How to Make a Unicorn Application - How much does it cost to build a Unicorn app?

Every startup owner dreams of their creation growing into a unicorn. However, only some founders achieve this goal. How can you develop a popular mobile application that becomes a unicorn?

A startup valued at $1 billion or more is considered a unicorn. This term is used because the rarity of achieving such a high valuation is comparable to the mythical animal. According to TechCrunch, there are 263 unicorns globally, with a combined valuation of $900.9 billion and total investments amounting to $168.8 billion. You might be curious about how to create a successful messaging startup or the cost of developing a mobile app similar to WhatsApp .

On the other hand, many startups fail within their first year of existence.

TOP-20 Reasons Why High-Tech Startups Fail

According to CB Insights , there are currently over 1,200 unicorns worldwide, with the majority found in the software industry . Developing a successful mobile app can be transformative for startups, potentially driving rapid growth, market dominance, and achieving unicorn status.

The second leading cause of startup bankruptcies is a lack of financial resources. Keith Speights, a writer and investor, believes that founders often underestimate the amount of money needed for growth while overestimating future sales and relying on ideal market conditions. Therefore, we will discuss the best practices for creating successful startups.

Marketing Research

On average, privately held companies allocate about 11% of their total budget to marketing. Data from the CMO Survey indicates that marketing drives the highest revenue growth in 38.4% of companies compared to other departments. For effective marketing, a startup must understand three key elements: where to sell, the target audience, and how to reach them.

Know Your Market

Every entrepreneur has likely heard that understanding the market is crucial for business success. However, few truly grasp its importance. Conducting detailed market research can save hundreds of thousands of dollars and help avoid significant mistakes early on.

The market consists of three main components:

• Customers;

• Suppliers;
• Competitors.

Thoroughly understanding these components will determine the potential for your mobile application to reach a $1 billion valuation. Knowing the market helps assess the total demand and whether your target audience will purchase your product. Additionally, you might find our article on how to make an app go viral helpful.

Know Your Audience

Understanding the total market demand is not sufficient for creating an effective marketing strategy. It's crucial to know your customers — the ones who will buy what you offer. You need to understand their preferences, how much they are willing to spend, how much they already spend on similar products, their pain points, and their needs. Try to describe your typical customers in detail: their age, hobbies, interests, preferences, and views. The better you know your audience, the more likely you are to create something they will appreciate.

Create a?Marketing Strategy

With 2.8 million mobile apps on Google Play and 2.2 million in the App Store , identifying your direct competitors is essential. You must develop a detailed plan to reach your potential customers. Your marketing strategy should ensure that what you offer aligns with customer needs. The plan must be flexible to allow for adjustments in marketing expenses in response to changes in customer demand and perceptions. Simultaneously, it should focus on building long-term relationships with your app users.

Discover How the impact mapping tool is helpful in developing a marketing strategy .

Product Management

Once you have completed your research and identified a market gap where you can create value, you can proceed with planning your main work. Remember, your company's greatest asset is your team. Venture funds typically invest in professionals, not just products. Hire a dedicated team and keep pushing forward.

Choose the Right Business Model

According to Tony Hsieh, CEO of Zappos, in an interview with the Huffington Post, choosing a business model is one of the most significant decisions when creating a startup. A business model defines how your company will generate revenue. While business models can vary by industry, we will outline the main models commonly used for classic mobile applications.

How to?monetize mobile apps:

1. In-app advertising;
2. Freemium (paid additional features);
3. Paid application;
4. In-app purchases;
5. Subscription;
6. Sponsorship.

After conducting a thorough analysis and selecting the most suitable business model, proceed to the next step.

Build a?Scalable Product

Scalability is essential for achieving the growth needed to be called a unicorn. Initially, focus on one location, but ensure your startup is structured for global expansion. Fortunately, IT technologies facilitate easy product scaling. However, the complexity of your idea necessitates a step-by-step approach to scaling. Here are vital considerations for embarking on a large IT project.

Create an?MVP Wisely

The right time and place for hiring 700+ employees and spending hundreds of thousands of dollars on startup development comes when your app gains traction, positive reviews, and revenue. Initially, focus on creating a Minimum Viable Product (MVP) to test your business idea and start generating funds for reinvestment in further improvements. Ensure your MVP addresses the main problem of your target audience. Once customers appreciate your idea, you can add supplementary features. The faster and more cost-efficiently you build an MVP, the sooner you can create an actual unicorn.

Organize Your Finances Appropriately

You can try to raise funds with just your idea, but it will be challenging. The stronger your team, the higher your chances of securing investments. Develop a solid financial plan and approach it wisely. If you lack experience in creating financial plans, consider hiring a specialist to assist you. Remember, the second leading reason startups fail is financial issues. This underscores the importance of having a professional financial plan.

Secrets of?Current Unicorn Apps

We can study theory for years, but without practical examples, achieving success can be difficult. Therefore, we will examine the key aspects that contribute to some startups becoming unicorns while others fail. We will focus on current unicorns and uncover their secrets to do this.

Uber

No matter where a passenger is or what device they use, Uber is always ready to provide a ride. Whether it's a smartphone, fitness tracker, or smartwatch, booking a taxi is seamless. Uber's rapid growth is astonishing, as it seems to be everywhere despite having a business model that is challenging to scale. The driving force behind this rapid expansion is a significant investment, including backing from Google.

Uber offers a cheap and fast service, creating a win-win situation for both passengers and drivers. The key components of Uber's success are:

• Professional team;
• An old, proven idea revitalized in a new style through modern technologies;
• Fast growth;
• Regular financing.

Airbnb

There are various online platforms for renting apartments in every country. However, when traveling abroad and unsure which platforms are reliable, finding affordable accommodation for a few days can be challenging. Airbnb has created a reliable global rental platform, ensuring that whenever you rent an apartment through them, you can trust that you'll have a place to stay and a reliable host. The startup's success is built on a simple fee-based business model, a valuable service, and an easily scalable structure. These three components are key to Airbnb's success as a unicorn.

Spotify

Spotify serves as a great example for our blog post due to its unique business model, which differs from the previously mentioned companies. The service is free for most users yet still generates profit. While three-quarters of users use Spotify for free and endure ads, others pay $10 per month to enjoy their favorite music without the need to download it. Spotify’s business idea isn't new—iTunes used to charge $0.99 for a single song. The key to Spotify’s success is its well-chosen business model, which allows users to pay less.

Success Formula Of?a?Unicorn App

4?rules of?a successful startup:

1. An?idea as?a?problem-solver;
2. A?team is?an?asset;
3. Investments as?a?resource;
4. A?business model as?an?income generator.

Behind every unicorn app is a valuable service that simplifies people's lives in some way. Your service could be more affordable by leveraging modern technologies like Spotify, highly reliable like Airbnb, or ubiquitous like Uber. In the age of globalization, you can combine existing ideas into one solution or create an entirely innovative product. Regardless of the approach, remember that a wise founder is always at the core of any unicorn's success.

If you're interested in developing a Unicorn app, you may have some questions about the Unicorn Application Framework (UAF). This FAQ section is designed to help you better understand the UAF and its advantages.

FAQ About UAF

What is the Unicorn Application Framework (UAF), and how does it differ from a traditional app development approach?

The Unicorn Application Framework (UAF) is an innovative platform designed to streamline the creation and management of enterprise applications. Unlike traditional development methods, the UAF supports a variety of mobile and IoT devices and simplifies cloud deployment. This approach allows you to focus less on programming and more on adding value to your business processes, ultimately enhancing the end user's experience.

What are the core principles and design goals of the UAF?

The UAF is built on principles of flexibility, scalability, and efficiency. Its primary goals are to support a wide range of devices, including mobile and IoT, and to enable seamless cloud deployment. Designed with efficiency and user-centricity in mind, the UAF aims to minimize programming effort and enhance app reliability.

What are the key components or modules included in the Unicorn Application?

The UAF architecture consists of four key frameworks. The uuUserInterface (uu5) offers services for creating Graphical User Interfaces (GUIs) using HTML5. The uuIoT framework provides services for managing IoT devices. The cloud framework enables the delivery of elastic cloud services. Lastly, the uuAppServerKit supports the development of app components, such as REST micro-services.

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Originally published at Stfalcon.com .

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