In recent years, we have seen significant growth in mobile applications’ popularity. Thus, according to Statista, in only the first quarter of 2021, users downloaded 36.6 billion apps from Google Play and App Store. Therefore, if you want to expand your client base and provide a strong presence on the web, you should create an application. Here’s where you need a well-considered mobile app business plan.
What Is A Mobile App Business Plan and Why You Need It
A well-considered mobile app business plan is the first, and probably the most crucial step to developing an application. It must include market research and analysis, app development cost, marketing strategy, idea validation, etc. With a clear and precise business plan, your mobile application can significantly increase your income and raise your business to a new level. Moreover, by joining the beneficial mobile app industry with a strong strategy, you can rely on taking advantage of benefits such as:
- building more accurate forecasts;
- reducing the risks related to the app development;
- attracting great investments;
- managing and delegating the workflow effectively.
Top Tips to Create Your Mobile App Business Plan in 2021
It is difficult to forecast the potential success of a concrete application, but with a good application business plan and its efficient implementation, you have a good chance of succeeding. Check out the top five tips on how to write a business plan for an app in 2021 to create your product development strategy from scratch.
Executive Summary
An executive summary is an introduction to your business plan for a mobile app and the first thing your potential investors will examine; therefore, it is critical to make it clear for them. To create an understandable summary, you should include all the details of your project and answer the following questions:
- What problem do you want to solve?
- What solution do you provide?
- How do you plan to change the market with your app?
- What are your goals and intentions?
By giving answers to these questions, you will be able to analyze your potential success and determine your target audience’s needs, which is key to designing an excellent mobile app business plan. As a result, you will suggest a solution that will fulfill users’ requirements, thus raising the number of your application downloads.
Financials
Before you learn how to generate revenue from a mobile app, you should plan your finances. The financial planning description must include the startup costs, ROI, required funding, and prepare your sales forecast and income statement. Besides these, it should provide information about the amount of money you need for your idea implementation and your business promotion.
We highly recommend that you include extra money in your accurate estimate for the investors. Thus, you will have room for additional spending for your app development. In addition, don’t forget to mention your app’s monthly expense plan.
Market Analysis
To make a functional business plan for the app, you should know everything you can about the industry you are entering. Check out the size of the market, what the demand is for your app in the marketplace, and how the market changes.
Do a complete market forecast using survey and judgment forecasting techniques, which include customer surveys, expert opinions, and customer intention surveys. As for competitor analysis, you can apply a SWOT approach, which also allows you to figure out whether or not there is a real market for your app. Define your product’s Strengths, Weaknesses, Opportunities, and Threats to learn every possible direction of your business.
Marketing Strategy
A winning marketing strategy is another essential part of a mobile app business plan. To ensure your startup application will reach the prospective customers’ mobile devices, you have to follow the next steps:
- Research your target audience and your competitors. Focus on your users’ needs and pain points, and define the features they will require.
- Create a customer acquisition strategy. Use content marketing, App Store or Google Play optimization approaches, email marketing, retargeting campaigns, etc., for the effective marketing of your mobile app in 2021.
- Decide on the metrics for your project evaluation. Take note of your ROI, AC (actual cost), EV (earned value), CPI (cost performance index), and the CAC (customer acquisition cost), to prepare a detailed mobile app business plan.
Idea Validation
Before developing an app startup business plan, you should also verify your idea’s feasibility. A Proof of Concept (PoC) is often used to check if the idea is applicable. A prototype is another method to validate the product and to show it to your investors and raise funds.
In addition, there is a Minimum Viable Product (MVP), that is used for testing out new products. The MVP development will allow you to get your target audience feedback, test product-market fit, understand your business needs and discover the opportunities for further product development. This is where the discovery phase with a mobile app development company takes place.
Conclusion
Although writing a business plan for an app startup is quite challenging, making the effort to complete it properly will help you to survive in competition with other apps. Follow the tips mentioned in this guide to create a successful strategy for your business growth.