If you’re a techie, especially one with a love of iPhones then developing applications (usually referred to as apps) for the Apple iPhone, iTouch and iPad and other iPhone OS powered devices might be the perfect tech based business idea for you.

What investment is required to start developing iPhone apps?

In order to develop and sell apps for Apples iPhone OS you will need a bare minimum of:

• an Apple computer for development;
• an iPhone(or IPod Touch)/iPad or both depending on your target platform.
• A subscription to the Apple developer programme.

All of which can be obtained for around £1,400. You will also need to allow a basic marketing budget of at least £600.

What are the potential earnings?

Most apps sell for around $1 and Apple takes 30% commission on all apps sold through the Apple iStore. Your potential earnings will thus largely be determined by how popular your app is. The better you are at marketing and promoting your app and the more viral it is, the better you will do. Current app developers make anywhere from a few tens of dollars to several million dollars per year. Ultimately the earnings you make will reflect your creativity, marketing ability and the effort you put into the business.

Who would this business idea suit?

You will need to be relatively competent with Apple’s hardware platforms and you will either need to know how to program in Objective-C or be willing to learn. Alternately if you’re creative, but not at all technical you could partner with or hire a programmer. You will also need a basic understanding of marketing and public relations in order to promote and market your app.

What are the pros of developing iPhone apps?

• Low start-up costs, especially as you’re likely to already own some or all of the hardware.
• Can be run from home (or anywhere using a laptop).
• Can be started part-time so you can initially run it alongside a day job.
• Short time to market. Depending on the complexity of the application, iPhone app development times can range from a few days to a couple of months.

What are the cons of developing iPhone apps?

• It is a crowded, hit driven marketplace with new apps being developed and released on a daily basis. Standing out from the crowd can therefore be a challenge.
• The price for which you can sell is largely fixed as very few apps retail for more than $0.99 and many are free. Although it is still possible to make money from free apps.

How to start an iPhone applications development business:

If you plan to do the programming yourself and you don’t already have the hardware or required technical skills you’ll need to acquire both. If you’re planning to use a partner or freelance programmer then you’ll need to find one you can work with. At this stage be sure to join the iPhone developer program.

Once you have the software development covered, your priority will be to come up with an idea for an app. Next you’ll need to develop it. Doing so may involve hiring others to create, graphics, sound or music (particularly if the app is a game).

Once development is complete, you submit your app to Apple. Then once it is approved by Apple the app will appear in their store. Then sit back and wait for the money to roll in, if only! No at this stage you’ll need to begin pro-actively marketing your app. To do so send out press releases to blogs and news sites that your potential customers are likely to read. Tell everyone you know, both in person and on Social Media websites. Try to get the app reviewed by popular bloggers in the relevant niche.

You could also try creating a free demo, a strategy that worked well for the creator of iShoot who saw sales soar, reaching $21,000 per day after he released a free demo that advertised the paid for version. Other developers have offered their app for free to members of the jailbreak community in order to create a set of fans before the official release.

As an alternate to selling your app you can offer your app for free and make your money by selling advertising embedded in the app. This has the advantage of making it easier to “sell” your app to end users as it costs them nothing.

If the hit and miss nature of publishing your own apps doesn’t appeal then you could focus the business on developing apps for clients. Typically such clients will be marketing companies and new media agencies using the apps as part of a marketing campaign.

Useful Resources:

• Apple iPhone Developer Program.

Related Business Ideas:

• Developing apps for Google Android.
• Developing apps for Symbian based mobile phones.
• Developing mobile phone software.
• Developing games for mobile phone platforms.
• Developing software for Internet tablets.

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