An idea sows the seeds for a mobile app. Similarly, a business plan takes you to the first step in app development much before you even hire the mobile app development services to build your app.
It is a myth that you write a business plan only when you want to raise funds. It works wonders even for a bootstrapped business. A business plan for mobile app development serves as a guide for all the stakeholders involved in the project. It gives a deep insight into what the app is all about and how it should be introduced in the market most profitably. It will provide you with a clear vision of the app, its marketing, and financial logistics.
How to write a business plan for mobile app development?
A well-crafted business plan for mobile app development gives a clear picture of the total costs involved in developing and marketing the app. It defines the scope of the app, market analysis, and marketing plan. Let’s have a look at the details you have to include in the business plan for mobile app development.
It is the section that introduces the project to all the stakeholders, including the potential investors. The points here should be concise and clear.
Mobile idea-Start by giving a brief overview of your business. Include how you got the idea of the mobile application.
Problem identification– Explain a pain point of the customer and how it is impacting their daily life. Write about the gap in the supply and demand chain in the market.
Potential solutions– Here, you introduce your app idea. Write about how your app will help solve the customer pain point effectively. Do not list the features or benefits of the app. Instead, tell what the app allows the user to do that was not available before.
Unique value proposition– Why is your app unique? Explain how different you are from the competition. What is in your app that will attract users? Write about the unique value that your app offers to its users.
Targets & objectives– Now, you give a brief on how your mobile app will make money. Write down the business objectives. Write about the projected revenues, mergers & acquisitions, and expansions. Identify a roadmap, include key milestones, and write the final achievable target. Make sure that the goals are realistic and meet the investors’ expectations. But have solid proofs for number crunching if anyone asks you to justify the targets.
Company & management summary
This section gives a brief overview of the company and its management team to the investors.
Company summary- It gives an overview of the company, its history, objectives, and location.
Management summary– You write on the team of your company. Mention the managers and team leaders including their skills and experiences here.
This section is for the app specifications and its features.
Technology– Be clear about the technology and platform you will be using for your mobile app. For example, mention if you will be hiring Flutter app development services for cross-platform apps or iOS mobile app development services for building an iPhone app.
Products & services- Here, you write about the services offered by the mobile app. Write about the features and benefits of the app to the users. Include proof like research and development papers or survey results to show how the product will fare in the market and why you think it is a winning proposition.
This section includes the detailed industry trends for your products and services.
Market forecasts– Include trusted survey reports to state the facts and figures. Be precise by including growth numbers. Write it in points so that it is easy to read them at a glance.
SWOT analysis– Here, you define the strengths, weaknesses, opportunities, and threats for your company. It tells where you stand in the market and how good your product is.
Marketing & sales strategy
You cannot possibly skip the marketing and sales strategies. This section gives an idea to investors on how passionate you are to sell your app to users.
Customer acquisition– Define your KPIs (Key Performance Indicators). Write on the customer acquisition costs. So this section will include your plans for marketing the app and the costs incurred to achieve it. Include promotional strategies like paid campaigns, influencer marketing, referral program, App Store Optimization, blogging, and launch strategies.
Competitor analysis- Another aspect of your marketing plan is to tell how you intend to outperform your competitors. It lays out strategies to counteract competition and perform better than them.
This last section of your business plan for mobile app development has to be really good. You show the sales forecast, cash flow, income statement for at least three to five years to get an understanding of all the plans you have made.
Revenue models– This explains the various sources of monetization strategies from the app and its services. In-app purchases, subscriptions, partnerships, and ads are examples of earning revenue from the app.
Startup costs– Here, you mention the costs that you will incur to build and manage the app. These will include the charges for mobile app development services, operating expenses such as employee salaries and rent.
Funding required– Here, you pitch the funding you require from the investors to manage and grow the app.
Financial summary– The financing summary is more oriented towards the investors. It specifies the amount you expect to raise and how you plan to pay back the money if it is a loan. It specifies how and where you will utilize the funds.
Projected profit & loss statement- Make a table of the financial top-line projections for the next five years indicating the total revenues, gross profit, and net profit clearly. Use numbers and graphics to represent your return on investment (ROI) estimate and make it more effective.
Getting an idea is just the beginning. How to present it to the stakeholders is more crucial even before you decide to hire mobile app development services to build the app. If you are a startup, it is high time you write a business plan for your mobile app and pitch it to the right investors. Don’t let your idea fizzle out because you had no idea how to flesh it out.