11 min read
How to Write A Business Plan for A Mobile App?
For any business project, plans not only organize expectations but also aid in communicating with the development team, the investors, and eventually, the consumers.
When an entrepreneur in any field skips the business planning step, random decisions can prolong or even defeat their project’s intentions.
Mobile app planning defines your project so you can make the most of your resources and create the most successful app possible.
Keep reading to learn about business plans for mobile apps, including what they are and how they’re useful in turning an app idea into a profitable, successful application.
Table of Contents
- What is a Business Plan?
- Why Do You Need to Plan a Mobile App?
- Benefits of a Business Plan for Mobile App Developers
- Attract investors
- Define your strategy
- Lower risks
- Improved management
- Contextualize your goals
- Turn Your Idea into a Plan
- Fund your idea
- The Parts of a Business Plan for a Mobile App
- Executive summary
- A description of your business
- Selling points and objectives
- Business analysis
- Monetization and funding
Chapter #1: What is a Business Plan?
A business plan isn’t only associated with organizing a business proposition, though that’s part of it.
It’s also a way to organize your thoughts and the expectations of your investors, your development team, and your marketers to help them understand what the app will be used for.
The plan will guide these different people towards the same goal using the insight that you put into it.
The best plans use clear language and well-organized expectations to get everyone on the same page.
Remember the audience that will read your business plan while you’re preparing it. Your plan should not only review your expectations for the app’s development but also the marketing and financial logistics that those team members should know before starting your project.
1.1 Why Do You Need to Plan a Mobile App?
A business plan is an essential part of developing a mobile app, for several reasons.
To understand how crucial planning has become in this industry, first consider some statistics.
By 2025, the app market is projected to make $608,345m.
Currently, according to the same statistics, advertising revenue exceeds $200,000m in this industry while the number of downloads exceeds 220,000m.
What this means is that a valuable mobile app continues to be more valuable, as well as more competitive.
A successful app launch in the Apple App Store requires understanding this industry, now worth many billions of dollars, and creating a clear vision for how to fund, develop, release, and market your idea.
In that sense, a mobile app isn’t fundamentally different from any business venture.
Planning is just as vital (or more so) since every aspect of a mobile app’s development is differently competitive.
Chapter #2: Benefits of a Business Plan for Mobile App Developers
We don’t want to talk only in abstract terms – a business plan for mobile app development provides concrete benefits to your team.
By having a mobile app development project plan and getting everyone on the same page, many vital aspects of app development become easier.
Let’s take a look.
2.1 Attract Investors
A business plan shows investors that you’re serious about your app. This is especially important if you plan to form a new company around this app and need not only investors but company co-founders as well.
Since your ultimate goal is to attract funding and monetize this app concept, a coherent business plan answers the questions of potential investors.
Photo Credit: mobileappdaily.com
Traditional business models can’t always handle the adaptations and iterations required to fund and develop a mobile app, so it’s crucial to lay out your plan in the context of a modern technology startup.
Incorporate the information that investors want to know in your business plan, including whether the app will be profitable and how, what its unique niche will be, how it will be marketed, and what its development plans are.
2.2 Define Your Strategy
A business plan defines your strategy for this mobile application to your development team, your marketers, and any potential investors.
This helps everyone understand the market expectations and the game plan.
A well-defined strategy does more than that, however.
It also lays out the plan that you’ll stick to, clarifying your goals and helping you delegate more efficiently.
Planning in the context of mobile app development is essentially identifying problems and predicting solutions.
The problems that your target audience wants to solve should be at the top of your list of goals for your mobile applications and business plans.
2.3 Lower Risks
In such a competitive industry, there are many financial risks involved with a new software application.
The more extensive the business plan, the more secure the investment.
Planning affects profitability in a few ways, not least of which is the confidence of your investors, which will help your business secure investment capital or loans more easily.
2.4 Improved Management
Different people and teams will be responsible for different aspects of the mobile app development process.
A business plan helps you delegate responsibilities effectively.
With the app industry increasing in competitiveness and changing yearly (even monthly), development delays caused by poor delegation can be disastrous.
In the time you waste, the market for your app may completely change – someone else may even come out with your app concept first!
Photo Credit: thewebappmarket.com
Management and proper delegation are non optional aspects of mobile app development.
The lost time during the development process can not only be expensive but also critical in a changing industry.
2.5 Contextualize Your Goals
Your goals for your mobile application need to be put in context, for yourself, your dev team, and your investors.
The main contexts you should address are market analysis, consumer analysis, and competitor analysis.
By providing these in your business plan, you show that you’re thinking ahead when it comes to your strategy for succeeding in the app industry and within your consumer niche.
2.6 Turn Your Idea Into a Plan
It may seem obvious, but not every idea has functional market potential.
An idea will not secure investment or become the next big app without first being turned into a business plan.
Just seeing everything laid out, from your goals to your design intentions, is a huge benefit of making a detailed business plan for your app.
Chapter #3: The Parts of a Business Plan for a Mobile App
To be effective, a business plan needs to have specific parts that cover various aspects of marketing and development.
Use this list as a basic template for your business plan:
3.1 Executive Summary
The most vital part of your business plan is called the executive summary. In it, you’ll describe your plan in certain terms to explain to the reader your goal for this project.
This is where you’ll describe the type of app you’re making, such as distinguishing your app between eCommerce, lifestyle, utility, or other service apps.
This is also where you describe your company model, such as if you’re a startup, new tech group, or established brand.
Imagine the executive summary as a single picture of your entire plan. You can even summarize your team members and your plans for financing.
While the executive summary is the first order of business for the reader of your plan, it’s probably the last thing you’ll end up writing. This is because you’ll be summarizing every section of your plan after writing it all out.
3.2 A Description of Your Business
This section is where you make a detailed company analysis directed at potential co-founders and investors, depending on your logistical needs.
Some important information to include in this section could be:
- Why you started the business, how long you have been running it, and the nature of your ownership
- The business’s accomplishments so far, including sales, on-land stores, brand deals, previous funding, awards, or anything you think is relevant
- Your company’s legal status, including how profits are managed, proprietorship, and any other entities that are consolidated into this one
The business description helps the reader define and understand how your business operates in order to place it in the context of your industry.
3.3 Selling points and objectives
This is where you can get into the nitty-gritty of your app, describing why the app is unique, what needs it fulfills, what solutions it offers its clients and more.
The mobile app industry is so competitive now that establishing your app idea in the context of your target audience is vital to your investors’ confidence.
Some questions you can answer in this section include:
- What need does your app fulfill?
- Who is the target audience?
- How does your app differ from those already on the market?
- How will your app provide user feedback?
In this section, you’ll tell your investors about your app’s success factors, which are the reasons that this app will succeed in the current market.
This could mean describing what your app offers that other native mobile apps don’t or using your company’s previous track record with similar applications as an example of predicting the success of the new one.
This section can also describe your strategy for how you’re going to develop this app. This includes not only your developmental strategy but also your promotional plans, your operational management procedures, your predicted development time, and your expectations for your consumers’ lifecycle.
3.4 Business analysis
In the business analysis section, you’ll place your app idea in the context of the current market.
An investor will want to know how the app will stack up to its direct competition, including how you’ll market your app to beat that competition.
This in turn will help your investors understand the needs of the projected app users, their mobile devices, and how they will be fulfilled.
A business analysis should examine three main subjects of your app’s usage: market analysis, consumer analysis, and competitor analysis.
This requires you to analyze consumer demand and how it impacts market trends. It will also lead you to define your competitor’s strategies and results and describe how your app has an advantage over theirs.
A business analysis accomplishes two vital functions for your business plan. It tells your investors that you know the market and it solidifies your objectives in the context of your target consumers’ needs.
3.5 Monetization and funding
Finally, a business plan should include a section about monetization and funding.
Specifically, this section describes in more detail how much the app is projected to cost, how much funding you’ve already received, and how you plan to make money with the app.
For example, a lifestyle app that will only make back the cost of the app will have a different funding and spending structure compared to an eCommerce app, which makes money regularly.
This is the section where you define your profitability to the people who will potentially pay for your app to be developed.
Creating a mobile app is a competitive, costly, and time-consuming process. Doing so without a plan makes as little sense as it would for any complex business venture.
This is why a business plan is a crucial step in app development.
To write one, you have to be able to summarize your business’s structure, your app’s objectives, the current market trends, your competitor’s performance, your funding and monetization structure, your marketing strategies, and more.
Sounds like a lot? Let us help.
Our Simple Starter package includes not only a detailed technical writeup of your mobile app, but also thorough market research and user analysis.
What’s keeping you from getting started on your business plan?
Your inbox wants some love.
So, what's the next step?
Talk with a real app developer