Last updated by TechPrate on September 5th, 2021 at 11:11 pm
“Mobile apps are all the rage right now and probably forever.”
I think anyone would agree with that statement because mobile apps have reshaped the tech world and you can find a mobile app development company to develop apps anywhere in the world.
. They come with endless possibilities, which is why the phrase “There’s an app for that” is so widely famous.
Mobile apps are an excellent communication mode between a business and its customers, which is why most brands now own a mobile app.
But you can’t build an app or anything without a plan. Today I’ll be discussing how to create a business plan for a mobile app.
The Steps for Creating a Mobile App Business Plan
Mobile apps are complicated, and a single bug can disrupt the whole codebase, which is why development companies emphasize creating “A Strategic Business Plan.”
I mean, think about it. How can you start building something without a proper plan?
Business plans for mobile apps offer a direction on which the development should take place. They act as a guide to make sure the mobile app development is on track.
Here’s how to create a mobile app business plan:
Step 1: Executive Summary
The executive summary is the part where you introduce your business. You talk about your goals, ambitions, and the values your brand stands for.
Use this part of the plan to make your business unique, and talk about things that differentiate you from your competitors.
About the Business
This section is all about your business in detail.
You will start by introducing your company and brand, what you do, what you’ve been up to, your market standing, etc. Then you go onto explain your mobile app idea.
What idea do you have for the mobile app, what goals you want to achieve with your mobile app, the key factors that will play a role in your app’s success. The information is useful for investors.
Your Company’s History
Of course, connect with your investors on a deeper level by telling them a little about your past.
Give them an overview of why you started this company and what it has done for you over the years.
Introduce the Team
Your team is the backbone of your project. An investor will bring in the money, but you’ll be responsible for working and delivering the project.
Describe your team in detail, introduce every member, mention their designation, skillset, and the reason why they were chosen. Additionally, also discuss the technologies and DevOps tools you’ll be using.
Here’s how to write an executive summary:
Step 2: Market Description
You must know and understand the state of the market and where it stands as you enter it.
Thorough market analysis and proper research will highlight the viability of your mobile app project, so make a short-term forecast of the “market’s weather conditions.”
Understand the Market
When you sit down to write your business plan, don’t forget to mention the market forecasts.
Forecasts play a vital role, especially if they belong to a reputable company. The forecasts have numbers that suggest your project’s probable growth and entice the investors to inject their money into your idea.
All you have to focus on is studying the current market conditions and then develop convincing yet believable forecasts.
The SWOT analysis is a widely used strategy to study the market, products, competitors, and target audience. It stands for:
In your business plan, acknowledge your strengths, weaknesses, opportunities, and threats that will play a role during the mobile app development process. Remember, don’t hide anything from your investors.
Step 3: Marketing Strategy
The right marketing strategy acts as a bridge between you and your customers. If you draft it correctly, you can convince the investors and use the strategies for your app’s succession.
Of course, you can’t just start marketing your app unless you know who to market it to, i.e., your target audience.
Define your target audience in detail on your business plan. Start from locality to age, habits, lifestyle, behavior, interests, and/or ethnicity.
Always know what you’re competing against because it can take your app a long way.
Get an understanding of how famous your competitors’ apps are, analyze your app’s success, and mention in your business plan what you will do differently to stand out in the competition. Highlight and solve the issues your competitor apps are facing.
Do you know what investors believe? They believe in actions, which means make sure you add a part of your app in the business plan.
Create screenshots or a landing page that highlights the interface of your app. Add some promotional material, videos, and images to entice the investors.
Who likes being stagnant? The answer is no one! Investor love funding an idea which has the potential to grow and become bigger and better.
Mention in detail how your app will grow down the line.
Step 4: Financing and Budgeting
Finally, this is where you talk about finances. Building an app is an expensive deal, and before you start, you need to understand how much money you need, how you will use the money, etc.
Once you can convey your financial needs, your investor will understand your needs and think about investing.
Make sure you show your investors where the money is going and how you’re using it. The investor should be present in every meeting related to the project.
Likewise, mention every cost, for example:
- Fixed costs
- Variable costs
- One-time charges
- Monthly charges
App monetization is a smooth process of making money through a mobile app, and investors are interested in how you plan to do so. Talk about the strategy you want to use and add it to your business plan.
Have a look at the best money-making apps; what are they doing right? That’s what you need to reciprocate and highlight in the business plan. Explain to your investors how you intend to make money in the long-run through your mobile app.
I hope this cleared up all your confusion about drafting a mobile app business plan.
Are you thinking about development? Business owners have two options: outsourcing the development by hiring a mobile app development company or in-house development. Think about which option suits you best. I hope you attract investors with your next mobile app idea. Good luck!