Advantages and Disadvantages of Starting a Mobile App Business

 Mobile apps are fun, worldwide, and can lead to instant cash generation. At scale, these kinds of businesses work by expected conversions. There is a model to figure out ad spend, cost to acquire a customer, and average value of that customer over time. If the numbers make sense with a trial run, some of these companies will then spend 100s of millions to billions in marketing to make a slight margin.

This mobile app financial model is a great place to start if you want to plan and perform various types of financial analysis and feasibility.


  • Huge market potential: The mobile app market is huge and growing rapidly. According to Statista, global mobile app revenue is projected to reach $935 billion by 2023. This presents a massive opportunity for entrepreneurs who can create innovative and useful apps that meet the needs of users.
  • Low barrier to entry: Starting a mobile app business requires relatively low upfront investment compared to other businesses. You don't need a physical office or a large team to get started, and the development tools and resources are widely available.
  • Flexibility: Running a mobile app business can be very flexible. You can work from anywhere and at any time, as long as you have an internet connection. This means you can manage your business from your home, a co-working space, or even while travelling.
  • Potential for passive income: Once your app is launched and gaining traction, it has the potential to generate passive income for you. This means that you can continue to earn revenue even when you're not actively working on the app.
  • Ability to solve problems: Mobile apps can solve real-world problems and make people's lives easier. If you have a passion for solving problems, creating a mobile app business can be a great way to make a positive impact on people's lives.
  • High competition: The mobile app market is highly competitive, with millions of apps available in the app stores. This means that it can be difficult to stand out and get your app noticed by users.
  • Technical challenges: Developing a mobile app requires technical expertise, which can be a barrier for those without a background in software development. Even if you outsource the development, you still need to have a basic understanding of the technical aspects of the app to manage the project effectively.
  • Constant updates and maintenance: Mobile apps require frequent updates and maintenance to stay up-to-date with changes in the mobile operating systems and to fix bugs. This can be time-consuming and costly, especially if you have multiple apps.
  • User acquisition: Acquiring users for your app can be a challenging and expensive process. There are many strategies for user acquisition, such as app store optimization, paid advertising, and social media marketing, but it can be difficult to find the right mix of tactics that work for your app.
  • Revenue uncertainty: There is no guarantee that your app will be successful or generate significant revenue. Even if you have a great idea and a well-designed app, it can be difficult to predict how much revenue it will generate, especially in the early stages of the business.
Attributes of a Successful Apps
  • Usability: A successful mobile app should be easy to use and navigate. Users should be able to accomplish their tasks quickly and intuitively, without any confusion or frustration.
  • Performance: A successful mobile app should be fast and responsive, with quick load times and smooth transitions between screens. It should also be stable and reliable, with minimal crashes and bugs.
  • Value proposition: Offer clear and compelling value to its users. It should solve a real-world problem, fulfill a need or provide entertainment or education in a unique way.
  • User experience (UX): Provide a positive user experience that is engaging, enjoyable, and memorable. It should be aesthetically pleasing and visually appealing, with an intuitive and consistent user interface.
  • Security and privacy: Prioritize security and privacy, protecting user data and preventing unauthorized access or data breaches. It should also be transparent about its data collection and use policies.
  • Personalization: Offer personalized experiences for its users, based on their preferences, behaviors, and feedback. It should also provide relevant and timely notifications and updates to keep users engaged.
  • Innovation: Be innovative, with unique and differentiated features that set it apart from its competitors. It should also stay up-to-date with the latest trends and technologies in the mobile app industry.
How to Help Your App Gain Traction

  • App Store Optimization (ASO): Optimizing your app store listing with relevant keywords, an eye-catching app icon, and compelling app description can increase your app's visibility and attract more downloads.
  • Social media marketing: Using social media platforms like Facebook, Instagram, Twitter, and LinkedIn can help you reach a wider audience and attract more users to your app. You can also use social media to engage with your users and get feedback on your app.
  • Influencer marketing: Partnering with influencers in your niche can help you reach a wider audience and build credibility for your app. You can offer them incentives like free access to your app, monetary compensation, or a revenue-sharing model.
  • Paid advertising: Running targeted ads on social media platforms, search engines, or app stores can help you reach more potential users and drive more downloads. You can also use retargeting ads to reach users who have already shown interest in your app.
  • App referral programs: Encouraging your existing users to refer your app to their friends and family can help you attract more users at a lower cost. You can offer them incentives like discounts, rewards, or extra features for each successful referral.
  • App localization: Translating your app into multiple languages can help you reach a wider audience and increase user engagement. You can use app store localization services or hire professional translators to ensure accurate translations.
  • App updates and improvements: Continuously updating and improving your app with new features, bug fixes, and user feedback can help you retain existing users and attract new ones. Users are more likely to download an app that has a high rating and good reviews in the app stores.