1. • Spark Business IQ Improve
Building a Successful Mobile App Business
Nancy Mann Jackson
Spark Contributor | Jan 13, 2015
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While working as a real estate agent, Chris McCarthy was constantly looking for restaurants and bars
that were appropriate for business cocktails and dinners, but affordable. His ongoing search for food
and drink deals gave him the idea to develop a database that would showcase all the bars and
restaurants offering the best specials on any given night. Today, he’s built a business around 40Find, a
mobile app that shows users all the places close by where they can get at least 40 percent off food,
drinks and happy hours.
McCarthy’s success is one other savvy entrepreneurs can achieve as well. With a good idea, hard work
and aggressive marketing, a mobile app can be the basis for a solid business. Here are five tips for
building a strong business based on a mobile app:
1. Solve a Problem, or Meet a Need
Think about problems faced by your target audience, then design an app that will help solve those
problems.
“Building something that will help solve an existing problem or address a specific need will not only
ensure that there is a business model for the idea, but it will become personally fulfilling when the app
takes off and starts to help people,” says Peter Corrigan, CEO of The University Network (TUN), a
free mobile app that offers more than 12,000 college-student discounts nationwide and a rewards
program.

2. 2. Learn Programming Basics
So you have an idea for an app, but you plan to hire developers to create it? No problem — but don’t
stay completely in the dark.
“If you are not a developer, I would recommend learning as much as you can about app development
before you start to hire people to develop the app,” Corrigan says. “The only way to make intelligent
decisions about design, development, direction and who to hire is by becoming an intelligent
consumer.” He recommends exploring free online classes and YouTube videos that explain the basics
of app development.
“If you’re not committed to learning the basics, then I wouldn’t recommend pursuing the app
business,” says Corrigan. “For the uninformed, it’s easy to waste a lot of money and build a subpar
product.”
3. Start Small
When launching 40Find, McCarthy started “small and local, featuring restaurants in the areas where I
live and vacation,” he says. At first, the company’s marketing strategy was primarily focused on social
media, which he managed along with a growing email subscription list. Eventually, he and his team
began creating buzz and awareness by hosting targeted events and offering giveaways. After the
success of these events, McCarthy began to understand that there was a demand for a service like
40Find elsewhere, so he invested in a full, backend overhaul to expand into additional markets.
4. Market Creatively
40Find started with grassroots marketing efforts, targeting local establishments McCarthy frequented
with deep, weeknight discounts. Then the team started to get more creative, holding 40Find sponsored
events and establishing a presence at street fairs and trade shows. When the team decided they wanted
the app to have a national reach, they hired an outside design and marketing team.
5. Never Stop Developing
The most important thing to remember when working with an app is that it needs ongoing updates and
new developments, even after the app is released, Corrigan says. For instance, TUN has released more
than 12 app updates since its initial launch.
“We typically have three versions of our app at any given time,” Corrigan says. “We have the live
version, the next version that’s being tested internally before release, and the planned version after that,
which is in development.”
Could your next business idea be destined for success as a mobile app? With creative and strategic
marketing, and the willingness to get just a bit tech savvy, it very well could be.
Capital One does not provide, endorse, nor guarantee any third-party product, service, information or
recommendation listed above. The third parties listed are not affiliated with Capital One and are solely
responsible for their products and services. All trademarks are the property of their respective owners.
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3. Nancy Mann Jackson
Spark Contributor
Nancy Mann Jackson writes regularly about small business, personal finance and careers for a number
of brands and publications such as Entrepreneur and CNBC.com.