Companies create a mobile app business plan for a number of reasons. The plan aligns the team for a specified vision. Startups are in severe need of funding. In such circumstances, they are required to submit a detailed plan about their apps-in-progress so that the prospective angel investor can study and assess whether or not the project is feasible. If you are in a similar predicament, then this article can help you design your own business plan. For starters, you have to split up your business plan into five phases.
An executive summary is a brief description of your mobile app. Business plan readers usually go to the executive summary to get a gist of the app. Thus, you have to ensure that your executive summary is easy to understand and straightforward. Additionally, it should not extend much—you have to show “more” in a few words.
Whenever a mobile app is envisioned, the first thing that should be described is what exact problem it can solve it for the end user and how can it improve or enhance their daily tasks or processes. Effective business plans are able to pinpoint the shortcomings of the market and represent it via statistics, charts, diagrams, and figures. This section also explains the scope and scale of the problem.
For example, consider Lyft, an app which provides scooter, bike, and car rides to users in USA and Canada. The app makers identified a gap and realized that there was considerable demand in the local market. As a result, Lyft now stands tall as the second largest transportation network company in the U.S.
In this section, you have to place your mobile application’s introduction. However, it is better to skip the explanation of the app or listing down the features and functionalities; rather explain how you can solve the problem which you have identified in the previous section. Here, you can explain how are you planning to disrupt the existing market or industry of your app.
This is one of the most distinct parts of your business plan because in this section you have to show how your app is unique in comparison to others. It is recommended that you have at least one unique feature or experience which is unavailable in another similar type of apps. Moreover, try to avoid stating that your app will be “better” than the competitor’s one because it may seem unrealistic. For example, Skillshare is an education-based app. The app’s unique value proposition is the provision of quick, on-demand training.
This section is used to mainly assess two things.
This section holds decisive importance in the eyes of an investor. There are many cases in which the business undergoes vast changes. As a result, many accelerators set their eyes on the potential of the company and the team.
This is where the most fundamental information about your company and its structure is defined. For instance, you have to specify if your company is a corporate entity or not.
After providing the company overview, you have to shed light on your team members like in which city is your office based in like Seattle, Chicago, Boston, or perhaps the center of software development—Silicon Valley. If you have any team members from offshore branches or individual hires from other countries, then you have to also mention them. On a similar note, you have to write about your current working space; it can be a co-working space, a traditional office, or a residential property.
In this section, you have to go back to your origins and explain how you decided to finalize your idea for a mobile app—specifically what encouraged you to dedicate yourself on the mobile app. Show the homework you did after you finalized your app idea. In order to show your progress, you can list your milestones via a diagram through which the reader can track your entire journeys like product launches, hiring process, and other key aspects of your business.
In this sector, write down the work names, responsibilities, educational qualification, and the industry experience of those individuals who are the part of an app’s management team. The credentials and experience of these individuals along with the project hierarchy can make up the mind of the investors whether to place their trust on the app or not.
Often, companies who are working on a mobile app are backed by a number of advisors. These individuals are experienced and established professionals in the industry—often they are the creators of the successful app themselves. Create a list with the details of these advisors in order to improve your brand image. When your business is supported by renowned professionals, you can instantly gain credibility.
While creating a mobile app, you must be up to date with the current and historical trends of your industry. You have to know what types of mobile apps and games are currently the most successful. Moreover, you also have to keep an eye on the future trends and predictions so you can adapt better, especially considering the new advancements in machine learning, augmented reality, virtual reality, and internet of things.
While assessing your market size, you must be familiar with three numbers.
In this section, you will be required to use top-notch research analysis skills in order to present your industry projections by using renowned and authentic sources. Show how much money is being invested in your industry and what is the revenue of your competitors. Keep in mind that this report must be created according to your scope; for example, if your app only targets a national-level issue, then you do not have to add figures related to the international industry.
Several models are used in this section to attract the attention of the angel investor. One of them is the 2 x 2 matrix. In this model, variables represent four aspects: challengers, leaders, niche players, and visionaries. These components are represented via an x-y axis scale to highlight the execution and vision of the app as it progresses in terms of these four aspects.
In this part, you must come up with an effective and workable strategy through which you can attract your target audience.
Try to brainstorm how you will get more people to use your mobile app. Explain which marketing campaigns will you use, for instance, many app-based startups use integrated marketing campaign to strengthen their brand image. It is essential that your estimations about CAC (customer acquisition cost) are realistic. Much of your targeted investment relies on your growth; therefore prospective investors should know how you will grow.
If your mobile app is focused on acquiring an extensive user base for intended users, then the use of strategies like referral program can do wonders. Show your plan to reward your loyal user base by showering them with deals and discounts and how much you can grow your app through this incentive-based strategy.
Select the relevant metrics which provide a glimpse of your model’s sustenance. For instance, some apps value their download figures as the key metric while others are more interested to know how many times their app was opened and interacted within a 24-hour interval.
When you have spent ample time on your mobile app business plan to convince investors in investing in your mobile app, you have to close the document by explaining how much capital is required to create and maintain the app. While doing this, you have to create clear-cut representations about where all the money is spent.
In order to earn money from mobile apps, there is a wide range of options. Some of them are the following.
Before an investor decides to spend a large capital on a mobile app, they are inclined to know the details of how this capital will be used in the mobile app development. As a startup, it might be a little tricky to come up with precise numbers, however, try your best to mention reasonable and realistic estimates. Additionally, bear in mind that not everything goes according to the plan. Thus, also reserve expenses for any unexpected emergency which can help you address an ill-fated situation. Lastly, you have to focus on the following two considerations.
In this section, you have to focus mainly on two types of expenses.
This section is aimed at two factors.
In the end, you have to provide answers to the following questions.
By following the above-mentioned template you can easily raise the required capital with your mobile app business plan.
I posted this project and within minutes guys from CodeIT bid on the project. I asked a few questions through Skype to feel confident that they could do the job. I felt comfortable with the knowledge and skills and accepted their offer. I am usually hesitant to hire from offshore. Not because of the work quality but, usually the language barrier and working hours. Guys from CodeIT was available during NY working hours and after pre-screening on Skype, I could tell they know English well.
I wanted to personally thank you for your hard work on this. Working with CodeIT turned out to be a really pleasant experience for us.
Since the beginning, your team seemed to be really well structured and everyone understood its role and responsibilities.
Also, the quality of the work CodeIt delivered was exactly what we expected it to be.
This really facilitated our daily work and help us to keep the client happy.
I hope this first experience working together help us to build a long-term partnership.
CodeIT has been working for us for one and a half years. We are ending the project now because it is complete. CodeIT built our platform from scratch and also provided further development and support for the rest of the contract. They are very strong in several areas: back-end development (specialising in Zend Framework); front-end development; server administration; project management. Their project managers speak excellent English and are courteous and professional. Their developers are fast and skilled, and up to date with the latest technologies. Their expertise helped us to build a highly reliable website which can serve a heavy load of traffic. Finally, they are all very nice people, and I cannot recommend them highly enough.
This was the biggest project I’ve made so far and CodeIT helped me and our company through it in a perfect way.
Working with one very skilled project manager and multiple developers and testers with him made our project fly in a very short period of time, and with a super high quality!
I have worked with CodeIT for over a year now on a complex application development project and they have been excellent. They have been flexible with scaling resources up and down as I’ve needed it, their project managers have been extremely responsive and I hear from them every day and never have to wonder where they are as I have with past outsourcing projects. Highly recommended if you’re considering outsourcing software development.
This was our first project, and I am so happy that it had a smooth run and a successful resolution.
I sincerely hope that this is just the first step in our long and mutually amiable partnership.
Thank you CodeIT team for being so thorough and professional.
Collaboration with CodeIT gave my business great prospects for its expansion and scaling. Together with CodeIT professionals, we grew our product line from three to fourteen products within only one year. I can rely on these guys to get a high-quality product on time.
Feel free to contact us. We will answer all your questions and provide you with fast and thorough feedback.