your products.