How to Create a Business Plan for Mobile Application in 2021
Business Plan Template
A business plan describes in detail how a business, usually startups — defines its objectives and how it is to go about achieving its goals. A well-defined business plan is a written roadmap for the company’s marketing, financial, and operational processes and ensures that you inspect these areas for a descriptive analysis for your company and for investors.
A well-crafted, detailed, and insightful business plan is the first step towards a potentially successful mobile app startup.
Mobile App Business Model
Technological advancements have been tremendous over the last few years, from desktops to laptops and smartphones and palmtops and wearables, the advancements are incessant. Smartphone user numbers rise by tens of thousands, every year and with that rises the demand for different mobile apps. Hence, mobile app development is not an option anymore; it’s a necessity! And planning ahead critical.
Any mobile app that a startup invests in should target maximum users and engage with potential customers. As for any process, for app development, the first step forward should be a well-thought mobile app business plan which covers the entire cost of app development, including planning, designing, marketing, and after-sales support.
Start with visualizing the project and listing its key points. This will be the basis of your business plan.
During the planning process, you will need to sort through a lot of information. The cost of writing a business plan or getting one written for you, will also affect the costs of launching the project, so using business plan templates will save you some cash.
All (B2C or B2B) industries have a lot of competition in the mobile app market, a sufficient portion of your budget should be used on marketing, for users to locate and download your app. Additionally, an adequate app business plan must mention the total cost of app development, including feature costs. Here’s a rundown on making a useful app development business plan to ensure the successful launch of your startup:
Before writing your business plan, conduct business analysis to evaluate the needs of potential users — and assess if you can generate public interest in your product. During this phase objectively consider competitors and their products, scrutinize user needs and demand, and define the main objectives and advantages of your project.
Know that a business plan is static: it is a document that once developed and adopted, is almost never rewritten and often becomes redundant.
On the other hand, a business model is dynamic; that it undergoes rapid changes and depends on consumer opinion. But writing a business plan is useful and makes you think through all the parts of your business — and combining the financial plan for mobile applications makes you think about how to build a profitable business. It makes best sense for you to have both in your hand.
However counter check the ideas in your business plan and business model with others unrelated to the business itself. Communicate with your consumers, who are ultimately going to be the reason for your success, or lack thereof. Otherwise, your business plan for developing an app will be only a theory.
Your business plan will technically provide you with two positives. It will attract funding and investors.
This is the first and most important part of your business plan because it’s the first thing an investor will read. It should be clear and concise, without detailed information about how your product works. In your executive summary, address the situation in the market, identify your target customer, and what unique problem your application can solve.
Problem identification in the executive summary
For your project’s success, identify and understand the gap in the supply and demand chain in the market. The mobile app startup business plan should highlight the following points:
Do your audience face any problems/pain points currently in the existing apps they use?
Will your app have a significant impact on your target audience in their daily lives?
Is there a solution to their problem? How effective is it?
Can your app rectify any pain points your target audience faces?
What are the potential solutions?
Make your proposal unique to distinguish your company from others. In other words, create a unique value proposition (UVP). Use your imagination: think of your executive summary as the trailer for a movie and your investor as a spectator. Would they like to see your movie?
Specify your goals. These goals should be based on your business analysis. Investors will be checking to see whether your goals meet their needs. You must also determine the ultimate goal of your exit plan. Make a list of funding requirements and the proceeds that will be used to increase the appeal of your idea and your company. One of the important factors in the success of a startup business plan for your mobile app is ensuring maximum transparency at each stage.
The summary section of the mobile app business plan is where you introduce the project to the investors. It should be clear and precise, mentions the relevant details, including how the idea came to you and how it solves the problem:
Here introduce your business, starting with information about your company and finishing with your mobile app concept. This part of your startup business plan will show investors the corporate values of your company, your mission, how you see your product, and what you consider the key factors for the success of your product.
Investors will rely heavily on this information so it is vital to be precise here.
Here you describe your company in the following terms:
Type of business structure
Location of the company
Company history: Write about the history of your company, how your team formed, and how you came up with your idea. In addition, you can talk about the main stages of your company’s development and the experience that precedes the launch of the product.
Team/remote team: Your success depends upon who is on your team; this is the heart of the project. You should specify each person’s name, position, work experience, and responsibilities in the company. In addition, you can involve an advisory group that will help you make key decisions. Experts on your advisory team should have experience in the industry.
Statement of the concept
In your mission statement, focus on your current concept and view of the processes in your project, including the input from investors and lenders. In the mission statement you define how things currently are, while in the vision statement you focus on the future and your motivation.
Knowledge about current market affairs will be the pivot point in the realization of your idea. If you are knowledgeable about the state of the market in your industry, have current information, and make a short-term forecast, your marketing plan is more likely to succeed. The market analysis section of your business plan shows the viability of your project.
One way of discovering the popularity of mobile applications is by monitoring Apple’s cheat sheet where you can find top paid, top free, and top-grossing apps.
Forecasting is an integral part of writing your business plan for realization of app development startup. Forecasts from reputable research firms such as Nielsen and Forrester are of interest when creating any business plan, for example a business plan for application development or a software startup business plan. In addition, you can include data on the growth in number of companies in the mobile application industry and data on the amount of money spent.
Your goal is to assess whether there’s a real market for your product, whether there are enough customers in the market and, accordingly, whether those customers are willing to pay enough money to solve their problems. Try to convince the customer that there’s a need for your unique application.
One method of strategic planning that gives a structured description of your situation is a SWOT analysis. A SWOT analysis identifying Strengths, Weaknesses, Opportunities, and Threats can be used to study products, enterprises, regions, or even entire countries.
All businesses have weaknesses: that’s quite normal. The knowledge of potential problems will be a strong stimulus for finding solutions and reducing any risks your company needs to take.
A marketing strategy is a bridge that allows your product to fall into the hands of your customers. Some successful marketing strategies for your mobile application are listed below:
Research the Target Market
To attract your target audience choose a certain group of consumers to aim your product at. This target audience should be defined based on demography, habits, online behavior, and lifestyle. Analyze how your ideal client uses your application.
Researching competitors will help you highlight the features that distinguish you from competitors and improve your processes and solve problems in your market.
Create a Landing Page
Creating a landing page for your mobile application helps you expand your target audience, it informs readers about innovations and updates. Your page should contain the application name, a description of its functionality, promotional videos, and information you deem important for users.
To improve the ranking of your application in search results in the app stores, improve its features. Optimizing the mobile application in term of load times helps ranking. The higher your position in search results the more attention you get from potential customers.
The process of expanding the user base is different for every business, depending on the type of app startup, and the business strategy will also vary. A massive advertising attack only makes sense in markets where consumers understand your product or service and its usefulness.
Writing a business plan for new mobile applications or a business plan for a mobile app startup isn’t easy. Your concept must be supported with knowledge about your business, qualitative and quantitative analysis, and practical research. A successful plan has to show that your company is viable and financially attractive. The greater the viability, the more potential for investment.
A business plan converts your thoughts and is an instrument for their implementation and actually helps you get funding.
The most difficult part of developing a business plan, is often writing the first page, and people facing difficulties at this early stage, download free templates and try to use them.
Someone else’s business plan cannot help achieve any goals. A business plan must be original and specific to the idea. It must be unique and hold sufficient depth and content.
Appedology has an expert team of conceptualizers and writers available for your help. If you do encounter difficulties in writing your own business plan for launching the mobile application we are ready to help you take that first big step and get to your destination successfully!