It goes without saying that a business without a dedicated app will not be able to grow in a competitive market. Mobile apps are necessary for all companies, from start-ups to huge enterprises.

They help to attract and maintain customers using mobile devices. A mobile application can add value to a business and help it grow.

There are many different ideas for an app to look at. There are internal apps as well as apps for customers.

The final choice will depend on the company’s specific needs.

Continue reading to discover 24 great enterprise mobile app ideas you can use to benefit your company.

Those who already have an app can use the examples to inspire improvements or even to create a new app.

AI (Artificial Intelligence) Apps

More and more apps use artificial intelligence. The examples of existing apps based on AI will help you come up with your own idea:

• A mobile app for recruiters. It integrates with calendars, auto-accepts confirmations, receives reservations, proposes dates and times for meetings, fills in schedules, and notifies attendees about any changes.
• A mobile app for managing business expenses. It helps manage expenses by scanning, uploading, and tracking receipts using AI.
• Software as a service (SaaS) app. Most SaaS apps use machine learning from Amazon, Google, and Microsoft.

There has never been a better time to invest in developing an AI-driven app.

Loyalty Apps

The second of these enterprise mobile app ideas is represented by a loyalty app. A dedicated app can increase user engagement and customer loyalty levels. If executed well, a mobile app allows customers to shop and take part in a loyalty/reward program at the same time.

Uses of loyalty apps include browsing products, collecting points, keeping loyalty cards, and paying with credit/debit cards.

Businesses can utilize loyalty apps to communicate and engage with customers. They can also collect relevant data at the same time.

Business Management Apps

Many aspects of business management are easier using a mobile app. These include collecting, storing, and organizing data and streamlining internal processes.

Internal management solutions allow employees to access information quickly and use it effectively. ERP systems, advanced analytical solutions, and CRM software help manage and analyze data.

Being able to do that via a mobile app increases speed and effectiveness. For example, being able to access the CRM on a mobile device increases the productivity of salespeople working in the field.

There are many CRM and other management solutions out there. So it’s not always necessary to create an app specifically for your business.

It may, however, be very useful, especially for large enterprises. Big companies oftentimes need more than a generic management tool.

They often require more complex, dedicated solutions. With that in mind, one may decide to develop an app that meets specific needs.

Blockchain-Based Apps

Contrary to common belief, Blockchain is not limited to cryptocurrencies and finances. It is a system of recording information that makes it difficult to impossible to change, hack, or cheat the system.

In other words, it’s all about secure data storage.

Blockchain is therefore perfect for creating finance-related mobile apps. Or for developing apps used to record and share critical digital information.

A Blockchain-powered app allows both parties to keep track of every file transaction securely. A Blockchain-based mobile app is arguably the best idea for an app in 2021.

AR (Augmented Reality) Apps for eCommerce

A recent survey in the United States revealed that 82% of Internet users in the USA will shop online soon. This can be a great incentive to develop an eCommerce app that uses AR technology.

Augmented Reality is an interactive experience of a real-world environment. It enhances objects that reside in the real world by computer-generated perceptual information.

In other words, it combines real-world information with virtual objects in real-time.

One of the best examples of an AR-powered app is “Pokemon Go.” Of course, it’s possible to develop something other than a mobile game.

The idea here is to create an eCommerce app that uses AR technology. This allows users to try products (such as decoration items, clothes, jewelry, makeup) in a virtual way.

IoT-Based (Internet of Things) Apps

The Internet of Things industry continues to grow.

IoT is the network of physical objects embedded with sensors, software, and other technologies. They connect and exchange data with other devices and systems over the internet.

This idea is often used to create products such as:

• smart home security systems and cameras
• multiroom music players
• smart lighting fixtures
• smart thermostats
• healthcare monitoring systems
• automatic smart parking
• smart roads
• wireless sensor systems
• water quality monitoring solutions, and much more.

The number of ideas for an IoT-based app is infinite.

Team Management & Internal Communication Apps

Simplified, more efficient team management and internal communication are possible via an app. A well-designed enterprise mobile app can gather and give access to performance data and other insights in real-time.

It can also increase employee engagement. Here are a few examples of possible uses within a company:

• Assessing and improving employee satisfaction
• Assisting employees with applying for internal job opportunities
• Booking a conference room
• Involving employees in the decision-making process
• Keeping track of sick leave and vacation days
• Measuring employees’ performance
• Organizing meetings and events
• Reporting bugs and IT-related issues
• Sharing company news

Documentation Apps

Switching from one document to another and back can be irritating and overwhelming.  It may be a great idea to develop an enterprise mobile app for managing a user’s or company’s documentation needs.

An example of an app that does that is Coda. Check it out to find some inspiration!

P2P (Peer-to-Peer) Self-Storage Apps

Extra space is always sought after. It is not easy to find appropriate storage space, though.

A peer-to-peer self-storage app allows people with storage space to connect with those who need to store their things. Creating an effective self-storage app can benefit both users and your company.

AI-Enabled Chatbots

Growing competition and multiple options to choose from make customers less patient. People visiting your website or using your dedicated app want instant replies to their inquiries.

AI-based Chatbots provide instant solutions to customers’ queries, thus improving customer relations.

Adding an AI-based live chat to a mobile app removes the need for human interactions. It also lessens the fatigue of a human dealing with multiple queries at the same time.

Startup Management App

Launching a business is never smooth sailing. It means analyzing the market, identifying main competitors, and determining the budget.

It’s also necessary to find the right marketing platform. Too, there is the challenge of looking for and hiring suitable professionals while caring for other aspects of the new business.

A startup management app can be of great assistance. It can help to build a team of experts and determine the cost of the investment.

It can also provide a database of investors who have a genuine interest in the project.

Free Samples and Reviews App

Many businesses offer free trials or product samples to get customer feedback.

Imagine an app that brings them all into one place. Users could order free samples and then leave their honest reviews.

This app would be a great solution for businesses producing food, cosmetics, and other consumer products. It would allow them to collect honest feedback about new launches.

They could test and compare alternatives and get word-of-mouth marketing if the users enjoy the sample.

Truck Management Apps

Managing a truck fleet is a challenge in the logistics industry.

It involves checking truck availability, monitoring and ensuring their departure. Also the running status, arrival, and management of consignments.

An enterprise mobile app can streamline these tasks and save lots of time and energy. Even a basic app can create a list of all the trucks, together with their real-time status, available in one place.

MVP (Minimum Viable Product) App

MVP is a great solution for people starting a business or bringing a new product to the market. Especially those with a limited budget or very little time.

One can create an MVP app with minimum functionality to test-run it before launching the final product. Businesses can receive and analyze early feedback about user experience and key features.

Investment Planner Apps

The COVID-19 pandemic has had devastating effects on the global economy. Many businesses are looking for the best investment plan to help them survive.

This is a good time to develop an app that provides the information, guidance, and resources needed to make a good investment.

Investors could create profiles and upload their basic information and areas of interest. They could set limits and stipulate the duration of potential investments.

The app would then evaluate all the information and provide the best investment plans.

AI-Enabled Recruiter Apps

Another idea for an AI-based app is a recruiter app that would assist companies with:

• searching through different job sites for resumes that match set criteria
• verifying if the candidates meet the requirements
• conducting initial rounds of job interviews

It would be especially popular with small businesses and startups.

AI-Enabled Text Extraction Apps

Companies depend on data and data patterns to observe, predict, and influence customers’ behavior.

Use Natural Language Processing (NLP) and machine learning to develop a mobile app. This app would extract the desired data quickly and automatically.

Predefined algorithms then segregate, clean, and pre-process extracted data according to set parameters. Developing a mobile application that can do all of that pretty much guarantees success.

MES (Manufacturing Execution System) Apps

An MES app can help ensure that the factory floor data is accurate, complete, and usable. It can also provide control and synchronization across the plant.

This helps to reach and maintain high efficiency and responsiveness to customer demand. It allows a startup to have a head start in today’s fast-paced manufacturing industry.

WMS (Warehouse Management System) Apps

A warehouse management system helps support day-to-day business activities. This includes product putaway, picking and packaging assistance, and inventory replenishment.

A mobile WMS app will make running a warehouse easy, efficient, and productive. It’s quite a new app idea so the potential for success is immense.

Business Idea-Sharing Apps

This would be a great help to people looking for ideas and guidance regarding startups. Users could brainstorm and share ideas, suggest the best investment plans, and provide tips and advice.

Develop this kind of app by utilizing machine learning and data science technology. These can analyze real-life market trends and make precise forecasts.

This app would assist users to identify business ideas that match their budgets and provide other useful suggestions. It may also be the bridge that helps users get startup ideas across to developers and investors.

Logistics Apps

Digital services are becoming an integral part of the ever-growing logistics industry.

A mobile app can assist with three main aspects of a logistics service. These are good communication, ease of transportation, and assurance of delivery.

Logistics mobile app ideas include:

• tracking apps for dealing with consignments
• management apps for assigning parcel services to drivers
• booking apps for booking vehicles

Mental Health Apps for Employees

Every high-quality company takes care of its employees’ mental health. A mobile app can help employees handle stress at the workplace.

It can enable them to track, monitor, and analyze their mood changes and triggers. This in turn helps them to manage their emotions.

The app can also provide a list of therapists, psychologists, and psychiatrists who offer tips and assistance with stress management and healthy living.

The app would also ensure that each employee’s privacy is maintained. All personal information and reports remain between them and their mental health experts.

The Bug Detection App

The last of these enterprise mobile app ideas is a bug detection app.

This is the digital age and yet each app still experiences bugs. Many app owners would rather use a bug detection app than pay an IT engineer every time there is a problem.

This is a fresh, undeveloped idea for an enterprise mobile application.

The app should be straightforward to access and use. The idea is that the user takes a screenshot of the bug and uploads it into the mobile app.

The app then identifies the bug, searches for the solution, and provides a list of best-matching results.

Offline & Online Activity Merging Apps

For your business to be successful, it’s best to combine both the online and offline channels. This is crucial for companies that sell their products via brick-and-mortar and e-commerce.

Keeping track of both offline and online purchases is very important. A mobile app can help to merge and keep track of all customer activities in one place.

Customers could use the app to navigate through the store, confirm product availability, and use the “click & collect” feature. Having an omnichannel shopping experience would make the app very attractive and successful.

Ending thoughts on these enterprise mobile app ideas

Simple ideas often turn out to be the most effective. Having a great mobile app idea is vital before starting an app development project.

Some apps are better suited for internal or B2B use, while others are perfect for B2C use. Enterprise mobile app development does not have to be scary or overwhelming.

Remember that a great app idea is not only innovative but also provides a solution to a specific problem. It fills a specific need in the market.

If you enjoyed reading this article on enterprise mobile app ideas, you should check out this one about business pivot examples.

We also wrote about a few related subjects like financial software development companies, startup consultants, types of investors, share options, IT outsourcing failures, software development principles, and software development outsourcing trends.

The post Great Enterprise Mobile App Ideas You Could Try appeared first on TMS.

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The term MVP is the abbreviation of minimum viable product. It’s the idea or simplified example of a product that allows entrepreneurs to collect information.

They can learn about their potential customers with next to no effort. This allows project managers and their teams to collect valuable information.

Performing elaborate MVP testing is unnecessary because they have a constrained target. Just developing the minimum viable product is not sufficient enough.

This means that it’s important to also have a test plan.

MVP testing involves testing the product before it hits the market. This doesn’t mean that the business will launch an unfinished product.

It’s a way to get feedback for the final product. This will help entrepreneurs to understand if their product is sensible and achievable.

Knowing this is essential in such an unpredictable market. This allows product managers to build the best actual product.

Why Does Your Product Need an MVP?

The purpose of MVP is not to make improvements to the product. Instead, it is to find out if the product is a good idea in the first place.

This helps an entrepreneur figure if they should build the product or not. Below are the main benefits of building an MVP.

Minimum Development Cost

Building an app with the best and most features right away incurs huge development costs. However, an MVP requires fewer resources.

This means that while costs will be much lower, you still have a working product.

Make Big Mistakes with Minimal Impact

One idea can change the world. Think about the Internet or the iPhone, and other similar products.

Contrary to what most might think, these products weren’t market-ready right away. Before they were market-fit, they had to go through a series of revisions and improvements.

This is good news for startups.

Getting Paid Customers Becomes Easy

Attracting a large number of users for a start-up is difficult without spending a big sum of money on ads. Using the MVP model helps with successful user acquisition without spending big money.

If customers are satisfied with the product, they’ll inform others about it. This is how things go viral, providing countless users in a faster and cheaper way.

Gain Feedback Before Scaling Up

No business can understand all its customers’ needs. There are always unknown factors or desires.

If a product only targets their desires, the result may be quite disappointing. To be successful, it’s important to take both the customers’ needs and wants into account.

MVP tests can provide enlightenment into these issues. It can do this for both paper prototypes and digital prototypes.

Shorter Time Frame

The quicker the app is launched, the faster you’ll get feedback. This means it’s possible to work out the kinks and release an upgraded version much faster.

This will also decrease development costs. It saves spending time and money working on functionality that won’t be necessary.

Define Your Target Audience

CB Insights states that 42% of start-ups fail because there’s no market demand for their product. An MVP allows entrepreneurs to test the market and see if there is a need for their business idea.

Having a defined target audience will help the product to attract customers early on.

Leverage the Power of Batches

MVP involves making more than one prototype or version of the product. This allows the entrepreneur to be able to edit and improve the product in phases.

In some cases, the final app is different from the original design. In the end, an MVP will produce an operational product.

Find the Early Adopters

Before launching a product, find out who the early adopters in the product’s category are. Finding these so-called trendsetters or adopters will help in understanding the market.

One very important factor it helps with is the validation of the product assumptions. It will also help to establish and improve targeted marketing campaigns and learn what features are necessary.

Have a Clear Development Plan

Having determined the target audience and the market need, it is easier to set up a development plan. An MVP will show how to improve the product, if it will be valuable to customers, and how to fix any issues they may find.

Use your hypothesis for building the best features.

12 Types of MVP Tests

There are many ways of doing minimum viable product tests, and listed below are some of the best ones.

Number of New Signups

Signups are a way to measure potential interest in the product. A large number of signups means that there are users who want to use the product and would be willing to pay for it.

They may even be willing to pre-order, which is a game-changer.

Signups are an operable way of checking user interest. Based on the level of interest in the product, signups can become revenue.

The MVP is a product you’re offering on the market. A customer might buy the product but only if it is better than the already available competition.

Customers only buy startups if it’s within their budget and if they need the product.

Crowdfunding

This MVP test approach connects startups with backers. These may be people who find the product interesting or who see potential in it.

To use crowdsourcing, visit platforms like Kickstarter or Indiegogo. This approach also provides continuous feedback from early adopters along the way.

This test strategy will give a good amount of validated learning about customers.

If using this method of product testing, track the backers and see what they say about the product. Backers can give great advice on how to better the app and make it more successful.

Blogs

A blog is a great way to promote the MVP and can help to develop a closer connection with the target audience. To intrigue potential users, try posting about what happens behind the scenes.

You can post stories about the developers and the MVP concept. This approach will help to raise interest in the product before it launches onto the market.

Running a blog doesn’t require much, but it is vital to have quality content. If necessary, hire an experienced copywriter to write the blog content.

To understand how many people have an interest in the MVP, ask readers to subscribe by email. This can also indicate who the customers are going to be.

Vlogs

Vlogs or explainer videos can demonstrate the functionality of the product and answer questions. This allows the developer to clarify what the product is, how it works, and why the customer needs it.

One of the most famous examples of a startup using this approach is Dropbox.

Dropbox used a video to demonstrate the product and how it works. The explainer video was successful.

The number of signups for Dropbox went from 5,000 to 75,000 overnight. All of this transpiring with the absence of an actual product.

The humorous and entertaining aspects of the video likely helped to pique interest. Especially that of the early-adopters watching.

Customer Interviews

This is the most obvious of these MVP tests, right?

Customer reviews are the most direct way to get specific validation for the MVP. It provides real reviews from people who will use the product.

Conduct interviews with the target customer. Listening to any problem that they raise will yield valuable insights.

Online there is the possibility of people either lying or sugar-coating their opinions. Sometimes they may give fake reviews.

With personal interviews, the probability of those things happening is much lower. It’s even possible to ask customers to complete a survey on the product.

This will supply direct validation for the startup project.

Landing Pages

Landing pages are web pages that a visitor or potential customer comes to after clicking an ad. It will be the first page they see on the way to the product.

This is where potential users learn information about the product and the business. A landing page will show how customers interact with the page and if they’re interested in the product.

Using a landing page, you can test out the product with the market. It offers a marketing opportunity to advertise the features of the product.

Another possibility is to enroll people in a subscription for validation. Or use these landing pages as ad campaigns.

With a landing page, startups can track a customer’s analytics via Google Analytics.

Social Media Accounts

Social networking sites are another great testing technique for a minimal viable product. What platform you choose will depend on the target customer and their preferences.

This method reveals users’ truthful opinions and reactions. It also involves a certain amount of PR management for the MVP.

When using social media platforms, make sure to add a link so that customers can test the product. You could use digital prototypes, for example, to do this.

Highlight the functionality and true value of the minimum viable product. Do this by posting photos or pictures of the MVP.

A/B Testing

A/B testing determines the effectiveness of changes made to the marketing scheme or the product. Analytics tools help to show how users react to the designs, removing the need for guesswork.

This MVP testing technique can reveal if one design is more effective than another. For example, use two prototypes of the same page and see which gets a better response.

In this MVP test, some of the visitors will see version A and others will see version B.

For instance, once you’ve run an A/B testing campaign on Instagram, you could leverage an Instagram analytics tool to find out which post generated better reach and engagement. This can help you create better content for your campaigns.

Hallway Testing

This style of testing helps to determine how usable the product is. In this approach, random people that don’t know anything about the product test out the MVP.

Their experience will disclose the intuitiveness and usability of the MVP. Ask these people to complete some tasks and see how well the minimal viable product does.

Take note of any issues encountered during the process. This will inform any improvements and edits made to the product.

Manual-First (Aka “Wizard of Oz”) MVP

With the “Wizard of Oz” MVP testing strategy, the idea is to fake it until you make it. Instead of coding and making a product, you present the product and its functionality manually.

The customer will believe the product is fully functional. However, all the actions are being done manually. This is an alternative option to building a video or coding framework.

It allows for interaction with customers in the initial stages of market validation. It makes it possible to observe a customer using the product first hand.

The “Wizard of Oz” MVP method is the quickest way to see if the product will be useful to consumers.

This is the quickest and most beneficial strategy to test any great idea out on potential users.

PPC Ad Campaigns

For those who know what they’re doing, ad campaigns can be a great market research tool. Much like landing pages, ad campaigns can give lots of useful information.

This can include such things as user analytics. The analytics derived from ad campaigns can be quite sophisticated.

Ad campaigns aid in positioning the MVP to reach specific parts of the audience. Startups can choose to market to people based on location, age group, gender, and even interests.

It is important to keep in mind that running an AdWords campaign does not result in a lot of publicity or exposure. This is because the market is so competitive and fierce.

Ad campaigns are a great way to experiment and test out your hypotheses.

Piecemeal MVPs

The last one of these MVP tests is the technique of building a working demo of the product using existing tools.

You don’t actually build the product yourself. Instead, it involves using other tools or services to make a functioning prototype.

One method of achieving this is by putting two unrelated apps or software together.

A business that built a startup this way was Groupon. In its early stages, it consisted of a combination of software products.

Before spending time and money building an infrastructure for the startup, try using existing software. Piece together features from other platforms to build a prototype of the MVP.

Ending thoughts on the MVP tests you can do to validate your idea

A minimal viable product or MVP is a prototype of the product. An MVP fulfills the needs of the business while providing feedback.

It’s almost like an experiment. The MVP allows startups to test the market and get the maximum amount of validated analytics.

It’s a way to validate and test the product direction instead of only relying on the idea of the startup.

Although building an MVP takes a lot of extra effort and time, the payoff is immeasurable. It will save you so much in the long run.

The market is uncertain and unpredictable. Users are going to be the same way.

Building an MVP will help an entrepreneur to get a better idea of the market and target users. The only way to win in such a market is to learn faster than everyone else and an MVP aids in doing so.

So, when verifying an MVP and testing out the market, be sure to consider the techniques listed above. Take time for careful thought about which of the testing strategies to choose.

If you enjoyed reading this article about MVP tests, you should read these as well:

• How To Write a Flawless App Business Plan
• What Is A Project Management Framework? (Must Read)
• The Ultimate Product Improvement Guide for Your App
• 12 Typical Mistakes with Software Development Budget Planning
• Why 90% Of Startups Eventually Fail. Will Yours Be A Startup Failure Too?

The post MVP Tests You Can Do To Validate Your Idea appeared first on TMS.

Delivering an end product that is useful to users is the main focus and goal of any app. However, pricing a digital product is an important facet to consider.

Pricing a digital product should never be overlooked. It is essential to make a careful determination of the price.

This will help to build a profitable, successful, and scalable mobile app or digital product

The business plan should include a pricing strategy. It is also important to take time to understand consumer psychology.

Overlooking this part of the process could be disastrous.

This article will examine how to choose the best pricing strategy for mobile app development solutions. This is one of the most important and taxing steps in the development process for a mobile app.

What a large-scale enterprise and a start-up need in an app or development of an app can differ greatly. The concept of the app and its development will also revolve around different things.

What is A Pricing Strategy?

Pricing strategy is how you make revenue from the application. Every idea has some sort of business model behind it.

To begin with, the focus may be on producing the minimum viable product. This allows the product to launch onto the market as soon as possible.

But having a well-thought-out and sturdy pricing strategy before the launch is a good idea. It will only make for a more powerful and successful product.

Digital product pricing or mobile application pricing is not simple nor easy. App Store and Play Store have an endless supply of apps and mobile games.

Not only that but pricing models for apps and games have changed over time and continue to do so.

Below is an examination of mobile app pricing models and the pros and cons of using them. First, here’s some important information and insights to help when making a decision.

The pricing strategy used with the app can have a great impact on its success. It will determine the app’s position in the app store as well as how much revenue it makes.

There are several factors to consider when deciding what type of pricing model to use. Internal factors include goals, target market, the purpose of the app, and product value.

External factors might include the market environment, competitor pricing, and economic trends. It is important to take all these factors into consideration.

This may take a lot of effort and research, but it will make the application more profitable in the long-term.

Before deciding on a strategy, first review all the possible app monetizing strategies.

The Four Types of Mobile App Pricing Strategies:

• Free
• Freemium
• Paid
• Paymium

A more detailed look at each of these strategies follows.

Free

Everybody loves getting something for free. One of the most effective models is offering a free mobile app.

This is especially true when trying to attract a large number of users. Free apps are available for download from the app store.

This means that their main source of income comes from advertisements.

How Do Free Apps Make Money?

Free apps come from companies that make a product or service as an extension of the app and its services. This type of application should serve as customer service or communication.

They are also used for customer retention as a way to keep existing customers. This prevents them from switching to a competitor.

In other words, it’s a loyalty booster to keep customers buying.

There are two kinds of free application revenue models. The purpose and overall goal of the app will dictate which model is most suitable.

The Two Types of Free App Pricing Models:

• Completely free: This type of app usually acts as an add-on to an already established product or service. The overall goal of this app is not to create revenue but to direct users to other services of the business.
• Then, those services will create revenue. For example: the app has coupons for your website, which drives the customer to purchase from the
• In-app advertisements: This type of free app creates revenue or income from ads. The app is still free to download.
• Income comes from advertisers who rent or pay for advertising space on the app. Then customers or users see those ads.

With free apps, it can be easy to gain a lot of users quickly. So good free apps should gain the consumers’ awareness and engagement.

It is vital to maintain this engagement, otherwise, the app will rely on ads. Over time, this is a difficult model to keep running and maintain profits.

Advantages

Apps that are completely free have a much higher chance of getting downloaded. They boost engagement and consumer awareness.

They’re also great tools to generate revenue from advertisements. Some distinguished examples of successful free apps are Facebook, Instagram, etc.

Disadvantages

A large user base is essential for success. People dislike an app full of ads.

Freemium

Free and Freemium models work best when it comes to acquiring a large user base. With the freemium model, the focus is on providing user-friendly features and functionality.

Users are looking for more backup, storage, or features in freemiums.

Customers are willing to pay a one-time subscription fee if they get something valuable in return.

Users don’t mind paying for something that they want. So it’s important to communicate what valuable features and functionality they can receive.

Freemium apps have to make it worth the customers’ while.

The Three Main Types of Freemium Apps:

• The app itself is free to download, but to level up, users have to pay. To get premium features, boosters (in games), or use in-app currency, there is a fee. These features are most common in games.
• The app offers all its features for free, but only for an allotted amount of time. After that, users must pay a fee to continue to use the app.
• The app is free but contains ads. The user has an option to pay a one-time fee to remove all ads from there on out.

Currently, this pricing model is quite common. However, it’s only effective if you know what you’re doing.

When used well, freemium models are an outstanding marketing scheme. This strategy is much easier to utilize and control when used for a gaming app.

This is because users can start at the lowest or most basic level for free. They only have to make a payment if they choose to level up.

Advantages

With proper development, freemium apps can be a big source of income. Users will pay a reasonable price for a user-friendly and well-developed application.

Freemium model apps can attract a lot of users as well.

Disadvantages

Notifications to upgrade must be timed and positioned appropriately. An ill-timed notification will likely dissuade a user from upgrading.

It may even cause them to delete the app. This would then reduce the number of users and revenue.

Sending upgrade notifications is a balancing act, it must be methodical and careful.

Paid

As the name reveals, for a paid app, users must first pay to be able to download the app. Since free and freemium apps are so popular and easy for the user, the paid model is the least effective.

Nevertheless, the paid app model has gained great popularity over the past few years. It’s one of the most common product pricing models for subscription-based businesses.

Some of these businesses include Netflix, Disney+, Hulu, and Amazon Prime, for example.

Apps such as these require users to pay a subscription to use the whole app. Payments may be monthly or yearly depending on the subscription plan selected.

Users can enjoy the app to its full potential with all the features included in the subscription.

When customers know exactly what they’re paying for, they’ll be more willing to pay it. Marketing for the paid model is a key factor in acquiring more customers.

A strong marketing campaign will motivate consumers to buy your product instead of using a free equivalent.

This means there must be an effective and targeted marketing strategy in place. The potential customer must know the value of the product.

This means that more than a description of the digital product in the app store is necessary.

This pricing model is effective and is ideal for a well-founded brand with a set client and customer base. To obtain subscribers, many businesses will offer a free trial for a limited time.

This free trial strategy allows customers, especially those more reluctant to pay, to see what the app is all about.

The customers will then perceive the value of the app. They’ll be more willing to sign-up and use the product long-term.

Advantages

Paid apps have first-class features and functionality. The owner may receive payment immediately.

Having a limited free trial helps customers see what they’re paying for. Users of the app will be more likely to stick around or use the app long-term.

This produces a high customer loyalty rate. If people love the app and find it useful, they’ll give it high ratings.

This in turn will encourage others to download the app.

Since all revenue derived from the app is from subscriptions, income is not based on user interaction.

Disadvantages

Advertising and marketing for the app must be targeted and effective. If not, it won’t attract enough users and won’t encourage them to pay for a subscription.

If users are not willing to pay for the app, they’ll end up not using it and will hesitate to use it in the future.

As paid apps need to have the best features, they can end up incurring much larger costs. They also tend to take a long time to develop.

Overall, it’s a huge investment that needs to be carefully thought out and planned. Users will have higher expectations for the app and its features.

Paymium

The paymium pricing strategy combines the paid model and the freemium model.

For this type of app pricing, a user must first pay for the app itself. Then, they must pay a subscription to use the app or other functionality.

This is one of the new strategies for pricing models. After paying for the app, the user pays extra fees to open and utilize other, more advanced features.

This model works best for navigation apps, music apps, or social networking apps.

Similar to the paid pricing strategy, the app must offer something of value to the user. This will encourage potential users to purchase the app and all its features.

This product pricing strategy has great potential to generate large revenue streams. If used and marketed properly, this model can produce a considerable profit.

Regardless of the purpose of the app, if using the paymium pricing model it must be high-quality. Everything from content and design to functionality must impress.

Apps need to be visually pleasing and give users a unique and engaging experience.

It’s important to get to know the market of the target audience. There could be competitors with either free pricing or freemium pricing strategies.

If there is too much market competition, it will prevent the app from being profitable and having recurring revenue.

Keep in mind that the price tag is a key factor in buying a product, not only perceived value. It’s also important to assess the market demand for the specific purpose of the app.

The app should offer something of value that’s also unique.

Advantages

Apps using this pricing model have outstanding features and functionalities. They can also bring in a large profit or revenue stream.

Owners can expect payment immediately or through consecutive payments. This pricing model will provide committed and loyal customers.

Disadvantages

The app and the ability to use all its functionality is costly. This means that the app could have fewer downloads.

This is not the best app pricing strategy for those looking for publicity. This model only works if the app is the best in its field of expertise.

It must be the best because it has to attract and encourage customers to pay for the app and its services. The app has to meet the customers’ perceived value based on the price tag.

It must also meet all their expectations for the functionality of the app.

Which Pricing Strategy to Choose

Now for the difficult part, making a decision.

As noted, there are many ways to enter and make money from the app market. There are also different ways to generate revenue depending on the pricing strategy used.

But, what is the best model to improve and validate your app? Which pricing strategy would you choose?

Apps follow the same rules for supply and demand as any other product. So, think of the app as you would any other product.

The right price is whatever people will be willing to pay. Or in other words, the perceived value of the application.

The pricing has to match the competitive market demand.

Test the Product at A Variety of Prices

The most effective way to find the best price for the product is to test it. Test the prices and see how potential users or clients respond.

Pricing an app is not only about its value but also about how much a user will pay for it. This is why it’s important to pay attention to the customers’ perceived value of the app.

Mobile apps have many benefits but one of the best is that they’re recurring revenue streams. So consider the overall income from recurring revenue.

To begin with, it may be necessary to test out a few different pricing strategies for the app. One very important thing to remember: increasing the price at a later time will not go over well.

It’s always better to start at a higher price and then reduce it later. Or offer a free app with paid extra functionality. 

Learn Your Competitors’ Pricing Strategy

Every business strives to beat the competition. Yet, there aren’t any new or different pricing plans.

So, it’s always a good idea to see what the competition is doing and to learn from it.

For example: if similar apps use the free or freemium pricing strategy, don’t use the paymium model.

There is no pricing model that works for every kind of app. One-size-fits-all doesn’t apply to how developers work with an app and its pricing strategies.

Consider the purpose and goal of the app, not just what the competitors are doing. Take note of the market value, the desired DOI, and the cost of development. 

Value of the Product Should Be Greater Than the Price

The pricing of products is more about human behaviors than actual cost. When people are looking to buy something, they want the most value for the lowest price.

They’ll compare your product with one they saw earlier without even realizing it.

Putting a price on an app puts an even higher value on the product. People will expect the most out of it.

Are all the bug fixes up to date? Is the interface exceptional?

If a user pays any amount of money for an app, even $2.99, they’ll expect it to be of excellent quality.

Thus the value of the app and its functionality must be higher than the price paid. A customer will be willing to pay almost any amount as long as the value they’re getting is greater.

Build a Product That Users Want

Build products for a specific audience or for a specific purpose. This means an app should meet certain needs or wants of a target audience.

If the app has no specific goal, it will not be successful.

When a product is in high demand or wanted by a certain audience, it will be much easier to put a price tag on it.

Offer features that will improve customer satisfaction. Or enhance their journey with the app.

By determining the development cost of the app it’s easier to decide on the pricing model. Factors like product value and actual cost are involved with development costs.

Maintenance of the product is also a big factor.

The app needs to be up-to-date with enhanced functions and features.

Customers want something with all the newest features. That’s why having a keen knowledge of the current market is so crucial.

Users Expect More From Paid Apps

Determine the price of the app based on the number of users it needs. If it requires a large number of users for it to work, launch the app as a free version.

If an app is not dependent on a certain number of users, the initial price can be flexible. Although, adding more costs later on will reduce the number of downloads.

Users that pay for mobile apps will expect more from it than if it were a free one. They’ll expect more features and functionality.

Users will not be willing to pay for updates every time one is added.

Understand the Market Demand

Market-based pricing is a great way to get to a profitable price for an app. Understanding the competition and user base will provide various market opportunities.

It will also highlight the areas where the competition is lacking. This will allow you to create the optimum price point for the product.

Understanding the audience is essential. Doing so will assist you in finding which pricing strategy is best.

For those looking to reach a much larger or more diverse group, go for the free strategy.

Price Should Be Affordable to Users

Pricing strategy in the development of an app should bring in a reasonable amount of profit. It should at the same time maintain loyalty among customers.

These factors should be considered before delving into the development process.

The price ought to be practical and affordable for all potential users. Market research will aid you in finding a price range that is reasonable.

Customers usually shop around before purchasing anything. So, make sure the app is the best in its class.

This means the app should have the most worth and best features for its category.

Ending thoughts on the best app pricing models for your company

Making pricing strategies for mobile applications is not a simple task. It must be planned out in order to have the highest recurring revenue stream.

Using the proper marketing plan and pricing scheme it’s possible to make a profit immediately. It also helps to maintain loyal customers.

Researching product value, app market, buyer psychology, and user behavior are important aspects to set out a strategy. Using these and pricing strategies will make for a profitable and successful app.

It will also convince users to pay for the product and to continue using it.

Whichever pricing strategy you choose, be sure it meets market expectations and achieves the business goals. Customers will then see the value of the app.

If you enjoyed reading this article on app pricing models, you should check out this one about app metrics.

We also wrote about a few related subjects like app business plan, product improvement and IT companies in Serbia.

The post The Best App Pricing Models For Your Company appeared first on TMS.

1 in 5 of these will fail in the first year of business. All new businesses face some risk of failure, and this varies based on a variety of factors.

Businesses in established markets and industries are less likely to fail. But innovative and niche industries face a much higher chance of failure.

Yet, innovators also have a higher chance of exponential growth and reward.

Most startup founders agree that starting a business is hard. Many entrepreneurs are heavy on passion but light on expertise and experience.

Even experienced professionals will experience a wide range of unexpected problems.

Many startups are testing untried technologies and new markets. Some are using exciting innovation, but with innovation comes risk.

Some new ventures begin with high expectations only to fail in spectacular fashion. Others defy expectations and flourish in undiscovered markets.

What are the trademarks of startups that fail and ones that succeed?

The common cause for most startup failures isn’t a mystery. Across all industries, products, and services the causes of startup failure are the same.

How can you identify potential pitfalls for your startup? This list of common pitfalls will help you to evaluate your startup venture.

While the statistics give a reason for pause, there is also a reason for confidence. The reasons behind startup failure are well-known and common across industries.

This examination of common startup failure causes can help you to avoid them. Finally, check out a few steps to beat the odds.

Common Startup Failure Causes

Financial Problems

It comes as no surprise that financial problems are one of the most common causes of startup failure. Financial troubles vary, but they indicate the company did not have the necessary funds.

Some of the most common types of financial problems are:

• Undercapitalization
• Inability to obtain financing
• Low Revenues
• Cash Flow Problems

Some startups discover that their financial problems began before they ever got started.  They realize they cannot maintain growth and were undercapitalized to begin with.

Others start out well but hit roadblocks trying to obtain financing. Financing is necessary to fund expansions or rapid growth infrastructure.

Some fail to hit marketing and sales milestones and must deal with the result – low revenues.

Partnership Problems

Many new business ideas develop between family or friends. In these situations, it would seem as though partnership disagreements could never happen.

However, partnership problems are a surprising cause of failure for many startups.

A company may have the best idea or product and huge profitability. Yet it will still fail if the founders or partners can’t get along.

Partnership problems can prevent the company from moving forward. Disagreements hinder the securing of contracts or financing and implementing plans.

Many give up and walk away from the nightmare created by partnership problems. Some of the factors that can lead to partnership problems are:

• Questions of hierarchy
• Imbalanced workloads
• Lack of written agreements
• Unresolved disputes
• Duplication of roles

It’s not uncommon for some partners to feel like they put more sweat equity into the business. Over time resentment can grow.

Other times partners find themselves agreeing on everything in the beginning. So they fail to establish a hierarchy of leadership and decision-making authority.

When disagreements arise there is no established way to break a stalemate and move forward. Not only does this lead to a failed start-up but also soured relationships and broken family ties.

Leadership Problems

Adam Neumann, ex CEO at WeWork. You know why he is representative for this section

Leadership problems are often confused with partnership problems. Sometimes the two are related.

It is possible to have an excellent partnership or no partnership at all and still have leadership problems.

Know-it-all leaders are red flags for startup failure. They may be experts in one field and enjoyed success in that field.

This can create a false sense of confidence. They may believe that success will follow them wherever they go and whatever they do.

Leaders that have failed in the past make better leaders and are less likely to have their startups fail. They have learned hard lessons and gained experience in handling crises.

Leaders that haven’t ever failed often don’t know how to ride out life’s storms and persevere.

A leader may be an expert in the field or service the business is in but that doesn’t mean they are a business expert. It is important that they are aware that they don’t know everything.

Good leaders ask for help and advice. They build a team that gives the startup company an expert for every aspect of the business.

The best leader is also the leader that is present. Hands-off management strategies will backfire with fledgling companies.

A board of directors that is too busy with other ventures will not be able to act decisively on urgent matters.

This is a common scenario when Venture Capitalists occupy a place on the board of directors. Although they have the expertise, if they aren’t present and attentive they will simply weigh the company down.

Rather than adding value to the company, an absentee VC will hinder progress. A Venture Capitalist that doesn’t know the business won’t be able to provide valuable insights.

Exercise great caution when selecting a VC. The company will be tied to them.

The common causes of leadership problems are:

• Overconfident leadership
• Lack of business expertise
• Absentee leadership

Marketing Problems

Not knowing the market or how to market your product or service is a reason why many startups fail. Every startup needs to focus its marketing efforts and budget.

Having an undefined or overly large target market means stretching the marketing dollars. Many startups strike out not knowing their target demographic.

Identify who the competition is and ask for advice. Again, know what you don’t know.

Find experts that can help to identify the target market. This will reveal how much the market will pay for your product.

A good baseline is to establish CAC & LTV for customers.

CAC (Cost of Acquiring Customer) establishes what marketing to undertake to gain new customers. LTV (Lifetime Value of Customer) establishes what revenues that customer will generate for the company.

This has to work out to a sustainable and scalable equation or the startup will fail. Then consider the issue of timing.

Is the market ready for this product or service? Is it saturated with similar products or services?

The most common marketing missteps are:

• Failure to define the target market
• Failure to test market readiness
• Lack of marketing expertise

Lack of Goals

Startups need to define the goals and milestones they hope to achieve. It’s good to put the goals in writing and create a timeline for reaching them.

An example of a timeline goal could be to reach a specific dollar amount in sales by a certain date. Other goals could include specific profit margins at specific times or seasons.

Include marketing goals too. For example, set a goal of a certain number of social media followers on a specific platform at specific time intervals.

Milestone timeline markers could include items like obtaining distribution contracts. They can also include production volumes or expansion thresholds.

Startups tend to focus on revenues and not on profit. This can result in cash flow problems.

Difficulty securing financing follows shortly behind this. Growing too fast is not always a good thing. In our failed startups article, we mentioned a few who kicked the bucket for growing too fast and then not keeping up the pace.

A clearly designed business plan with well-established goals and budget is key. A team with the discipline to stick to the budget will be more successful.

Focus on profits and the revenues will correct themselves. Manage the rate of growth.

For example: when product beta testing is complete or when product distribution is established. These are opportunities to secure financing and raise capital.

Establish in advance at what milestones or goals the company will raise capital. Venture Capitalists can offer an influx of cash.

Exercise caution as this also can entail a shift of leadership and team dynamics. Ensure that you raise capital at an optimal time and terms for sustained growth and success.

Common problems resulting from lack of goals include:

• Uncontrolled growth
• Focus on revenues over profitability
• Lack of defined goals
• Lack of established budget

Team Problems

One problem is having teams of excessively like-minded people. This prevents the debate of new or better ideas and options.

A team of intelligent and ingenious minds is always a plus. However, a lack of business knowledge and experience will have a profound effect.

A good team needs to have an emphasis on marketing and sales. This is true regardless of the product, industry, or service.

A lack of set roles leads to duplication of tasks. Make it clear what each team member is responsible for.

Also, make clear who each team member reports to and is accountable to. Identify ways to resolve conflicts and who to report them to.

Lack of team oversight can mean problems go unchecked until they become catastrophic. Hold team members accountable and learn from mistakes as a team.

Small mistakes and obstacles can be warnings of bigger problems to come.

They can debate the problem and settle on the best idea or solution.

A good team expects challenges and when challenges arise they work the problem.

Good team members are good listeners and will ask for help. They seek advice and they learn from their mistakes.

Common indicators of team problems are:

• Teams of ‘yes men’
• Lack of business expertise
• Undefined roles
• Lack of oversight/accountability

Legal Problems

Legal problems aren’t the most common cause of startup failures. But there is no such thing as a small legal problem.

Select legal experts from the start and establish relationships with legal advisors.

Legal problems have sunk quite a few startups before they ever reach the market. This is particularly true of highly regulated or intellectual property industries.

Thorough research into the regulations affecting a particular product or industry is key. Identify the governing and regulating authorities for your startup and do your homework.

Trademark, Copyright, and Patent laws can also be sticky areas. Thorough research by legal experts may be appropriate.

The time and expense involved at the beginning are an investment in the startup’s long term value.

Common legal tripping points include:

• Failure to research patents
• Failure to research trademarks
• Failure to budget for legal compliance
• Failure to comply with regulatory guidelines
• Costly launch delays

10 steps to Beat the Odds

These common causes of startup failure may seem obvious. The problem is that it only takes one of them to sink a startup.

So it’s important to be objective. Examine your startup and identify the weak spots.

Get the perspective of someone on the outside. Find out what others see as the startup’s greatest area of risk.

Ask questions like: What don’t I know? What areas will require outside expertise? What are my leadership weaknesses? How will the team function? How will I gauge the market? When have I failed in the past? How will that failure help in this startup endeavor?

Review these 10 principles and examine how to apply them in your business model.

1. Do research
2. Establish a budget
3. Create written goals and milestones
4. Know what you don’t know
5. Build a team of experts
6. Create well-defined leadership roles
7. Establish accountability
8. Know the market
9. Focus on profits

Identify & learn from mistakes & warnings

Some say that a startup needs 2 things to succeed: good marketing skills & good bookkeeping skills. While this may be an oversimplification it does drive home a couple of points.

1. The business idea may be fantastic but the idea, product, or service must also sell. The product may be poor but if it sells it you will have more success than a superior product that isn’t marketed well.
2. Sticking to a budget is vital, no matter how much revenue is coming in.

In conclusion, the causes of startup failure are common and clear. This means that the keys to success are clear and available too.

Financial problems, partnership friction, and weak leadership are obvious causes of failure. Lack of marketing strategy and failure to build a good team are other factors.

New startups can turn exponential profits and they can also improve the quality of life. That is why the founder of a startup needs to love what they do and be passionate about bringing it to market.

Before there are great rewards one must face great risk. Mitigate the risks with careful planning and forethought.

Asking for help and advice is a powerful preventative against startup failures.

If you enjoyed reading this article on startup failure, you should check out this one about failed startups.

We also wrote about a few related subjects like financial projections for startups, startup consultants, startup advice, startup press kit examples, Berlin startups, types of investors, share options, London startups, gifting shares, best startup books, and risk management process.

The post Why 90% Of Startups Eventually Fail. Will Yours Be A Startup Failure Too? appeared first on TMS.

The problem is what outsourcing is often handled incorrectly. In today’s article, we’re going to go over a few of the best examples of outsourcing failures that you can learn from and give you tips on how you can avoid falling victim to similar failures.

7 of The Biggest Modern Outsourcing Failures

IBM and Indiana 

One of our first failure examples is the one that went down between the state of Indiana and IBM. Indiana was looking to outsource the modernization of its welfare processing system.

They were hoping to transform it, reduce costs, fix violations, and introduce a new service delivery model. The goal of the operation was to allow the system’s users to access and make claims online or over the phone – it was worth roughly $1.6 billion.

Despite having the best intentions, the outsourced final product was chalked full of errors. Applicants placed frequent claims of long wait times. The vendor company needed extra support and, unfortunately, did not get it.

How big of a failure was this? Well, if you do a Google search, you’ll end up with news like this:

Epic and Cambridge University NHS Foundation Trust 

Epic was hired by the Cambridge University NHS Foundation Trust to develop an online patient record system. The system was supposed to give staff access to patient records via portable, hand-held devices such as iPads.

The goal was to improve information flow and performance.

This project, however, was one of many to fall victim to outsourcing problems. After the launch of the system, performance dropped 20%. It was known for giving out inaccurate information, which upped the risk of patients not receiving the appropriate necessary care.

Also, the information was not being updated correctly. This led to confusion among the staff as to how to use the new system.

IBM and Texas 

The state of Texas was looking to consolidate its data center operations. To complete the task, the chosen IBM and within the first two years of the project, IBM was tasked with consolidating data center operations for 27 state agencies. These agencies were to be divided into two main data centers.

Within the two years that passed, IBM managed to migrate only the agencies of five systems. To make matters worse, IBM was not performing the nightly backups that their signed contract required.

Through this outsourcing failure, Texas lost $863 million.

Cambridge University Hospital NHS Foundation Trust and Medical Software

In this case, the goal was to introduce a new way to record patient information. The UK’s NHS has a record of spending a staggering amount of taxpayers’ money on projects like this – all of which have failed.

The Cambridge hospital hired a US company to create a new system for them. This system was supposed to allow medical staff to access patient records on mobile devices such as iPads. The result of this decision, however, was a 20% drop in productivity.

The hospital was ill-prepared for how big of a challenge implementing a new system would be. The staff was confused and did not have adequate training to use the system, which is a common problem when introducing new systems to public institutions.

Navitaire and Virgin Airlines

Navitaire was once responsible for providing Virgin Airlines with an outsource internet booking system, boarding software, and check-in strategy.

The software, once completed, crashed twice within its first three months, and both times, it took the provider almost 24 hours to get the system back up and operating. This ultimately led to thousands of passengers stuck on the ground and numerous flights being canceled.

Queensland Health and IBM

The health department of Queensland hired IBM to develop an application for administering payroll. IBM estimated the cost to be roughly $6 million but soon after placing this estimate, realized that the job was going to be much more work than they had thought.

By year-end, IBM had adjusted its estimate to $27 million and, after dragging on for years, the project ended up costing 16,000% more than it was originally supposed to. In the end, it came in a $1.2 billion and never even worked properly.

IT Vendor and Royal Bank of Scotland

Although the Royal Bank of Scotland didn’t disclose the vendor that they worked with for what is, perhaps, one of their biggest outsourcing failures, they did disclose how terrible the situation was.

The bank system required updates and had one planned for June of 2012. It did not go well.  This left millions of customers with no access to their hard-earned money.

Both commercial and non-commercial customers were unable to withdraw funds, perform transactions, or check their balances – and the worst part was that even the bank staff couldn’t do it for them. 30,000 social welfare clients did not receive their money as a result of their failed software update.

Most Common Reasons for Outsourcing Failures

Too Tight of Deadlines

Trying to complete projects with unrealistic deadlines can mean many areas are skipped over, which ultimately results in a low-quality finished product and a host of issues further down the line.

Sometimes there is no choice but to work within a tight deadline. If you can, however, you make sure to schedule adequate time for every project you outsource. Scheduling a bit of extra time is helpful, as well.

Mismatching Expectations

You and your contractor should be in agreement on the product that is to be delivered to you. Service level agreements, trouble-shooting solutions, and other variables should be discussed and confirmed before the project starts and before any contracts are signed.

This ensures that you know what you’re getting and that your contractor knows what they are expected to provide.

Lack of Technical Expertise

Software development is usually outsourced as a way for companies to avoid the expensive and often painstakingly stressful process of hiring employees.

This being said, some companies end up hiring teams that lack the technical know-how that their project requires. When this happens, there are tons of complications that can arise.

Only Considering Cost

Instead of choosing the lowest bidder, the one who offers the best upfront discount, or the one who offers savings on secondary projects, opt to go with the provider that will deliver you the best quality.

You’ll want to consider their previous accomplishments, check out their references, and research the team’s certifications, experience, and professionalism. If you don’t know how to do the necessary research to answer these questions, you can hire a consulting firm to help you make your choice.

Problems with Code Quality

It can be hard to determine whether your outsourcing team is adhering to the set quality standards while programming your software. This challenge is amplified when you’re working with a team that is a non-tech team that doesn’t have a lot of experience programming.

Poor Communication 

Clients sometimes withhold information because the information seems apparent or obvious – this is one of the biggest mistakes that lead to outsourcing failures. If the outsourcing company doesn’t fully understand its goals, the work will come out differently than you’re expecting.

Don’t be afraid to share details with your teams – even those that you feel are blatantly obvious or simply common sense.

Failing to View the Relationship as a Partnership

When you work with a service provider for the long term, they can become a valuable partner. If you view your provider in a way that isolates each task they perform for you, it makes it hard to create a strong relationship. Instead, you need to view your relationship as a partnership.

4 Ways to Avoid IT Outsourcing Failures

Determine Your Outsourcing Goals

It’s a good rule of thumb that if you don’t know where you’re going, you’ll never get there. Once you’ve decided to start an outsourcing venture, you’ll need to decide what parts of your project you want to delegate to other teams. Take some time to think over the skills you have and don’t have.

Prioritize Value 

Outsourcing most definitely serves as a way to cut costs. However, this shouldn’t be the only or primary reason that you choose to hire an outsourced team for your projects. Outsourcing should never be approached as a cheap way to get rid of work – instead, it should be used to optimize your business.

This being said, it’s important to focus on value over price.

Utilize A Software Development Agreement

When it comes to doing anything for your business that requires the assistance of an outside party, you should always get the agreement in writing.

Software development agreements that are drafted properly can be used as roadmaps for developers to follow.

They also safeguard you from the effect of losses should things go wrong.

If you enjoyed reading this article on outsourcing failures, you should check out this one about nearshoring.

We also wrote about a few related subjects like best countries for outsourcing, Outstaffing, outsourcing to Serbia, in-house development vs outsourcing and  outsourcing to India.

The post Why You Hear About IT Outsourcing Failures and Why It Can Work for You appeared first on TMS.

Generally, the decision to hire an outstaffing company starts with the realization that to continue being successful, your company needs to hire a development team that is based abroad. In addition, this decision is also made because it requires less money and opens the potential employee pool to talented individuals in other countries.

Once this decision has been made, the outstaffed team becomes an extension of the existing in-house team. You, the manager, will be in contact with your outstaffed employees and discuss their projects and performance.

What Type of Team Is Best for You?

Hiring a team of outstaffed employees guarantees a new business relationship. Going along with this, you need to specify your needs and clarify any rules that you find important; doing this will help you to determine what kind of outsourcing solution will fit your company the best.

You’ll want to figure out how long you intend to use the outsourced company. Whether you’re looking for a short-team team for a specific project or seeking a long-term commitment, it’ll make things a lot easier if you know what type of team you need.

HR and Staff Considerations 

Before partnering with any given outstaffing company, you need to make sure that the company can provide you with the talent that you desire. There are a few key questions to ask potential companies:

• How long does it take your company to find programmers with the necessary skills I need?
• Will you provide your own developers or use custom recruitment to fill my spots?
• What are your strategies for retaining staff?
• What’s your experience level in terms of recruiting the skills I need?
• What is your onboarding time, on average?
• How many recruiters do you have?
• What’s your capacity for recruitment?
• What terms and conditions do you have centered around increasing or decreasing the size of my team?

Research the Backgrounds of All Potential Providers

Whether you have five potential providers or 2 potential providers, it’s important to put in a bit of time and effort to thoroughly research each background. Yes, the more potential providers you have the longer this will take you but your business will be rewarded well for your diligence.

A successful outsourcing process relies on mutual trust, which is why you want to conduct these background checks. You need to make sure that the provider you go with checks all your boxes and manages to quell every shred of doubt you might have about their reliability.

Contact the Provider’s References

If an outstaffing company is building your entire app or website for you, it’s a good idea to ask them for references. They should be able to provide you with at least two good references.

If your provider tells you they have no references but you still like the company and see the potential in them, give your project manager a task; have him or her manage the outsourced staff directly to ensure that things are done properly and to your standards.

You could also look for case studies on the provider’s website or dig up samples of their previous work.

If you do successfully get in touch with a provider’s reference, ask them about how the provider handled requests for changes. You want to work with a company that adapts to change well and professionally takes criticism.

Conduct a Capability Evaluation

Perhaps the most important factor when deciding on a company to work with is whether they have the technical know-how that you need. The first step in deciding if a company possesses technical capabilities is defining your company’s strengths, needs, and weaknesses.

Once you know those things, you can go forward with weeding out the best outstaffing company for you. A few factors concerning technical capability that you should look into include:

• Technology and skills
• Maturity of operations
• Depth of service

Prioritize Market Reputation of Providers

Regardless of which type of business you run, you can’t afford to work with a company that can’t honor deadlines or is impolite and unpleasant to work with. This being said, it’s important to look into the reputation that your potential provider has before signing a contract.

The reputation of a provider can and does shed light on the company’s past successes and failures, which is something that’s good to know when considering working with someone. Since social media is so popular with both companies and individuals, it’s a great place to get an idea of reputation.

Using social media you may be able to find reviews and testimonials, as well as connect with customers to get more information about their experiences with the vendor.

Mind Your Budget

We can understand wanting to work with the best vendor, however, the perfect vendor is often the most expensive one and as such, your budget is a factor that needs to be considered. Before you look into vendors, decide on how much money you can comfortably afford to spend on a project and how far, if necessary, that budget could be stretched without causing too much trouble.

Going into an agreement, avoid vendors that spring hidden costs or additional fees on you and aim for the best vendor that you can afford with your allotted budget. Never compromise the quality of your project for the promise of a lower cost.

Security

When putting your faith in outstaffing, there’s always a certain level of risk associated. This risk, regardless of how small, is crucial to keep in mind. Should something go wrong, company data and trade secrets could be compromised, so don’t be scared to ask questions regarding security measures.

Here are a few questions to ask.

• What terms and conditions do you have relating to intellectual property rights?
• What disaster recovery plan do you have?
• Are you prepared to sign a non-disclosure agreement?
• Which security measures do you have in place for those who can access my project?

Ending thoughts on how to pick the best outstaffing company

With these crucial points at the forefront of your mind, your outstaffing process should go smoothly and yield great results. You should, without a doubt, be left with a valuable resource for transforming your ideas into effective software creations.

All this being said, using an outstaffing company can have its drawbacks. Personal time, leadership, and resources will need to be invested in order to secure the best team of developers for your company.

If you’re in need of some help outsourcing your various operations, you may want to consider getting in contact with TMS.

TMS builds, tests, and launches (as well as enhances!) complex mobile and web apps. Our services are ideal for companies with a fast growth rate and development companies who need help scaling up their capabilities for development.

TMS works hard to maintain and improve quality, improve productivity, and optimize costs so that working with the company is cost-effective and worth every penny.

If you enjoyed reading this article about an outstaffing company, you should read these as well:

• The 32 Best Web Development Companies in Serbia to Work With
• What Is A Project Management Framework? (Must Read)
• Outstaffing Or Outsourcing, Which One to Pick?

The post How To Pick The Best Outstaffing Company For Your Projects appeared first on TMS.

This guide is designed for those who have launched an app and for those who are currently meandering through the pre-launch phase of the development process.

In addition, the information presented here will be useful if you’ve had an app launched for a period of time already but aren’t sure which app analytics you should be keeping track of.

User Engagement App Metrics

DAU (Daily Active Users)

Chances are that you know how many people have downloaded your app. But do you know how many people use your app on a daily basis? This metric is designed to measure exactly that.

This success metric refers to how many individuals use your app every day. It does not, however, keep track of how many times a day or how many days a week someone uses the app. Each individual is counted one time.

Ideally, the number recorded here will grow each month. If it starts to lag behind, you’ll need to push notifications and amp up your marketing tactics to engage users and make the app more popular. 

App Session Intervals

App session intervals is a metric that measures how often a user opens the app. Basically, it determines how engaged your users are by recording the time between each use of your app. Most of the time it’s better to see shorter session intervals because it means that your app is being opened frequently.

If your metrics are showing long intervals, the key to shortening them is by actively inserting your app into the daily routine of your users. Provide users with a reason to open and engage with your app each day.

Average Session Length

While app session intervals record how often your app is used, session length is a metric that measures the length of time that users spend on your app each session. This metric isn’t universal and tends to depend on your industry.

This is worth tracking because it gives you a good idea of how valuable your app content is to those who use it. Apps such as Netflix and Spotify benefit from this metric; it tells them whether their recommendations are in sync with their user’s preferences.

For apps like Uber, a longer session time isn’t generally something to strive for. In fact, a long session time on an app like this is likely to mean that the user is dissatisfied because they were unable to find a ride quickly.

Retention Rate

This metric is pretty easy to figure out thanks to its name. Ultimately, it’s a metric that records the

percentage of users your app retains and, as a result of it, you’ll also be able to see how many users are being lost to churning.

When you use this metric, the numbers you plug in will depend on what information you’re hoping to gain from the data. If you’re calculating the rate of retention based on the number of people who downloaded your app last month, the data will reflect the relationship between your marketing and your user engagement. 

Churn Rate

The churn rate is the exact opposite of the retention rate. It’s defined as the rate at which users are uninstalling your app and/or canceling or downgrading subscriptions. Although churn rates are a negative aspect right off the bat, they become particularly problematic when valuable users fall victim to it. When this happens, the economics of your business can be affected.

Regardless of the industry you operate in, rising churn rates are bad business. The hardest part is that it’s so difficult to discern why users are abandoning your app, as there are a whole host of potential reasons. These can include app crashes, app rivalry, poor usability, and lack of new content.

Stickiness

App stickiness is a metric tracking system that is often referred to as the number of times a user opens your app. It’s an important factor that indicates the popularity and “stickiness”, which is the general idea that the more times a user generates a session, the better.

When measuring this metric, it’s crucial to remember that in the world of digital analytics, sessions are defined as the number of times that users perform a certain set of actions. This being said, it’s essential to clearly define what a session is for your particular app.

Stickiness can be calculated by diving your DAU by your MAU.

Stickiness= DAU/MAU (Daily Active Users/Monthly Active Users)

Acquisition App Metrics 

ARPU (Average Revenue Per User)

On average, how much do users spend on your app? That’s the question that this metric’s data answers. It also shows you how well you’re able to make additional sales.

This data is determined by looking at the cash generated through ad clicks and impressions, in-app purchases, paid downloads, subscriptions, and any other forms of monetization you may offer.

This figure is multiplied by the size of the user base, which is also known as the active user base, to give a rough idea of the app’s value as a whole unit.

ARPU = Lifetime Revenue/# of Users

Lifetime Value

Another one of the key metrics to measure success, lifetime value tells you how much value each of your users is bringing to your app.

In order to provide a valid comparison, you’ll need to calculate your CPA (Cost Per Acquisition), which is calculated by diving the costs of your ad campaign by the number of total acquisitions produced by said campaign.

Lifetime value targets the calculation of the value you expect to gain from an average customer during the time in which they are a customer. This value can be the revenue or profit and can be valued at the cost before marketing costs or the costs after marketing. It’s ideal to determine this ahead of time and use the same values each time to see consistent data. 

Cost per Acquisition

This metric tracks how much you are spending in order to acquire an active, paying user or new subscriber. This cost includes things like money spent on advertising or PR, the costs of technology like infrastructure and hosting, as well as salaries or contract fees for design, support, development, legal aid, or other assistance.

You’ll need to adjust your CPRA depending on the revenue generation capabilities within your app. As an example, if you offer a paid app, you’ll want to keep your CPA below the cost of your app.

CPA = Cost/# of Acquisitions

Customer Satisfaction (CS) Metrics

Reviews

User reviews directly impact how many downloads an app receives. When a potential downloader opens up the app store page for your app, he or she will almost always look toward the comments for reviews of the app in order to decide whether they will download it or not.

When your app receives a negative review, it’s important to take it seriously and look into the issue. If there is anything that can be done to remedy the problem that was mentioned, it should be done.

Ignoring negative feedback will result in fewer downloads and diminished app success. It could also impact your churn rates. 

Downloads

Units, more commonly known as simply downloads, are a representation of the number of times that an app has been installed. It is typically the first telltale sign of how well an app is doing.

For example, if you’re noticing very few or no downloads when watching your app metrics, you’ll need to search for problems within your marketing funnel – don’t worry, we’ll go further into marketing funnels in a bit.

By tracking your downloads over a long period of time, you’ll be able to accurately gauge how well your marketing tactics are working.

Active Users

Despite the similarity in these app metrics, downloads and active users aren’t the same things. Downloads refer to how many people have downloaded the app but does not tell you any information on how many users actively use the app, which is the most important of the two.

The number of active users that your app can be tracked in a number of ways. You can track it by monitoring those who launch the app frequently or by those who perform actions within it on a regular basis. 

Average Screens Per Visit

In the world of mobile app analytics, a “Screen” refers to a page visited by a user. Each page has a distinct URL, which can be tracked by using basic techniques. In this case, higher numbers are better than lower numbers because they mean that users are spending more time in your app. It also means that they are navigating to more pages and actively engaged.

When you rely on advertising for monetization, this number is especially important. This is because, generally, the more screens a user navigates to means the more chances you have to show them ads, which earn revenue.

Conversion App Metrics

Goal Completion

Regardless of whether you’re monitoring mobile apps or websites, goal completion is a metric that is crucial to the success of your application. Goal completion is used by major companies like Google and is used to track virtually anything and everything that signals that users are using your platform and retaining value from it.

You can think of goals almost like checkpoints. Every checkpoint can serve as an eventual goal; signing up can be a pathway to a large goal such as making a purchase or subscribing to a paid service.

One of the best parts of using goals in this way is that there’s no need to decide on a concrete definition. In addition, goals can be set based on the most important aspects of your users’ activities. You can use anything from registration to subscriptions as a goal and checkpoint.

Organic Conversion Rate

The ideal situation is that users would discover your app because it has gone viral and is spreading like wildfire. One of the best ways to gauge the progress of this situation is by measuring the organic conversion rate of your app.

Organic conversion rate is a mobile app measurement that tracks unpaid discovery. In other words, it keeps track of organic searches, word of mouth mentions and recommendations, influencer marketing tactics, apps that are marked as “related” on the app store, and any other conversions that come about as a result of advertising that hasn’t been paid for by you, the developer.

To increase the conversion rate, you can offer users personal offers, use CTA buttons, and ensure that every action made within your app leads to a conversion in a way that is clear and easy to navigate.

Paid Conversion Rate 

Paid conversion rates are the opposite of organic conversion rates. These conversions include PPC advertising conversions, social media ads such as promoted Twitter tweets and boosted Facebook posts, sponsored reviews or posts, display ads, and all other marketing methods that involve the exchange of money for views, mentions, or likes.

One popular form of paid conversion that you may be familiar with is that of YouTube videos in which creators are paid to try out products or apps and give reviews on them.

Return on Investment (ROI)

The return on investment is calculated by diving the number of gains (revenue or customers) by how much money has been spent on marketing. When figuring out this calculation, be sure to factor in all aspects of marketing including expenses incurred and any time spent.

ROI= (Gain of investment – Cost of investment ) /Cost of investment

AOV (Average Order Value)

The AOV user metrics system is used to measure the amount of money that each app user spends. This number, although helpful, isn’t always the best metric to go off because not all users spend money on apps.

So, instead of tracking the AOV of all users, you could opt to track the AOV of paying users specifically. To get an accurate number here, you need to calculate the overall AOV of all users and then eliminate the users that aren’t paying. This will leave you with the AOV of all paying users.

If your AOV and AOV of paying users are drastically different, it’s a sign that the majority of your app’s users are not spending any money.

App Performance Metrics 

App Latency

The app latency is the interval of time between API proxies being triggered and their response. This is also known as load time and, generally, you want this number to be as low as possible. KPI is tied to load times and the behaviors that correspond to them. This number is one you want to be as high as possible; in other words, higher numbers mean faster response.

Now, it’s important to note that latency isn’t the same as speed. For example, latency is the measurement of how long it takes a button to be pressed while speed is, well, the speed of how quickly things happen after the button is pressed.

App Load Time

Extremely important, app load time needs to be perfected and maintained in order to avoid users abandoning your page before they reach the desired content. People want to have quick, seamless mobile experiences and when pages take too long to load, both apps and websites suffer.

Number of Crashes

Crashes are almost always a problem related to app performance. This metric serves as a way to measure how often your app closes without prompting while it’s in use. A high number of indicated crashes can be easily identified and is often cause for the abandonment of your app.

Ending thoughts on app metrics

As is true with any business project, it’s important to ensure that your app has good performance and is well received by your target audience. Using app metrics, you can ensure that you have all the necessary data you need to make adjustments and informed decisions regarding your apps.

Working with a developer is an easy way to help make sure that you’ve set everything up properly. Often times, app developers try to do things themselves and end up creating more problems than doing themselves any good.

When using metrics, make sure to choose only good metrics – that is, choose only the metrics that you need and will use and avoid using extra when you don’t need to.

If you enjoyed reading this article about app metrics, you should read these as well:

• Want to Hire a Web Development Team? Know This First
• Product manager vs project manager: The difference between them
• Top fintech apps that will make a splash this year

The post Crucial App Metrics to Look for After Launching appeared first on TMS.

Considered by many to be a proven way to optimize the cost of projects, outsourcing is no longer a trend; instead, it is common-place and popular all over the world. When a company creates a team for your project, the employees are carefully chosen, and each brings a unique talent to the table. The best part about these talents is that, thanks to outsourcing, they can come from countries all around the world, since the process of outsourcing is done online.

So, you might be wondering what countries provide the best employees and, if you are, you’re in luck. In this article, we’re going to cover a few of the best countries for outsourcing.

What Makes A Country Ideal for Software Outsourcing?

When it comes to the best countries for outsourcing, the key points you want to focus on are the country’s IT market, their costs, and the ability of the country’s employees to communicate with you in your preferred language.

One of the most important criteria that companies use to choose an outsourcing company for your tasks is the investment that has gone into corporate education. In other words, companies choose employees for you with a high emphasis on a good education, choosing those who have gone through both high school and higher education. According to a range of analytics, both Eastern Europe and Asia are two areas that focus on education.

On the other hand, in offshore outsourcing companies, prices tend to be a lot lower. In general, India is the most affordable outsourcing country, with Argentina being one of the most expensive.

Most countries that offer software outsourcing have a good handle on the English language. The employees will likely speak English at an Intermediate level if not higher. For project roles such as manager, your employee will need to be very advanced in their grasp of the language.

The Top Reasons for Using Overseas Outsourcing

A few of the top reasons why you might want to consider outsourcing your program development from other countries include:

• Ability to work with global IT markets and their services
• Risk management enhancements
• Control over service and cash flow
• Projects completed by professionals

The Best Countries for Outsourcing Software Development

Serbia

Clients who trust their development outsourcing to companies in Serbia benefit from low prices.

Despite these low prices, the quality of work is comparable to that of the USA and Western Europe.

The time zone in Serbia, as it is located in Europe, is Central EST, which means that workers have no issues working in real-time with managers in Western Europe or North America.

Serbia offers free higher education and modern electrotechnical engineering facilities, so it’s easy to see why the country has such a large talent pool and some of the best software developers in Europe.

In addition, English is an obligatory second language and is taught in all elementary and high schools in the country. Serbia ranks number 15 of 100 countries/regions on the EF English Proficiency Index. Since Serbs learn English at a young age, many can speak it without an accent and have excellent communication skills.

If you’d like to outsource your web development in Serbia, a good company to work with is TMS. Check us out and see how we can help you.

Now let’s move on with the best countries for outsourcing software development. 

Ukraine

In Ukraine, English isn’t a very popular language among the general population. However, roughly 80% of the IT employees within the country speak the language, which means that language is a barrier that you’re unlikely to have to deal with when outsourcing here.

Another benefit is that Ukraine has a time zone that overlaps with both UK and US time zones, as well as a similarly structured working culture complete with healthy competition.

Ukraine is a great outsourcing option for those who prioritize working with companies that have a good quality to price ratio.

Belarus

In total, Belarus is home to more than 30,000 IT specialists and 1,000 skilled software development companies. There are numerous developers in Belarus who are known globally and, in general, outsourcing here provides clients with a good cost to quality ratio.

IT services and computers fall into the spot of 3^rd largest sector within the country and has a large, unwavering amount of government support. Many of the developers from Belarus are specialized in complex areas such as IoT, fintech, cloud computing, AR/VR, machine learning, big data, and high-load systems.

One of the concerns surrounding outsourcing to Belarus is that the attrition rate in the country is higher than that of other countries. It is roughly 24% according to Ernst & Young, which implies that there are risks regarding consistency with the work provided by dedicated teams.

Thailand

Another of the top outsourcing countries is Thailand. The country, according to a survey conducted in 2016, holds the number 6 position among the ASEAN countries with anefficient offshore labor market. There is a booming higher education system and excellent infrastructure, which boosts the IT outsourcing labor force a little higher every year.

Thailand has been working to improve its understanding of the English language; this has increased its popularity within the world of outsourcing. Many clients who outsource to Thailand are looking for web design, digital marketing, IT consulting, app development, testing, and software quality assurance services.

India

The competitively low prices of software development in India make the country stand out as a top contender for the title of “best countries for tech jobs”. As a whole, the nation has been making great strides in its tech and software development for more than two decades and as a result, programming outsourcing has become a full-blown industry.

Although India has a relatively low literacy rate, the government pays careful attention to how mathematical research and technology are developed. India is also in the beginning phase of introducing a Westernized approach to education, churning out up to 2.6 million STEM specialists from Indian universities each year.

Argentina

Outsourcing companies based in Argentina tend to have a skilled background in software and mobile development, DevOps engineering, and data migration to the cloud. Argentina offers its programmers free computer technology education and individual programs. 70% of Argentinian university students combine their studies with computer and/or tech-related work.

It wasn’t until the 90s that the IT industry within the country began to develop. The main advantage of this is that it now has an incredibly robust telecom network, which makes it ideal for internet startups.

One minor downside to outsourcing here, however, is that there have been claims of cultural differences making negotiation a difficult task.

China 

In China, both primary and secondary education is focused on high tech and mathematics. The market for outsourcing services in the country has been seeing a growth rate of 30% annually and is known for its Shell and Python software products.

It’s estimated that there are over 30,000 software development professionals that rank in tier 1 and 2 according to the esteemed HackerRank Programming Olympics. This ranking gives us a glimpse into the emphasis that China puts into training and education.

The disadvantage of working with Chinese outsourcers is that there have been instances of specialists not complying with intellectual property laws. In order to reduce the risks related to this issue, it’s recommended that clients work with high-rated outsourcing teams and that rules are established early on.

Poland

Poland has a very diverse IT labor force and a healthy background in software development. Of the Eastern European nations with high-tech technologies, Poland ranks as one of the first countries on the list thanks to their affordable programming services.

PHP is the most widespread programming language used in Poland, but the country is also known for its use of Java and .NET. As reported by various clients, engineers in Poland are proficient with a good work ethic and very few cultural differences.

Since Poland is a member of the EU, it follows inclusive data protection laws and regulations. This is one of the major benefits of outsourcing within the country – especially when your project involves web development. Commonly, Polish workers are tasked with UI-related jobs, as well as front and back-end development.

Taiwan 

According to recent evidence, the Taiwanese government has a set goal of turning the nation into the Asian version of California’s Silicon Valley. Last year, in 2020, the country was focused on STEM education. It has also been working on improving its innovation and technology, which has allowed it to become one of the leading technologically advanced countries on the planet.

Outsourcing coding and other web-related tasks to Taiwan is a great idea. Here, the IT professionals have a reputation for having hard-working spirits, good work ethics, and a high quality of work compared to many other Asian countries.

Czech Republic

The Czech Republic boasts a high-ranking IT sector that is known for its proficient outsourcing. This sector is filled with professionals who offer affordable software development solutions and are always available.

The country is among the top 20 that pride themselves on investing in the tech sector. As such, total funds make up 2% of the country’s overall GDP, which means that the Czech Republic surpasses both the UK and Canada.

Many international companies like IBM, Honeywell, Google, and NetSuite have offices in the country. There is a large number of small companies who have offices there, as well, taking advantage of the country’s language proficiency and policies regarding product quality.

Each year the Czech Republic’s tech sector grows as it adds 7K tech graduates and rapidly expands.

Philippines 

Over the past few years, the Philippines has undergone a silent revolution; it has shaped the outsourcing sector for software development in order to meet the new demands. Culturally the country is similar to Western countries and holds ranks as the third-largest English-speaking country in the world.

Contractors from the Philippines are praised for their quick work, while the university education system is given special attention due to its high rate of tech graduates. The work provided by these IT and tech experts is of high quality and comes at an affordable cost that foreign companies are eager to take advantage of.

Brazil

There is a seemingly never-ending number of reliable software providers and developers that hail from Brazil. Known as one of the most in-demand outsourcing countries, Brazil is popular because of its affordable prices and rich talent. Outsourced employees from Brazil are great at adjusting to clients’ needs and meeting deadlines.

In addition, Brazilian outsourcing companies are highly proficient in the English language, which makes it easy to write up contracts and get work done. Many workers also speak French or Spanish and almost all works are bi-lingual if not multi-lingual.

Vietnam

Vietnam is best known for its quality services. However, it’s also known for the low cost at which these services are offered. With labor costs costing 90% less than they do in the US, clients are guaranteed to see savings when they outsource to the country’s professionals.

Another thing that makes Vietnam one of the best countries for outsourcing is that it has varying and numerous talents within the software development trade. The Vietnamese government recognizes the importance of education and training, meaning that the locals are well-educated and have high chances of being hired for overseas jobs.

Despite the success here, the IT industry is young compared to that of other countries. As a result, there are sometimes problems when it comes to the supply and demand aspect of IT specialists. Communication can be a weak spot when outsourcing to Vietnam, as well.

Romania

Romania has roughly 60,000 citizens who work in the outsourcing sector. This number contributes to nearly 20% of all the outsourced software development that takes place in Central and East Europe.

Romania is home to a number of important international offices for companies like Dell, Oracle, Microsoft, and IBM. It also has a few Ubisoft offices. The country is ideal for those who seek fintech software but may not be the best option for anyone who needs software development in other areas.

Ending thoughts on the best countries for outsourcing

The first step in developing a strong outsourcing relationship is choosing the best countries for outsourcing. However, you’ll also need to outline clear communication and collaboration in order to make an outsourcing relationship work.

If you’re looking to find an employee team extension in Europe, one of your best bets is Serbia. Serbia is a popular outsourcing destination for many companies within the US and Europe.

If you enjoyed reading this article on the best countries for outsourcing, you should check out this one about nearshoring.

We also wrote about a few related subjects like outsourcing failures, Outstaffing, outsourcing to Serbia, in-house development vs outsourcing and outsourcing to India.

The post The Best Countries for Outsourcing Software Development appeared first on TMS.

Business plan writers understand their target customers. They focus on who they are and what they are looking for.

This focus helps your app to stand out in a very competitive market. Buyers want a solution to their most frequently encountered problems. Providing this solution will gain their interest.

Making an app business plan also creates an opportunity to think about the marketing strategy, costs, and funding. This is what potential investors will want to know.

A clear plan will make your dream become an attractive and realistic proposal. This, in turn, could provide vital support to materialize your ideas.

At times it may be necessary to recruit more staff to assist with a project. Without a business plan, it could be challenging to foresee what help you may need further down the road.

This article presents some important tips on how to prepare a flawless app business plan.

Benefits of an App Business Plan

Before rolling out a business, it’s important to identify any potential roadblocks. Roadblocks can prevent a project from being successful. A business plan allows you to consider the risks and prepare a strategy to deal with them.

One roadblock is the market presence of similar products or ideas. It is important to know both your competitors and your future clients’ demands.

The timing of the launch of a product may prove to be another obstacle. Before spending time and money on product development, consider whether the market is ready for it.

Also, think ahead and foresee how long the product will be viable. Will it become outdated even before it starts generating any significant income?

The number of elements to bear in mind depends on the scope of the project.

Other important aspects to consider include the budget and the team. Are the project developers experienced enough to execute it?

Another benefit of having a well-prepared app business plan is that it attracts funding. A good starting point is to have a niche idea. Then outline clearly whether it will generate a good profit.

Not all great ideas are of interest to an investor. By backing up a proposal with a solid app business plan, you’re more likely to secure the required funding.

Know The Customers And Competitors

Understanding the market is essential. It is the environment and the users that will determine a product’s success or failure.

There is a common mistake that many startups make. They see a need for their product because they can’t find any similar options available on the market. Sometimes, though, there are no such products because there is no demand for them.

That is why a deeper analysis should be undertaken. This includes identifying what is unique about your project.

The next step is to consider how to position it in relation to the competitors’ offers and buyers’ demand.

A useful approach is to apply the SWOT analysis. The analysis allows businesses to identify their Strengths and Weaknesses. They are then in control of these elements and can manage them efficiently.

On the other hand, the Opportunities and Threats are features of the market that you have no means to change.

Target Buyers

Before starting to develop an app, it’s essential to make a good assessment of the target buyers. The product should include features that clients need now or will need in the future.

Study the users and find out what problems they are experiencing. Then think of a solution that you can offer.

Also, reflect on the future demands of the market. Customers are constantly looking for innovation, so the offer needs to be as dynamic as they are.

Share the future vision for the product with the consumers. This will help with its development, allowing it to modify and adapt if necessary.

Even after the product launches on to the market, you will continue to learn about buyers’ demands. At this stage, they will be able to provide direct feedback on the product.

To begin with, though, it’s possible to use demographic analysis. This data enables developers to create a typical user profile. Information to consider includes age, gender, location, marital status, profession, and average income.

Another way to characterize clients is by their behavior, values, interests, and opinions. In other words, think of the reason behind their decisions and demands.

How To Make a Business Plan

The business plan is a clear definition of your vision and goals. It includes specific steps and strategies that are going to be implemented.

It is an overview of the company structure and the target market it is appealing to. It also describes the marketing strategy and funding model.

There are specific business plan templates that ask for some particular information. But every plan should include a number of common essential features.

The model below consists of all the important parts that every app business plan should have.

Part 1: Executive Summary

The Executive Summary provides a glimpse of what the product is and the goals to reach for.

It should be like a starter that is served before the main meal. The purpose is to whet the appetite of potential investors.

It identifies the specific problem that the product is going to solve. It should also highlight what makes it unique from the market competitors.

The Executive Summary should mention future business expectations. This may include some estimates on how many users it will attract and their activity.

Remember that this is just a summary. The other parts of the business plan will include more details regarding each point.

Part 2: Business Overview

Pay careful attention here, because this part adds credibility to your vision. It presents the support team and organization that will develop the product.

Investors want to know who you are and who will make their investment profitable. In this section, clarify the business values, mission, and goals.

It is an opportunity to show what the company has already accomplished and its future projected achievements. The company’s existing market reputation plays a big role in attracting funding.

Explain the company history and the story behind the new project. This is an important part of your branding and something that can add more character to the product.

Describe the business structure, the company location, and the people who make up the team.

The company overview is a way to introduce potential investors to your business partners and staff. Experienced team members are a great asset to the project. Outline what their positions, skills, and responsibilities are.

This part should also describe the project in more detail. Talk about the app’s functions and why it answers customers’ demands.

Part 3: USP Description

The USP is the reason for launching the product, why the target clients want it, and why investors should fund it.

Identifying the unique selling point is what will make the product stand out. It is that special solution that you offer, and it is a perfect match to what the buyers haven’t found yet.

If there’s no unique selling point, the product will become one of many on an already saturated market. It will not attract the attention necessary to make a profit.

If there is no demand for it, you risk wasting time and funds on something that will not make it. It’s difficult to sell something that people don’t need to buy.

Potential clients may already be using competitors’ apps. So it’s important to present something different, in order to win them over.

When formulating the USP, think of the solutions, benefits, and advantages of the app. Think about how to persuade someone to choose this product over a competitor’s.

Ask questions such as: What makes this app better? What does it offer that others don’t have?

Part 4: Marketing Strategy Model

Creating a marketing strategy establishes how the company is going to reach consumers. You have something that they need and it’s vital to communicate that to them.

Analyze how competitors are reaching their buyers and try a similar approach.

Investors will be keenly interested in this important part of the project. They need to see more than a creative mind. It’s critical to show how you will convert a theoretical solution to a high demand product.

When creating the marketing strategy, consider the following areas:

Growth and expansion

It is important to plan what steps to take to ensure the future growth of the business. Consider how to further penetrate the market and increase profits.

Have these points clearly set out. This makes it possible to present an attractive and credible business proposition.

Opportunities and threats

It’s necessary to analyze these two aspects of the market environment. There is little that can be done to control these factors.

Opportunities can present the company with distinct advantages over market competitors. It’s critical to identify these opportunities and use them to your benefit.

Be aware also of the threats that may pose a risk to the project.

Digital promotion

Decide which platforms to use to keep in touch with buyers. Choose an interface that will represent the business, the branding, and the product.

It should be easy for consumers to learn about any updates, new products, and your current activity.

Keeping in touch allows the company to stay one step ahead of market needs. Consumers will note that you are already working on what they are looking for. This guarantees customer loyalty.

Social media promotion

Before consumers land on the chosen platform, they need to find out about the product. Social media has become a powerful tool to reach thousands of new potential clients. It opens a door to new opportunities, new contacts, and further expansion.

Reviews as a marketing tool

A user’s experience can influence many potential customers. This can prove to be a powerful marketing tool. The goal is to obtain a high ranking and have clients recommend the app via customer reviews.

These reviews can be more persuasive than any other kind of promotion. After all, every business says they are the best. But it is the customers that can support or destroy those claims.

Part 5: Financial plan and forecast

There is no need to explain why this part of the business plan is essential. This is the backbone of the project.

Many businesses fail because they underestimate the final cost and run out of funds. So a solid financial plan is a must.

You should calculate your current financial status. Then ascertain how much more money is necessary.

Think about the type of funding needed to ensure the launching of the app and to create a profitable business.

Think ahead of time and prepare a forecast for the next 3-5 years. This projection will show what potential there is for both you and the investors.

Estimated Costs

The estimated costs make up the total expected sum required. They include both recurring expenses and one-time costs.

Establish the frequency at which the recurring expenses will be paid. There will be one-time payments too, so include those purchases on the list of the estimated costs.

Other types of expenses include fixed costs and variable costs. Fixed costs will not depend on the production, while variable costs will fluctuate.

Monetization Strategies

Consider the revenue streams that will generate profit for the business.

These are the most common monetization strategies:

Free, but with in-app advertising

This strategy is becoming more and more popular. It entails in-app advertisements being displayed within a mobile app.

User data is processed by advanced campaign analytics. The in-app ads become a tool to reach and convert users.

Typical examples of apps that use this kind of approach are Facebook or Youtube.

Subscriptions

Subscriptions guarantee a continuous revenue stream. The price of a long-term commitment appears more attractive than a one-time purchase.

Freemium

This monetization model offers basic features for free, but users must pay for more advanced options.

Sponsorship

Another way of making a profit is by using sponsorship. There are various ways of employing this method.

In-app purchases

This is another way to offer an app for free. Users can buy goods and services from inside the application.

Assistance With Development

The next thing to evaluate is whether any assistance will be needed to launch the product. You may have a creative mind, but analyze if you have the skills needed to produce the app.

It may be beneficial to consult with professional developers. They can provide a vision of how to build it efficiently.

Business Plan Style And Presentation

A final tip is to take the task seriously and dedicate enough time and effort to it.

The plan forms the basis of the investment pitch. It represents your assets, your uniqueness, and your visions.

It should be well organized and thought-out. It is a document that combines ideas with specific strategies. Use it as an assessment of opportunities and possible risks.

When doubts arise, the plan provides reasons to continue. It also serves as a roadmap to give direction to business activities.

It is a solid business proposal for investors. It is a validation of your effort to compete with strong business rivals.

The style should reflect your professionalism. Make it clear and realistic. Avoid using slang, and correct any grammar or spelling mistakes.

Revise or update the plan at frequent intervals.

Resources to use to create an app business plan

• Mobile App Business Plan Template
• Mobile App Business Plan by Upmetrics
• Business Plan Quick Builder
• Business Plan Generator

Ending thoughts on how to create an app business plan

Using a reliable business plan is like having a recipe for success. It is an essential part of getting ready to launch a new app.

You may have concluded that developing an app requires professional help. The competition is fierce and you want to provide the best possible solution for your customers.

If you enjoyed reading this article on creating an app business plan, you should read these as well:

• The Web Development Team Structure You Should Know as a Stakeholder
• Want to Hire a Web Development Team? Know This First
• What You Must Have on Your Team Meeting Agenda

The post How To Write a Flawless App Business Plan appeared first on TMS.

Serbia provides the virtues that employers look for and excellent technical service. It also provides a geographically closer outsourcing solution than those available from Asia.

High levels of both language proficiency and programming skills make outsourcing to Serbia a viable option. Its central geographical location provides flexibility in business transactions. It also attracts companies that are looking for an opportunity to expand.

The increase in other industries means that companies can multi outsource. And Serbia fulfills most of the European Union requirements.

There are many reasons why Serbia is a good option for finding outsourced talent. Here is a list of the top 8 reasons why your company should be outsourcing to Serbia:

1. High Focus on Education

Serbia has been making advancements in the last few decades. One area of notable improvement is the educational system. Although there are flaws, the government is taking the initiative to make improvements.

The school system consists of a primary and a secondary level. The modern curriculum includes fundamental knowledge.

This provides a solid basis for further education. It also enables Serbians to adapt to any profession they choose later on.

Both the University of Belgrade and the University of Novi Sad are highly esteemed institutions. They rank high on the ARWU, also known as the Shanghai rating.

Programming is extensively taught in Serbia. This guarantees that IT companies will have skilled programmers for years to come. Education in programming and technology starts early and continues through all levels of education.

This focus on education produces skilled professionals, especially in the field of IT.

2. Proficiency in English

Most Serbians have a good grasp of the English language. Training in English begins in grade one and continues throughout the educational levels.

Many Serbians speak a third language as well. So the country has a level of multilingualism that competes with other parts of the world.

IT experts have good computer skills and speak English almost fluently. This means that a language barrier does not exist. This facilitates the communication involved in outsourcing to Serbia.

3. High Work Ethics

Another reason for outsourcing to Serbia is that the level of work ethics is high.

Serbia has had favorable economic dealings with other countries for centuries. Many Serbians have received higher education at prestigious universities in other European countries.

This helps them to understand other cultures. As a result, they have learned how to communicate and cooperate with people from all over the world.

Serbians also understand Western values. Good work ethics ensure that work is completed satisfactorily.

4. Great Price to Quality Ratio

The main reason why companies outsource is to reduce costs. Outsourcing to Serbia is no exception. The cost of IT work in Serbia is much cheaper than in the Western part of the world.

The quality of service remains exceptional. This means that Serbia has one of the best price to quality ratios in Europe.

Serbian employees are passionate and motivated. This is due to their good education and high work ethics.

Whether making new products or improving old ones the quality is identical. Serbia’s location allows it to be competitive and provide a high quality of service.

5. Collaboration Despite Time Differences

A valid concern for some companies is the difficulties that a time difference can create. Although there is a time difference, communication is feasible when outsourcing to Serbia.

Serbia lies in the Central European Standard Time Zone (GMT+1). This time zone is ideal for working with companies in Europe. Between European countries, there is only a difference of two or three hours.

Communication is a little more difficult for companies in America or Asia. Still, there is a window of three to four hours for communication which is sufficient. And Serbians are willing to adjust their working hours to keep in contact with clients.

Collaboration is not an issue when outsourcing to Serbia. In general, Serbians are friendly and outgoing. They are open to suggestions, advice, and even criticism.

They are also approachable and respectful. This creates a pleasant working environment between clients and associates.

Even though the time difference presents a small challenge, communication is possible. And collaboration is easy because of the Serbians’ willing disposition.

6.  Economic Stability and Safety

Like many countries in Eastern Europe, Serbia has had a difficult past. But the country has made many improvements. Changes have occurred in both the political and economic environment.

Currently, Serbia is a candidate for European Union membership. This reflects the level of progress the country has made.

Serbia now enjoys a relatively stable economy. This ensures the safety of outsourcing projects.

7. Multinational Companies are Already in Serbia

There are many benefits to operating a business in Serbia. As a result, many companies have opened offices there.

Some large IT companies have established regional headquarters in Serbia. These include Microsoft, Ubisoft, Sitel, and more.

Startups are also flourishing in Serbia. Numerous startup companies are created every year.

Companies have ample opportunity to grow due to favorable company regulations and lower costs of business.IT training is more available than ever before. Every year there are more IT conferences and workshops with quality content. Most recently these conferences have enjoyed the instruction of globally acclaimed speakers.

8. Visiting Serbia

At some point, a client might have to visit the outsourcing company. Some feel apprehensive about traveling to Serbia but discover on arriving that it is a wonderful place to visit. Many have come to visit and have stayed because they fell in love with Serbia.

Serbia is a small country located in Eastern Europe. It is close to several countries that are members of the European Union. These include Hungary, Croatia, and Romania.

Serbia is reachable from anywhere in Europe. The capital city of Belgrade is about a three-hour flight from any European country.

Traveling within Serbia is easy due to its size. This means that clients can take care of all their business deals in one trip.

Outsourcing to Serbia provides a good excuse to combine work and pleasure.

Ending thoughts about outsourcing to Serbia

Outsourcing to Serbia provides opportunities to grow a business. Some have concerns about outsourcing to a foreign country, but it is clear that Serbia has the necessary resources to prevent any complications.

Proficiency in English, high work ethics, lower costs, and a skilled workforce. These are outstanding reasons why outsourcing to Serbia is an excellent solution.

If you enjoyed reading this article on outsourcing to Serbia, you should check out this one about nearshoring.

We also wrote about a few related subjects like Outstaffing, outsourcing failures, best countries for outsourcing, in-house development vs outsourcing and outsourcing to India.

The post Why Your Company Should Be Outsourcing to Serbia appeared first on TMS.