idea tech uber php wework companies software

techsuch May 9, 2021 0 Comments

Software Profit Margins: What Really Brings Revenue in Tech?Tech business is a risky venture even though high risk often brings in highrevenues. But what exactly makes money in software development? Is it certaintechnologies itself or new approaches to the existing problems? How tocalculate the demand and minimize the risk of going out of business? Whatmakes some big tech companies profitable and others not? Just why WeWork andUber are failing despite hundreds of millions of dollars in revenue? Spend thenext 10 minutes of your time to get to know the answers on these and relatedquestions if you want your business to profit from tech innovations too.## The Idea How to Analyze Software Profit MarginsThe idea matters, a lot. But the idea itself is nothing without its preciserealization. The idea may change over time like it often happens, especiallywith software development and tech innovations. Your idea should bringsomething of value to the end users and benefit client in ways unimaginablebefore. It may not be only the idea itself but how it is executed that decideswhether your future client will go with your solution or pick the next bestoption offered by your competitors. Take, for example, drone delivery orautonomous vehicles. The idea is clear but every major tech company and abunch of little ones compete in its realization that will be effective andsafe for consumers.## TechnologiesOur company deals exclusively with PHP back end development. Why? Because thisis the best decision when it comes to commercial software development. PHP isvery cheap technology but it allows doing complex projects and then upgradethem on the way. PHP developers are easy to come by and for the last 5 yearsPHP shows leading positions among the most widely used programming languages.To choose Python or Ruby will cost you more and it is more difficult to findsuitable developers that have necessary experience. PHP shows stable ROI ratesand companies like Facebook, MailChimp, Flickr, Baidu and Wikipedia use PHP intheir development cycle.## Marketing and PromotionBig tech provides optimization to the workflow and platforms for manyestablished businesses. Product companies like Google and Amazon deliverplatforms and solutions that increase user engagement levels, attract moreclients, manage content, etc. Nevertheless, even the best technologies shouldbe promoted and forced into the existing markets. In some cases agroundbreaking product creates the market from zero. But there are alwayscompetitors. Google competes with Baidu and Uber competes with Lyft. So, thetechnology itself is not the only thing affecting profit margins.## Market StatusTech business often results in big and rapid growth. There is a tendency for aquality product to go viral and become internationally popular which happenedwith tech companies like AirBnB, Amazon, Netflix and many others. As there areno limits in digital world, to expand your client base globally is very realwhen dealing with tech business. You should analyze the existing demand orcreate it artificially. Practically any human owns a mobile device and thatmeans that you have a direct access to as many people as are out there ifyou’re able to compete and provide customers with a great offer.## What’s wrong with WeWork and Uber ?You may think that Uber simply cannot be unprofitable. And office leasingunicorn startup WeWork should definitely have a solid business model.Unfortunately, even if something is big, it doesn’t necessarily follow it issuccessful. Both Uber and WeWork announced major layoffs this year andfounders of these 2 companies stepped off as CEOs. Why? It is one thing tosurvive on money influx from venture investment but it is a completelydifferent case to bring in real revenue, secure stable growth and the price ofstock shares.Weak business model of the two mentioned companies proves that the ideasbehind them weren’t that revolutionizing in the first place. Uber didn’tinvent taxis but presented low-cost transportation because it made driversthemselves responsible for vehicle maintenance.WeWork isn’t a tech company at all, since it is first and most of all a realestate company. But it used tech-hype and huge venture investments fromSoftBank to simulate growth artificially without providing real tech value.Both WeWork and Uber disrupted the market, using apps but failed to deliver,since they bring little to no value per se.On the examples of Uber and WeWork you can see that technology itself cannotsucceed without a great idea. Idea and value + proper realization = successand high profit margins. A wheel is great because it can go round which can beused. Without that it is worthless. And its form is dictated by its purposewhile at the same time its design allows it to do what it does. It’s as simpleas that.## MVP DevelopmentStartup rule #1 – develop MVP as fast as you can and release it. Upgrade andupdate later, based on user feedback. Boost your software solution with cleverniche promotion and a thorough marketing campaign. All successful platforms beit Booking.com or Twitter started with a lot of bugs but their core ideaattracted clients and they stayed through to the phase where product wasshaped perfectly with a guaranteed further expansion.Same happened with Facebook that started so small but expanded rapidly becauseit mixed a great idea with superb realization (so much for Zuckerberg himselfbeing a coder, let’s give him that).## ConclusionSo, what do we have to say to sum it all up? Choose a technology pack (a PHPweb platform or an iOS app) that targets your niche. Release MVP as fast aspossible and let your product monetize itself with little dependence onexternal investment. Years and years of artificial growth won’t do you anygood if the idea is worthless and doesn’t bring value to the clients. And topick the best technology ask the experts. Always keep in mind that fail toplan is a plan to fail. Good luck!Do you need a profitable app?Contact us

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