Keys to Writing the Perfect Business Plan for Your Mobile App
There are mainly two reasons why you’re looking to write a business plan for your mobile app. Either you want your founding team to keep up with the shared strategy or you want to fund.
There’s an estimated number of 2.1 million apps in the Apple store. Since its launch, over 140 billion apps are recorded to be downloaded. Android users are provided with 2.8 million choices in-app store and yet, reports show that most people don’t keep more than 30 apps on their smartphones, and use barely 9 of them once a day.
These numbers show the severity of competition in the mobile app market. That’s why business plans are always a useful tool as startups can’t work on just rough estimations and guesswork. Everything should be immaculately researched. Getting a proper enterprise app from the best mobile app development services do not come cheap and if you’re just starting up in the business then the budget is even more of a concern.
Each business requires a personalized business plan but there’s a format to be followed. Here’s the key to writing the perfect business plan for your mobile app:
Write down a clear, and concise executive summary because this is what sets the tone of your entire business plan. Once you sort out all the elements on this page, it helps you throughout your entire business plan. It is the most important part of your business plan as it is the section which an investor reads first.
It should include a:
- Problem statement- a problem statement is a difficulty or a series of continuous complains that you know your consumers are having without any or a proper solution available in the market. This section should include that enough number of users are having this problem for your app to be a viable investment.
- Solution statement- tell your readers about how your app is going to solve the aforementioned problem. It should briefly define how your app is going to solve the persisting issue and what makes your app the potential solution to existing problems.
- USP- or UVP is the unique selling proposition/unique value proposition. This should tell how you aim to differentiate yourself from other products in your market. For a mobile app with an existing market, it is a great opportunity to grab industry’s lacking and use it your app differentiating benefit. But if your mobile app is entering new markets then this may be a little harder to define.
- Goals and objectives- it is very important to give your investors a clear idea about your future goals as it directly impacts their interest in your business plan. Whether their goals align with yours or whether they should be investing in your app or not.
Many investors pay extra attention to the way you describe your business. A business introduction helps evaluate big investors like tech incubator Y-Combinator to invest in small startups by analyzing their potential growth in the future. They analyze your team, business model, corporate goals and future aims. What you start as is not going to be what you will always be. Show off your potential with a complete company overview, company history, and team introduction.
- Company Overview should include all the basic information about your company. Where your business is located? What type of business entity do you define yourself as? What is your company’s infrastructure? What does your mobile app mean to your business? And so on.
- Company History is a great way to humbly flaunt your milestones. Include all your biggest moments, where you started from and where you’ve come. This interests an investor as they see your potential to grow.
- Team Introduction allows you to further gain the trust of your investment as you properly state each staff member’s qualification and position. Having competent staff always puts a great impression.
Your investors may be the sharks of their industry but they would still need a thorough analysis of your market. Provide a complete:
- Industry Analysis- Give them the idea of your startup’s success by giving them accurate numbers. Like the market size of your respective industry, major competitors, market forecasts within five years and related data on your mobile app startup.
- SWOT Analysis- Any market analysis is incomplete without a SWOT analysis. SWOT analysis gives a pretty good estimation of a product’s success by evaluating its strengths, weaknesses, opportunities, and threats. Briefly define your mobile app’s strengths, its weaknesses (make them small and emendable), opportunities that your mobile app brings for both you and your investor and any threats faced by your mobile app and how you plan to tackle them. Remember, to be honest with your SWOT analysis, investors know fake confidence when they see it.
Marketing strategy builds a bridge between your product and your consumers. Your investors should know that you have such a stable bridge that will allow your mobile app to fall right into the hands of your consumers. Use measurable metrics in your strategy that are relevant to your mobile app instead of vanity metrics. For example, if you’re offering a social mobile app then it is more important to measure your daily active users than number downloads.
Give your investors a strategy that gains their trust by making clear estimations on your customer acquisition costs, break-even and burns rate.
If your investor has read through all the details above, now is the time to give them accurate and straightforward answers to their questions of:
How will your mobile app make money?
How much is needed for best mobile app development services?
What is your monetization strategy?
And how much will it cost to keep the app running?
Your financials may vary depending upon which monetization strategy you choose, and how much costs your app requires as no technology startup or app is same and each journey is a different experience.