Since there is no guarantee whether your mobile app business will be a success or not, there are a few crucial factors that have to be kept in mind while you work on your business plan for app idea depending upon the scope of the overall project, cost involved, your team and more. These factors include proper research & analysis, planning, and project execution.
Moreover, if everything mentioned below is taken care of, your project will have lesser chances of failing in the market and hence, you can make a business plan and put it to execution.
Every startup or business plan begins with a mental image, an idea, which further develops itself to a complete roadmap as you keep working on it. So in the case, if you are formulating a business plan for mobile app idea, here are some factors you must know before you begin with your startup, which includes the cost factor as well:
Since the majority of people, nowadays, have smartphones, there is no way they aren't using multiple apps on a daily basis. And hence, there has been continuous growth (which continues to grow) in the revenue generated by app development as per the statistics.
Development of your mobile app:
Well, there are so many niches to choose from while you have to develop your mobile app relative to what business you have got to start with. It could be eCommerce, finance, geography, entertainment or other.
A plan is a must:
So whatever is your field of expertise, your app must have something different for the users to make it a success, get downloaded and generate profit. And hence, creating a business plan to ensure it will be a success is crucial.
The Market analysis:
Analyse what the market and potential customers need before you get started with the making of your Business Plan for Mobile App Idea. Moreover, competitor analysis is highly suggested before laying down a plan of action.
Combining Business plan & Financial Model:
Any business plan, whether it’s for an app or not, is static, and when combined with the financial model for generating revenue out of it, works better.
Why make a business plan for an app?
Well, funding and founders are the core reasons for creating a business plan for an app so you can move ahead with the plan of action and the app launch.
How does a Business Plan for your App idea looks like?
The very important factor that gets counted here is the estimated time & investment cost required for the app creation (which is reliable for organizations) including the commissions while you are in the process to make a business plan.
This includes a clear and concise executive summary of how your mobile app works, the potential consumer, and your app's USP, UVP (unique value proposition), specified goals including funding needs, and more.
This includes the Business introduction, the concept behind your mobile app, your company’s corporate values, mission, the multiple key factors involved in your app’s success.
Overview of Your Business or Company:
This includes the type of structure of your business, location & history of your Company, your team, mission, problems, etc.
This includes the formulation of the main idea of your business as well as your team, product launch and this further consists of the development stages your company went through.
This includes the mention of every person’s work experience in your team, their names, their position, as well as their respective responsibilities they take care of in the company, and more.
Well, in order to lay down a business plan, which will benefit in the long run, a section of the analysis of the market state becomes a compulsion in order to know if your product has viability. This includes the gathered information from the Market forecasts and SWOT analysis.
Forecasts, for example, from Nielsen and Forrester play a very crucial role in laying down your business plan for the app idea. Moreover, you must analyze a few things i.e. an actual market, are there enough users and would they invest in buying your product if you are solving a problem for them through your product, etc.
The SWOT analysis includes Strengths, Weaknesses, Opportunities, and Threats related to your product that counts while you write a business plan for your app development. Moreover, it is needed when it comes to analyzing problems or more with enterprises, products, regions, or countries, etc.
Read Also: How To Validate Your App Idea?
Marketing Strategy for your App
In order to allow access or to distribute your product to your potential users, it's crucial to have a marketing strategy, which will be useful in convincing your investors. A few such marketing strategies consist of the following:
Analyse your target market
In order to market your app, ensure defining a target market or a specific customer community by laying their details such as demographics, choices, habits, life, etc. for your product to sell instead of targeting everyone so it can sustain for longer.
Analyse your competitors
Creating a business plan for your app keeping into account the data from your competitor research will also help in finding the audience you must be targeting or the product features they are missing out on in their product can become your unique selling point, solving the challenges they are facing via your product for users, and more.
When it comes to digital products, websites or applications, a landing page, which has the core elements such as the name of your app, promotional video or audio, CTA buttons, functionality, advanced features, etc. could make all the difference by keeping your consumers informed on the updates or more.
Well, it's always a good sign to see that your app is doing well via the app ratings in the app store search results, and in order to improve and sustain a good position, it's crucial that you work on its optimization and attract more audience to download and try it.
Financial Model for App
When it comes to the funding or financial model for your app, you will have to ensure that potential investor gets to know why they are funding or investing in the first place. Does your financial model or document have a 3-5 year forecast of:
profit and loss
distribution cost of each investment, which also includes its explanation
Moreover, you must be able to estimate the expected revenue and other costs beforehand in order to carry out a good business plan for your app.
Funding Required for the Business Startup
Since the funding/cost for the business startup is based on estimation, it may vary with some amount and hence, your investors must have information on this factor. Moreover, ensure keeping the cost differences as less as possible. Business Startup costs include one-time costs, periodic costs such as regularly paid expenses, costs that are fixed, and costs that vary such as staff salaries.
Strategy for App Monetization
This includes app monetization strategies such as
Advertising (it’s no new concept for apps where people spend multiple hours in a day)
Paid apps (just be clear if your product is providing the equivalent value people would pay for)
Subscriptions (this works until people cancel the subscription, moreover, it's a very useful method of app monetization)
In-app purchases (usually noticed in games)
It's not a piece of cake to create a business plan for an app, especially when you have no experience in the same. And hence, keeping a check on the above-mentioned factors and developing a product that is practical, has quality, and viability could be a great step to take your business ahead and pitch your investors.