One of the most common excuses not to make mobile apps is they can cost a lot of money to develop. However, I strongly believe that this limiting belief should not be what stops you from getting into app development and taking action. So in order to prove this point to you, I’m going to do a case study and show you step-by-step how I am planning on making money to fund my own app ideas by creating apps for other people! How is this possible? Let me explain!
About the Case Study
In today’s world where everyone is attached to their smartphones, many bricks-and-mortar businesses are expanding into the app market. The goal of these apps aren’t to make the business money from advertising or downloads, but instead to expand their branding, reach new customers, and connect with current customers.
Bigger corporations with lots of resources are taking full advantage of these types of apps. However, many small businesses are lagging in this area as they struggle to figure out exactly how to go about getting a mobile app developed and live on the app store. Also, many business owners are worried about what the ROI of having a mobile app is and therefore are hesitant about moving forward with getting one developed.
My plan to generate some income is to provide app development services to small businesses in my area. For this case study I will be focusing on local pizzerias. Why pizzerias? Well, there are a few reasons why I am choosing this niche. First of all, my family orders pizza quite often and I’m kind of embarrassed to say, the local pizzeria owner (and employees) know us by name. I think that by using that relationship we’ve built with them, it will make it easier to make the sale. Secondly, two of the major chain pizzerias – Dominos and Pizza Hut are successful making use of mobile apps to connect with customers and to actually let customers place order with. That should be a big factor in showing local pizzerias that if this model can be successful on a large scale, it can also work well on a smaller scale for them!
About the App
The app that I will pitch to pizzerias will be fairly simple and will consist of four “pages” or “tabs”. The first tab will be a general information tab about the pizzeria and will include a picture, location, contact info, and a small blurb about the business. The second tab will contain the pizzeria’s menu. The third tab will feature a basic order form where users can order pizzas with. The fourth and final tab will be a page that will contain up to date promotions that the pizzeria is currently running. The owner of the pizzeria will be able to change the promotions on this page via an admin panel on his or her computer.
I have pitched this idea to a developer I’m working with on another software development project and he estimated that he would charge around $400 to develop this. However, something to keep in mind is that this will be the price for the first pizzeria. After the first pizzeria, I can use the app as a template and just ask the developer to switch out the contact information, company info, etc. for another company’s information. I would estimate that would cost $100 maximum for every sale after the first.
The Master Plan
My plan is essentially to approach local pizzeria owners with this app idea for their business. I will discuss how I am planning on going about this in my next post. Essentially though I will explain to them the advantages this mobile app would provide to their business and sell them on using me to develop their business’ app. The price I am considering charging them is around $800 or $900. This is still relatively cheap compared to what they would pay using a local developer. For that reason I think I can eventually charge even more for this service – but for now I want to make it as easy as possible to make my first sale. I will be asking for half of the payment up front and half after completion. This allows me to create the app without investing ANY money myself and still make a great profit.
Granted, it will be a challenge to sell a business owner an app that I can’t physically show them. However, once I get that first sale out of the way, it will become much easier as I will be able to use the first business’ app as an example to other pizzeria owners as what their app would look similar to. In addition, I will make much more money after the original sale since it will only cost around $100 in expenses for each sale after the first since the developer doesn’t have to make the app from scratch again.
What Do You Think?
I am planning on documenting this journey from start to finish and hopefully prove to you how you don’t need to have money to start an app business. You just need to be willing to put yourself out there and get started.
I do want to mention though that I am not planning to use this as a long term source of income for me. While I think it will be nice for generating some cash to fund my app ideas, I don’t want to have to continuously sell to business owners for the rest of my life. I prefer to use this as a short-term method of funding and invest the money into my own mobile apps that will ideally provide long-term passive income.
Do you think I can do it? Do you think this is something that will provide value to business owners? Let me know what you think in the comments section below! I look forward to hearing your thoughts!