Every success story is different. A foolproof plan is of utmost importance to reach a business-specific goal. A plan works as a guiding map that will uncover the treasure and assist you at every stage. Many business executives have stated that initiating a business plan helps in orchestrating disciplined thinking.
The three main stages of mobile app development are – thinking, planning, and implementing. So, in this piece, you will find how to create an efficient mobile app business plan.
Why Have a Mobile App Development Business Plan?
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In this app-driven era, thousands of applications are created every day and some of them are even identical. So, to stand out from the crowd, you need a business plan. Without a business plan, you can get lost in the introductory process itself.
Moreover, considering that in 2020-21, the mobile industry is expected to grow $190 billion, it is safe to say that a proper planning is the best way to go.
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Minimizing Risk Factors
In general terms, planning is done to degrade risk factors regarding an event or work. It is considered to be a way of investment that can help reap great results. As per reports, business planning is one of the efficient ways to achieve desired goals in a restricted time-frame.
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Precise & Well-defined Strategy
Whether you are a startup or a struggling entrepreneur, you have to overcome various petty issues every day to keep the work productive and quality-rich. But when you follow a business plan strictly, you will find lesser hurdles going your way. A planned move makes the development process easier and faster. It works as a layout for your business.
Building an App Business Plan
As you know that planning is very crucial to build applications, let’s start with building it. The whole business plan is segmented into six parts. Let’s start with
Part 1: Executive Summary
This is the introductory part of your business plan. This will create a first impression if you are looking for investors. Try to make your business summary effective and impactful. Do not try to show or explain what your product does. Keep the summary short and precise, it is always recommended to give a sneak peek before a glance.
Moreover, build a Unique Value Proposition to make your application unique and best. Here are a few questions that are important to complete the executive summary.
- Which issue are you going to solve?
As we know, thousands of applications are being developed every day, so making an app to solve the real-time problems of users is a must. First, identify a problem that needs to get fixed. Second, get a solution to the problem. Do deep research on what your audience is looking for and how the current solution is not working?
Part 2: Business Description
Investors always notice the way you explain your mobile app business plan and objectives. So, initiate your business introduction with a company details and the mobile application concept.
In simple words, this part will give your investor an idea of the application, and this is a corporate value and usage. These data are very crucial for your business plan, make sure you share every detail with the investor.
Some important points to mention here are
- Specify the format of your company
- Give the entity type- whether you are an LLC or C-corp
- The establishment and geographical location of your company
- The strength of your team
- Whether you are off-shore or on-shore
- The mission and vision behind your company
Start the description with your establishment year and keep on explaining it like a story. Introduce your primary ideas regarding the company’s mobile app development services, what problems have you faced, and how you have overcome those issues.
Part 3: Current Market Analysis
Before starting with your business, a current market analysis is important to determine your competitors and what are their marketing strategies. Gathering information about the industry you are dealing with helps you frame preliminary startup strategies.
Knowing the past and present of the industry will help you become the future. You can look up to your strongest competitor and analyze their trends of success. See what kind of marketing strategy they have implemented in the past and how they worked for them? Answering these questions will help you determine your marketing strategy.
To get the best market analysis, follow these metrics strictly.
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- Total Market Available: Inspect the size of the market, the ratio of consumers and traders
- Serviceable Available Market: Within a specific time frame, the percentage of the market you can attract through a sales plan
- Serviceable Obtainable Market: The percentage of the market you can impact in six to twelve months
Part 4: Efficient Marketing Procedures
A business plan goes beyond mobile app development services. Marketing is an important step in building mobile applications. To be honest, an ideal mobile app business plan should include how the application will reach a probable prospect smartphone. A step-by-step process will help you understand the marketing strategy and the implementation process.
- Dig Deeper into Target Competitors & Prospects
Choose a target market and analyze your competitors. Go on detailed research and understand their strategy to keep your features unique and best. Choosing a target prospect means targeting the audience who seek your product. To specify this, make demographic data on the behavior of your customer.
- Take Well-informed Decisions Using Numbers
In the beginning, the success rate depends on the number of downloads and lead conversion rates. You can opt for Customer Acquisition Cost for every channel. However, look for the metric that works the best for you.
Part 5: Financial Analysis
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Mobile app development takes a long time, so keeping up with the expenses is a bit risky, if not well planned. Making a financial plan is as vital as making an executive summary. Most businesses face huge deficits due to unplanned financials.
The below-mentioned points will give you more reasons to make a financial plan.
- A finance strategy will capitalize your data on the amount of funding you are spending to bring the application to the market.
- Your probable partners must know the amount of money they need.
The business financial plan will give you and the investors an idea about the project cost and how much to expense.
Part 6: Monetization System
The monetization of your application is the final stage of the process. The term ‘monetization system’ refers to the revenue model of your app that provides insights on ROI. This will help investors analyze the potency of the app. Here are a few ways to monetize your app:
- Charge a Nominal Amount for Installation
Who will pay for an app when there are free apps everywhere?
Quite interestingly, people will pay for an application. All you need to do is, have unique features that would draw users to shell out money from their pockets. However, keep the charge nominal.
- In-app Purchases & Advertisements
Incorporate features that attract users to your application. These features should be unique and helpful for in-app purchases. People will pay for subscription plans and use your application if your service is great, just like Netflix.
In-app advertisements are best as your app will be free for the users but an advertiser will pay you to show their ad.
Conclusion
We need a road map to reach a destination. It is better to build an informed strategy than to get carried away from your goal. A perfect mobile application never shows up without an attentive plan. Mobile app development requires a lot of effort and time. So, to know that your efforts are worth it and going in the right direction, an action plan is needed.
