§1What this business is

You build mobile apps, websites and custom software (billing, booking) for shops, schools, hospitals and startups, followed by maintenance/AMC. You can also build your own SaaS product. Clients range from local businesses to online ones (freelance platforms).

§2Is it right for you?

Who it is for

Someone who codes themselves, can handle clients and can build a team.

Who it is not for

Someone who is not technical and runs it only through freelancers.

Advantages

  • Low capital — computers and brains
  • Work from anywhere with remote clients
  • Recurring income from maintenance/AMC
  • Scale by building your own SaaS product

Drawbacks

  • Good developers are expensive and do not stay
  • Clients expand the scope and hold back payment
  • Rates are falling because of AI tools
  • Project-based income goes up and down

Skills you need

  • App/web development
  • Project management
  • Client communication
  • Pricing & contracts

Why difficulty 3/5: Low capital, but it needs skill, a team and client management.

§3Market

Who buys

  • Small, medium and large businesses that want custom apps

How it sells

  • Custom app projects priced per app
  • Marketing staff for client outreach

Good to know

  • The report prices a native app at ₹40,000, a web app at ₹30,000 and a hybrid app at ₹60,000.
  • Clients value custom apps for efficiency, scale, data security and fit with their existing software.

§4Raw material & machinery

ItemQtyCost
Computers with hardware, Windows and MS Office4₹1,20,000 (₹30,000 each)
Vehicles4₹1,80,000 (₹45,000 each)
Network installation devices1₹10,000
Furniture, fixtures and office equipment—₹0.60 lakh

From: UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Mobile App Development (2024)

  • Software, licences, network and bulk hosting₹2,00,000 a year (lump sum) in the report

From: UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Mobile App Development (2024)

§5Licences & registration

  1. GST
  2. Udyam
  3. Shop & Establishment
  4. Software/IP contracts with clients

We can do this registration for you

§6Schemes & subsidies

₹7.88 L service unit: CM-YUVA (UP), MUDRA Kishore/Tarun, PMEGP service sector, CGTMSE.

§7Money

How the investment is worked out: UP report cost of project ₹7.88 L: plant & machinery ₹3.10 L (4 computers ₹1.2 L, 4 two-wheelers ₹1.8 L, network ₹0.1 L), furniture ₹0.80 L, contingencies ₹0.30 L, pre/post-operative ₹0.50 L, working-capital margin ₹3.18 L. Means: own ₹1.55 L, term loan ₹3.15 L, WC ₹3.18 L. Min = total fixed capital ₹4.50 L.

Working capital: Salary is the biggest cost — 3 months of working capital is ₹3.18 L.

Official UP report 2024 (services model; SaaS product-building costs not covered).

How to prepare a loan file

§8Export potential

Export council / board: ESC (Electronics and Computer Software Export Promotion Council)

  • Software services have no HS code.
  • Software and IT service exporters take membership (RCMC) of ESC.

§9Risks — where people fail

  • Talent attrition
  • Scope creep / unpaid invoices
  • Price pressure
  • Tech changes

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working mobile app / software development studio unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (GST, Udyam), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Mobile App / Software Development Studio?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Mobile App Development (2024)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.