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Did you know that people spend around 4.8 hours a day on mobile apps on average? And not only that, 3.8 trillion hours were spent on mobile apps in 2021, as stated in the latest survey. With this growing usage of mobiles and a rise in the number of mobile apps, the global mobile apps market volume is set to reach $565 billion by 2026 from its benchmark of over $430 billion in 2022. No wonder mobile apps development has taken the center stage as a lucrative startup idea.
While the number of mobile app startups is rising fast, it has become even tougher to excel for a business. To get off on the right foot and secure your position in the competitive market, you need a proper business plan for a mobile app. But how to write a business plan for an app company? Or, what are the key pointers to include in a sample marketing plan for a mobile app? These are the common questions that you may come across. And to answer all your queries, in this blog, we will guide you through how to write a mobile app business plan.
Why Do You Need a Mobile App Business Plan?
A proper plan is the foundation of any startup and it determines how well you can start, build and grow your business. And your mobile app startup is not an exception. There are 2.87 million downloadable mobile apps on Google Play Store itself, and to stand out from the crowd, the first thing you need is - a proper business plan for the mobile app. There are several advantages of keeping your sample marketing plan for mobile app ready as listed below.
You have limited resources in terms of time, cost, manpower, and others. And unless you have a well-defined app business plan as well as a financial plan for mobile applications, it is next to impossible to utilize them properly. Without a proper plan, it is probable that you will run out of enough time or money, or more importantly, your product will not be that efficient. But planning everything will save you from this as well as help you optimize your resources.
Management plays a vital role for any startup. Lack of proper management not only works as an obstacle to startup development but also to the achievement of the goals. By creating your app business plan, you can have a clear idea of your product goals, expected features/solutions from the product, and how that will help you achieve the startup targets and others. As a result, you can have a better management process for your startup from day one.
Research says that the success rate for startups is just 10% and the various risks associated with the startups are the top reasons behind that. Financial risks, risks associated with the acceptance of your products by the end-users, the risk of falling short of resources, and the list goes on. Unless you have a proper business plan for an app company, it’s not possible to see what’s coming and reduce such risks.
For any startup, opportunities are what bring growth scope. Be it a new deal with an investor, or expanding to a new regional marketplace - you must take every opportunity to let your startup grow further. And for this, a mobile app business plan plays a vital role. It helps in streamlining all the related activities and points out what type of opportunities you must look for and utilize fully.
Steps to Create a Mobile App Business Plan
Now that you have the basic knowledge of the importance of a mobile app business plan, now it’s time to guide you through its steps.
The executive summary is the very first section of your business plan for the mobile app. No matter whether you look for partnerships or search for good investors, this will be the first noticeable part of your app business plan. Here are some must-include pointers to crack it right.
Market pain points
Every app originated from the idea of some market or audience pain points that are yet to get solved or are yet to get a better solution. For instance, there can be requirements for medicine apps with express delivery. So your executive summary must convey clearly what problem/problems are being solved through your mobile app.
The key solution that your app offers
Once the problem statement is clear, this part of your mobile app business plan should describe the solution your app offers. You must ensure that the potential of your app is conveyed in this part. For instance, if your app is offering express medicine delivery, then mention how advanced this solution is - as the average delivery time, delivery guarantee, service quality, and others.
The impact of your app on the market
It is crucial to relate your mobile app to the present market. How it will stand tall from the crowd of the other similar apps, how will it help the end-users in that specific sector, or how efficiently it can grab the current and upcoming opportunities - these all are pivotal to be mentioned in the executive summary of the business plan for an app company.
The main goal of your app
Your app must have some well-defined set of goals in terms of revenue, growth, market positioning, and others. It is advisable to list out all the goals in this part of your financial plan for mobile application, or mobile app business plan. This will also help in approaching the investors or stakeholders by letting them relate to the goals.
Overall Business Description
Unless you describe your full business scope, idea, structure, and other significant details, your mobile app business plan will be incomplete. Below are the key sub-sections to include in this part.
Basic & legal company information
This part will include the basics about your business like whether it’s LLC, OPC, or any other and your business structure, your business locations, its headquarter, working mode - remote or in-office, and others. You may also need to include a few legal details such as the date of company incorporation, directors along with their DINs, etc. However, it’s not mandatory and you can modify it as per the requirements.
Company vision & history
Don’t forget to explain your company vision and include a brief history of your company. The start date, company journey, achievements, restraints, and challenges that it overcame, and what your company strives for - these all will make this part of your mobile app business plan effective.
Many businesses often forget to add this part to their business plan for app companies. You must brief about your team or at least the leading positions like CEO, CTO, co-founder, and other positions. Also, it is a good practice to include awesome information about their experience, expertise, contribution to the company, and other related pointers.
Relevant Market and Competition Analysis
This is one of the most important and impactful parts of your mobile app business plan. The mobile app market being quite dynamic in nature, you need to keep track of certain factors as mentioned below -
Present market state
While market research is a vast topic to explore, analyzing some key factors will do the work. To have a clear idea about the present market state, you must know its current global value both in terms of revenue and volume. If you are targeting specific regions, you must know these regional values as well.
Market growth & forecast
To assess the future market growth, you need to go through its past growth, demand-supply patterns, and forecasts. Also, the key drivers, restraining factors, leading regions or countries, etc. will give you a clear idea to include in this part of your mobile app business plan.
Always do a thorough competition analysis while creating a business plan for a mobile app. What are the leading market players, which companies have products in line with your mobile app, what are their strategies, journey & how is the customer response towards their products - these are some must-have information to include in this section.
Potential new entrants
Businesses often tend to ignore the new entrants in the market. But it will be a wise practice to keep track of the potential new entrants, their mission & vision, target audience, and others to keep yourself ahead in the competition.
See More: How to Create Music App Like Spotify
Specific Marketing Strategy
Specifying your marketing strategy is what can give you success in the long run. Once you are done with competition & market analysis, it will be easier to chalk out this part. Some of the key components to include are -
Defining target audience
Always target a well-defined audience instead of having vague ideas. Your audience's age, location, profession, and other demographics are vital. Also, you need to have a clear idea of their behavioral pattern, present demand, whether they have used the apps of your competitors, most sought-after solutions, and others. This altogether will help you plan marketing & promotional activities/campaigns for your target audience in the future.
Targeting specific channels
Which communication channels will you use to reach out to your target audience, which social media platforms are they active on, mobile marketing or email marketing - which will be more effective for the audience age group - these are some crucial information to include in your mobile business plan. Also, you can conduct polls or voting to know the most effective channels to reach out to your target audience.
Outlining the KPIs (Key Performance Indicators)
KPIs are a set of metrics that help you measure the performance and growth of your app and hence the overall business. Based on your business sector and mobile app type, list out the KPIs you need to track and analyze regularly. For instance, if you have an OTT app like Netflix, the KPIs will be average watch time, viewers' attention span, bounce rate, and others.
Monetization Strategy and Model
To optimize your revenue, it is important to have a proper monetization strategy and model from the beginning. Always include the following information in your mobile app business plan.
Define the monetization model for your business by specifying the frequency of payment/billing, related features or solutions to be offered, and others. For instance, there can be an ad-based subscription model that lets the audience use your app by viewing advertisements. Or, there can be annual subscriptions at discounted prices. You can keep one or more monetization models for your business. Based on your model, you can strategize monetization. For instance, you can give early bird offers to the first 200 monthly subscribers and so on. Always be clear about the monetization model & strategies on your mobile app business plan.
Customer acquisition & retention strategy
It is not mandatory, but it is a good practice to include acquisition and retention strategies in your mobile app business plan. Your target acquisition rate, the threshold of churn rate, monthly retention target, recurring revenue goal, and other relevant information will make your mobile app business plan more informative.
Total Startup Cost & Funding
Financial plans for mobile applications and mobile app business plans come hand in hand. It is of utmost importance to mention the total startup cost, capital, funding sources, planning to get investors, and other factors. From the cost to hire a technical team to the costs associated with the related development tools - you must consider everything in this part of the mobile app business plan.
A mobile app business plan should be informative and cover all components of your business. While it’s not an overnight task to develop your business plan for a mobile app, the above guide will help you simplify the task. Based on the specific mobile app type, and business goals, you can modify the content of your mobile app business plan.
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