“I love learning about new platforms and pushing the limits on what we do…”

Interview by Kevin Ohashi of Ohashi Media
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Alex Moazed is the founder of Applico, LLC.  He is a graduate of the Entrepreneurial Studies program at Babson College.  Alex decided to take a bootstrapping approach to financing Applico by maxing out his credit cards instead of seeking outside investment.  It has quickly become one of the most respected mobile app developers in the business.  Today, Alex’s bet on himself has paid off and Applico is a profitable mobile applications developer that has won awards for its work on the BlackBerry, iPhone and Android platforms.

MO:
You made a very bold decision to bootstrap your company using your personal credit cards.  Why did you choose to go this route over the funding route?  I imagine you must have had some bootstrapped companies that you admire to help inspire you?  Can you walk us through the decision process you took before committing down this path?  What was the lowest point for you (The Dip, in Seth Godin’s words) personally and/or the company and how did you turn it around?

Alex:
Credit cards weren’t my first option. Far from it. A more traditional funding route was not going to work for a number of reasons so credit cards and personal savings were the best alternative. I put together financials and a business plan before committing my funds to the business. There have always been low points, but they don’t last very long and I try not to focus on them very much. If you’re smart and work hard, that gets you a long way. If you put together a good team or a team of advisers, they can also help steer you in the right direction if you are experiencing some problems.

MO:
Applico is a mobile applications developer.  Most companies I see are committed to 1 platform in general.  Why did you decide to cover all of them?  Does building on each platform have unique challenges?  Which is your favorite platform and why?

Alex:
Applico started as a mobile application developer, but has grown to be much more. Our clients need to be able to expand their mobile strategy across multiple platforms and we have grown to support them. We not only develop mobile apps, but spend a great deal more time designing and planning with our clients about their mobile strategy. Yes, each platform has its specific challenges and quirks which you learn the hard way. Fortunately, at this point, we have gotten pretty good at cataloging these tips for the different platforms.

I love learning about new platforms and pushing the limits on what we do so my favorite mobile platform would either be the iPad or mobile web.

MO:
How do you differentiate yourself in such a crowded market?  How did you find your first customers?  How do you find them today?

Alex:
We differentiate ourselves by understanding our clients and their needs. Once our clients meet with us, they can see the value we bring to the table.

I found our first clients by tapping into my network. We find clients today from a number of ways. Referrals and PR probably lead to the most new business.

MO:
You created a very successful app for the BlackBerry, called NYC Transit, which gave timetables for NYC’s various public transportation options.  How did people find your app?  How did you market it?  How did you turn such a simple idea into a cash cow?  I imagine there are a lot of copycats, how do you compete with them?

Alex:
Back then, it was a lot more difficult to provide the transit timetables. Today, the MTA lets developers easily access all of this information with the intent of having them incorporate it into their apps. It wasn’t nearly as easy for us. So, having quality data was a key differentiators. We used a few different ways to market the app ranging from online ads to handing out fliers.

MO:
Everyone I talk to has an idea for a mobile app these days.  What makes an app successful? How do you evaluate and judge ideas you and other people come up with for mobile apps?

Alex:
The mobile ecosystem has become very crowded. You could build the best app in the world, but it won’t matter if people cannot find out about it. So, marketing is one of the most important drivers of success. When people tell me a mobile app idea, I always start thinking about how it will be marketed.

Users have high expectations these days. So, you need to keep your app updated and give your users a reason to keep coming back to the app. I think only 5% of users actually keep an app after 30 days. That’s not good! You need to keep your users engaged and to keep improving your app.

MO:
Babson seems to be producing some inspiring entrepreneurs.  We interviewed another Babson graduate, David Hauser – co founder of Grasshopper.com.  It seems their program is producing some great successes.  What were some of the most important things you were taught during your studies?  What didn’t they teach you?

Alex:
They’re great guys at Grasshopper. We used their service too!

The most important thing I learned at Babson was viewing the world through an entrepreneurial perspective. This isn’t something you can teach and it’s something unique about Babson. My first couple years at college, I was the opposite of an entrepreneur. I wanted to be in finance. However, I started seeing my friends start up their own businesses and pursue their dreams. Successful entrepreneurs came back to the school to speak. I took classes which interested me instead of all the required classes for a Finance major. It was a combination of these different events which eventually led me to go down the entrepreneurial path and never look back.