How to Start a Mobile App Development Business with Limited Investment

Has every app conceivable already been invented? Not at all. There are still millions of apps that have yet to be developed. Some have an obvious demand, while some apps are still in queue to influence new emerging ideas.

Going into this business of mobile app development is very exciting and rewarding because it is a procedure to inching closer to create applications. Additionally, new users tend to multiply, which continues to create more demand even after one app’s success initially.

You have found the perfect business idea, and we know the solution to how to take the next step. We not only show the path to establish a business; in fact, we will also share the essential process which is most importantly required in a new mobile app development company on a limited budget.

How much will it cost to establish a mobile app development company?

If you want to establish a professional development team, you will need to establish a company, rent a space, install a few computers (as required), license the appropriate software, and pay the utilities including electricity, and the Internet connection fees and, of course, payroll. It is the basic expenses required when starting a mobile app development company or any business in a similar vertical.

Who is the target market?

That depends on your business model, so if your business model includes creating apps for other companies, you will want to find companies that will give you a steady workflow to keep your software programmers busy and also pay you a reasonable price for the work.

If your business model includes selling the apps you create yourself; your customers will be as many people as you can find in your target market. If the app has a lot of interest and connects with the general public, it will be a sure shot hit. On the other hand, if the app solves some crucial problem for a niche market, it will sell to a smaller group of companies, but at a higher price.

How does a mobile app development company make money?

There are mainly four business models for applications, which are:

  • Hire for work – Getting paid to create applications for others (clients).
  • Advertiser Supported Free Apps – A popular app can earn revenues from associated advertisements.
  • Free to try then subscribe to premium – An entry-level app is either a free trial for a specific time or circled with limited features. Those who pay for a premium version unlock premium features and get an option to remove advertisements.
  • Paid Apps – These applications charge for their use by timeframe. There are no free versions available. Paid apps are available in the Play Store and App Store with a monthly subscription.

How does a mobile app development company make a profit with its apps?

You may make nothing to billions. The amount you make comes from your app’s popularity, including maximum downloads and app usage.

What will you name your business?

Choosing the right name is very important. We recommend you check the business name you choose is available as a web domain and secure it early so no one else can take it. Follow these basic steps while establishing your mobile app development company without breaking your bank.

STEP 1: Plan your Business

Before moving for anything, a clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business. A few important things you should think about like:

  1. What are the startup and ongoing costs?
  2. Who is your target market?
  3. How much can you charge customers?
  4. What will you name your business?

If you don’t have an answer, don’t worry; we have done a lot of research for you.

STEP 2: Form a legal entity

Starting a legal business entity such as an LLC, which prevents you from being personally liable if your mobile app development company faces any issue. There are many business structures available, including Corporations, LLCs, and DBAs.

STEP 3: Register for taxes

You have to register for a variety of state and federal taxes before you access your business.

To register for taxes, you will need to request an EIN. It’s really easy and free!

STEP 4: Open a business bank account

Before getting into the information, we know that you don’t merge your personal life with a professional. Likewise, business tractions create a separate business account for personal asset protection.

When your business and personal transactions are mixed in one account, your assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as penetrating your corporate veil.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is crucial to understanding the financial performance of your business. Keeping an updated account also greatly simplifies your annual tax filing.

STEP 6: Getting necessary permits and licenses

Failure to acquire passable permits and licenses can result in hefty fines or even cause your business to be shut down.

STEP 7: Get Business Insurance

Just as with licenses and permits, your business also needs insurance to operate successful business operations and lawfully. Business insurance can help pay the costs of property damage, lost business income, and other covered losses.

What is the potential for a mobile app development company?

Depending on your goal and target customers that attract attention and gain paying customers, you can start with a single successful app and build a business worth many billions. Software development is always about being new, innovative, adopting the latest trends, and showing your paying customers ways to do things they never imagined before.

Any startup company has the same chance to create an industry disruption coming from their new ideas. Also, it depends on the founders how and where they are investing, but with the above information, we have explained the basic procedures while establishing the app developing startups with minimum costs.

Keep Going!

Posted in

Related Posts

History of Mobile Apps

The History and Evolution of Mobile Apps

Everyone loves the outstanding world of mobile application development. Whether it is a business utility application or a popular mobile game. Nowadays, smartphones are more powerful than ever before, and mobile apps are also advanced with high-quality graphics and clean UI/UX. When it comes to mobile apps, how many apps are you using? On average,…
Read More
Mobile Apps Wireframe

Top 5 Mobile Apps Wireframe Tools for 2021

In this roundup, we will look at some of the most reputed and effective wireframe tools that design teams worldwide which are used to create mockups and prototypes. A leading mobile app development company with its experts often uses the best and the most appropriate wireframe tools to develop mobile applications.  It has been observed…
Read More
How does the Spotify App become the Leader of the Music Streaming Industry

How Does the Spotify App Become the Leader of the Music Streaming Industry?

Are you a music lover? Suppose you just got ten free minutes from your busy schedule, and you want to listen to the track you heard on the bus last weekend. Now, what will you do? Will you first download it? If yes, then you will lose much of your time by downloading it. Now,…
Read More
Airbnb Mobile App

Airbnb Mobile App Success: How Airbnb Did It?

Every traveling or tourism company wants to make an app just like Airbnb? Today, we will highlight the development process of the Airbnb app.
Read More


  1. Pat Mazza on December 24, 2020 at 1:40 pm

    Im thankful for the blog.Much thanks again. Cool.

  2. pat mazza on January 26, 2021 at 10:17 pm

    Very nice article, exactly what I wanted to find.

  3. thepatmazza on April 23, 2021 at 6:29 am

    I’m not sure where you’re getting your information, but
    grewat topic. I needs to spend ssome time learning
    more or understanding more. Thans for gdeat info I wass looking for this informatioon for my mission.

Leave a Comment


We focus on solving the issue via apps. We don’t go with the trends, we analyze the issue and try to develop the apps which can improve your life.


GST is usually filled by our CA’s. On the GST portal, our contact number is registered. Hence, when our CA fills GST online, we receive an OTP for confirmation. This OTP is automatically forwarded to your CA by GOCA App. We are providing a hassle-free way of filling GST.

Shwas App

Shwas App is developed to connect to wireless spirometer manufactured by KlomaCare via Bluetooth.

Girls Invest

Girls Invest is a mobile app-based training to promote healthy relationships, financial literacy and inclusion, encourage the pursuit of career goals, as well as to support girls to manage social and overall health challenges.

Milkman App

Milkman app is an end-to-end solution that empowers you to manage your subscriptions, delivery, and allows you to pay online/cash at ease. From the land of dairy directly to your doorstep, the Milkman app has made it possible by optimizing the platform with technology and a commitment to quality.

Ready to Discuss Your Project?