In the first part of this blog, we discussed how a dedicated business app can help grow 3 different kinds of startups. Investing in mobile apps presents a whole new avenue for revenue growth. A recent study conducted by Intuit Canada highlights how small businesses in the country are getting ahead by investing in mobile development and/or software development.
In the same vein, last year’s study conducted by Flurry analytics shows the immense potential investing in mobile app development has vs. just investing in responsive web design.
Continuing from where we left off in the first blog of this two part series, we look into the other 3 types of startups that can or have grown with a dedicated mobile app.
4) Buyable Startups
Buyable startups are companies that were born to be sold i.e. flip to other larger companies in the niche. In the last decade, there have been numerous web and mobile app startups that were bought off, often by internet conglomerates such as Facebook and Google.
Naturally, being in the web niche, these buyable startups have products that are already dependent on app or web development. They develop their own products from scratch, launch it and successfully create a following for it. Their success is what attracts other companies to acquire them.
Most recently, Google acquired the web based startup Divshot. Divshot developed a program that let app developers use the company’s cloud based platform to create vibrant user interfaces, simply by a drag-and-drop function. Divshot started in 2013 after raising $1.1 million in seed funding and since then had attracted more than 40,000 users. Now, Divshot has been merged with Google’s Firebase, which offers a suite of products for developers.
Another web based startup, Wit.ai was picked up by Facebook.
5) Large Company Startups
Companies that start small with a product that’s revolutionary, but go on to be globally recognized are considered large company startups. These companies reach the end of their life cycle fairly quickly. Therefore, in order to keep growing as a company they need continuous sustaining innovation (variants of the core product) and/or disruptive innovation (new products for new markets).
These startups become self reliant in all kinds of software, web and mobility development. It’s one of their core competencies and thus continues to adapt and grow as the demand and trends of technology change.
Consider the tech giant Apple Inc. In 1976, Steve Wozniak created the first Apple computer. Later, he joined forces with Steve Jobs and Ronald Wayne to start a company out of Job’s adoptive parents’ garage. Their first customer was a local retailer who ordered 50 computers priced at $500 each. You can read about 5 other large companies that started out small, but have since become global leaders in tech.
With their own dedicated development teams, Apple has always been able to keep abreast of the technology trends. In fact, Apple has been the one creating those trends.
6) Social Startups
Companies started by socially ambitious and passionate entrepreneurs driven to make a difference in the world around them, are termed social startups. These startups can be organized as a for-profit, non-profit or hybrid.
Social startups, more often than not, need donations to fund their projects. Other than donations, charities thrive on a community of likeminded people interacting to make difference i.e. online forums. Considering how more than 60% of the population now uses their smartphones to access the internet, a central mobile app can often be a necessity for these charities.
Scott Harrison was a high-end promoter for top nightclubs and luxury events of New York. He was living a seemingly charmed life, but deep down he was unhappy and needed a change. His decision to volunteer with a floating hospital turned his world upside down.
Realizing how desperately some parts of the world needed clean water, he decided to start a social charity called ‘Charity: water’. Since then his charity has funded 3,962 clean water projects in 19 countries.
Acknowledging the advantage a mobile app can give in raising awareness for his charity, Harrison is already thinking of developing a central app through which people can donate to a particular water project, connect with other donors and help start their own clean water project.
The real life examples in this blog were meant to highlight the avenues of revenue growth a dedicated mobile app can create no matter the size of the startup. It’s an undisputed fact that launching a mobile app for a startup, regardless of the niche they are in, is a great advantage. In some cases, it’s even become a necessity to stay competitive.