App Investing Consultation Service - iOS Consulting

As an investor or wealth manager you may have been pitched an app startup idea. There are many ins and outs to this business and you can easily end up burning through cash unnecessarily. Professional investors will know what to watch out for. This app investing consultation service is mainly for smaller investors such as family members, friends, first-time investors, etc.

Even with the best pitches, there are angles that are not covered and typically there will be weaknesses to their business plan. With most of these app startups, they simply focus on getting the startup capital without considering profitability. The current situation is like high school popularity contest to acquire capital.

Benefits of App Investing Consultation Service

We can certainly spot red flags in startup business plans in addition to conducting an over all analysis before you invest in a startup. Here are some issues that are likely to come up during our analysis:

  1. Pointing out wastefulness
  2. Gauging startup cost estimates
  3. We can tell you if the app idea is solid (if its a bad idea with no history of market strength, don’t invest in it)
  4. Analyze any advertising costs. Often advertising is unnecessary.
  5. Team analysis-If the founders are putting together a team and planning on hiring employees this will obviously take some careful consideration and analysis.
  6. Is there is an attorney involved with the startup, how much of their services are truly necessary.
  7. How sound is the pitch and business plan? How experienced are the founders?
  8. Don’t buy into the hype! What is said in the media about startups and young geniuses are extremely rare cases. You can see how out of control the tech bubble is becoming by following Jesse Columbo’s (Forbe’s contributor) twitter feed.

Startup Statistics

In order to visualize startup success and failure rates. We have put some statistics together for you here.

Startup Failure Rate Statistics

You can see this article by clicking the link above from 2016. For keeping things simple here are the most important stats that I can see from this article are: 1) 4% of startups made it to the second year, 2) 46% of the startup failures were do to incompetence (startups in 2011). As you can see here, often new startups go into their “idea" overly confident (the statistics are for all startups, not only app startups).

Success Rate of Startup Founders

Most of what we are telling here may deter you from investing in a startup. But, there is some good news as well in that founders that previously failed at a startup have better success rate than first time founders. Founders of a previously successful startup succeed at their next startup 30% of the time. By contrast, a founder of a previously failed startup have a 20% chance of success with their next startup. Lastly, first-time entrepreneurs have an 18% success rate.

iOS App ROI

Lastly, it must be pointed out that iOS apps can have insane ROI (return on investment). In fact we have rarely lost money. We can help you obtain the same success rate. Here is the best ROI that we have had from PebbDrive (no longer in the AppStore). The second app below, Smart Measure, was an app made for a client of ours (https://apple.co/2GR7Ma8).

  1. PebbDrive (2013): PebbDrive was a navigation app that that showed the user’s map and speed from the iPhone to Pebble Smartwatch. Pebble products were hot at the time and sales were solid. Our programmer cost $1,445. We did the graphics and all other organic marketing ourselves. After reskinning the code a few times, PebbDrive and the reskins were making on average around $2,000 per month. The sales were solid for a couple of years (until Pebble sold to Fitbit). The ROI goes something like this: 24 months @ $2,000= $48,000, total capital invested: $1,445. $48,000/$1,445= ROI of 3,221.80%.

www.calculator.net/roi-calculator.html

2. Smart Measure (2017): Smart Measure is a measuring app we made for a client that uses trigonometry and distance using the iPhone’s camera lens. The app can calculate distance, length, and width. Over the years we learned quite a lot about this business regarding organic growth, app icon design, keyword tricks, etc. We found this code on Chupamobile purchasing a license for $199. The app has made an average of approximately $1,500 per month and downloads have been going strong for about a year. Here are the ROI details:

As you can see investing in apps can be extremely lucrative. Dodge some serious headaches and get a head start in this business by using our App Investing Consultation Service.