THE App INDUSTRY
The startup industry is worth in excess of $1 trillion dollars, with 174 companies valued at over $1 billion. Australia, most notably, has recently received an injection of $800M+ into its ecosystem and is becoming the world's next innovation epi-centre.
These are a few fundamentals to get you started.
Creating an app is not just about building a product, it’s about building a business. It is logical that any truly successful business is able to generate consistent and increasing streams of revenue, which is no different to designing your app.
Monetisation refers to the specifics of how you structure your product and the features that you should include in your app to generate the most money to meet your core objectives. Interestingly, however, there are a number of different monetisation strategies based on what type of app you're creating (ie. game vs utility; marketplace vs software etc) so having a comprehensive understanding of the pros and cons of each is defining.
Startups are defined as companies that grow at an exponential rate. One of the most pivotal characteristics of a successful startup is the velocity at which it can spread, which is why it’s so important to understand the implications of this exact process — virality.
Sure, this is a buzz word that is thrown around quite a bit, but at a fundamental level the term virality relates to the ability to acquire new users for free. With the ubiquity of technology, any person that creates their own app now has the capability to reach the entire world within a matter of minutes. By incorporating specific share functions in your product, structuring your content appropriately or marketing your brand through relevant networks, you can literally reach all around the globe in minutes
Money represents oxygen in the startup world. If you don’t have money, it becomes increasingly hard for you to survive, so being able to plan around how and when to raise capital is hugely beneficial. Although there is a plethora of media attention surrounding companies raising exorbitant sums of cash, behind this attention there is a very specific process that these successful startups follow to raise money.
The first step is about perfecting your pitch. Having an acute understanding of what is your vision and product, your competitive advantage and your market suitability is undeniably important in convincing an investor to put their own money in your venture. Step two is creating the perfect presentation. It’s one thing to understand the ins and outs of your business, but it is another thing to be able to effectively communicate (through visuals and words) why an investor will be missing out if they don’t invest. The third step is finding investors. This is the most important step and justifies being the hardest one to do properly. The challenge becomes finding a balance of investors who are interested but also capable of adding value to your business. Being able to effectively raise money will give your startup the ability to keep on growing and innovating.