Idea, plan, and implementation. These are the basic keystones of any project’s success. In the constantly changing modern IT world, it’s impossible to forecast success with 100% confidence. However, if you pay enough attention to each of these keystones, your chances are high to propose a solid mobile app business plan.
However, some entrepreneurs skip the stage in which they wonder why do you need a mobile app business plan for business. These people often believe practice to be a better way to reach the expected results, hoping spontaneous decisions can build the road to the top manufacturers’ list. Unfortunately, this type of approach leads nowhere.
HOW TO DEVELOP AN MOBILE APP BUSINESS PLAN?
Be clear and concise in this section, especially for those seeking investment. It might be easiest to write the introduction to this at the end, once everything else is noted on how to develop an mobile app business plan.
Well, if you want to carry out things more perfectly then you can also go for an mobile app business plan template that requires a team of experts who can create it for you. And who’s better than ITSolution24x7 to create one for you.
Along with that, here is what you need to create mobile app business plan:
First thig first, you need to address your problems, or series of pain points is something that you know your potential customers are having. Either no effective solution exists, or the current solution has serious shortcomings. It should also demonstrate that this problem impacts enough people to make your app startup a viable commercial proposition.
Once you address your problems, now introduce your app and explain why it’s a suitable solution to this problem. Explain how it solves the problems identified and why people or companies will turn to this as a potential solution.
Unique value propositions change over time. No mobile app business plan survives contact with real customers and the market in action; however, you should have a starting point.
If you are entering or attempting to create an entirely new market, it might be harder to define this. But for those entering established markets, you need to use this opportunity to outline why you are different from the competition. In established markets, it might be difficult to claim that you’re better than the completion. Chances are, they’ve got more resources and customers, so explain why you’re different and therefore, how this will help you gain market share.
For those seeking investment, an investor needs to know if your goals align with their portfolio. Now is your chance to define what success looks like. So it’s better if you go for a specific target for an app development business plan.
Some of the most successful startups of the last decade were entering huge markets. Take Uber and Airbnb, for example: transport and travel. Enormous global markets. It took them billions to disrupt those markets, thousands of staff and a lot of uphill struggles before they started making a profit.
Make it clear that you know what the challenges are. Investors know false confidence when they see it. Also, if this plan is going to convince others to join the team, they need to know they’re working with someone who’s got a realistic view of the road ahead.
See how our mobile app development services can help you out
Your team is everything. It is the main reason investors put money into startups. In this section of your tech startup business plan, you need to outline the following:
- Legal entity, where the company is registered and when it was formed.
- Number of employees and/or shareholders.
- Where are you based and how does the team operate together, if some members are remote?
Next, you need to outline the history. How did you uncover this problem you want to solve? What steps did you take to understand the market and customer pain points? How did you assemble the team?
This cannot be understated how important this section is. For everyone involved, either full-time or who plays a key role in the strategic direction of the company, investors want to know more about them. Give details on how they got involved, their role and responsibilities, along with academic and professional experience in mobile application development or related fields.
A marketing strategy is one aspect of your plan that will iterate and change the most during the first year or two. It depends on a wide variety of factors including who and where your customers are, and how to reach them.
Now is the time to sit down and crunch some numbers. In any mobile app business plan, investors need to see the following:
- How are you going to make money?
- What it will cost to run your business?
- How much funding is needed?
REVENUE GENERATING MODELS
For app founders, the following revenue models are available:
This works if you intend for your user-base to be the product, whereby they get it for free and advertisers pay to reach them.
Although many people are averse to paying to download, apps can still generate revenue this way. If you are going this route, iOS and macOS app stores are where you are more likely to find users willing to pay, alongside selling apps through your own and third-party websites.
For consumer apps, this is the most viable route to revenue. Base revenue projections on a percentage making a purchase so don’t be over optimistic and use prompts such as referral discounts to encourage upgrades.
A popular choice for B2B apps, although this is also becoming more commonplace with consumer apps.