We’ve had a few questions relating to starting a business.
How do I start an online business?
What type of online app should I build?
I’m not sure what type of business I want to build?
And recently this question:
If I pay developers, who owns the code? (Quick answer, make sure you have a Software Development Agreement.)
Let’s start with how to start.
Every business and product is designed to solve a desire or need.
If lots of people have toothaches, providing a solution for toothaches will create a business.
If nobody has a toothache, it will be impossible to sell a solution for toothaches, no matter how much marketing you do.
And that is where most businesses fail.
You must first find the need or desire before you find the product or solution.
If the need exists, the next step is to find out if you can sell your product and be viable.
What’s viable? It means you can sell with enough profit to cover all expenses and still have some left over.
To do that simply research the current market and find out what is selling and how much it is selling for. Compare that to your own product.
If you plan to undercut the market and provide a cheaper solution, it is vital that you still have enough profit to cover all expenses, otherwise you’ll go broke fast!
If you have gotten this far and the numbers look good, it has potential. Now it’s time to test.
Building Online Apps
When it comes to building online apps, when you pay the developers, you own the code and the intellectual property. All such details are outlined in your Software Development Agreement.
Online apps take a lot of time and investment. Developers don’t come cheap and depending on your user fees, it can often be several years before your app becomes viable. That is why so many tech companies raise capital. However, you can still follow the above method. Find out if there is a need, what people are willing to pay to solve that need and work out if you can deliver it at a profit.
And the most important criteria of all is this:
It must be your passion. If you’re doing it just for the money, that won’t provide enough drive. Whatever it is you do, it needs to ignite your passion and inspire you. That answers the question “what type of business do I want to build?”
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