App Development Partners And Startups

Friday, 22 November 2024, 11:05 am
Article: Hugh Grant

Our world today is more technologically advanced than ever before. Our smartphones have an abundance of functions that we incorporate into multiple parts of our daily lives, from ordering food delivery to dating. Most of these experiences are made possible through the use of mobile apps. For the average smartphone user, apps allow us to gain help with mundane tasks, find something fun to do, or stay connected with the people in our lives. But for those who are in the business of creating mobile apps, an app is considered to be a technical product as well as a valuable business asset that requires careful consideration and strategic planning.

Nowadays, new businesses are looking to create a mobile app in order to connect better with customers, offer more value, and encourage customer interactions while strengthening their brand. Startups with a mobile app are valued almost 850% higher than startups without a mobile app. The startup ecosystem is now more competitive than ever before with 137,000 new startups launching around the world daily, which is equivalent to 5,708 startups launching per hour and 95 startups launching per minute. Nonetheless, 90% of startups fail within five years with one of the reasons being their inability to differentiate themselves from strong competitors in the market.

With the high volume of businesses entering the startup space, venture capital (VC) funding has become quite prevalent. The healthtech industry has attracted one of the largest shares of VC funds with over $85 billion invested. The transportation industry has garnered almost $47 billion in VC funding while the food industry has accumulated at least $30 billion in VC funding.

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Competition can make it harder for startups, scale-ups, and small businesses to stand out in this saturated market and gain the funding they need to sustain operations, but mobile app development can be a key differentiator for those wanting to survive their first five years. A mobile app ensures a better user experience with its ease of access, simplicity, and accessibility to everyone. In fact, every dollar spent on user experience leads to a 9,900% return on investment (ROI).

A mobile app development partner can also facilitate cost-effective growth. Initial iterations of a mobile app usually observe lower costs over the first two to three months averaging between $40k and $60k. App development costs average just between $250k and $500k over one to two years. 74% of organizations have experienced a positive ROI from their mobile apps, with up to 92% of organizations in the manufacturing sector and 83% of organizations in the telecommunications sector seeing a positive ROI. At least 65% of companies in industries such as retail, business services, financial services, and IT have seen an increase in ROI with the implementation of mobile apps.

Furthermore, a mobile app can help companies validate their business ideas with investors by demonstrating scalability, market fit, consumer interest, long-term vision, and projected profitability so they can secure the funding they need to grow and develop. It is possible for companies to gain additional revenue through app purchases as well. App purchases are currently estimated to reach $186 billion by 2027. In-app spending will grow by 267% while the revenue per download will average $9.46 between 2021 and 2030. Other ways businesses can monetize using apps include using subscription bundling, in-app ads, app-commerce integration, and app-data monetization to further increase profits.

For startups and scale-ups, having a secure, intuitive, and well-made mobile app can have a significant impact on a business’s long-term success, which is why a growing number of new businesses are working with app development agencies to turn their ideas into profitable products.

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