1) Come up with an idea
The first step to starting a business is coming up with an idea. If you already have one in mind, skip to step 2.
Most great ideas, whether for an app or any product or service, come from identifying a problem and finding a solution. That is how GreekRide started. I saw a large inefficiency and safety concern with the sober-ride system at IU and came up with a realistic solution. Usually these ideas will spark from activities one is actively involved in and knowledgable about. An expert skier is more likely think of a more aerodynamic method to create ski’s than a Florida resident. If you are in search for an idea, write down the top 3–4 hobbies you love most and start thinking of inefficiencies. For example, I was recently playing guitar and did not have my capo. I was searching everywhere and could not find it. My pick, however, was stored in my wallet so I never have issues with losing it. That is when a lightbulb sparked: wallet-capo! I immediately looked online to see if one exists and there are only a few that are still in the early development stages. I created one with basic materials in 2 days and it worked. It was a thin card-like platform that could be folded up into a capo. Although this is not an app, it is a great example of thinking of an inefficiency doing something I love and quickly finding a solution. Maybe linking this capo to an app to record my songs can be the next step, but you get the point.
2) Find out what the REAL need for this idea is
It is important to identify what are the critical features of the app and what will entice people to use it. Why would someone use your app over the 1 million other apps that exist in the iOS app store? Are you going to target a specific niche or the general public?
To do this, I suggest you survey people that fit into the target market of your future application. The survey can include questions like: “Which of the following features would be most important to you for a mobile app: XYZ”.
I know it is tempting to keep an idea secretive in the early stages and ensure others don’t try to copy it, but getting feedback early on is absolutely critical for the future of your app. What matters is not so much your idea but the work you would be willing to put into it. Now this might be slightly hypocritical, because I remember how hesitant I was to share GreekRide in its early stages and actually waited until launch to start getting feedback. This hurt us because many issues that could have been fixed early on had to be changed later with updates (such as being able to add how many people you’re with when requesting the ride).
Continuing on this feedback-driven development topic, you may be familiar with the concept of an MVP or Minimal Viable Product, which is mentioned in the book, “The Lean Startup” by Eric Ries (I highly recommend all entrepreneurs to read this — it will reward you in more ways than one).
3) Make sure it is a business
It is fun to have a great working app. You know what’s more fun, making money from it. The title of this article is “5 steps to go from an app idea to a fully functional business.” Don’t fall into the trap of saying, “we will figure out how to make money later,” because the situation becomes very complicated. From Day 1, make sure you understand how to monetize your app. Most people use “ads” as their is a go-to, but it is not always the best way. Forming partnerships, selling big data, or partnering with venue’s and stores are some other options.
4) Figure out how you want to build your MVP
The most common question I get asked is, “how do I find a developer” or “what does it take to code an app.” The answer to this, as any consultant will tell you, is that it depends. There is not a direct solution on finding a perfect match for a developer or business partner, because each case is unique. However, there are specific guidelines you should be aware of. Continuing with the assumption that your app or idea will need to consistently be updated and changed according to the feedback given (MVP model), you should not spend over $10,000 to get a prototype going. I personally define a prototype as something you can get feedback from. Here are three main ways you can start making your app:
1. Code it yourself
If you can personally create the most simple form of what you want the end product to look like, then go for it. Get that “coding is impossible” mentality and throw it away. The hardest part is sitting down and actually starting. Once you do, it becomes a rhythm and learning takes place fast (trust me). I suggest you look into online courses if you truly want to learn. Udemy has good options for cheap prices, or try out some free websites such as CodeAcademyand MIT Open Courseware. For a list of other free resources on how to code, click here. Not only will you learn in the process, but you will also start understanding what limitations exist. When first thinking of GreekRide, I created a Google Form where users must enter a password in order to get access to the ride numbers. Although this is very basic and not nearly as sophisticated as the product that Liam has coded, it was a good start to gather feedback.
2. Find a friend that can make it
This is where reaching out comes in. There are developers everywhere, but people struggle to find them. Obviously if you go to school at Stanford you will have an easier time finding someone to work with than at Indiana University. My suggestion is to first make it clear to yourself exactly what set of skills you are looking for in your developer. If you go up to someone and say “I want you to code an app,” then it is clear to them you truly don’t understand all of the implications (time, skills, limitations) it takes. It is critical to understand what goes into building an app, even if you can’t do it yourself. Languages like Swift and Javascript are very different than Java or C++. Once you have identified the type of app you want and what skills are required to make it possible, reach out to connections and start asking around for anyone they know that has those abilities and may be interested in your idea. Obviously, be ready to offer this friend/future business partner some sort of compensation.
3. Outsource
Paying someone to get the job done. In many cases, this is absolutely the way to go. If you have a very clear vision of your final product and just need someone to turn that vision into a product, then definitely consider outsourcing (probably to another country or through a freelancer website). That way, they will get you your product probably within 3 months. However, if you are using the highly encouraged MVP model, outsourcing can be tricky. I have witnessed first-hand many upper management complications in several startups that have resulted from not meeting timelines as well as communication issues due to time-zone differences and inabilities to pivot and update quickly. Again, it really depends on the model. Another great use of outsourcing could be to get a first version of the app. However, make sure it is coded in a way that anyone could take it over from there and continue updating the app without any major issue.
5) Create your “Focus-Group”
You must assemble a team of 10–20 people to be your ongoing “focus group.” This should be done early in the development of your app. Whether you connect them all through GroupMe or Slack, this community will become your trusted “advisors” and that you can consistently send out ideas or iterations of the product for feedback. This goes a LONG way, especially if the group falls within your target market. You don’t need this group right away (which is why it is step 5), but once you get a working product going, this group becomes very helpful. I suggest using TestFlight or HockeyApp to quickly distribute beta versions of your app to this group.
Another group to consider is a “Board of Advisors.” Find connections, through friends and family with people that have expertise or past experience in a similar industry that your app will work in, and use them as mentors. Most people are willing to offer free advice to those they see are ambitious and passionate about creating anything. Their advice is very valuable and may save you long-term issues or cause you to proactively identify changes that are critical to the success of your business.
Good luck!
