My Golden App From Start - Multi-Million Dollar Business

[johnp]

I see some people documenting their app development process. So I will contribute and do the same. It should help some people here get a feel for another way to do it. I also am a believer that thoughts manifest into reality. So this will serve a purpose for me as well.

I will begin with a short background:

I am involved in 2 start-ups. My first start-up a large social application that is intended to do a lot of good for the higher education community and all of that fun stuff. It addresses some major needs but it is also complex. This is "passion business" - money is not the underlying motive.

This start-up (no it is not askagrandmom.com)- Money is the underlying motive. It is either going to completely tank, or I'm going to get me amazingly rich in a short amount of time. If this works then it will be like stepping onto the Fastlane with shoes full of rocket fuel.

Now I will continue by saying that I am not an advocate for running two start-ups at once. I think that this is a poor decision if you think in terms of opportunity costs. However, in this situation I am breaking my rule. I am breaking my rule because this is a unique situation. This business will be mostly passive after I get it in the hands of the right people.

The Details
at this point of the game it is too early to reveal the idea. And I may not be able to reveal the site is fully developed. But I can give some details about it.

Industry:
Tourism & Community Based (don't ask me what community based means. I threw that in to describe another part of the industry that I can't come up with a word for. I'm trying to say the people who live in the community)

Location:
East Coast & West Coast of the United States and possibly other locations.

Product:
A website and an Application. I will target the iphone first then the android device. Why iPone? Based on the studies that I have read - in the last year Apple appears to be increasing their market share of iphone users while Android is stable. Android stayed stable around 48% while iphone spiked up. I hope that I read the right study. In the future I will have the product on both.

the Website is key for certain users to set up their products for sale and the application is used for the actual user to buy the product.

Revenue Model:

1. Small Commission On Sales
2. Advertisements in Products
3. Data Collection for Sale to Tourism industry (i.e., hotels, resturants, etc..)

Price of App
Under 1.5k for App and website. Extremely straightforward app - staying lean.

Marketing Plan
Limited marketing needed. Provide banners and marketing materials for the user backend on the website. I can easily produce this stuff on lulu.com and integrate it into the website. Also provide links, buttons, and electronic based banners.

My marketing is extremely passive because I am basically just dipping into a stream of untapped traffic that is already paying for a the product but in another form. Limited SEO needed, virtually very little money to place into advertising.

Needs That This Product Fulfills

• Makes a system easier and more productive
• Lower overhead and production costs
• Greater accountability
• Need for electronic and mobile integration.
• Saves people time and money.
• Higher conversation rates
• Flexile to fit into various business systems across a broad spectrum. Many businesses in this industry have slight variations in the way that they operate their business. I therefore need to keep the app and site flexible to account for this.

Primary Barrier:
The only barrier is that I need to convince the right people to adopt this. That will be easy enough. Based on what I am seeing they will have no issue with this. They have identified the need themselves but have not made the move.

Current Progress:
very good domain name purchased.
waiting to make my move with the developers. I spoke to them on the phone today. They tried to add some bells and whistles. I said no (no is your most powerful tool) My focus is to stay lean and get a time sensitive product out there.


This sounds amazing but keep in mind that there are some downsides to this. I'm not testing my market. I'm just diving into it. This market however is completely proven and growing, yet my product adds a change which might not be accepted by the higher powers. So in that regard it's not proven. I'm probably being more 'unconventional' than most with this. I don't really care though. I'm not one to get caught up in the 'rules'. Life is too shore, and rules are meant for lawyers so they can make some money. I'll just wing it and hope for the best.

I'll update this as I make process.

 

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[LamboMP]

Why is everyone so secretive of their idea? What's the point of following a progress thread if we don't know what the hell it is?

 

[johnp]

haha sorry, this one is too easy to rip off. Don't follow if it's an issue :smx9: i think that you can get an idea about what t is from reading it. I can't give the exact details.

Plus, I'm not allowed to tell anyone the idea. My fiancée said.. "don't tell anyone your idea" I gotta follow through on her orders :hl:

 

[LamboMP]

Fair enough sir. I just like reading about others' trials and roads to success.

 

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[johnp]

Fair enough sir. I just like reading about others' trials and roads to success.

I completely understand. It bothers me as well when people do this. I tried to be as detailed as possible about the idea as well. This is one of those stupid "i should have done it" ideas.

 

[narcninja]

Product:
A website and an Application. I will target the iphone first then the android device. Why iPone? Based on the studies that I have read - in the last year Apple appears to be increasing their market share of iphone users while Android is stable. Android stayed stable around 48% while iphone spiked up. I hope that I read the right study. In the future I will have the product on both.

Great pick for the iPhone. When I thought of which one I would use for your app, I was more concerned with the age range of who used each OS. Most college kids are 18-24 and, to me, it's a no brainer those are the Mac and Apple fanboys...and for instructors I would have to assume the same. Not sure if this is a fallacy.

For my home inventory app, I might have to do a bit more research, although I'd still probably go with the iPhone. At first, at least.

 

[johnp]

You are correct about the apple stats. i was thinking of pivoting my higher edu start-up to a mobile environment. I decided not to do it. But I read that stats and college students tend to own apple products. This app also targets younger people so it makes sense.

With your app I don't think it matters much. I know a lot of 30-40 year old people who have iPhones who would probably use your app. Apple's market share is growing and they are offering cheaper alternatives for their phones. I would go Apple all of the way if I were you. Sometimes Android will even approach you and develop it for free if you are a hit on Apple.

 

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[Mike39]

For 1.5k, Either you code your own apps, your hitting up india for development, or you have one helluva secret. Do share

 

[oddball]

For 1.5k, Either you code your own apps, your hitting up india for development, or you have one helluva secret. Do share

I too am curious. If you are doing it yourself, wouldn't it be a lot cheaper? But thats way to cheap to hire someone for an app AND website.

 

[johnp]

Either you code your own apps,

Nope, I prefer to pay people.

your hitting up india for development, or you have one helluva secret. Do share

Yes, but you have to know where to look and how to talk to these people. A lot of outsources jack their prices up way too high. when you talk to these people you have to lowball it to some extreme amount. They often base their prices on the supply and demand of their work. Trust me, I have been dealing with them for awhile. I could write a book on this stuff by now.

Second, I only go with highly rated companies. The price changed, it is a little higher than 1.5k. I went with a more experienced firm. The price isn't much higher though.

And third, I do have a secret. There is nothing complicated about my app/site at all. This is not one of those geo-based apps. It's not a game. It's a simple app and site. Don't worry abut it for now. You will see in the future.

I too am curious. If you are doing it yourself, wouldn't it be a lot cheaper? But thats way to cheap to hire someone for an app AND website.

I'm not doing it myself. And it's not way too cheap.

 

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[johnp]

Like I said, it's either going to tank or be a major success. If it is a success then you will get a first hand lesson in how to create a multi-million dollar business off a simple "I should have done that idea"

 

[johnp]

One more point. Keep in mind that I have another really big start-up that is way more expensive to build. They know that. I have talked to them about it. It is in their best interest to do a good job on this because then I will offer them work in the future, like I pointed out.

 

[oddball]

I don't know, still seems really cheap to me. From my little experience with firms is they do want a lot for their services, so even simple apps are expensive. Yes, you can talk them down, but $1500 still seems really low for an app and website if you are still getting quality work. Guess I will just have to wait and see.

 

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[johnp]

I don't know, still seems really cheap to me. From my little experience with firms is they do want a lot for their services,

I'm not going to disagree with you. And there are a lot of reasons why they want a lot for their services. But based on dealing with a lot of these firms I learned that you have to low ball your budget. Set their expectations very low. They will also ask fairly early "what is your budget." If you are thinking 10K then say 1K. In my case I was thinking like 5K so I said $500. You might sound crazy and stupid but it will save you some money. I learned this the hard way. A lot of people forget that they have an advantage. And sometimes these places are so busy (and sometimes not) that they will give you an insane price. I know someone here who contacted a firm who I deal with on a regula basis and they quoted him 30K for an app. The reason being, because they had too many jobs gong on at once. Some of it is just basic supply and demand.

 

[Mike39]

I think you can outsource to a quality developer and still get a great app/website, it just takes more research to find them. Still, you should hire a local developer or someone you trust to take a look at the backend before you release, after all, your website or app could work but the code could be written horribly. Good Luck on your project!

 

[johnp]

This company did work for the government of Australia & an Airport so I think I'm in safe hands. I agree 100% with you and I will keep that in mind before I release it. Thank you!

 

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[Likwid24]

Does it have something to do with Beaches or Spring Break Spots?

 

[johnp]

yep it does. Not so much with spring break spots though.

 

[DeletedUser2]

ok, ill bite, lets see where this goes

 

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[LamboMP]

Kick some serious butt johnp. I'm rooting for ya!

 

[johnp]

Kick some serious butt johnp. I'm rooting for ya!

Thank you!

 

[johnp]

I was talking to some people last night about this idea and we found some really cool ways to scale it. Our most promising future build out will actually have a physical object that we will develop to help drive sales and user awareness about the product. This is actually a really exciting build out for the product. But there is no way in hell that I am outsourcing the build out. I'll test my market first with the simple app and look to build it out in in the future. I'll call it v2.0.

But for now - focus is starting small and saying No to all of the extra "fat" at the moment.


Also on a side note - it's really cool to listen to the Fastlane audio books as I work on this. It gives me a little more motivation and some things to think about.

 

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[oddball]

Any plans for marketing at this point?

 

[johnp]

kind of. I don't have any sort of marketing plan mapped out. I'm trying not to fall in-love with the idea. I like the idea, I like the potential and I like where it can go. If I focus on it too much by making all sorts of plans i then I may fall in-love with it which could cause me a lot of wasted time if I need to abort.

But with that said I have an idea in my head of what to do. Like I said, it's going to tank or be a big success. The thing about this is that it deals with existing systems -That is good and bad. It's bad because it means that I need to convince the right people to use it. If I convince them then that helps me big time with marketing. My basic plan - I will be extremely aggressive (not in a bad way). I will pick up the phone like a normal person and call people. If I get moved around in circles then I will physically go to their door and pay them a vist. I'm prepared to give free lunches, to bribe, and to push things to the legal limits - it's the American way.
I will then provide them with the marketing materials on the back end of the website. They will be able to print the stuff from the site, or better yet, they can order (for free) big banners and things like that. I'll even send some people out to post the banners around their locations. I will have links for them to insert into their websites. And I will have a special feature on my site which allows them to mass contact people on their mailing list to make them aware.

So yep, that's my plan for now. If it works then I'll expand it in the future based on my needs.

 

[andviv]

I know someone here who contacted a firm who I deal with on a regula basis and they quoted him 30K for an app. The reason being, because they had too many jobs gong on at once.

This is true.

Mobile developers are super busy these days. Every now and then even I have to jump in and start coding a little bit to keep up.

Usually an app for a "big" customer goes for around $50K-$60K.

Not all of it is for development though. A lot of testing and documentation is provided and this raises prices.

This seems to be the going rate for apps here in the DC area.

A lot of outsources jack their prices up way too high.

You said it. Supply and demand. Talented developers are commanding $100+ per hour. Quality is expensive for local resources.

This is not one of those geo-based apps. It's not a game. It's a simple app and site. Don't worry abut it for now.

Funny, geolocation based apps are what we are getting more requests for these days.

In your case, if it is for the Tourism industry then geo-based would probably make sense, but as I don't really know what you are doing, I will not comment about that anymore.

 

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[johnp]

You hit the nail on the head with everything in your posts. And $100 an hour is cheap. I have talke to many American programmers who set their initial knowledge transfer/wireframe stages at $100 an hour than jack it up thereafter. Initial US baed quotes for my main start-up (not this) ran as high as 80-200K.

I'm not going to complain though. It is what it is. A programmer has a skill set that I don't have (yet). They set their intrinsic value high, as they should.

Funny, geolocation based apps are what we are getting more requests for these days.

In your case, if it is for the Tourism industry then geo-based would probably make sense, but as I don't really know what you are doing, I will not comment about that anymore.

Yea I have noticed. It seems like everything is geo-based. I don't believe that geo-based would help me at all. It could make for a really interesting and complex app - maybe a future build out.

My app is intended to be integrated into an existing system. It's more of a utility that provides a couple main functions than anything. Data collection is also another one of my big things. I have the sign-up process set-up to collect some really cool data about tourists that many people in the industry would love to get their hands on.

 

[johnp]

Update - No updates yet. Haven't quit. Waiting to get going next week. I spent the last couple of days emerged in the computer with my other-startup. Forgot to eat, got so focused I skipped my Slowlane job one day. Called the boss and told him that my tooth fell out. Best thing that I could come up with hahaha. When he asked on Friday about it I told him that it was a back tooth and kept my mouth shut.

I find myself wanting to get fired. I work on my start-up all day in my cubical. It's great. 36K a year to sit there and work on a start-up and occasionally have to do something for someone.

 

[huy]

I find myself wanting to get fired. I work on my start-up all day in my cubical. It's great. 36K a year to sit there and work on a start-up and occasionally have to do something for someone.

That's a great set up you have. How do you guys find jobs that allow you to work on your start up?

Also, good luck on your venture, johnp! I'm tuned in and I hope you succeed.

 

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[LamboMP]

johnp, may I suggest you do not burn that bridge by "working on your start up all day in your cubicle". You never know when you need that person again.

 

[johnp]

That's a great set up you have. How do you guys find jobs that allow you to work on your start up?

Also, good luck on your venture, johnp! I'm tuned in and I hope you succeed.

Thanks. And I found a job like this with the state of PA. Some state agencies are so slowlane that you can run an entire company AND do your work. It's actually kind of sick, there is so much "fat". I will be there for a year in July. I have seen so many things from my cubical. I could probably write a book on how to reform the state employment system.

Yea it's a great set-up. At times its is rough dealing with the slowlane mentality. I usually find myself sitting there thinking "Wow I paid over 80K for an education that brought me to a place to sit and listen to these people talking about how they only have 10 more years to go". I can't figure out if they are talking about 10 more years to retire to their bed, or ten more years of life.

My dad is one of the few people who I know who "made it" in the slowlane. Over 40 years at the same company. Worth well over a million. Won't leave his job for fear that he will die as soon as he does.

johnp, may I suggest you do not burn that bridge by "working on your start up all day in your cubicle". You never know when you need that person again.

That is very true and thank you for the advice. When they give me work to do I make sure to get it doen ASAP, then I go back to my work. They only really need me when they do something wrong anyway.

The odd thing is that my boss knows. He always comes up and says to me "when you are a millionaire I hope that you think of me". As long as I get his work done and save his a$$ when he screws up, then he's happy.
I do have it pretty good.

It's the way these people think, talk, and move that makes me want to slam my head through my cubical.