There are a lot of great reasons why Miami Tech Startups might want to develop mobile apps. For some, the dream of being an entrepreneur drives them forward – they want to build a business, see it grow, and define their own path in life. The idea of owning something and not working a typical 9-to-5 job is a powerful pull. Others truly want to change the world and deliver a game-changing idea to the market. Perhaps even something that has the potential to impact millions or even billions of people. And then there are some who are chasing dreams of high-profit paydays, with IPO’s and acquisitions, all at the least possible expenditure and effort. The pot of gold is seemingly just around the corner.
We meet with all these types of startups – most are young, smart, and excited. The ideas we hear range from good, to great, to not-so-good – at least in our humble opinion. But often times, our opinion about an idea isn’t really the important thing. We’ve been wrong before, plenty of times. What is often more important than the idea is the motivation of the founders, and their commitment to their tech startup business.
Let’s face it – entrepreneurs are exciting to us. Many just want to get out there and do something they really believe in. They see a problem in the world, and try to figure out how they can solve it or, at the very least, make the problem more manageable for others. Of course they want to make money while doing so, but at the core, their true passion is innovating. Some look at small, vertically focused markets – others look at large, game-changing projects that could one day impact nearly everyone. Both are exciting and interesting, for different reasons.
The ones we sometimes worry about are the ones with visions of a quick dollar, requiring minimal work on their part, and anticipating a fast cash-out. One might call it the “Get-Rich-Quick” mindset. It’s understandable, as past tech bubbles have seen big west-coast investment money handed out with relative ease for ideas that, in hindsight, were terrible and unfocused. Just like the real-estate bubble, the lure of fast money and riches, inflated by highly publicized examples of success, draws more folks in that direction.
With that said, know this: these “cash-out / get-rich” projects are both unusually difficult to complete, and far less likely to be successful than others. Given the long odds of a profitable tech startup even under the best of circumstances, such founders are nearly doomed from the start.
Why do we say that? Well, first and foremost, the ongoing cost it takes to support a new app can be substantial. The founders who jump into a space hoping for a quick cash-out after few months in the market are simply being intellectually dishonest with themselves. The fact is, you will eventually have to put more money into your app after launch. Like any business, there are costs and overhead to consider. Your MVP (Minimum Viable Product) is not going to make you a millionaire. New apps need lots of attention and TLC in order to grow a user base. And that attention and TLC will come at an additional cost.
Unfortunately this reality runs counter to what some clients believe, or, perhaps what they want to believe. At SDSol, we do our best to set expectations appropriately. The success rate in the Tech Startup world is daunting enough as it is. It’s hard. It requires focus, dedication, and intense planning; both technical and financial. As we’ve said before, it’s important to note that founders are not launching an app – they are launching a business. And a business will only be as successful as the level of effort, planning, and business organization that the founders put into it.
And so, to the get-rich-quick potential clients out there, we say “Do what you love. Work hard at it. Be smart about it. Be fully engaged and informed about your new business. Care about what you’re making. And the rest, as they say, will fall into place over time.”