STOP BUILDING APPS
Why your startup idea doesn't need an app (yet)
Let me guess—you’ve got a recurring problem in your life or business. You’re convinced that if only you had an app that could do x, y, and z, everything would be easier, right?
Maybe you saw people on social media hacking together solutions to this exact problem without an app. You take that as validation: if so many people are trying to solve it manually, it must be time to build an app, right?
Sound familiar?
Let’s Take a Step Back
The answer to your problem is almost never: "Let’s build an app." Unless you have $10 million to burn or you’re just indulging a passion project, building an app right away is not the smartest move. There are two real reasons to start a business: solving a genuine pain point or fulfilling a personal desire (did Instagram really solve a pain point, or was it just fulfilling a social desire?).
This blog is for those of you who don’t have millions to waste and want to solve a real pain point effectively.
The Real Cost of Building an App
Let’s say you go ahead and build that $100k app. The hard work doesn’t stop there—you still need to get people to use it, and that costs money too. If you spend a modest $10k on marketing, here’s what you might encounter:
User acquisition isn’t cheap: It costs around $2.50 to get someone to install your iOS app (source: Appetiser). With $10k, you might get 4,000 installs.
Conversion rates are low: On average, only 4.13% of users will convert to paying customers (source: Statista).
Churn is a constant challenge: With a typical churn rate of 4% (source: AdamFard), your net user growth is only 0.13% per month—an increase of just 5 users each month.
The reality is, building an app isn’t a "one and done" investment. It’s an ongoing commitment that requires constant iteration, user feedback, and resources. Many founders end up feeling regret after realizing the app they rushed to build isn’t gaining traction or solving the problem effectively.
Why Building a Great App Starts with a Smart MVP
This doesn’t mean building an app is a bad idea. A well-executed app can be a powerful asset. But the difference between an app that succeeds and one that struggles comes down to how you approach the MVP. A smart MVP lays the groundwork for a product that resonates with users, solves their pain points, and can scale effectively.
The Smarter Way: Test Before You Build
If you’re still reading, I’ve convinced you: rushing into app development is not the way. The smarter approach is to test your solution manually with minimal software before investing in expensive software. In other words, do things that don’t scale at first.
An Example From My Own Experience
A former colleague and I had an idea for an on-demand personal photographer service. Instead of building a full-fledged app, we stood on a street corner in LA with a simple web app and a sign offering our services. Skeptics told us no one would want this, especially during a pandemic.
But we proved them wrong. My co-founder and I made over $100 in a couple of hours. We didn’t need a fancy app—just a minimal web app that allowed users to get their photos via a QR code.
How to Test Your Idea
If you have an idea, ask yourself these questions:
How would you solve this problem manually today?
Does a paid service already exist? If not, can you offer it manually and see if people will pay?
If a service does exist, how much money does it make? Could you provide a better manual service? What aspects can be automated later with technology?
If tech already exists, why isn’t it solving the problem effectively?
Your first MVP shouldn’t be an app on the App Store. It should leverage minimal software and incorporate manual processes to deliver value without requiring a major investment.
Why Work With a Fractional CTO?
As a Fractional CTO, I help founders figure out what their true MVP should look like. I guide you through the process of testing your idea in a lean way that minimizes risk and maximizes learning.
We’ll validate your idea first, gather feedback from your initial users, and iterate from there. By the time you’re ready to build scalable software, you’ll know exactly what your customers want.