How to Write a Mobile App Business Plan for Startups

Mobile apps have become an indispensable part of anyone’s life. 88% of people’s mobile time?is spent on apps. This statistic impresses anyone to think of launching a mobile app and start their business themselves. ?

But “A goal without a plan is just a wish". You must define what exactly to do if you have a mobile app idea in your mind. Yes, you need a plan. ?

Writing a mobile app business plan, in advance of any development, can help you clarify your vision and mission as well as identify steps to take to maximize ROI of your business.?

In this article, we’ll be looking at how to write the perfect business plan for a mobile app that will greatly benefit your startup.?

1. Figure out what kind of app you want to create?

Every app industry has both competition and opportunities. If you're still deciding which area to focus on, here are some popular app categories to consider:?

• Healthcare and fitness?

• Fintech?

• Travel?

• Social networking?

• Education?

• Gaming?

• ECommerce and retail?

The industry you're targeting will influence the type of app you'll develop. Ask yourself these questions:?

• Will you develop the app for Apple iOS, Google Android, or both??

• Will it be a web app or a hybrid app??

• Is the app an extension of a website or another business channel??

Having clear answers to these questions will help you do proper research and easily create your app's business plan. ?

2. Do market research and find out who your competitors are?

Having a great app idea is just the beginning. The real question is, is there a market that will be excited to use it??

As you create your app business plan, it's crucial to understand who your potential customers are.?

To start, look at similar apps and competitors in the area you're focusing on—especially if there's already an app doing something similar to what you want to create. While researching and analyzing the market and competition, consider these questions:?

• Who are their customers??

• Are they the same type of customers you want to target??

• How will your company engage with the market and involve them in testing and promoting your app??

• What are the demographics (like profession, age, gender) and psychographics (like opinions, hobbies, lifestyle goals) of your target audience??

If you don't understand the market for your app, it will be hard to get people to discover, install, use, and talk about your app.?

Researching the market and your competitors can also help you figure out expected app features, pricing and revenue models, service gaps, and unmet customer needs.?

Knowing these factors will help your business plan address a common threat to your app's success: abandonment. Keeping users engaged can be challenging, with 25% of customers using an app just once before deleting it. So, make sure you plan how to attract new customers and keep them coming back.?

3. Positioning and Promotion Strategies?

Once you've confirmed that there's a demand for your app, it's time to think about how you'll promote it and position it in the market. Your business plan doesn't need a detailed marketing strategy, but it should include some basics that will guide your app's marketing throughout its development and launch.?

At the very least, your plan should cover:?

• Developing and refining your elevator pitch?

• How you'll create awareness, interest, and demand for the app?

• Key branding and marketing tasks your startup will focus on?

4. Startup Costs, Financials, and Pricing?

Estimating the startup costs for your app can vary greatly. Here are some key factors to include in your financial plan:?

• Platform development: The costs will differ depending on whether you're developing for iOS, Android, or both. This includes defining functions, outlining your MVP (Minimum Viable Product), wireframing, coding, testing, designing, and more.?

• Internal team or external contractors?: If you plan to build a company with full-time employees, benefits, and offices, your costs will be different than if you outsource development to a contractor or work with freelancers. Your team may need experts in mobile and backend development, design, QA, customer support, marketing, management, and more.?

With many years as a trusted software outsourcing partner, we've seen clients turn to outsourcing to cut costs and allow flexibility in resource allocation.?

• Resources: The time it takes to develop and launch your app depends on the resources you have.?

• Support: Successful apps require ongoing monitoring and improvements. Consider potential issues like crashes, scaling for increased usage, and handling OS updates.?

Understanding these costs will help you create a budget for your business plan. For a more detailed financial outlook, develop forecasts to estimate costs, cash flow, and how your app company might grow and evolve as you hit release and growth milestones.?

5. Development Milestones?

The release of your app is a major milestone, but it's not the only one. Your business plan should include development milestones that mark significant progress, such as:?

• Production of key features and functions?

• MVP completion?

• Testing and refinement?

• Acceptance in app stores?

• Launch?

• Achieving sales and user adoption goals?

• Adding new features and versions?

Remember, app development takes time. Focus first on pre-release milestones, and then set post-release goals to guide future growth, updates, and profits.?

Final Thoughts?

Creating a well-structured app business plan is essential for turning your ideas into reality. It serves as your main tool for achieving success, providing a clear roadmap for your startup. A solid plan helps you attract investors, allocate resources wisely, reduce risks, and manage your team effectively.?

By carefully addressing key areas - such as the executive summary, business description, market analysis, marketing strategy, monetization plan, and startup costs - you can present a strong and convincing vision of your app's potential.?

At Adamo Software, a leading software development company, we support our clients from the very beginning, even in crafting their app business plans. Our project managers and business analysts work closely with clients to create effective plans across various industries like healthcare, fintech, education, travel, and more.?

If you're looking for a partner to help you succeed, Adamo is the perfect choice.?