Ilya Mikhailov talks about how to work in a highly competitive niche and why a team is more important than investments
IT tools used by Ilya Mikhailov
- xcode
- Android API
- Adobe package
Ilya Mikhailov, co-owner and team leader of the Utro IT company (Chelyabinsk). The main specialization of the company is the development of mobile applications and software, implementation of complex IT-solutions.
“You have to be prepared for a huge amount of work”
Since my second year, I have been quite deeply immersed in the IT field. He wrote programs and worked for a company that served large customers in Chelyabinsk. Gradually, not only experience was accumulated, but also an understanding of which processes or projects can significantly help a particular business, - says Ilya. “However, for various reasons, many of these ideas and initiatives could not be implemented at the previous job. I wanted more freedom in making decisions and implementing new projects.
Last summer, I happened to be at the youth forum in the Young Entrepreneurs shift. I decided to get the most out of this event, so I attended all the master classes, lectures and meetings, listened to all the curators. I didn’t catch the cultural program: when everyone returned from concerts to sleep, I still “overcame” the already tired teachers and experts, we must pay tribute to their patience. In my opinion, 70% of the guys came to have fun, and the ideas for starting a business were so-so. I thought that if people come and open “slipper sewing” companies, then I simply have to start my own business in IT!
Upon arrival, I met a friend who also just returned from another event. The first thing he suggested to me was to open a company. So, so be it. The main thing is to be prepared for a huge amount of work, huge emotional investments, to understand that you will have to take risks and make mistakes. You have to live it! Nothing goes smoothly. In addition, the competition in this area is quite high. But we receive many orders precisely because of the “informal” approach to business. Clients often do not understand the whole technology, so there is no specific technical task. It is often necessary to jointly invent a mobile service almost from scratch. This is perhaps one of the main reasons why I enjoy doing this.
"Word of mouth is working"There were few investments. Basically registration. legal entity, legal services and organizational costs for starting "marketing things": website design, corporate identity, business cards, and more. Everything paid off after the first order.
We also didn’t invest much in advertising, as the earth is full of rumors. Networking helps a lot. First of all, he told everyone who he could what we were doing. In social networks I have many friends from the IT field. They, in turn, at the first opportunity and the mention of a mobile application, refer to me. While this is enough, with each new project we have, no matter how trite it sounds, satisfied customers. They recommend to their colleagues, friends, partners and so on. Word of mouth works.
The first commercial project was remembered forever. It was an app for the World Judo Championship. One fine day, the Organizing Committee called and asked if it was possible to make an application for the World Cup. I looked at the calendar: there were three weeks left before the event. I didn’t have a designer or a well-organized team then. I think they turned to me because the task was almost unrealistic: ten days and no budget.
"I've never been so lucky"
But I agreed, for me it was a kind of "challenge" (in English - a challenge). We met the next day, discussed the main functionality. I dropped all other tasks, took a few days off from my main job and began to "cut". I did everything myself: design based on the corporate identity of the World Cup, I came up with the functionality in the course of development, the server part and the database, agreed with the integration of tickets into the application - all the same. For the English version, I connected a translator. As a result, two designs were developed in ten days and the structure of the application was changed several times. Sleep little, work hard. I sent the application for moderation and waited.
There were some problems: already after the launch, they found several errors in the schedule of events that could mislead users, and the application was already actively downloaded in the stores. I had to quickly update and send notifications about changes in the schedule. But, in general, with the exception of some moments, everything went smoothly, the application became available to users three days before the World Cup. So I've never been lucky.
Then, in a week and a half, we went through the development cycle, which we now do with the team in a month. I would call it an intense dive. It was hard: these days I didn't seem to perceive the surrounding reality, I was concentrated only on the application. After such a frantic pace, a week later, the normal mode came to its senses.
"Personal contact with the team is important"
Our studio format is more like not a proven business model, but a startup, where a lot is done on the enthusiasm and ambitions of the team. And it is personal contact with colleagues that is important - to be on the same wavelength in order to make cool and high-profile projects.
It's not enough to just be a good manager, invest 100 thousand to register a legal entity, rent an office, hire a couple of developers and a sales manager. Although, who knows, maybe it’s possible, but it’s definitely not about our idea and not about our business.
The team now has ten people. We have an excellent accountant, we love him very much. We don’t make contracts ourselves, we have a lawyer for that. Of course, you can be greedy and try to do everything yourself, but it's not worth it, I tried. The company is registered in Chelyabinsk. Geographically - Chelyabinsk, Moscow, Kyiv. Distance is not a barrier - communications are well established. Of course, there is an office, but, to be honest, I think that you need a smartphone, a laptop and the Internet to work. My "office" is always with me: I have to travel a lot to meet with clients, to professional events, many of which are in other cities. Mobility is much more important to our business than just sitting in the office. There is no work schedule in the classical sense either, because sometimes we work 24/7.
“The main thing is not to panic”
The most difficult in the beginning was the state of uncertainty. There were moments when the order was coming to an end, and the next one was either not agreed yet, or it did not exist at all. And you need to pay. At first, this moment was simultaneously stimulating and oppressive. It’s hard to be in a state where you don’t understand what will happen in a couple of weeks, but then you get used to it. The main thing is not to panic, it is demoralizing. Calm confidence, as they say: "Do what you must, and be what will be." Therefore, I just gather my thoughts, start looking for orders and work. The result is not long in coming.
Of course, there were some difficulties with clients. A very difficult project was with a foreign customer. All preliminary agreements were reached, agreements of intent were signed, the work was in full swing. As a result, when the first part was published, we were told: “Thank you, we will not work further.” I felt that something went wrong. The customer operated with very general terms and phrases: “the project does not see a systematic approach”, “there are security problems”, and so on. I was very angry then, first of all, at myself. It was not so much the missed opportunity to earn a solid amount of money that was frustrating and unsettling, but the lack of understanding of what exactly we did wrong in the project. Re-read a bunch of literature, studied great amount development methodologies, by leaps and bounds carried out "work on the bugs".
“When you launch a product on the market, you immediately have a dozen competitors. And even if your application is unique and shoots, a bunch of similar ones immediately appear. Therefore, you constantly need to monitor competitors, follow their updates, reviews, ratings.
Now I already understand: it was a good kick that made me think over the work of the team, abandon the old tools, raise everyone to new level. If earlier communication took place in chats, mail, Skype, by phone, now it is a centralized program that receives not only messages, but also all the activities of employees. The designer made a layout, everyone saw it, the task immediately fell to the developers. The developer has released a build, everyone knows about it, testers look at errors, send tasks to developers. An error has occurred with the user, he does not even need to write a review, bypassing everyone, a bug report is immediately created. Operating activities fully automated, I just watch the process and turn on if there are problems (there are, however, also enough).
In general, it is very difficult to work with government agencies: a lot of approvals and paperwork affects the timing and interactions in the project. But this is something that you are not insured against, working with commercial companies - colleagues in the shop will understand. It happens that you develop or implement some complex functionality in a few days, and then you just wait for approval for two or three weeks. We are for free communication and trust, we meet halfway and sometimes take on the development, when our lawyers are still finalizing the documents. There is a certain risk. But after all, the client also trusts us with his data - appearances, passwords to sites and so on.
There is another pressing problem in this business. Everyone in the team should have a narrow specialization, then work on the project is a clear, well-coordinated mechanism. And only then the result is guaranteed. We have experts who have been in the industry for 15 years, there are “young” and ambitious, but already proven specialists who have eaten more than one dog in their business. But there are always enthusiasts on the market who have looked at the tutorials on the Internet and think that they alone can make a good product for a very small cost. They come to customers and talk about it. Guys, a good app cannot cost 30,000 rubles.
But on the Internet, in app stores, there is a real battle for each user. When you launch a product on the market, you immediately have a dozen competitors. And even if your application is unique and shoots, a bunch of similar ones immediately appear. Therefore, you constantly need to track competitors, follow their updates, reviews, ratings.
“For a successful business, money is not the main thing”
I can say for sure that successful business money is not the main thing, the main investments are people. It is very difficult to assemble a team that is professionally ready to perform complex tasks, has certain visions in this area and is able to work smoothly. Sometimes, as in any business, force majeure happens, you have to urgently raise everyone. It's great that we have reached mutual understanding with everyone in this regard.
It may seem that opening an IT studio is quite simple and everyone can do it, but this is only in words everything is simple. In reality, we worked hard day and night. Behind the external ease and simplicity of the process, there are many pitfalls. Some have already been mentioned. It is important to understand that you will have to invest a lot of personal time and sacrifice other things, priorities. The ideal situation is when there is an order immediately and guarantees for the next ones. Because when you hire people, you take responsibility: they need to be provided with work and wages, even if there are no orders. And this is not profitable in the studio, therefore, when starting a business, it is important to immediately establish a regular flow of orders.
Currently, we are planning to improve the quality of development, further to get used to each other. We also plan to make several of our major projects and shift the balance in their direction, but for now we are in search of a sensible idea that we all believe in.
Technological development in our time allows you to use powerful tools from mobile platforms. A smart calendar, a professional text editor, access to documents from anywhere in the world and many other features of mobile applications make life easier for modern entrepreneurs. We have prepared for you the TOP 10, according to users, useful applications for doing business.
TOP 10 Mobile Apps for Entrepreneurs
In the era of "smart" gadgets, the number of applications is growing every day. Among the countless number of programs, there are those with the help of which you can significantly simplify doing business. In this article, we will look at the TOP 10 applications that will be useful for both established store owners and those who are just planning to open their own business.
The criteria in the formation of the selection were:
- Max Downloads
- Russification of the application
- Cross-platform (the ability of an application to run on more than one operating system)
- High user rating
We plan our time
One of the leaders in this area can safely be called Google-Calendar. Plan the timing of product deliveries, interviews, meetings with suppliers and partners - with Google Calendar, all this is more than simple. By default, the program is installed on many devices initially. For its correct operation, it is suitable for both Android and iOS. The app is available for download on Google Play and the AppStore.
About the benefits:
- Ability to customize the calendar view mode (by day, week and month)
- Automatic synchronization with Gmail. If you book a table or book a hotel, the information will be automatically duplicated in the calendar
- Ability to set reminders in the same view as the event
- The ability to set a goal for yourself (the planner will help you find free time to achieve it)
- Convenient application interface
Nice bonus:
– Synchronization with Google Fit makes it possible to schedule sports activities, as well as track progress
About cons:
- Some users attribute the lack of watches to them
- It should also always be taken into account that changes in one activity entail changes in related tasks.
Clouds
The program for automating the work of the Business.Ru store helps save time, due to the fact that all product data: prices, descriptions, characteristics, stock balances, are stored in the "cloud". Thus, you get the ability to access information anytime, anywhere.
Cloud data storage is actually an archive that allows you to access company documents (invoices, contracts, acts, certificates) from anywhere in the world. The only condition will be internet access. The products of Google and Yandex corporations are very popular in Russia.
The Yandex product is installed on more than 5 million devices. Google - the disk in the number of downloads was significantly ahead of its fellow, by this moment Its number of downloads has approached the mark of 1 billion.
About the benefits:
- With files stored on a virtual disk, you can perform any operations
- There is a sharing feature. There is also the possibility of limiting permissions.
- File change history
Bonuses:
Ability to scan documents using the device's camera
Minuses:
Perhaps the main disadvantage is the lack of the ability to sort files into folders. Each file on disk is stored separately
Control
The favorite in this direction is the application created by Bitrix. The application is absolutely free and also cross-platform. It is available for download on the official website of the company.
About the benefits:
- CRM management from any available mobile device.
- Works like with ready-made forms, and with files
- Allows you to communicate with colleagues
- Contacts from the phonebook are automatically copied to the application's notebook.
- There is a video calling feature.
Bonuses:
- Availability of a live communication feed
Minuses:
– Used only in conjunction with Bitrix CRM.
Legal support
Legal support will never be superfluous, especially for an entrepreneur. If you have a large company, problems with legal assistance will not arise, most likely you have a personal lawyer or even an entire legal department.
If you are a sole proprietor or just small business, for example, one or two stores instead of hiring a lawyer can be dispensed with by installing the Consultant Plus application. At the moment, the program has established itself as one of the most reliable. Current laws, regulations, examples of solving certain situations - with an assistant installed on your gadget, all this will be at hand at any time.
Bank in your pocket
Today, perhaps, every self-respecting bank has a mobile application in its asset. The functionality of the applications is almost the same. All of them make it possible to control finances, make transactions on accounts, send payment receipts, receive notifications about changes in accounts, make tax payments, open new accounts, etc.
One of the most popular applications at the moment is Sberbank Online (according to statistics, as of January 1, 2018, 60% of the population of the Russian Federation are active clients of Sberbank).
Bulletin board
Search for premises, purchase Supplies, promotion of their goods and services, recruitment - all this can be done on one site. These sites are called bulletin boards. One of the most popular resources in Russia is Avito.
About the benefits:
- Possibility to refine the search according to the parameters of interest.
- Manage posted ads.
- Ability to track new ads.
- Ability to communicate with sellers and buyers via text messages.
Calls
The leader in the field of calls on the Internet is undoubtedly Skype. With it, you can communicate for free with subordinates, suppliers and partners, even while abroad.
About the benefits:
- Ability to create group chats
- Minimum traffic consumption at the time of video calls.
- Possibility of organizing group meetings with video call function.
Additional functions:
- Making calls and sending SMS to mobile operators(at extra charge).
Office on the phone
Another assistant for the entrepreneur - applications Microsoft office Mobile. With their help, you can work with documents from anywhere in the world and at any time. Work with tables in Excel, Word text files and even create presentations in Power point - thanks to Office applications, all these functions will be available on your gadget.
About the benefits:
- Familiar interface, convenience and ease of use of applications
- View, edit and create documents on the go
- Ability to store files in the cloud
- Preservation of the document format when working on a PC and laptop
- Ability to send documents e-mail as attachments and hyperlinks.
- Office applications are supported by most phones and tablets.
The program for Business.Ru stores will speed up the issuance of documents and eliminate possible errors when filling out. Allows you to automate tax and financial statements and also control the cash flow in the company.
Document Scanner
The store owner deals with paperwork every day. Working with papers within the walls of the office is not a difficult task. But what if you are on the road, and the documents need to be urgently scanned and sent to the addressee? A document scanner can help with this task.
One of the simplest and most versatile document scanning programs is Genius Scan. Images are saved in JPEG / PDF format at the maximum resolution, the saved file weighs about 1. If the document is too heavy, it can be lightened, but with loss of quality.
About the benefits:
- All created files can be sent to cloud storages (Box, iCloud Drive, Dropbox, OneDrive)
- Ability to send documents to social networks (Facebook, Twitter)
- Sending documents by email Mail or fax.
The basic version is available for free on both iTunes and Google Play. However, most of the options become available only after purchasing the full version of the application.
Of course, there are a lot of applications for entrepreneurs. However, you have to start somewhere. Try a few of the apps above and you'll see how much easier it is to run your business, especially if you're doing some (or all) of it remotely. It is worth noting that each of the applications is absolutely free for the user.
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“Today, only lazy people don’t make money selling apps for mobile devices,” says co-founder Google Sergey Brin. And he is certainly right! Mobile application development is a highly profitable business that can bring significant profit to its owner at minimal cost. And, despite the high competition and tens of thousands of various applications in the AppStore or GooglePlay, it is quite possible to establish your own small (or large) company selling mobile content today.
According to 2013 statistics, more than half of smartphones worldwide are running operating system Android. Therefore, it is under this OS that all those who are just starting to master the mobile software market should create their applications.
A few words about the legitimacy of business
So where do you start? First of all, a few words should be given to the legitimacy of the business. In principle, since 2012, any individual entrepreneur can legally make a profit from GooglePlay in Russia. The only condition is the presence of a dollar current account, to which honestly earned money will come. Taxation in this case is no different from other types of activities and amounts to 6 percent of the amount that was credited to the account. Naturally, the legislation does not stand still, and behind all the innovations in tax code must be constantly monitored. You can also work illegally, through intermediaries, but in this case, no one can guarantee you the security of copyright for the program.
Creation of a working team
The working team is the basis and core of your project. It is the salary of qualified specialists that makes up to 95 percent of investments in this kind of business. To develop subandroid applications you will need:
Programmer (the number of staff depends on the complexity of the application and the speed of development) - estimated salary 10-20 dollars per hour;
. Designer - estimated salary 10-20 dollars per hour;
. Tester (optional);
. Marketer (optional).
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The last two positions can be combined - entrust the role of a tester to a programmer, and the role of a specialist in promotion on forums and providing feedback perform on your own. Naturally, in the case of developing bulky 3D games or other resource-intensive applications, the list of positions will expand significantly.
It is most effective to create a team of freelancers, thus saving on office space rent. Estimated budget for an application of medium complexity - from $ 500.
Android Application Development - Fundamentals of the Basics.
Before you start looking for freelancers, you need to come up with the main idea for the future application. And this stage is the most important, because the popularity and monetization of the program depends on it. The concept of a successful application idea rests on three pillars:
Uniqueness;
. Functionality;
. Maximum orientation to a wide audience.
It is necessary to conduct a detailed analysis of popular applications in both GooglePlay and the AppStore. See what criteria people use to choose paid and free apps, and use them as the basis for creating your own content. For example, an application for downloading and watching videos on the popular ex.ua service has hundreds of thousands of downloads. Why not make it an analogue for another service? In general, at this stage everything depends on a thorough analysis of the market and your creativity!
Debugging the application and publishing on Google Play.
Before releasing an application into “free floating”, it is necessary to test and debug it. It should be remembered that the program should ideally work on devices with any screen resolution, be as suitable as possible for existing versions of processors and video accelerators working with them in pairs (in the case of 3D applications).
After testing, we determine the monetization of the application. There are two main types of earnings:
. Embedded advertising - the application has a built-in code that displays a small advertising banner on the desired part of the screen. Payment is based on the number of views and can reach 2 cents per view. The application itself can be downloaded absolutely free.
Paid application - in this case, the program is purchased by the user at the price you set. Do not be greedy - remember that the cost of the program at $1 will bring more profit than the price of $20.
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In order to place the application in the market, you must fill out simple form and deposit the amount of $25 as a deposit. After that, the program will be available for download with the parameters that you specify.
We combine debit with credit.
Summarize. To create a small application, we need to spend an amount of 500-600 US dollars. That is, to make a profit from paid software worth one dollar, you need to download it more than 600 times. It's quite real. Moreover, when conducting a small advertising company in social networks and thematic forums, you can easily reach an indicator of 3-4 thousand downloads. Considering that it takes no more than a month to develop and debug, we get a net monthly profit of more than 300%!
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