Main Website

How to start an app development company?

Planning to launch an app development business of your own? You have landed in the right place. In today’s blog piece, we will help you navigate the same. By the end of the blog, you will have answers to several questions associated with mobile app development.

We have covered a range of concepts like the performance and future of the mobile app industry, types of mobile app development, the process of starting an app development company, and so on. So, stay tuned and learn all that you need to know.

In this blog

  1. Why mobile app development? A statistical answer
  2. Types of app development
  3. Benefits and challenges of app development
  4. Step-by-step guide to starting an app development company
  1. How can AppMySite help you with your app development business?
  2. Frequently asked questions

Why mobile app development? A statistical answer

Is app development dead? Should I invest in an app development business? Are app development startups profitable? Are app development startups only for IT experts?

If you are still in a fix about proceeding with an app development business, you are not alone. Many entrepreneurs and developers have the questions listed above. However, instead of giving you a simple yes-no answer, we would like to walk you through a few numbers that will paint the true picture.

Here are some statistics that highlight where the app development industry is headed:

Mobile Apps Revenue


  • There are around 5 billion smartphone users around the globe and this number is expected to cross 6 billion by 2028. This shows a consistently growing market for smartphones and apps.
  • The app market was valued at USD 475.90 billion in 2022. Growing in all segments, the revenue is expected to grow at a rate of 8.58 percent (CAGR 2022-2027) resulting in an estimated market value of US 755.50 billion by 2027. 
  • Revenue in the mobile app development market was projected to reach 167 billion US dollars in 2023. Growing at a CAGR of 7.04 percent (2023-2028), it is expected to reach 234.70 billion US dollars by 2028.
  • There are around 1.6 million apps available for download in the Apple App Store and over 3 million apps on the Google Play Store. More than 3,000 apps are added to both app stores every day.
  • Conversion rates are 3 times higher on mobile apps as compared to websites. This makes apps more viable for businesses and thus they are more likely to invest in apps.
  • Nearly half (48 percent) of small businesses have an app in 2022, compared to one-third (32 percent) in 2021. This indicates that more businesses are investing in apps.
  • Small businesses are most motivated to build a mobile app. 19 percent of businesses aim to build apps to improve customer service and branding efforts.
  • Around 42 percent of small businesses already have an app. More than 30 percent are willing to create apps in the coming future.
  • 13 percent of Baby Boomers, 42 percent of Generation X, and 55 percent of millennial business owners have apps. Millennials and Gen Z are the biggest consumers as well, and apps are highly important for these age groups.
  • Outsourcing is the most popular way small businesses build an app. 79 percent of small businesses outsource app development to an agency or a freelancer. Moreover, 46 percent of companies have an in-house development team and 43 percent use DIY software for app development.

As evidenced by the numbers above, the demand and popularity of apps are on the rise. Businesses, especially small-scale enterprises, are looking forward to investing in apps. You can start an app development company and target such businesses with a holistic and affordable solution in place.  

Suggested Read: Traditional outsourcing vs. in-house app development: What is best for your agency?

Types of app development

Mobile app development is a broad term. While ‘creating apps’ remains the core business process of app development companies, how they approach development can differ from one organization to the other. As a company, you can take up all kinds of app development and target different kinds of customers.

Some examples are as follows:

Android app development

As the name suggests, you can open a company and solely emphasize on creating Android apps. Android constitutes around 70 percent of the market and if you wish to target the maximum number of end users then this can be your go-to option. Create native Android apps and sell them to businesses targeting the Android customer base.

iOS app development

While iOS only constitutes a 30 percent share of the global market, it takes the lead in developed countries like the US, the UK, Canada, and so on. Moreover, iOS apps also generate more revenue as compared to Android apps. Therefore, if you want to target these categories of customers, then native iOS app development can be your best bet.

Suggested Read: Android vs iOS: Mobile Operating System market share statistics you must know

Cross-platform app development

Creating custom native apps requires different infrastructural setups and frameworks for different platforms. If you aim for flexibility and platform-agnostic solutions, you can take up cross-platform app development. An upgraded version of hybrid app development, cross-platform development allows you to create apps that can be published on any platform (Android or iOS).

Progressive web app development

Progressive web applications, or PWAs, are the new trend in app development. These are highly suitable for businesses that do not want to solely rely on the Google Play and Apple App Store clearances to publish their app. Such apps are built using common web technologies like HTML, CSS, JavaScript, etc., and often delivered through the web. You can aim for PWA development if you find this genre of app development appealing.

Enterprise app development

If you want to operate on a B2B (Business to Business) model, then create enterprise apps and sell them to businesses directly. Enterprise apps are meant to offer solutions to businesses. They are designed to solve complex business problems and simplify business processes. You can take up enterprise application development and create apps that help other businesses.

Niche-specific app development

The mobile app industry is HUGE! It encapsulates all kinds of industries, niches, verticals, and segments. However, if you are interested in a particular niche then you can start an app development company that targets customers of the same segment. For example, you can create gaming apps, event apps, restaurant apps, education apps, health & fitness apps, and so on.

No-code DIY white-label app development

Having an app development business does not necessarily mean that you should take up all the development work. Instead, with smart and new-age DIY (Do-It-Yourself) platforms, you can simply extend app development solutions to your customers and let them create their own apps. All you have to do here is subscribe to a no-code white-label app development platform suitable for agencies and start reselling it to your clients.

These are the different approaches you can align your business with. However, it is noteworthy that with advancements in technology and the demand for versatile solutions, app development has changed for the better. The lines have blurred, and it is better to go with all-inclusive solutions that have more to offer.

In fact, a holistic white-label app development solution can help you cover all the other avenues and target all kinds of customers. For example, AppMySite enables you to extend app development solutions to your customers for native Android and iOS development, webview app development, industry-specific app development, enterprise application development, and so on.

Benefits and challenges of app development

Before we tell you how you can launch your own app development agency, you should have a brief idea of the pros and cons of the same. Explore the benefits and challenges of starting an app development business and make an informed start:

Benefits of app development

Mobile app development can be the best business idea you ever landed upon. All you have to do is go ahead with the right strategy and resources. Here are some obvious benefits of starting a business centered around mobile application development:

  • High demand for apps and app development solutions.
  • Huge revenue, earning, and growth potential.
  • Low to no geographical and linguistic limitations.
  • Minimal risks and challenges as compared to other niches.
  • Multiple niches and segments to target.
  • Availability of no-code and AI technologies.
  • Evolving and ever-expanding potential market.
  • Easy to manage alongside other business processes.

Challenges of app development

Traditional methods of app development entail certain limitations. Some common challenges of launching a mobile app development company are as follows:

  • High infrastructural costs and barriers to entry.
  • Paucity of skilled professionals and talent.
  • Rapidly changing and evolving technologies.
  • Complex technological software and processes.
  • High upkeep costs, updates, and maintenance.
  • Rising customer expectations and demands.
  • Risks to security, confidentiality, and data-handling.
  • Ever-changing trends of the app development industry.

There are pros and cons to every business. However, with the right solutions and robust strategies in place, you can overcome any hurdle. Once your business is established, the merits will outweigh the challenges and you will be able to ensure profits and growth. 

Step-by-step guide to starting an app development company

This is the section you have been waiting for. Now, the process of starting an app development company is not set in stone. Each business may have a different starting point and thus a different journey altogether. However, some factors remain common.

We have created a concise guide on how to open and get started with a mobile application development company. Go through the steps listed below and learn:

Step 1. Start with research

The app development industry is a competitive space. However, when you know your market, competitors, and customers, it will become easier for you to succeed. Therefore, start by identifying your prospects and studying the market in detail. You may want to find answers to the following questions:

  • What app development niche are you planning to target?
  • What will be your key offerings/products/services?
  • How are you planning to approach app development and extend your services?
  • How are you planning to hire resources?
  • How are you planning to bring in investment and funding?
  • What is your starting budget?
  • What is your elevator pitch (a brief of your product or company idea)?
  • What are the locations/regions/countries/markets that you want to target?
  • Who are your target customers?
  • What customer pain points are you planning to solve?
  • Who are your competitors? What makes them successful/unsuccessful?
  • How will your company stand out among the competition?
  • What will be your revenue and monetization model?
  • How much will you tentatively charge your customers?
  • Which platforms will you place and endorse your business on?

These are some of the questions you may want to ask yourself and find answers to. Investing in research and study will save you time in the future and prevent you from wasting your precious resources.

Step 2. Initiate registration, clearances, and set up

Once you have done your research, you can go ahead and delve into the legal nitty-gritty of the process. This process will be unique for every business as it depends on the laws and regulations of the region you belong to or plan to target. However, some common procedures might be as follows:

  • Hiring legal and financial experts to assist with the registration and clearances.
  • Registering the company name alongside domain name and address.
  • Identifying a business structure and forming a legal business entity.
  • Updating company details in federal and trademark records.
  • Getting legal clearances, licenses, and permissions from concerned authorities.
  • Opening business bank accounts and establishing salary structures.
  • Renting / buying space for your business establishment and office.
  • Investing in infrastructure for business processes and development.
  • Creating websites and social media handles for your business.
  • Setting up communication/support channels for your business.
  • Hiring a team of professionals and experts, to begin with.
  • Investing in a project management software for ease of collaboration for your team.

As discussed, the process of setting up your company will differ based on your local laws and other associated factors. Make sure you cover all the grounds and create an entity that is ready to serve customers and generate profits.

Step 3. Find a development solution

App development is going to be your core business process. Once the preliminary goals are accomplished, you can start looking for the suitable technology stack, software, professionals, etc., that you require to extend app development services to your customers. The list of resources you need will depend upon your approach, business goals, and targeted niche.

We recommend you start with a trusted and established white-label app development solution that you can rebrand and sell to your customers as your own. A reliable solution will save you all the time that you might waste setting up everything from scratch. Besides, the traditional way is also prone to mistakes and pitfalls that beginners face when they start a business.

You can also combine multiple approaches and run your business with a hybrid approach. For example, you can implement traditional and custom app development models and then complement them with white-label app development software to cater to customers who need no-code app development solutions and apps instantly. The choice and decision are all yours to make.

Step 4. Start selling your products/services

Once your business is established and you are ready to serve your customers, you can start targeting them instantly. Run outreach campaigns and start endorsing your company. Carry out promotions and advertisements and start engaging with customers.

You may want to invest in SEO marketing, digital marketing, online advertisements, social media promotions, email marketing, and so on. Keep your customers interested and engaged with the best offerings and earn their loyalty.

While you are at it, also be prepared to handle customer feedback and grievances and offer them support. Create a strong ticketing and support system to resolve customer concerns on time. Look for an app development solution that makes backend management and maintenance easy. This will save you time and ensure high-level customer satisfaction and resolution.

Suggested Read: How to create an app in 10 simple steps? Make an app without coding

How can AppMySite help you with your app development business?

Agency White-Label

AppMySite is a wholesome mobile app development platform. It is simple, code-free, fast, easy, and affordable. The platform democratizes and expedites app development like never before and makes it suitable for individual as well as enterprise-scale app development.

It has multiple solutions for all kinds of customers. This includes products like:

  • WordPress App: For converting WordPress websites into native Android and iOS apps.
  • WooCommerce App: For converting WooCommerce websites into native Android and iOS apps.
  • Web to App: For turning any website (built with any technology) into an app.
  • Custom App: For creating full-customized apps from scratch (without a website).

Moreover, AppMySite comes with a full-fledged agency platform that enables white label app development for agencies and businesses. It is a solution suitable for resellers and white-label software providers who can rebrand and sell it as their own.

It saves you all the hassle of creating an app development solution from scratch and allows you to enjoy financial and time freedom. While your competitors face the challenges of traditional app development, you can simply create an account with AppMySite and offer a no-code DIY solution to your customers.

Just imagine! Zero entry barrier and limitless opportunities!

You can either build apps yourself or let your customers create their own apps. All you must do is rebrand the platform and add your branding elements like logo, color theme, domain name, support email, etc. Once you are all set up, you can instantly roll out the solution to your customers.

Either mobilize your staff to create apps for customers or let them develop their own apps. Collaborate with your team members and your clients and ensure customer satisfaction like never before. Create, sell, and monetize apps with ease and grow your business and revenue.

Suggested Read: Amplify the potential of your development agency with AppMySite and grow more

In conclusion

Starting an app development company is not easy. However, it is true for any business. On the contrary, the availability of smart DIY technologies makes app development an easier and more viable option. Therefore, you can go ahead and launch your app development agency without much hesitation.

The app market is constantly growing and so is the demand for affordable app development solutions. Partnering with AppMySite will make your journey easier and save you a ton of investment, resources, and money that is spent on starting and streamlining everything from scratch.

Go ahead and explore our platform to know more. Create an account and try out a range of products for free. Upgrade to an agency plan and customize our app builder to introduce your branding elements. Roll out the solution to your customers and scale your business without limits. For any queries, you can contact our team and we would love to get back to you in no time.

Frequently asked questions

Is it profitable to start an app development company?

All businesses and industries across the world have realized the importance of apps. Mobile apps are everywhere and therefore the demand for app development has also increased tremendously over the years. Moreover, not every business that needs apps has the resources or means to create them. This is where app development agencies and businesses come in. Starting an app development company can be a profitable venture as there is a vast untamed potential and a huge market to tap into. You can start your own app development company with AppMySite and cater to customers across the globe.

How can I start my own app development business?

Starting a full-fledged business involves many steps. Apart from the legal and financial intricacies, you will need certain permissions and licenses depending upon the exact nature and location of your business. Other than that, it is recommended to conduct extensive research and study your market, customers, and competitors. Once the preliminary requirements are fulfilled, you can go on to hire your staff and develop apps for your customers. This process is way more elaborate than it sounds. However, if you want an easy and modern solution to the challenges of traditional app development, then AppMySite is the way to go.

Are app development companies still relevant?

Unlike what many believe, app development is not dead. As established by the statistics above, the demand for apps is growing rapidly. However, one thing that has changed is how companies approach app development. Traditional methods of creating apps are cumbersome, costly, and time-consuming. This is being challenged with new-age technologies like no-code mobile app builders, AI tools, integrated development platforms, and so on. Therefore, we can say that app development is still relevant, and the industry will continue to flourish in the coming years.

What are some best app development technologies for agencies?

The technology stack you use within your agency for app development depends on your project goals. There are several tools and frameworks popular across the globe that can help you with the same. For instance, if you want to go with no-code app development then AppMySite is the best solution for you. On the other hand, Flutter, React Native, Ionic, Xamarin, Swiftic, etc., can be used for custom app development.

How can AppMySite help app development startups and companies?

AppMySite offers futuristic app development solutions to individual customers as well as enterprises and agencies. Most startups suffer from challenges like limited budget, lack of time, inaccessibility to resources and talent, project backlogs, and so on. AppMySite makes you capable of dealing with all those challenges while making app development simple and affordable. Everything from design to development and deployment can be achieved with AppMySite with minimal effort. There is a dedicated platform for agencies that can be rebranded and extended to customers. In short, AppMySite offers the whole reselling experience in a simple and straightforward way.

How to build a mobile app startup?

Creating a mobile app-based startup can be profitable in the world powered by smartphones. Here’s how you can start a business centered around mobile applications:

  • Start with researching the market and validating your app idea.
  • Register your company and address the legal formalities.
  • Find an app development solution and/or hire a team of experts.
  • Design an app prototype and generate funds if required.
  • Develop and distribute your app on the app stores.

You can go through the guide above to learn more about all the steps involved in launching a company based on mobile applications.


Related Articles