Perform market research to identify an actual need or problem. The first step is to research the market and identify an existing need, problem, or opportunity that customers are actually facing. Don’t just build something because you think it would be cool – make sure there is true customer demand for the type of solution you plan to provide. Some ways to do market research include:
Conducting user interviews and focus groups. Speak directly to potential customers and get their input on pain points, needs, and what they would find most valuable in an app.
Analyzing the app store. See what types of apps are popular in your category and how your app could be differentiated to fill a gap. Look at top apps and identify opportunities to outperform them.
Reviewing discussion forums and online communities. Pay attention to frequently discussed topics, problems mentioned, and questions asked to uncover potential solutions.
Evaluating industry and market trends. Understand where the market and technology is headed so your app can align and potentially get an early mover advantage.
Define a clear target customer persona and value proposition. Developing a specific customer persona involves defining the core demographic details, pain points, goals, behaviors, and characteristics of your ideal customers. Alongside this, clearly articulate how your app will specifically help solve customer problems and provide value in a way that competitors do not.
Consider business and monetization models early. Think about realistic business models like freemium, subscription, licensing, or advertising that could generate revenue from the app. Estimate customer acquisition costs and conversion rates to ensure your model provides a viable path to profitability.
Conduct competitive analysis and differentiation. Research similar apps in your category and identify both strengths to potentially replicate as well as weaknesses or gaps that provide an opportunity to out-innovate competitors. Define competitive advantages to position your app as the superior choice.
Emphasize key features and benefits throughout. Make sure each stage of development prioritizes and communicates the highest value features and how they precisely address customer needs better than others. Continually test assumptions and refine based on customer feedback.
Plan marketing strategy and channels. Having a marketing plan is crucial to attracting initial users and helps validate commercial potential. Determine strategies to leverage app stores, social media, influencers, PR, search ads, affiliates and other channels.
Create a business plan for financial projections. A business plan lays out the full vision, from market overview and strategy down to development plans, costs, target metrics, and multi-year financial projections like expenses, revenue streams, and profitability forecasts. Investors typically require a plan to vet viability.
Consider longer term growth and monetization flexibility. While the initial version should provide value, leave flexibility and space for future feature expansion, integrations with other platforms or apps, business model changes, and adapting to evolving markets over time.
Research legal and compliance issues. Creating legally binding terms of service, addressing privacy policies and data management issues, complying with laws around in-app purchases and subscriptions are crucial steps to mitigate risks and gain user trust. Address stakeholder concerns fully.
Iterate and refine based on testing and user feedback. Validate each stage of development by running user tests to uncover issues, gather feedback, and iterate the app to further address user needs. The goal is continuous improvement based on real customer interactions to maximize viability.
Consider exit strategies or scaling opportunities. Assessing how your app could potentially gain mainstream adoption, be acquired by a larger company, expand into new markets, or act as a platform for growth sets the stage for longer term success beyond just being a class project. Any path that shows potential for returns helps attract funding.
Taking the time to conduct rigorous customer research and market analysis combined with developing a clear strategic vision, value proposition, business model and monetization plans helps ensure a capstone mobile app project has tangible commercial potential that goes beyond functioning as just an academic proof of concept or prototype. Addressing viability considerations from the start also prepares students well for real-world entrepreneurial endeavors.