The number of people using mobiles has risen by tens of thousands every single year. According to some statistics, 95% of households have at least one mobile device in the UK alone. Thus, mobile apps are the perfect way to reach a wide demographic and potentially satisfy customer demand.
For many businesses, mobile app development is a requirement rather than an option. Luckily, nowadays, it is exceedingly easy to create your own app. With services such as Builder.ai, you do not even need to know anything about code.
However, you do need a solid business plan if you want your mobile app to thrive. This is the first step to developing a mobile app that is sustainable and financially viable.
This plan should cover a wide range of app development costs from planning, marketing, and app design.
For more information, check out the rest of the article below.
Executive Summary, Business Description, and Company Overview
One of the most important parts of any mobile app business plan is the executive summary. This is the first thing your investor will read. As such, the summary should be concise and not go into too much detail about the product.
You should use this section to give information about the current market, your target demographic, and what problem your app solves. You should focus on distinguishing your proposal from other companies and specify your business goals based on in-depth analysis.
In short, this is how you hook investors from the get-go.
You should also include a business description, offering information about the company history and your mobile app concept. You should really try to sell your mission, vision, and company values. After all, many venture funds will invest based on potential. In your mission statement, you should clarify the processes in the project so the investor knows their role within the company as well.
We would also recommend specifying each member of the app development team. Talk about their position, experience, and role within the company.
Market Analysis and Marketing Strategy
Before you create a mobile application, you need to conduct research into the state of the market. This information should feature up-to-date information as well as a short-term forecast. You should also include a a marketing strategy to demonstrate how you’ll grow your app. As such, you should be aware of the most popular mobile apps and the things they are doing right.
Market forecasts are an integral feature of many business plans. You need to asses whether there is demographic that will buy into your product. Research firms like Nielsen And Forrester will provide relevant data in this instance.
We also recommend using SWOT analysis to identify any strengths, weakness, opportunities, and threats to your business. This is a great way to identify any potential problems with your mobile app and find solutions before they become an issue.
In addition, you should also make an effort to research the target market and their digital habits, research your competitors, create a landing page to expand your target audience and inform them about your innovations and product, and make plans for product growth
Finally, you also need to plan out the financials in your business plan. You should have a clear understanding of the level of financing required to get your mobile app off the ground. Additionally, you should inform potential investors about the type of fund you need.
We recommend including a forecast of at least three to five years, including profit and loss, balance sheets, valuation, cash flow, etc. You should also include the estimated cost of investment and how the money will be distributed. Remember, these numbers may fluctuate, so try to include a reasonable estimate.
This section is also a perfect opportunity to lay out your monetization strategy. Some of the most common ways to monetize your app include:
- In-app purchase
- Charging customers to purchase the app
As you can see, there are many features to consider when building a mobile application. Having all of these considerations in a comprehensive business plan is the number one to start the project on the right foot.