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A beginner’s guide to starting an app

With more than 255.8 million smartphone app users in the U.S.,1 businesses have an opportunity to tap into an ever-expanding market. In fact, approximately 91% of Americans between the ages of 18 and 49 shop online using a smartphone.2

Whether you're an aspiring entrepreneur with a groundbreaking idea or an established brand eager to enhance your digital presence, creating an app can unlock several potential benefits, from reaching new customers to increasing conversions.

Our beginner’s guide covers the basics of how to start an app, from ideation and market analysis to development and deployment. However, the process of creating an app can vary depending on your idea and industry, so make sure to research thoroughly and consult with experts.

Things to consider before starting an app

Consider the following factors before jumping into app development:

  • Set clear goals. Define the purpose and goals of your app, specifying the problems it seeks to solve or needs to address.
  • Explore monetization strategies. Strategize how your app can generate revenue, exploring options like ads, in-app purchases, or subscription models.
  • Analyze your budget and resources. Estimate development costs, identify necessary human resources, and plan for ongoing maintenance.
  • Don’t forget post-launch support. Building an app is filled with excitement and anticipation. But once it launches, the work is far from over. Establish a system for user feedback and bug reporting and plan for regular updates and improvements to keep your app fresh and relevant.

How to start an app

Now, let's explore some initial steps to help kickstart your app development journey. The legal landscape may vary depending on your location and the nature of your app, so consult with legal counsel to ensure compliance with applicable laws and regulations.

Come up with an idea

Starting an app begins with transforming a creative concept into a functional and user-friendly application. Your idea should resonate with your intended users, offering a unique value proposition that distinguishes it from competitors.

A well-thought-out app idea not only addresses a specific need or problem but also engages your target audience effectively — whether it's a game that entertains users, an e-commerce store that simplifies online shopping, or a quiz app that educates and entertains simultaneously.

Decide what system to develop it for

When it comes to app development, you'll need to design your application considering the two main operating systems: iOS and Android.

In terms of popularity, Android is currently the leading mobile operating system worldwide, with a market share of 70.1% as of Q4 2023, and Apple's iOS is ranked second, with a 29.2% market share.3

Think through factors like development costs, target demographics, and app functionality when deciding between iOS, Android, or both:

  • Target audience. iOS is exclusive to Apple devices such as iPhones, iPads, and iPods. Android is an open-source platform used by a variety of manufacturers. You can opt for iOS if your target audience predominantly uses Apple devices. On the other hand, choose Android if you want to reach a broad user base across various device manufacturers.
  • Design your app for both. Developing for both iOS and Android helps reach maximum market coverage.

Consider your market and do some research

Comprehensive market research can help you identify gaps or unmet needs in your industry, increasing the likelihood of your app gaining traction in the market. This process typically involves analyzing competitors, trends, and potential demand for your app.

This is also a great time to define your target audience. Understanding the demographics, preferences, and behaviors of your potential users allows you to tailor your app to meet their specific needs.

Explore tips for conducting market research.

Refine your idea

Before the app development process begins, consider these factors to help refine and solidify your business plan:

  1. Clearly identify the problem your app intends to solve

    Understanding your target audience's pain points will help you refine your app concept to meet their needs effectively.

  2. Define what makes your app unique:

    Whether it's a new feature, improved user experience, or a different approach to solving a problem, a clear unique selling proposition (USP) will help set your app apart from competitors.

  3. Determine how your app will generate revenue:

    Common strategies include:

    • In-app purchases. Offering additional features, content, or goods/services for purchase within the app.
    • Ads. Integrating advertisements, either through display ads, video ads, or native ads.
    • Subscription. Providing premium content or services through a subscription-based model.
    • Freemium. Offering a free version with basic features and charging for premium features or a full version.
    • Ensure your app complies with relevant laws and regulations, especially regarding user data protection and privacy.

Utilize resources at your disposal

Now it’s time to make your app a reality. Have you decided who will handle the design and development process?

Choose between in-house development, where your organization utilizes internal resources, or outsourcing, where external agencies or freelancers handle the work.

  • In-house development. You’ll have more control, potentially making it easier to manage timelines, priorities, and quality. Communication can be more straightforward when the development team is in the same location, too. However, it can be more expensive due to salaries, benefits, and infrastructure costs. Limited team resources may also restrict your ability to quickly scale, if needed.
  • Outsourcing. Outsourcing may be more cost-effective and allow you to tap into a diverse pool of talent and expertise that may not be readily available in your local market. It also allows you to scale up or down based on project requirements. But differences in time zones, language, or culture may pose communication challenges. Unexpected delays or issues with external partners can also lead to roadblocks.

Focus on the user experience when designing an app

User experience (UX) can oftentimes make or break the success of an app. When designing an app, focus on the user interface (UI), ensuring it’s not only visually appealing but also intuitive for seamless interaction.

Get started with these tips:

  • Prioritize user-centered design. Tailor your app design to enhance the overall experience of your target market. Ensure that users can easily navigate through your app, locate features, and perform actions without unnecessary complexity.
  • Use prototyping for feedback. Develop prototypes of your app to create interactive, tangible models. Test these prototypes with potential users to gather valuable feedback early in the design process, allowing for adjustments that improve usability and functionality.
  • Continuous improvement. Regularly revisit and update the design to stay aligned with user feedback and industry trends.

Develop and test the app

When testing an app, pay attention to any potential bugs or issues, especially related to functionality and security. Consider the following:

  • Use automated testing tools to catch potential bugs. Automated testing can help identify repetitive issues, ensuring consistent functionality and security across different device platforms.
  • Conduct regular reviews with your development team. This can help catch coding errors and identify potential security loopholes. Also, periodically conduct security audits to assess any vulnerabilities. Prioritizing security is crucial to establishing trust with your user base.

Getting ready to launch your app

You’re almost to the finish line. As you approach the final stages of app development, familiarize yourself with the guidelines and requirements of relevant app stores and ensure your app complies with their standards to avoid rejections or delays in the submission process.

You can also build anticipation for launch day by creating a marketing strategy and leveraging social media platforms to create awareness about your app. Share engaging content, sneak peeks, and updates to help attract an initial user base. You may also consider offering limited-time promotions, such as discounts or exclusive features, to encourage early adoption. For example, if you’re launching an e-commerce app, you can send email subscribers a 10% discount for in-app purchases.

Remember: Your app could be the catalyst for change, the solution to a problem, or the source of joy for millions. The journey starts now, and the possibilities are limitless. Learn more about how you can start and grow your new business with PayPal.

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