Everyone has a different path to success. But to reach the goal, a plan is must which will work as a map to guide you on every stage. It has been said that writing a business plan will influence you to have disciplined thinking.
Rather than putting yourself in a situation where you might get lost or have to ask for the directions or just circle back and start over, it is better to build a business plan. Thus, we can call the business plan as a road map – impossible to travel without one.
For a better understanding, tell us how you will collect all the parts of a puzzle to build a picture for your project from scratch to an end? Obviously – A business plan will help.
A high-quality mobile app never comes without an app business plan. Hence, if you’re not willing to see your far-fetched aims just as a dream, you have to invest your efforts to build a mobile app business plan.
The three cornerstones of the successful mobile app are – Idea, Plan & Implementation. Out of all three, in this write up we will talk about the importance and how to create a business plan for an app. But, before getting deep into how to write a mobile app business plan, let’s start with the importance of a business plan.
Just a minute, before beginning we would like to tell you a story of Stephen and John. Let’s see how they manage their online business.
Why Should You Build a Business Plan For Mobile App?
First, when you explore how to create an app from scratch, the mobile business plan will help you be more precise and develop a robust application that excels in all terms. Besides, there are a huge number of applications available in the market. Out of that, hundreds of identical apps will be present. Thus, to particularly attract the users to your app is quite a tough task. Adding to it, the mobile industry is expected to generate a revenue of $190 billion in 2020-21.
Basically, we can say that there are two reasons for the app startup business plan. The first one is to captivate funding and second to captivate founders. With a complete plan, both of these goals are achieved, as they can easily adapt the things you want to convey.
Above all, there are a few factors to consider which actually shows why you need a great app business plan.
Degrading the Risks
We can say that planning is a simple rate of investment with lesser risks. As per the reports, it has been found that business plans are one of the ways to go closer to your ambitions and goals. The below-given graph will give you a better idea for the same.
Having a Clear and Defined Strategy
Notably, being a startup owner, you have to face one or other issues every day. But, when you are moving ahead with a business plan, you have to face fewer hurdles in comparison to an unplanned move. All in all, the plan will work as a blueprint for your business.
Henceforth, I hope now you exactly got the importance of creating a business plan for a mobile app. Though, worried or confused about how to write a business plan for an app?
We are here to help you!
To let you achieve this aim, we will cover all possible points in the article that are necessary for the application business plan.
SEE ALSO: Want to know the Business Process Automation Benefits for your Business? Click here!
An App Business Plan Template
Now, as you know how crucial an app business plan is, let’s proceed towards building it. The whole app business plan template is divided into 6 parts. Moving forward to it.
Section 1: Executive Summary
So, time for the introduction of your business plan. This is the first thing or the first impression of your business plan. If you’re looking for an investor, then this section is more important for you. Try to make the summary of your business remarkable and easily understandable.
Concerning that, make sure the summary is not a detailed one like how your product works. Try to show your executive summary just like a trailer of a movie (use your imagination). Furthermore, create a Unique Value Proposition (UVP) to stand out of the crowd. A few questions whose answers should be necessary for executive summary are as below.
Which Problem Are You Going To Solve?
Though thousands of apps are available, people face one or other interruptions. Get a solution to the problem you identify. Research on what your target audience is looking for and why the existing solutions, not enough?
How Your Mobile App Will Solve the Problem?
With the above question in mind, you need to make sure that your app has the capability of solving the problem you mentioned. Take note that, in the initial phase do not describe the functionalities, just show what your app will do.
What Difference Your Mobile App Will Make?
For your app category, probably a similar solution will be available. Present and provide your app in a way that it is different from the one already available. In short, make your answer as profound as you can.
What Aim Your App is Pursuing?
With this question, explain your future planning with an app, what users are you expecting, what number of app downloads you aim at, and so forth. Try to enhance your explanation with some metrics.
Section 2: Business Description
To the fact, most of the investors pay attention to the way you describe your mobile app business plan and goals. Therefore, introduce your business right from the details of your company to the mobile app concept you’re planning for.
To put it briefly, in this section your app startup business plan will let investors know your products & services, the corporate value, what are the key factors of your app, and so on. These are the data which is crucial to know for the investors. A few famous firms like TechStars, YCombinator, IdeaBoost, etc will choose the startups based on the team and founders.
Points to cover in this section are,
Overview of Your Company
While giving the overview of your company, a few info to include are,
Take it From First to Last
Just like a novel, keep telling the story of your organization with all the preliminary ideas, problems, improvements, and so on. Let investors know about the history of your company as it could damage your impression if any crucial information is revealed later.
Introducing Team
To get in the eye of an investor, your mobile app strategy should include a brief description of the team members. With the addition of the virtual introductory meeting, you can make the description more interesting.
Specify name, positions, and even hobbies of your team members. This will sound to the investors like they already know the team and makes your app business plan more lively.
“Pro Tip: Mention the details of your advisory team. As they will help investors in decision making and understanding the market. Their names will make a difference in the mind of investors.”
Section 3: Market Analysis
When you are about to launch your startup, you should know everything about the industry you are going to enter. Gathering information about the state of the market is the first and foremost thing for the realization of your app idea. In a word, with the past and present of industry, you can impact its future. That is, a market analysis is a must in your mobile app business plan.
To get the best market analysis, you need to know how big the market you are entering is? Interested to know the answer? Work out on the below given three key metrics.
If you’re entering a market which is well established or in its growing stage, then writing market forecasts is important for your application business plan. For creating any mobile app business model, you can refer to a few reputable research firms like Nielsen and Forrester. Here, you can mention the data for the number of companies (in terms of application) increasing in a particular industry and the money spent on the same.
Overall, the goal here is to know whether there is a real market for your product or not. To know about that, you can take the help of SWOT analysis.
SWOT Analysis
SWOT – one of the strategic planning methods which will give you a detailed description of your situation. SWOT stands for,
S- Strengths
W- Weaknesses
O- Opportunities
T- Threats
The analysis will help you make a deep study of regions, products, enterprises, and even the entire countries. Know about your business app from every possible direction, whether it is strength or weakness.
Section 4: Marketing Strategy
The business plan is never limited to mobile app development, marketing holds importance. To tell the truth, an ideal mobile app business plan template must write about how the app will reach into the potential customers’ smartphones. With a step by step process, you will be able to know more about the marketing strategy of your app startup business plan.
Research on Target Audience & Competitors
By choosing a certain group of users, try to target the audience who aim at your product. Make a demographic analysis and know the behaviour of your customers. With the target market, knowing about your competitors is dominant. The information you get with an analysis of your competitors will help you to enlighten the features that stay unique from them.
Customer Acquisition Strategy
After knowing about the user persona, it is the time to build a customer acquisition strategy. To achieve great results, here are a few mediums that you can try in your business plan for mobile app.
Take Decision on Metrics
In the initial phase, the success of your app will be measured based on the number of downloads and the conversion rate. Therefore, decide what metric will work best for your project evaluation.
“Pro Tip: Take a note on your CAC (customer acquisition cost) for each channel. Be qualitative, as investors should know the risk involved in a growth plan.”
Section 5: Financials (Before & After App Launch)
Are you aware of the reasons why a startup fails? This image will give you an idea for the same.
Take a note on the second point, “Ran out of Cash – 29%”. This shows when you are about to go for the first app startup business plan, know about the importance of costs and funding. Talking further about it, here are some reasons which show why the financial plan is a key aspect of your mobile app business plan.
Mention Estimated Funding Costs for Investors
We all are aware that the cost for startups will fluctuate a lot, therefore inform the investors about the estimated cost.
“Pro Tip: Place the most reasonable costs and try to leave a room for the extra expenses.”
A few types of cost ideal to mention are,
Read Also: How to Raise Funds for Startup Business
Section 6: Monetization Strategy
The final stage of your app business plan template – Monetization Strategy. Let investors even know about the ROI (Rate On Investment) through the revenue model for your application. Some ways to monetize your product includes,
Charge a Fee for App Installation
You might be thinking that why users will go for paid ones when a lot of free apps are available. But, when you include some extraordinary features, your app will directly catch the attention of the users.
In-App Purchases
One of the most preferable options for a complete user-oriented app. Just try to provide some enticing offers to the users – to encourage user engagement.
Subscription Plans
Just like Netflix, you can charge users on some interval of time. If your app comes under a category where a subscription plan can be implemented, then it is the best way to get ROI.
In-App Advertisements
Your app will remain free, an advertiser will pay you to showcase their ads in your app. Conversely, you must have a good amount of users to implement this strategy.
Remember, the investors will not support your business plan for a mobile app until it contains a monetization strategy. So, that’s all on how a perfect app business plan sample looks like.
SEE ALSO: How to build an app for my business?
Mobile App Business Plan Example
How big platforms like Uber or Airbnb managed to achieve success? Is it possible without an app business plan? Though, Never!
Every app needs a perfect mobile app business model to reach mesmerizing results. To let you have a better idea for the same, here is an article for a complete Uber Business Strategy & how they worked with the barriers that came across the success. This is just one mobile app business plan sample that you can refer for your startup.
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Write Your Mobile App Business Plan
Though no business comes without hurdles and bumps, but a powerful start with an excellent mobile app business plan can help.
Writing a business plan for an app startup is never easy. Take note, a business plan can never be cloned. It should be unique and appealing to achieve your goals.
Isn’t that exciting? Now you know how to write a business plan for an app. If you encounter any problem with your app business plan, then our team will help you to reach your destination. We have built dozens of business plans on our way which came out with fruitful solutions. Get in touch and make us a part of your fascinating journey to achieve your dream.
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