How to Start a Mobile App Business
A mobile app business creates and monetizes applications for iOS, Android, or both. Revenue comes from paid downloads, in-app purchases, subscriptions, or advertising. The app stores provide distribution, but standing out among millions of apps requires strong product-market fit and a clear acquisition strategy.
How to get started
1. Validate the idea before building - create a landing page or clickable prototype and test demand
2. Study the top 10 apps in your category to understand what works and what is missing
3. Build a simple v1 that does one thing well rather than many things poorly
4. Launch on one platform first (usually iOS for higher willingness to pay)
5. Focus on App Store Optimization (ASO) for organic discovery
Key metrics to track
Daily Active Users (DAU)
Retention (Day 1, Day 7, Day 30)
Average Revenue Per User (ARPU)
Install-to-signup conversion
App store rating
Common mistakes to avoid
- Building a feature-packed v1 instead of a focused MVP
- Assuming the app store will drive downloads automatically
- Not tracking retention from day one
- Monetizing too early before proving value
- Building for both platforms simultaneously before validating on one
Startup costs
Expect to invest $10,000 to $150,000 to get started.
- Development (MVP): $10,000 - $100,000
- Design (UI/UX): $2,000 - $15,000
- App store fees: $99 - $125/year
- Backend infrastructure: $50 - $500/month
- Marketing: $1,000 - $10,000/month
Time to revenue: 3-6 months to launch, 6-12 months to meaningful revenue
Funding options
Bootstrapping
Angel investors
App-focused accelerators
Pre-seed VC
Frequently asked questions
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