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How to Write a Business Plan for a Mobile App Startup?

Anton Baryshevskiy

Head of Business Development, Co-Founder

Head of Business Development

Get your project estimation!

If you’re on the threshold of launching your mobile app startup, there are numerous things you need to be concerned with: workload, core concept, budget, product implementation area, employees… You need to rightly put all key elements of this puzzle together to provide a clear roadmap for your project — that is, to compile a business plan for mobile app development.

We at Mind Studios know how to make a business plan for an app. Here, you'll find a complete guide to creating a business plan. Also, we’ve added our template to help all stakeholders and investors have a clear and most importantly, equal understanding of your startup idea. So if you don't know how to plan an app yet and where to start, let's find out more about it.

A business plan is a guide that turns your ideas into action

As a rule, you should start with visualizing the project and formulating its key ideas. They will later become the basis of your business plan.

Another vital component of developing your project is writing a product requirements document (PRD) for your app. It consists of three sections: business requirements, user requirements, and software system requirements . The business plan is, actually, a component of the PRD, namely the business requirements part.

All the preceding processes, such as developing a project vision, core ideas, and concepts, creating an app development plan, and drafting a PRD, allow all stakeholders to be on the same page as the startup's founder.

In this post, we’ll go through how to write a business plan for an app startup.

Some statistics

Still not sure if your startup needs a business plan? Numerous studies back up the value of having a well-thought-out business plan for companies on different stages of their business journeys.

According to one study that involved 3,000 company owners from diverse fields, those with business plans were almost twice as likely to succeed as those who didn’t. Furthermore, such strategic-planning companies were more effective in attracting investment or securing loans.

You can find more detailed information in the diagram below:

If your way is developing a mobile application

As of 2021, people have made 230 billion downloads of mobile applications, up by 63% than in 2016. Everyone appears to require mobile solutions these days, so your startup has a lot of room for imagination. You can choose from a wide range of mobile app types. To name a few, it could be a travel, event planner (here's an event app development guide), money management, social networking, or fitness app.

No matter which one you decide to create, a pre-written mobile app business plan can help you seamlessly go through the mobile app development process with its four fundamental stages : discovery, idea validation , design, and actually, development.

A goal without a plan is just a wish

There is a plethora of mobile applications these days. It means, though, that there are hundreds of almost identical apps in each category. Attracting users becomes a task of utmost importance.

Chad Mureta, an app tycoon, says that a developer’s profit directly depends on their knowledge of what’s interesting to the user; that is, to create a successful and profitable application, a developer should think like a user .

Creating a mobile app business plan template based on thorough user analysis will help you explain your business idea to stakeholders. Also, you’ll see a path to a product-market fit. To make that happen, you should determine what your target audience wants, needs, likes/dislikes in competitors’ apps, and tends to expect from using your app.

Therefore, identifying your target audience preferences should be your priority, as it is one of the main drivers of your startup.

Understanding the market is the key to success

The author of the bestseller 4 Steps to Enlightenment. Strategies for creating successful startups , Steve Blank, suggests that very few people understand where their market is. The writer believes it is almost impossible to launch a thriving startup without analyzing the market it’s going to enter.

Before you start writing a business plan, it’s crucial to figure out not only the degree of public interest in your product but also the level of competition in the market you’re going to enter.

Thanks to the preparatory analysis of your rivals and potential app users, you’ll be able to flawlessly identify your product’s objectives, advantages, and unique value proposition (UVP). This will also help you form the basis of a proper business plan.

Review your business plan annually

Steve Blank claims that a business plan is static in contrast to a business model, which is dynamic. A business plan appears to be stable by definition: that’s a document created once and rarely revised after adoption.

But in our quick-to-change world, do you believe there’s anything that could remain static? Especially in terms of business? Investopedia , for example, shares an opposite to Steve Blank’s statement: A business plan should evolve in tandem with a company’s growth.

We at Mind Studios adhere to the last approach and recommend you go through your business plan for an app at least once every year . It will allow you to respond to changes in your users’ demands and assess what goals you have achieved and which ones you still need to accomplish.

Moreover, refreshing a business plan will enable you to keep your finger on the pulse of your startup’s current and upcoming financial needs and, therefore, help you develop efficient strategies to attract investments. Consider it a dynamic document that adapts to your startup’s development path.

Why should you make a business plan for apps?

In addition to helping you get your startup off the ground, a viable business plan acts as an indicator for investors to consider it as a potential asset.

Let’s summarize the main reasons why your mobile app startup needs a business plan:

Both startups and established businesses need business plans, the content of which will depend on the company’s primary goal.

To attract partners, startup owners tend to use a business model canvas — a more flexible model of the traditional business plan. It can seamlessly adapt to the iterative nature of tech startup development, yet providing core information about a project.

However, the business model canvas for an app does not guarantee 100% success; it can only be one of the components that will help your project attract investment. A comprehensive business plan with a detailed description of your company and mobile app, justification of funds use, and coverage of all legal concerns is what can instill trust in all stakeholders of your project.

Is there a difference between a business plan for a mobile app and other software?

There are obvious distinctions between mobile applications, websites, and other software solutions. They significantly contrast in marketing approach, monetization strategy, and feature sets. As a result, business plans for these solutions will differ as well.

A traditional software development business plan might be structured similarly to a business strategy for a mobile app company. However, any document that presents the firm and its product will be distinctive in content. It is reasonable since each project is unique, with its own goals and target audience.

What does a business plan for a mobile app look like?

Your mission is to create a reliable and stable mobile application for either enterprises, individuals, or non-profit organizations. In this case, a business plan will help you pave the road to make your project profitable.

Therefore, when writing a mobile app business plan for startups, you’ll need to estimate the cost of development and commissioning as well as the timing of the return on investment in your project. Only by doing this, will you get a clear picture of your app’s viability.

One of the essential factors in writing a good startup business plan for a mobile app is delivering maximum transparency at each part. Let’s highlight what you should include in your mobile app business plan to make it serve your business in the most effective way possible.

Executive summary

Let’s start with the executive summary . It is the first and most significant part of your mobile app business plan because it’s the first thing an investor will read. The executive summary should be clear and concise, with no detailed information about how your product works. Address the situation in the market, who your target customer is, and what unique problem your application can solve.

Make your proposal unique to distinguish your company from others. In other words, create a unique value proposition (UVP). Use your imagination: consider your executive summary as a movie teaser and your investor as a spectator. Would they like to see your movie?

Specify your goals . These objectives should rely on your business analysis. Investors will examine your aims to see if they satisfy their needs. You also have to determine the ultimate goal of your exit plan . Furthermore, you should establish a list of funding requirements and the proceeds that will be used to boost the attractiveness of your company. One of the essential factors in the startup business plan for your mobile app success is ensuring maximum transparency at each stage.

Make your document convincing . To do this, ensure your product’s concept and goals are crystal clear and do not vary throughout the paper. Provide the reader with accurate data and realistic expectations about your project. Of course, don’t forget to make sure that the name of the person who created the business plan and executive summary and the names of your team members are consistent throughout the documentation.

Business description

Introduce your company in this part, beginning with corporate information and ending with your mobile app concept. This part of your startup business plan will show investors the corporate values of your company, your mission, product vision, and the fundamental factors for your startup success.

This information is vitally important for investors. For example, a technology startup accelerator Y Combinator considers getting money as by far the easiest part whereas working on ideas — the most significant part for any startup in achieving success. In most cases, Y-Combinator-like organizations make compiling a thorough business plan a prerequisite before introducing newly-formed projects to investors.

Company overview

Here you should describe your company’s:

This section should give the reader of your business plan detailed information about your startup: the official name of your company, the location of the headquarters, and its structure, namely the business entity type (LLC, corporation, etc.). Make sure to provide further details about your team, such as the number of workers, their names, job titles, and so forth.

Describe the purpose of your company and the fundamental principles that guide your business in the mission statement. After establishing your mission, outline the primary challenges and solutions your startup can offer.

Company history

Before making any business proposal, describe the history of your company, how your team formed, and how you came up with your idea. In addition, you can talk about the main stages of your company’s development and the experience that precedes the product launch.

Whether you are outsourcing app development process or you have an in-house team, it is often the most significant part of the executive summary because your app development team is the main engine of your project implementation. You should specify each person’s name, position, work experience, and responsibilities in the company. In addition, you can involve an advisory group that will help you make essential decisions. Consultants on your advisory team should have experience in the industry.

Market analysis

Information about the state of the market should be the main factor in your app idea realization. You should be aware of the present situation in your industry, have up-to-date information, and be able to generate a short-term forecast.

To conduct market analysis , you should take several steps:

• Examining existing business environment
• Defining your market research criteria
• Determining your total available market (TAM), service available market (SAM), and service obtainable market (SOM)
• Identifying your direct competitors
• Analyzing your target audience and figuring out the cost per acquisition (CPA) for your niche

No market research in the mobile app industry can be conducted without analyzing Google Play Store and Apple App Store with their ranks for top paid, top free, and top-grossing apps as well as user reviews.

Market forecasts

Forecasting is an integral component of writing a business plan for an app development startup realization.

Forecasts from reputable research firms such as Nielsen and Forrester are of interest when creating any business plan, be it a business plan for an app development, a website, or a traditional software startup business plan. To provide reliable market forecasts, you can:

• Include data on the growth of companies with solutions similar to your mobile app
• Add information on the amount of money poured into similar startups (platforms like Crunchbase or Y Combinator can help with this)
• Enrich your business plan with some forecasts on your target customer behavior

Your goal is to assess whether there’s a real market for your product, whether there are enough customers in the market, and, accordingly, whether those customers are willing to pay money for using your product.

SWOT analysis

A SWOT analysis is a strategic planning method that allows you to present a structured description of your business situation. It can be a great way to evaluate your app startup concept from four perspectives. Namely, its:

• W eaknesses
• O pportunities

It’s natural when a business has weaknesses: knowing about them will serve as a powerful driver for finding solutions and will reduce any risks your company may need to face.

Marketing strategy

An app marketing strategy is a bridge that allows your product to fall into the hands of your customers. You have to convince investors that you have such a bridge. This is an important part of the mobile app strategy.

When drawing up a mobile app marketing plan, you have to define the marketing strategies you intend to use in application promotion. Here are a few examples, along with descriptions of how they work:

Create a landing page

Creating a landing page for your mobile app will help you reach a wider audience by informing users about new features and updates. Make sure your page contains the name of the application, a description of its functionality, promotional videos, and so on.

Launch a website and blog

Launching a website is a great way to promote your application. There, you may, for example, provide more information about your company, its goals and values, and an overview of your future mobile solution.

A website blog is also a helpful thing with your app advertising. You can share news on your upcoming product and publish SEO-optimized articles for better promotion.

Social media marketing

Consider social media marketing while developing a business strategy to promote your app. Describe how you intend to use this form of advertising at various phases of your mobile solution development: before launch while attracting your audience and retaining users.

Estimate your marketing budget

You may estimate the cost of marketing services based on the market analysis you outlined in the preceding section of your business plan. Understanding the marketing budget is essential to all parties: you, the app owner, investors, and other stakeholders.

Product growth

Depending on the type of app startup, growing the user base approach differs, as does the business plan for entering different markets. For example, a massive advertising attack tends to make sense in markets where consumers understand your product or service and its usefulness.

Take, for instance, Uber , which has successfully launched extensive marketing campaigns. The company’s ads have spread globally with Uber localizing advertising for each region.

So, if you’re still working on a business strategy, think about how you’ll expand your user base in advance. This will tremendously assist you in future product growth.

Choose your product launch type

Be sure to indicate the product launch type in your business plan. There are two such types: hard and soft launch . The first one means delivering a finished product to your entire target audience. A soft launch is when you release an MVP or full version of your app, but for a limited audience.

To rightly set out this part of your business plan, you should clearly understand what kind of financing you need to move forward. Moreover, you need to express it as clearly as possible to be sure a potential investor will also understand what funding you need.

The financial model includes, as a rule, a three- to five-year forecast of all the main forecasted indicators, including profit and loss, cash flow, balance sheets, start tables, unit economics calculation as well as your app’s projected revenues and costs. Your financial document has to contain the following components to determine the actual cost and distribution of investments in the best way, with a clear explanation of each.

Startup costs/funding required

Inform your investors about estimated costs. We recommend placing reasonable estimates and leaving room for extra expenses since these numbers might fluctuate.

Designate all types of costs :

• One-time costs (e.g. relocation costs, costs for buying an office space, equipment, servers, software, licenses)
• Fixed costs: they remain unchanged regardless of whether you produce something or not (e.g. rent, insurance, lease payments, fixed salaries)
• Variable costs: costs that change according to the production volume (e.g. wages)

Monetization strategy

It is another section you need to add to your mobile app business plan. By illustrating your monetization model, you’ll demonstrate to your investors and other stakeholders that your project will be profitable and provide a return on investment with positive unit economics. It will also help you be sure that your startup will reach its break-even point.

The most common ways to monetize an application are :

• Advertising
• Charging for the application (if your business model describes a paid application, you need to convince the consumer why they have to pay and what they’re paying for)
• In-app purchases (this is a widespread mobile app business model in iOS and Android applications)
• Subscriptions (this model of monetization is quite popular and works until the user decides to cancel the subscription; in most cases, subscription apps have a free trial period)

One of our prominent projects in which we’ve helped set up a monetization strategy is Fitr. Training , a remote fitness coaching application. Our team analyzed the platform’s performance and discovered we could enhance the conversion rate.

We established a monetization model based on the collected data and customer feedback. Namely, our team launched an efficient subscription option. The results were remarkable: one out of every four coaches now uses the paid membership.

Mind Studios can also assist you in elaborating a potent monetization strategy.

Business plan example for a mobile app startup

We’d like to offer you a business plan template for a startup updated to 2023. Keep in mind that, although this mobile app business plan itself is structured according to all the rules, the calculations are entirely fictional. To complement our business plan, we also provide a mobile app marketing plan template, ensuring a strategic approach to promoting your app in the competitive market. This template includes up-to-date techniques for 2023, guiding you through effective advertising and user engagement strategies.

Download the free PDF business plan template for a mobile app here .

Writing a business plan for a mobile app startup isn’t easy. As a rule, the most challenging part of developing a business plan for a mobile app idea is writing the first page. Many people in this situation rush to find and download a free copy of another company’s business plan. They mistakenly believe that someone else’s business strategy will help them achieve their goals. But it absolutely won’t!

A business plan cannot be a cloned document. It must be one-of-a-kind reflecting your passion and enthusiasm in bringing your idea into life . A successful business plan should demonstrate that your company is viable and financially attractive. The higher the viability, the higher the investment opportunity.

If you need to compile a well-thought-out business plan to attract investments and successfully launch your app, our expert team at Mind Studios is here to help .

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Mobile App Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Mobile App Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Mobile App Plan Here

Mobile App Business Plan

You’ve come to the right place to create your mobile app business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their mobile app businesses.

Sample Business Plan for a Mobile App Development Company

Below are links to an example of each of the key elements of a mobile app business plan template:

• Executive Summary – In the Executive Summary, you will provide a general overview of your comprehensive business plan including your target market, business model, and how you plan to make your business successful.
• Company Overview – The Company Overview section will provide an overview of your app idea, business description, company history, mission statement, monetization strategy and milestones achieved.
• Industry Analysis – In the Industry Analysis section, you will use information from your market research to discuss the market demand for your mobile application or business idea, trends, and issues facing your industry.
• Customer Analysis – The Customer Analysis section will describe your target market. This includes information on demographics, psychographics, and behaviors.
• Competitive Analysis – The Competitive Analysis includes an overview of your direct and indirect competitors, their market share, your competitive advantage, and how you plan to compete against them.
• Marketing Plan – The Marketing Plan section will describe your marketing strategy. This includes information on your platform placements (Apple App Store, Google Play, etc.), pricing strategy, and marketing strategies for engaging your target audience.
• Operations Plan – The Operations Plan section of your mobile app business plan will describe your business operations including app development, customer acquisition strategy, and other key aspects of your app company.
• Management Team – The Management Team section will provide information on the management members of your advisory team. This includes their experience, education, and skills.
• Financial Plan – In the Financial Plan section, you will provide the financial model and financial statements for your business. This includes your income statement, balance sheet, and cash flow statement.

Next Section: Executive Summary >

Mobile App Business Plan FAQs

What is a mobile app business plan.

A mobile app business plan is a plan to start and/or grow your mobile app business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your mobile app business plan using our Mobile App Business Plan Template here .

What Are the Main Types of Mobile App Development Companies?

There are many types of mobile app companies across a variety of categories. There are mobile app businesses that focus solely on mobile games. Others are exercise or wellness focused. Some mobile apps provide guidance on specific topics, some offer music streaming, and other apps provide help or assistance on a variety of topics. Many companies have developed company-specific mobile apps to allow users to become more connected with their products or offerings. For instance, most major brands, restaurants and financial services companies have company-specific mobile applications.

What Are the Main Sources of Revenue and Expenses for a Mobile App Business?

The primary source of revenue for mobile app businesses are subscription paid by the users on an annual or monthly basis. Advertising (selling ad space to other companies on their app) is another significant revenue sources.

The key expenses for mobile app businesses are the costs to advertise and generate users. These expenses are often in the form of targeted social media advertising or online targeted marketing. Some major mobile app businesses pay to have their mobile apps advertised on television commercials or music streaming platforms. Another major expense for app companies are office space, employee salaries and technology licensing fees.

How Do You Get Funding for Your Mobile App Business Plan?

A mobile app startup is most likely to receive funding from angel investors and friends and family. Personal savings and credit cards are also often used. Venture capitalists will fund a business plan for an app once it achieves enough traction (e.g., enough users, in-app purchases, or generating enough revenue).

A well crafted mobile app business plan is essential for attracting any type of potential investor.  Most app startups require funding to get off the ground and cover at least their startup costs.

What are the Steps To Start a Mobile App Business?

Starting a mobile app development company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Mobile App Business Plan - The first step in starting a business is to create a detailed business plan for an app that outlines all aspects of the venture. This should include market research on the mobile app industry and potential market size, information on the mobile app concept, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your mobile app business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your mobile app business is in compliance with local laws.

3. Register Your Mobile App Business - Once you have chosen a legal structure, the next step is to register your mobile app business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your mobile app business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Mobile App Equipment & Supplies - In order to start your mobile app business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your mobile app business.  A mobile app marketing plan includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful mobile app business:

• How to Start a Mobile App Business
• How to Start a Mobile App Development Business

Where Can I Get a Mobile App Business Plan PDF?

You can download our free mobile app business plan template PDF here . This is a sample mobile app business plan template you can use in PDF format.

• Sample Business Plans
• Mobile Apps & Software

Mobile App Business Plan

A business has three pillars: the idea, the plan, and the execution. Congratulations! You have the app idea already, now you have to step forward with a plan.

But, somewhere with all the workload, the concept of the app, hiring the right people, budget, and development of the app, entrepreneurs overlook the need for planning.

Worry not, we are here to lighten your burden with our step-by-step guide for mobile app business plan writing.

Key Takeaways

• A mobile application business plan helps you define your marketing strategy, customer acquisition strategy, retention strategy, and strategies to achieve your business goals.
• Craft an impactful executive summary that outlines the type of your app business, marketing approach, financial outlook, and team expertise to attract potential investors and partners.
• Conduct thorough market research to understand market trends, consumer preferences, and the needs of your target market.
• To ensure efficient daily operations, provide in-depth operational plans that incorporate staffing, additional services, and customer service.
• Create realistic financial projections for sales revenue, expenses, and profit forecasts while considering contingencies & emergencies.

Let’s get started with our guide, without any further ado:

How to Create a Mobile App Business Plan: A Complete Guide

1. executive summary.

An executive summary is a quick overview of the whole business plan. From mission & vision to financial projections, it includes everything in between.

Generally, entrepreneurs write this section at the end after having the full knowledge of the entire business plan.

Begin your executive summary with a brief introduction of your business, and include other elements like:

• Market Opportunity
• Vision & mission statement
• Target market
• Unique value proposition
• Details of your services
• Management team
• Financial Outlook
• Call to action

For instance, here is an example of an app business USP’s section:

USP for PrivyConnect – Social Media App: “Connect with Total Privacy”

Our social media app is dedicated to ensuring your online interactions remain private and secure. Unlike many other platforms, we don’t share your data or personal information with third parties.

We use robust encryption to protect your messages and content, and you have full control over who can see your posts. With us, you can truly connect with your friends and family in a safe and trusted environment. Your privacy is our priority.

Note: your readers might not read the whole business plan, but they will go through the executive summary. Therefore, make sure you write it engagingly to grab their interest.

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2. Company Overview

In this section, present your business in detail. It should provide the details of your business & app name, the location of your office, the structure of your business, and other such information.

Now it is time you introduce what type of business you own, for example, your app type will be one from below:

• Social media app
• Messaging app
• E-commerce app
• Entertainment app
• Health and fitness app
• News or magazine app
• Navigation app
• Finance app

After that, mention the company history if you have any. Add the name and other qualifications & achievements of business owners. Mention the vision & mission statement of your app business along with your future goals.

In short, this section should provide an in-depth understanding of your business and business owners.

3. Industry Analysis

In the industry analysis section of your mobile app business plan, you have to provide the details about the mobile app industry. It will help you understand the market and gain a better insight into your business positioning.

Here are certain questions to ask while performing industry analysis:

• What is the current size of the app industry in terms of both revenue and users?
• What are the current trends of mobile app businesses?
• Which apps are leading the industry?
• Which mobile app concept is famous in public?

Conduction this industry analysis will educate you about the market and help you prepare marketing strategies according to the market trends.

In short, industry analysis will help to know a clear picture of the market, helping you in making informed decisions.

4. Competitive Analysis

Competitive analysis will help you identify the unique selling propositions (USP). Also, this way you will get to know your competitors.

Start by specifying who are your competitors – then compare it with both direct and indirect customers.

Now, let’s focus on your direct competitors, those similar to your mobile app. Provide an overview of each competitor, including their size and where they’re based.

Here are some questions to ask for competitive analysis:

• Who are your primary competitors?
• Who do they serve?
• What are their USPs?
• What is their pricing strategy?
• What do they need to work on according to their customers?

A more effective way to this analysis is to conduct it from the customers’ viewpoint. You might even ask your competitors’ customers what they like and dislike about their apps to better understand customers’ perspectives.

Here is an example of competitors and competitive advantage of the app:

Competitors

SocialShield: SocialShield is a notable competitor in the privacy-focused social media segment. It emphasizes strong user data protection and secure communications. Their user base has been steadily growing, particularly among privacy-conscious users.

GuardChat: GuardChat offers encrypted messaging and content sharing. It has a user-friendly interface and strong encryption features. While their user base is smaller compared to established platforms, they have garnered a dedicated following.

PriviNet: PriviNet has made a name for itself by offering comprehensive privacy controls and anonymous user interactions. They have built a niche community of users who value privacy and user-controlled sharing settings.

Competitive Advantages of PrivyConnect

PrivyConnect’s comprehensive privacy controls and encryption set it apart as a top contender.

The app’s transparent communication and commitment to environmental responsibility contribute to its appeal.

PrivyConnect’s active community-building efforts and user engagement foster loyalty.

The app’s plans to expand into secure content sharing and social community growth align with industry trends.

This way you can get to know the USP of a mobile app development company. Once you get the USP, flaunt it in the entire business plan.

5. Market Analysis

In the market analysis section, do the market research and dive right into the market where you will be providing your app services. Begin the section by providing the details of your target customers.

Your target customers will depend on the type of app you own and the services you provide.

After a thorough discussion of the target market, discuss the market trends. Mention what your target customers prefer and what new are they looking for. For example, people might be looking for:

• Integration of AR/VR
• Sustainable and eco-friendly apps
• Privacy and data protection
• Personalization

At the end of the market analysis, do mention the regulatory environment mobile apps need to follow in the particular location.

6. Sales and Marketing Plan

Writing the sales and marketing section means jotting down the marketing strategy you will use to acquire new users and retain the existing ones.

Now it is time to mention the marketing strategies for your app, there are three phases of the launch:

Pre-launch phase

• App-store optimization: Before launching the app, search for the keywords to include in your title, description, and other content.
• Build a landing page: You can create a website or build a landing page to make your brand presence prominent on the web too.
• Pre-launch promotion: Launch a teaser for your app before the release date itself. Give some special offers to the ones who will sign up even before the launch.

Launch phase

• Deploy it on major app stores: Launch your app on all the major app stores to reach a wider audience. Make sure it is working smoothly and is free of bugs.
• Social media marketing: There were going to be 147.2 billion annual app downloads in 2023 itself. Imagine the competition, so be sure to make your visibility strong through social media platforms.
• Content marketing: Create blog posts, videos, or infographics related to your app’s niche. Share valuable content on your website and social media to engage users.

Post-launch phase

• User reviews and feedback: Encourage users to leave positive reviews and ratings on app stores. Actively respond to user feedback and address issues (if any) ASAP.
• User engagement strategies: You can enable push notifications or in-app notifications to interact with your users. You can also ask them to invite friends in exchange for a referral bonus.
• Collaboration or influencer marketing: You can collaborate with some other mobile app companies and do cross-marketing. Influencer marketing is also a great choice.

Once you have noted down how you will acquire customers, then mention below things too:

• Customer acquisition cost
• Your monthly paid advertisement budget
• Number of followers you have on social media
• If there are any in-app purchases

7. Management Team

Knowing who is behind your app business will increase the appeal of your business plan.

The management team tells you about the people in charge of the app business. It should explain each manager’s experience, what they’re good at, and what their jobs are.

Here is an example of the management team:

Management team of PrivyConnect

Founder and CEO – Sarah Anderson Sarah is the visionary leader behind PrivyConnect. With a background in cybersecurity and a passion for online privacy, she founded the company to provide users with a secure and private social media experience. Sarah is responsible for setting the company’s strategic direction and ensuring its commitment to user privacy and data protection.

CTO – David Ramirez David brings a wealth of technical expertise to PrivyConnect. He has a strong background in mobile app development and security protocols. David oversees the technical development of the app, ensuring that it employs state-of-the-art encryption and privacy measures.

CMO – Emily Davis Emily is the marketing guru behind PrivyConnect’s success. With a knack for digital marketing and user engagement, she is responsible for building the app’s user base and promoting its unique selling propositions. Emily focuses on user-centric marketing strategies and community engagement.

COO – Michael Chen Michael is the operations expert at PrivyConnect. With years of experience in streamlining business operations, he ensures the app runs smoothly and efficiently. He also oversees partnerships and collaborations to enhance the app’s offerings.

8. Operations Plan

As earlier sections mentioned everything about your company goals, here it is time to mention how you will reach them. These goals are differentiated into two sections:

Everyday goals

They’re the heart and soul of your mobile app’s daily life, from coding and upgrades to the nitty-gritty of customer support. These are the everyday heroes that keep your app running smoothly.

Long-term goals

It’s all about milestones: the moments that make you pop the champagne. Picture celebrating your 10,000th app install, hitting that milestone sales figure you’ve dreamt of, or expanding your team.

9. Financial Plan

Your financial plan needs to have a 5-year financial forecast. For the first year, break it down into monthly or quarterly details, and then summarize it annually. This forecast should cover your income statement, balance sheet, Use of Funds, and cash flow.

Income statement

An income statement, often known as a Profit and Loss statement or P&L, displays your earnings and then deducts your expenses to know the profitability of your business. Make practical assumptions based on your competition.

Balance sheet

Balance sheets display your assets and liabilities. Although they can contain a lot of details, like equity, goodwill, other intangible assets, etc.

Uses of Funds

When you are seeking funding, this statement becomes necessary to show where you will use the funds. Here is an example of the Uses of Funds chart with the help of Upmetrics:

Cash flow statement

Your cash flow statement helps you see how much money you need to start or grow your business and avoid running out of money.

Surprisingly, you can make a profit but still face financial problems that could lead to bankruptcy. Therefore, you will need proper cash flow planning to avoid such circumstances.

Why Do You Need a Business Plan for Your Mobile App

For entrepreneurs who jump into business directly without writing a business plan is like delaying their success. Here are some reasons why you need a mobile app business plan:

Writing a business plan helps you work out and make clear your business strategy. Do you want customers to pay upfront? Or there are in-app purchases? Writing this down from the start helps your team understand where you’re headed.

Finances are important

Sometimes, it takes months or even a year to cover customer acquisition costs. So, you need a plan with a solid financial forecast. A good plan lets you play with different situations, so you know how much money you need for both the long and short term.

Acquiring and retaining customers

Acquiring and retaining customers is one of the sole purposes of a business. In the business plan, you have to mention in detail about your strategies to have a clear roadmap.

Knowing Your Market

A business plan lets you identify your ideal customer profile. Knowing your customers is crucial, and having a deep understanding of your customers helps you make the correct updates to your product in the future.

Related Mobile App Resources

• How Much Does it Cost to Start an App
• How to Start an Mobile App Business

Download a Mobile App business plan template

Ready to kick-start your business plan writing process? And not sure where to start? Here you go, download our free mobile app business plan pdf , and start writing.

This intuitive, modern, and investment-ready template is designed specifically for mobile app businesses. It includes step-by-step instructions & examples to help in creating your own mobile app business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Finally! You know how to write a mobile app business plan. Thus, you are one step closer to starting or expanding your business.

No doubt, writing a business plan is a challenging task, but it is a lot smoother with a top business planning tool . Therefore, take a deep breath and get started with your plan. All the best!

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Business Plan Presentation Tips

Frequently asked questions, do i need to include information about competitors in the business plan.

Yes, in the section of competitive analysis: you need to mention your competitors and their USPs. This will help you to understand the market and know your strong points.

How often should I update my mobile app business plan?

An app business plan is a living document, you can change or update it whenever you want. Ideally, go through your plan and make changes according to the current situations atleast once a month.

Can I use a mobile app business plan to secure funding for my app project?

One of the main purposes of writing a business plan is to secure funding or get a loan. So, of course, you can present a solid mobile app business plan in front of lenders to secure funding.

How much does it cost to create a mobile app business plan?

Writing a mobile app business plan might cost from a few hundred to thousands of dollars depending on the complexity of the app, the number of integrations, UI/UX, etc.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Mobile App Business Plan Template

Written by Dave Lavinsky

Mobile App Business Plan

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their mobile app development company. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a mobile app business plan template step-by-step so you can create your plan today.

Download our Ultimate Mobile App Business Plan Template here >

What is a Mobile App Business Plan?

A business plan provides a snapshot of your mobile app as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an App Company

If you’re looking to launch a mobile app or grow your existing mobile app you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your mobile app in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Mobile App Companies

With regards to funding, the main sources of funding for a mobile app are personal savings, credit cards, bank loans, angel investors and venture capitalists. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a mobile app is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Venture capitalists will also fund a mobile app and will take equity in return for their funding, VC funding generally comes after you’ve received initial proof of the mobile app concept or traction with your app.

Finish Your Business Plan Today!

How to write a business plan for a mobile app development company.

A comprehensive business plan for an app company should include the 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of app business you are operating and the status; for example, are you a startup, do you have a mobile app that you would like to grow, or do you already have several successful app businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the mobile app industry. Discuss the type of mobile app you are operating. Detail your direct competitors. Give an overview of your target audience. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company overview, you will provide a detailed description of your mobile app business.

For example, you might operate one of the following types:

• Business app : this type of mobile app generally helps increase productivity and/or decrease costs.
• Entertainment app : this type of mobile app includes news, social networking, music, video, etc.
• Lifestyle app : this type of mobile app includes things like fitness, shopping, dating, etc.
• Education app : this type of app must have the primary objective of advancing a user’s knowledge and overall breadth in a particular subject.
• Utility app : this type of app includes things like scanners, trackers, health-related apps, cell service providers, etc.
• Travel app : this type of app aids in planning and booking trips.
• Other app : there are a limitless number of areas in which a successful app could be created

In addition to the business description, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What is your company history?
• What is your mission statement?
• What is your business idea or app idea?
• What is your business model or monetization strategy (i.e., freemium, subscription, in-app purchases, affiliate marketing, crowdfunding, paid apps, sponsored content, etc.)?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry analysis, you need to provide an overview of your app development business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the mobile app industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards quiz apps, it would be helpful to ensure your plan incorporates gamification into your app.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the app industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your mobile app? You can calculate this figure by multiplying the size of your target customer market by the amount they might spend per year on your app.

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: business operations managers, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of mobile app you operate. Clearly, baby boomers would want different pricing and product options, and would respond to different user engagement strategies than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the business types (if B2B), ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other app businesses in your niche.

Indirect competitors are other options that customers have to achieve similar results to what your app offers.

With regards to direct competition, you want to detail the other app development companies with which you compete. Most likely, your direct competitors will be mobile app businesses offering the same type of service or activity that yours does.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior features?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an app business, your marketing plan should include the following:

Product : in the product section, you should reiterate the type of mobile app that you documented in your Company Analysis. Then, detail the specific features of your app.

Price : Document how you will price your app and if there will be different pricing levels (e.g., free, entry, premium) and what those levels will be.

Place : Place refers to your distribution method. Document how customers can download your app (e.g., from your website, the Apple App Store, Google Play, etc.).

Promotions : the final part of your mobile app marketing plan is the promotions section. Here you will document how you will drive customers to your app(s). The following are some promotional methods you might consider:

• Social media marketing strategy
• Advertising in magazines, newspapers and/or trade journals
• Reaching out to local bloggers and websites
• Pay per click advertising

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your mobile app such as writing code, building upgrades, fixing bugs, providing customer service, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect your 10,000th app install, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

To demonstrate your mobile app’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in app development business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory team. An advisory team would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in mobile apps and/or successfully running small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you have 100 downloads per week or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your mobile application, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in an app startup or growing mobile app company:

• Cost of equipment like computers, data warehousing, etc.
• Payroll or salaries paid to staff and independent contractors
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Free Business Plan Template for a Mobile App Business

You can download our mobile app business plan PDF template . Our sample mobile app business plan would also be a helpful resource for writing your own business plan.

Mobile App Business Plan Summary

Putting together a business plan for a mobile app will improve your company’s chances of success. The process of developing your plan will help you better understand your target audience, your competition, and your business strategy. You will also develop the marketing strategies needed to better attract and serve your target market, an operations plan to focus your efforts, and financial projections that give you business goals to strive for and keep your company focused.

Growthink’s Ultimate Mobile App Business Plan Template allows you to quickly and easily complete your Mobile App Business Plan.  

Additional Resources for a Mobile App Startup

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Mobile App Development Business Plan

Start your own mobile app development business plan

Value Proposition

AppHero provides cutting-edge, tailor-made app development solutions to businesses, helping them expand their reach and boost customer engagement through seamless, user-friendly mobile applications.

The Problem

Businesses seeking to enhance their digital presence struggle to find reliable, affordable, and high-quality app development services that can deliver customized mobile applications that meet their specific needs.

The Solution

AppHero offers comprehensive app development services, including consultation, design, development, testing, and maintenance, to deliver fully customized, high-quality mobile applications that cater to each client’s unique business requirements and target audience.

Target Market

The primary market for AppHero is small and medium-sized businesses looking to establish or improve their mobile presence. The secondary target market includes startups in need of app development services to launch their innovative ideas into the market.

Small and medium-sized businesses are the primary target market:

• They require affordable yet high-quality app development solutions.
• They want a reliable partner to guide them through the app development process.
• They need customized mobile applications that cater to their unique business needs and audience preferences.

Competitors & Differentiation

Current alternatives.

• Freelance app developers
• Other app development agencies
• In-house app development teams

AppHero stands out from the competition by offering fully customized app development solutions, a dedicated team of experienced professionals, and a commitment to delivering exceptional customer service. Our transparent pricing model, coupled with our efficient project management approach, ensures that clients receive high-quality mobile applications within their budget and timeline.

Funding Needs

AppHero requires $100,000 in initial funding to cover operating expenses, marketing efforts, software and hardware purchases, and other startup costs.

Sales Channels

• Official AppHero website
• Social media platforms
• Networking events
• Referrals from existing clients

Marketing Activities

• Content marketing through blog posts and articles
• Social media campaigns
• Google Ads and targeted advertising
• Partnerships with industry influencers

Financial Projections

• 2023: $250,000
• 2024: $375,000
• 2025: $525,000

Expenses/Costs:

• 2023: $175,000
• 2024: $225,000
• 2025: $300,000
• 2023: $75,000
• 2024: $150,000
• 2025: $225,000
• Secure initial funding – June 1, 2023
• Launch official AppHero website – July 15, 2023
• Acquire first 10 clients – September 30, 2023
• Complete 20 app development projects – December 31, 2023
• Expand team with additional developers – March 1, 2024
• Reach $500,000 in annual revenue – December 31, 2025

Team and Key Roles

Ceo & lead developer:.

Oversees overall business operations, client management, and leads the app development team.

Project Manager:

Coordinates app development projects, ensuring timely delivery, and efficient resource allocation.

UI/UX Designer:

Creates visually appealing, user-friendly app interfaces that meet client requirements.

Marketing Manager:

Develops and executes marketing strategies to attract new clients and enhance brand visibility.

Partnerships & Resources

The purpose of these partnerships and resources is to enhance AppHero’s capabilities, reputation, and reach in the app development industry. Collaborating with these organizations and leveraging their expertise will allow us to deliver more comprehensive solutions to our clients, stay updated on the latest industry trends and technologies, and contribute to the growth of our brand.

• Technology Partners: Aligning with leading technology companies such as Apple, Google, and Microsoft will allow AppHero to access the latest developer tools, resources, and training programs. These partnerships will enable us to stay up-to-date with the latest platform updates, ensuring our apps remain compatible and optimized for various devices and operating systems.
• Design Agencies: Partnering with design agencies will help us provide an exceptional user interface (UI) and user experience (UX) designs for our clients’ apps. These collaborations will ensure that our apps not only function flawlessly but also deliver visually appealing and user-friendly experiences.
• Digital Marketing Firms: Collaborating with digital marketing firms will enable AppHero to offer our clients end-to-end solutions, including app promotion, user acquisition, and engagement strategies. These partnerships will help our clients maximize the potential of their apps, driving downloads and user engagement.
• Industry Associations: Joining app development industry associations such as the Application Developers Alliance or the International Game Developers Association will provide AppHero with networking opportunities, access to industry events, and valuable resources. These memberships will also increase our credibility and showcase our commitment to delivering high-quality app development services.
• Educational Institutions: Partnering with local colleges and universities can help AppHero recruit talented graduates and interns, ensuring a steady pipeline of skilled app developers. These partnerships may also present opportunities for collaborating on research projects or offering guest lectures, further strengthening our ties to the local tech community.
• Mentorship & Incubator Programs: Participating in mentorship programs and joining startup incubators can provide AppHero with valuable guidance, resources, and networking opportunities. These initiatives can help us refine our business strategy, connect with potential clients or investors, and gain insights into industry best practices.

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Mobile App Business Plan Template

Written by Dave Lavinsky

Writing a Successful Business Plan For Your Mobile App Business + Template

If you’re looking to start or grow a mobile app business, you need a business plan. Your plan will outline your business goals and strategies, and how you plan on achieving them. It will also detail the amount of funding you need, and if needed, present a case to investors and lenders regarding why they should invest in your business.

In this article, we’ll explain why you should invest the time and energy into creating a mobile app business plan, and provide you with a mobile app business plan template that includes an overview of what should be included in each section. Download the Ultimate Mobile App Business Plan Template here >

Why Write a Business Plan For a Mobile App Business?

There are many reasons to write a business plan for a mobile app company, even if you’re not looking for funding. A business plan can help you see potential pitfalls in your business strategy, as well as identify opportunities you may not have considered. It can also help you track your progress and adjust your plans as needed.

That said, if you are looking for funding, a business plan is essential. Investors and lenders want to see that you have a solid understanding of your industry, your customers, and your competition. They also want to know that you have a realistic view of your financial situation and how much money you’ll need to get started.

How To Write a Business Plan For a Mobile App Business

While every business plan is different, there are 10 essential components that all mobile app business plans should include:

Executive Summary

Company description, industry analysis, customer analysis, competitor analysis, marketing plan, operations plan, management team, financial plan.

Keep in mind that you’ll need to tailor this information to your specific type of mobile app business, but these 10 components should be included in every plan.

The executive summary is the first section of your business plan, but it’s often written last. This is because it provides an overview of the entire document.

In the executive summary, briefly explain what your business does, your business goals, and how you plan on achieving them. You should also include a brief overview of your financial situation, including how much money you’ll need to get started.

For organizational purposes, you could create headings for each main section of your business plan to highlight the key takeaways.

For example, your mobile app executive summary might look something like this:

Company Overview

[Insert Company Introduction / Short Summary]

Business Goals

[Insert Business Goals & How You Plan To Achieve Them]

Industry Overview

[Insert Industry Statistics on the Size of Your Market]

Competition

[Insert Overview of Competitors & Your Competitive Advantage]

[Insert Information About The Marketing Strategies You Will Use To Attract Clients/Customers]

Financial Overview

You can add and/or remove sections as needed, but these are the basics that should be included in every executive summary.

The next section of your mobile app business plan is the company description, where you’ll provide an overview of your business.

Include information about your:

• Company History & Accomplishments To Date

Mission Statement and/or Company Values

With regards to the company overview, here you will document the type of mobile app company you operate. For example, there are several types of mobile app companies such as:

• Developers (those who design and build apps)
• Publishers (those who market and sell apps)
• Enablers (those who develop the technology or platform that powers apps)

For example, a mobile app company description might look something like this:

We are an X type of mobile app company.

Company History

If an existing company: Since launching, our team has served X customers and generated $Y in revenue.

If startup: I conceived [company name] on this date. Since that time, we have developed the company logo, found potential space, etc. 

This is just an example, but your company description should give potential investors a clear idea of who you are, what you do, and why you’re the best at what you do.

The next section of your business plan is the industry analysis. In this section, you’ll need to provide an overview of the industry you’re in, as well as any trends or changes that might impact your business.

Questions you will want to answer include:

• What is the overall size of the mobile app industry?
• How is the industry growing or changing?
• What are the major trends affecting the mobile app industry?
• Who are the major players in the mobile app industry?

For example, your industry analysis might look something like this:

The size of the mobile app industry is expected to reach $XX billion by 20XX.

It is currently growing at an annual rate of XX% and is predicted to continue this growth in the future.

Major trends affecting the industry are:

– The continued growth of global smartphone usage

– The ever-changing landscape of the app store algorithms

– The rise of in-app purchase models

– The popularity of subscription-based models

How We Fit Into The Industry

This is just an example, but your industry analysis should give potential investors a clear idea of the overall industry, and how your company fits into that industry.

The next section of your mobile app business plan is the customer analysis. In this section, you’ll need to provide an overview of who your target customers are and what their needs are.

• Who are your target customers?
• What are their needs?
• How do they interact with your industry?
• How do they make purchasing decisions?

You want a thorough understanding of your target customers to provide them with the best possible products and/or services. Oftentimes, you will want to include the specific demographics of your target market, such as age, gender, income, etc., but you’ll also want to highlight the psychographics, such as their interests, lifestyles, and values.

This information will help you better understand your target market and how to reach them.

For example, your customer analysis might look something like this:

Target Market & Demographics

The demographic (age, gender, location, income, etc.) profile of our target mobile app customer is as follows: 

– Age: 18-24

– Gender: Male

– Location: Urban

– Income: $50,000-$100,000

Psychographics

Our core customer interests are as follows: 

– Technology: Mobile apps, smartphones, new technology adapters

– Music: Listening to music and going to concerts

– Lifestyle: Progressive and open-minded

– Values: Innovation, creativity and self-expression

– Gaming: Mobile and online gaming

In summary, your customer analysis should give potential investors a clear idea of who your target market is and how you reach them.

The next section of your business plan is the competitor analysis. In this section, you’ll need to provide an overview of who your major competitors are and their strengths and weaknesses.

• Who are your major competitors?
• What are their strengths and weaknesses?
• How do they compare to you?

You want to make sure that you have a clear understanding of your competition so that you can position yourself in the market. Creating a SWOT Analysis (strengths, weaknesses, opportunities, threats) for each of your major competitors helps you do this. 

For example, your competitor analysis might look something like this:

Major Competitors

XYZ Company is our major competitor. Its offerings include this, this and this. Its strengths include XYZ, and its weaknesses include XYZ.

Competitive Advantage

Your competitor analysis should give potential lenders and investors a clear idea of who your major competitors are and how you compare to them.

The next section of your business plan is the marketing plan. In this section, you’ll need to provide an overview of your marketing strategy and how you plan on executing it.

Specifically, you will document your “4 Ps” as follows:

• Products/Services : Here is where you’ll document your product/service offerings.
• Price : Detail your pricing strategy here.
• Place : Document where customers will find you and whether you will use distribution channels (e.g., partnerships) to reach them.
• Promotion : Here you will document how you will reach your target customers. For instance, mobile app businesses often reach new customers via promotional tactics including online ads (e.g., Google AdWords), PR, social media marketing, etc.

For example, your marketing plan might look something like this:

Products/Services

We offer the following products/services: 

We will use a premium pricing strategy to establish ourselves as the highest quality brand.

We will serve customers directly and through a partnership with XYZ company.

As you can see, your marketing plan should give potential investors a clear idea of your marketing objectives, strategies, and tactics.

The next section of your business plan is the operations plan. In this section, you’ll need to provide an overview of your company’s day-to-day operations and how they will be structured.

• What are your company’s daily operations?
• How are your company’s operations structured?
• Who is responsible for each task?

Your operations plan should be detailed and concise. You want to make sure that potential investors have a clear understanding of your company’s day-to-day operations and how they are structured.

You will also include information regarding your long-term goals for your operations and how you plan on achieving them.

For example, your operations plan might look something like this:

Daily Operations

Our company’s daily operations include XYZ.

Operational Structure

Our company is structured as follows:

• Department 1
• Department 2
• Department 3

Each department is responsible for XYZ tasks.

Long-Term Goals

Our long-term goals for our operations are to achieve the following over the next five years.

Date 1: Goal 1

Date 2: Goal 2

Date 3: Goal 3

Date 4: Goal 4

Your operations plan should give readers a clear idea of your company’s day-to-day operations, how they are structured, and your long-term goals for the company.

The next section of your business plan is the management team. In this section, you’ll need to provide an overview of your management team and their experience.

• Who is on your management team?
• What are their qualifications?
• What is their experience?

Your management team ideally includes individuals who are experts in their respective fields. You want to make sure that lenders and investors have a clear understanding of your management team’s qualifications and experience, and feel they can execute on your plan.

For example, your management team might look something like this:

Our management team is comprised of the following X individuals with the following experience.

Team Member 1: 

Team member 1’s qualifications and experience include XYZ.

Team Member 2: 

Your management team should give potential lenders and investors a clear idea of who is on your team and how their qualifications and experience will help your company succeed.

The final core section of your business plan is the financial plan. In this section, you’ll need to provide an overview of your company’s financials.

• What are your company’s projected revenues?
• What are your company’s projected expenses?
• What is your company’s projected growth rate?
• How much funding do you need and for what purposes? For example, most startup mobile app businesses need outside funding for things like initial app development costs, marketing, and operations.

Your financial plan should give potential investors a clear understanding of your company’s financials. While you may include a summary of this information in this section, you will include full financial statements in the appendix of your business plan.

For example, your financial plan might look something like this:

Our company’s projected revenues over the next five years are $XYZ.

Expenses & Net Income

Our company’s projected expenses and net income over the next five years are $XYZ.

Uses of Funding

This is just an example, but your financial plan should give potential investors a clear idea of your company’s financial projections.

The final section of your business plan is the appendix. In this section, you’ll need to provide any additional information that was not included in the previous sections.

This may include items such as:

• Full financial statements
• Resumes of key management team members
• Letters of reference
• Articles or press releases
• Marketing materials
• Product information
• Any other relevant information

By including this information in the appendix, you are allowing potential investors and lenders to learn more about your company.

In summary, writing a mobile app business plan is a vital step in the process of starting and/or growing your own business.

A business plan will give you a roadmap to follow. It can also help you attract investors and partners.

By following the tips outlined in this article, you can be sure that your business plan will be effective and help you achieve your goals.  

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Why create a business plan for a mobile app?

A business plan is the backbone of any enterprise. Many people like to describe it as a map that assists you in getting from point A (idea) to point B (success) without accidentally venturing into point C (financial failure). You can also think of it as a set of guidelines used to devise app development strategies and manage the budget in a responsible and effective way.

A business plan helps steer the enterprise in the right direction

With a comprehensive mobile app business plan, you’ll be able to use facts and exact calculations to determine the overall direction of the business :

• Gain useful insights into the competition and the current state of the market
• Make informed decisions regarding marketing and communication
• Outline a comprehensive financial strategy
• Evaluate performance and decide on the best allocation of resources

It will also help you to better manage your team :

• Keep everyone in sync and focused on the same target
• Establish clear goals and KPIs, as well as set priorities

And finally, having a business plan is crucial if you want to win over investors and stakeholders.

This is not just our opinion — research confirms the value of writing a business plan. Recently, Palo Alto Software surveyed 2,900 entrepreneurs and discovered that those who create business plans are almost twice as likely to succeed as those who don’t. To measure “success”, Palo Alto used three metrics: business growth, secured investment capital, and secured loans. Find out more information about the study.

This study clearly shows that a business plan isn’t just a formality

What does a mobile app business plan look like?

A typical mobile app business plan is comprised of 8 sections:

• Executive summary
• Products & services
• Company overview
• Market analysis
• Competitive analysis
• Marketing strategy
• Financial strategy

The whole document usually runs 20 to 40 pages including appendices, but this number largely depends on the scale of your project and your goals. A mobile app business plan for a massive product with international presence may well run into hundreds of pages, while an average startup is unlikely to go over 50 pages. 

When writing a mobile app business plan, you should always consider the target audience . Keep everything informative but concise — otherwise, you run the risk of losing the reader’s attention. This is especially important if you’re writing a business plan to raise funds: investors don’t want to have their time wasted. However, it’s crucial not to sacrifice any important information for the sake of hitting a hypothetical 40-page goal.

Things to keep in mind when creating a business plan

Before we dive straight into writing a mobile app business plan, let us give you some tips that will help you along the way.

Before getting started on that Google Doc, ask yourself one question: what are you trying to achieve? The answer to that question defines your priorities. For example, if you’re going to use your mobile app business plan to raise some funds, you’ll want to focus on the reasons you need that money and exactly how you’re going to spend it.

Readability is highly important. This means that the information you present may be complex, but navigating it should be as simple to do as possible. The document should have a coherent structure, with one part logically flowing into another, and clear formatting with headings, subheadings, and enough white space. You can also supplement the numbers you provide with graphs to highlight the most important takeaways .

Pay attention not only to what the document says, but also to what it looks like: with headings, subheadings, and diagrams you create a better document structure

Fact-based estimates

All financial forecasts in your mobile app business plan should be realistic — too much optimism will likely damage your image and lead to lack of trust, not to mention that inflated expectations can ruin the enterprise itself. With that said, all the reports should clearly indicate that there are good prospects for the business and what investors stand to gain if they support the project. If the reports paint a bleak picture, maybe it would be a good idea to test another concept.

External review

Creating a 30-page formal document is a daunting task, and there’s not a single reason why you should face it in solitude. In fact, it’ll be much better if you don’t! As you go, ask other people (preferably experienced) to review it from time to time — this way, you’ll be sure that your plan is logical and makes sense.

How to create a business plan for an app

OK, so we’ve established that a typical startup business plan consists of 8 sections, each equally important. But what exactly do you put in these sections? Let’s find out.

Write an executive summary 

An executive summary is a rundown of the whole document. It describes the current situation in the market, establishes the target audience, as well as puts forward the product’s concept, business goals, and financial projections. Put simply, it answers three big questions:

A well-written executive summary can act as a standalone document. In fact, many investors make their initial decisions after reading this part only, so getting it right is crucial if you want to win over important stakeholders.

The secret is to keep everything clear and concise: you want to convey the message that your app idea has huge potential without overwhelming the reader with 5-page long sheets and abstract ideas. Ideally, the executive summary shouldn’t run longer than 2–3 pages.

The four key components of an executive summary

Prepare the company overview 

In this section of your mobile app business plan, you tell the reader more about your company . Include the following information:

• Mission. It’s a brief explanation why a company exists (take Google, for example: “Our mission is to organize the world’s information and make it universally accessible and useful”)
• Vision. It’s a declaration of the company’s potential impact on the world.
• Corporate values
• History and past achievements (if any)
• Competitive advantages

You should also provide detailed information about the team : the number of people you employ, as well as their qualifications and previous experiences.

We recommend dedicating a separate subsection to your top management and key team members to tell about their background and achievements. This will help convince investors that apart from a great app idea , you also have great people behind it.

Make sure to cover the issue of ownership . Does each partner own an equal portion of the business? If not, how exactly is ownership divided?

Potential investors will definitely want to know this information.

Describe your products & services

This is where you really get into detail about your business idea. First, provide some information about the problem you want to solve. To do this, answer 3 fundamental questions:

You need to convince stakeholders that your product solves an important problem. Answering these 3 questions will help

You need to convince the reader that this issue is of importance. You can cite some research or statistics, but try not to oversaturate this section with numbers.

Then, you move on to the actual solution and tell how exactly you plan to tackle the problem. This is where you describe your product or service. Give a brief description of the processes involved, but again, avoid flooding the section with too many technical details.

Finally, give a brief examination of your competitors and highlight how exactly your product is going to surpass the already existing options.

Conduct an audience analysis

In the audience analysis part, you evaluate the current state of play and give justified reasons why you believe your product has a place in the competitive environment. This section includes queries into the target market , customer behavior, current trends , and several important metrics: cost per acquisition (CPA), total available market (TAM), service available market (SAM), and service obtainable market (SOM).

Try to be as specific as possible when talking about the target audience. Consider building customer personas — generalized representations of the people who are going to be interested in your product. To create a persona, conduct several in-depth interviews and organize the obtained information into the following blocks:

• Demographic information — age, gender, income, place of living
• Psychographic information — goals, challenges, motivation, personality type
• Professional activities — qualifications, current job, past job experiences
• Interests and personal tastes
• Needs — why would they need your product?

This is an example of what a customer persona sheet may look like

Carry out a competitive analysis

We’ve already touched on the subject of competition in the executive summary and the products & services section. This time, however, you dive in much deeper and provide a detailed analysis of your direct and indirect competitors, answering the following questions: What are their strengths & weaknesses? What marketing strategies do they use? What is their pricing?

Once you’ve described the competitive landscape, it’s time to show why your product is going to be superior. One way to do this is by conducting a SWOT analysis.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It actually doesn’t need to be any more complicated than this: the section names speak for themselves.

In Strengths , you state the advantages that separate you from the competition.

In Weaknesses , you focus on the things your product lacks and resource limitations.

In Opportunities , you describe the prospects for your business, as well as the external factors that can have a positive influence on the enterprise (rising demand, changing attitudes, etc.).

And finally, in Threats , you cite any external factors that can have a negative influence on the enterprise (bad media coverage, changing regulations, and so on).

Conducting a SWOT analysis is important for proper positioning

Outline your marketing strategy

This is where you describe three important things. First, you need to cover the channels you’re going to use to reach your target segments — for example, social media, target ads, or physical ads. Then, you specify the amount of money you plan to spend on marketing activities, and finally, the KPIs you’re going to use to evaluate efficiency.

Describe your financial strategy

We’ve reached the core of any mobile app business plan. A startup needs a financial strategy much like a ship needs an engine or a mast, and this section is where all the crucial number crunching is happening — akin to an engine room. Let’s look at what you need to include in this part of the plan:

• A revenue model, also known as a monetization strategy
• A monthly sales and revenue forecast for the first 12 months and annual projections for the next 3–5 years
• An income statement, which outlines annual net profits or losses
• A cash flow statement, which shows how much money the company operates with in total
• A balance sheet, which lists assets, liabilities, and equity in your company
• Funds needed (how much money you need to gain in investments)
• Use of funds (how exactly you’re going to use gained investments)

Exit strategy

You need an exit strategy if you plan to sell your company some time in the future. Having this subsection is crucial if you want to draw the attention of venture capitalists and angel investors. The most common exit strategies are acquisition, initial public offering (IPO), and management buyout.

Make sure you understand all these terms correctly and can confidently use them when pitching — investors are more likely to trust an entrepreneur who knows their numbers .

A typical balance sheet lists a hefty number of assets, liabilities, and stockholders’ equity. Complicated, but important!

Compile an appendix

This isn’t a mandatory section — you can omit it altogether, if you want. However, it might be a good place for charts, tables, legal notes, licenses, permits, detailed studies, illustrations of your product, and all other miscellaneous pieces of information that can seem a little out of place if you include them in any of the primary sections of your mobile app business plan.

How to fund your app startup

We’ve compared the main sources of funding in the table below.

And now a bit more about every source of funding.

Bootstrapping

Bootstrapping is just a fancy word for using your own money. Unsurprisingly, this is the best way to fund a startup: there are no loans, no interest rates, no bonds, and no contractual obligations. If the idea fails, you’ve got no one to answer to (well, apart from your wallet) — and if it takes off, you get to keep more of the returns. 

Personal networks

The second most desirable source of funding. A personal network is your friends and family — or, in other words, people you have a close emotional connection with. Persuading them to fund your mobile app development project will be much easier than pitching the idea to complete strangers. And in case the startup fails, they will likely give you enough time to recuperate and pay them back. 

Crowdfunding

Crowdfunding means turning directly to end-users to get funding for the project, usually via the Internet. This method is very popular among smaller, niche-specific enterprises, but it doesn’t mean that large-scale ventures have nothing to gain from it — some businesses (including app development companies) manage to raise millions of dollars on Kickstarter and other crowdfunding platforms. Pros: you get to build a customer base super early. Cons: failure to deliver the promised product usually leads to court, unless you have exceptionally good PR.   

Angel investors

Angel investors are wealthy individuals who use their own money to support business ideas they find promising. They usually invest in budding projects in the seed stage, when the risks are at their all-time high — hence the name. But here’s the catch: in return, they get a share in the business, or at least a convertible bond. This means that if the idea takes off, they’ll gain a certain level of control over your company and become entitled to a share of your income. 

Startup contests at IT events

The tech industry is packed with conferences that can define the future of your app startup. Many of these events host startup contests with formidable prize funds reaching millions of dollars. Winning a contest like this is a quick way to get a solid influx of money early on — but, of course, there are no guarantees, and the competition is fierce.

Bank loans are your last resort. We recommend using this option only if every other one has failed. Why? Tons of paperwork, strict deadlines, and unfavorable interest rates make it poorly suited for fledgling startups — and don’t forget that failure to return the money on time may lead to severe consequences. It’s much safer to take a loan once you have an established company, but definitely not when you’re just starting out.

Monetization strategies

Deciding how your product is going to make money is one of the most important steps to take when developing a mobile app . There are multiple monetization strategies available, each of them suitable for specific types of businesses. Let’s look at some of the most popular ones.

One-time purchase

This strategy is based on the “pay once, use forever” principle. With this business model , you make your app available only after the customer purchases it, either before or after the download. This model can generate substantial revenue, but only if you offer unique features that are highly valuable to the user — otherwise they will most probably turn to free alternatives. Very common among productivity apps and games.

In-app purchases

The app and its basic functionality are free to use, but users can pay to access more advanced features or nice-to-have bonuses. The most famous examples of this model are probably games like Clash of Clans or Fortnite — you can play all you want for free, but if you want to progress faster or get in-game benefits , you can buy skins and in-game currency. Very lucrative if applied properly, but is mainly limited to the entertainment segment.

Subscriptions

Users can download the app for free, but to enjoy the full range of its features they’ll have to buy a subscription. Usually, this business model includes multiple options : for example, you can subscribe for a month, 6 months, or a year. To increase conversion, developers often offer trial periods that allow customers to fully experience all the advantages of the product before choosing to commit.

This strategy is also known as the freemium business model

Talentum , an app we developed a couple years ago, used a subscription-based revenue model. Users could order food from their favorite chefs without any paywalls, but there was always an option to upgrade their accounts and unlock the full range of features.

Talentum, the app that connects customers with top-notch freelance chefs

A fitness app we developed uses a similar system, but on the vendor side: coaches can buy higher-level subscriptions to take on more customers.

The subscription model is also used in dating applications such as Tinder, Bumble, and Hinge. Users that subscribe receive profile boosts, unlimited likes, advanced filters, and other benefits. Check out our article if you want to know more about dating app monetization strategies .

The most popular business model , which is also easy to combine with others. In this model, you use the app to run ads to generate revenue. There are several formats you can choose from, with some of them being more intrusive (like interstitial ads), and some less (like native or banner ads).

Many developers use this strategy together with a subscription-based model: the free version of the app is monetized using ads, while buying a subscription removes this annoyance and grants other benefits.

Keep in mind that the more intrusive the ad, the less users are going to like it

Commissions

Very handy for marketplaces of all sorts: if a vendor uses your app to sell their goods, you charge a commission for every sale they make at a fixed percentage. Alternatively, you can opt for charging fixed flat fees, but the first option is more widespread. The more vendors you attract to the platform, the heftier your revenue will be.

What is a business plan for a mobile app?

A mobile app business plan is a set of guidelines used to devise comprehensive app development strategies and manage the budget in a responsible and effective way.

How long does it take to create a business plan for an app?

Creating a mobile app business plan may take anywhere from a couple of weeks to a month.

Is it possible to create an application without a business plan?

Yes, it’s entirely possible, but in this case you’ll need a reliable partner to help with refining the concept and turning it into a cool product on the go. If you have an idea for a mobile app, reach out to us — we’ll help bring it to life with low development costs.

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Mobile and Web App Business Plan Template

Introducing our free mobile app business template! Streamline your app development process with this easy-to-use template designed for entrepreneurs and startups. From market research to revenue projections, our template includes all the essential components for crafting a successful mobile app business plan. Download it now and get started on the path to app development success!

Download the template today!

The world is in the midst of a mobile revolution, and mobile apps have become an integral part of our daily lives. With the growing popularity of mobile devices, developing a mobile app has become a lucrative business opportunity for entrepreneurs and startups. However, building a mobile app from scratch can be a daunting task. That's why we're excited to offer our free mobile app business template, designed to make the app development process simpler and more efficient.

Features of the App Business Plan Template

Our mobile app business template includes all the essential components for crafting a successful mobile app business plan. Here are some of its key features:

• Market Research - Before developing an app, it's important to conduct market research to identify the needs of your target audience, understand your competitors, and assess the demand for your app. Our template includes a comprehensive market research section to help you conduct a thorough analysis of the app market.
• Business Model - Choosing the right business model is crucial to the success of your mobile app. Our template offers a variety of business models to choose from, including freemium, subscription, and in-app purchases. We'll guide you through each option and help you decide which one is best for your app.
• Revenue Projections - Estimating the revenue potential of your app is a key step in the planning process. Our template includes a revenue projections section that helps you forecast your revenue streams and expenses, so you can make informed decisions about your app development strategy.
• Marketing Plan - Once your app is developed, you need to get the word out and attract users. Our template includes a detailed marketing plan section to help you create a comprehensive strategy that covers all the essential marketing channels, such as social media, email marketing, and search engine optimization.

Benefits of Using Our Template

Using our mobile app business template provides a range of benefits, including:

• Saves Time and Money - Developing a mobile app is a time-consuming and costly process. With our template, you can save time and money by streamlining the planning process and creating a more efficient development strategy.
• Provides Clarity and Focus - Our template provides a clear roadmap for app development, helping you focus on the essential components and avoid unnecessary distractions. This helps you stay on track and achieve your goals more effectively.
• Increases Your Chances of Success - A well-planned and executed mobile app has a greater chance of success in the market. Our template provides you with the tools and resources you need to develop a successful mobile app business plan and increase your chances of success.

Our free mobile app business template is an essential resource for entrepreneurs and startups looking to develop a successful mobile app. With its comprehensive market research, business models, revenue projections, and marketing plan sections, you can create a detailed plan that sets your app up for success. Download our template now and start your journey to app development success!

Mobile App Business Plan Frequently Asked Questions

Q: why do i need a mobile app business plan.

A: A mobile app business plan is essential to the success of your app because it helps you identify your target audience, understand the market, and develop a clear strategy for success. Without a plan, you risk wasting time and resources on an app that may not meet your goals or resonate with your target audience.

Q: What are the essential components of a mobile app business plan?

A: A mobile app business plan should include market research, a business model, financial projections, and a marketing plan. These components provide a comprehensive roadmap for app development, including identifying your target audience, assessing the demand for your app, estimating your revenue potential, and creating a strategy for attracting and retaining users.

Q: How can a mobile app business plan help me secure funding for my app?

A: Investors and lenders are more likely to fund your app if you have a well-crafted mobile app business plan. A comprehensive plan demonstrates that you have a clear understanding of the market, a viable business model, and a strategy for generating revenue. By showing your plan to potential investors, you can demonstrate that you have a solid plan for success and increase your chances of securing funding. Having strong financial projections are key to securing funding. Use a mobile app financial projection template can make this process easy.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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How to write a business plan for your mobile app development project.

Starting a mobile app development project is a great idea because it allows businesses to reach a larger audience with their product or service, and it gives users the convenience of being able to access the app from anywhere on their mobile devices.

But, first thing first, you need to write a business plan.

A business plan is essential for any project, especially for mobile app development. It outlines the goals, objectives and strategies needed to successfully launch the app. It also helps to identify potential risks and provides a roadmap for the project's success.

In short, a good business plan will help ensure the profitability of your mobile app development project .

What are the essential parts of a business plan for a mobile app development project? What is the recommended format? Which important financial measures should be there? What's the best way to create a business plan quickly and effectively?

Please, find comprehensive answers to all these questions below.

Also, please note that starting your business plan from scratch is not mandatory.

You can download our editable business plan for a mobile app development project and adapt it to your project.

How to prepare a business plan for a mobile app development project

Is it worthwhile to invest time in a business plan for your mobile app development project.

Yes, you should invest time in a business plan for your mobile app development project to ensure the success of your project.

Formulating a comprehensive business plan will allow to:

• get familiar with the mobile app development market
• stay on top of the industry's emerging trends
• identify what makes a mobile app development project solid and successful
• understand the target audience's requirements and preferences for mobile applications
• come up with a unique value proposition for your app
• analyze competitor target markets
• identify solid competitive advantages for your mobile app development project
• find a business model that will generate positive cash flows
• implement a well-structured and calculated action plan
• evaluate risks associated with a mobile app development project, including technical challenges, user privacy, and market competition

Our team has created a business plan for a mobile app development project that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a mobile app development project?

A business plan is filled with facts, figures, and indicators. It must be presented in a structured format, to make easy to read and digest.

When we built our business plan for a mobile app , we took care to arrange it appropriately.

The content is arranged in 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The introductory section has been named "Market Opportunity".

This section presents a comprehensive report on the mobile app development project, including key data and metrics to guide your decision-making.

We continuously update all the data there.

2. Project Presentation

The second part is dedicated to the "Project" of your mobile app development project. Here, you can outline the purpose and functionality of your app, target user demographics, user interface and experience design, development timeline, app store submission plans, and the unique value proposition that solves a specific problem or provides a unique solution for users.

Remember to introduce yourself at the end of this section.

Discuss your expertise in mobile app development, your range of services, and how you plan to provide innovative and user-friendly app solutions to clients. Highlight your track record of successful projects, your skilled team of developers, and your dedication to delivering seamless and engaging mobile experiences that meet the needs and expectations of users through your mobile app development project.

You'll find wording already provided in our business plan. Tailor it to fit your concept exactly.

3. Market Research

Next up is the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your mobile app development project.

It includes a presentation of other mobile app development companies in the industry that will be competing with you. Your project's unique app features and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

In the "Strategy" section, you will find a detailed growth plan for your mobile app development project, outlining all the necessary steps and initiatives to ensure its high profitability.

Furthermore, there is a marketing strategy, a risk management strategy, and a Business Model Canvas that has been filled in, all included in this section.

5. Finances

Ultimately, the "Finances" section provides a comprehensive view of the financial aspects and metrics of your project.

How to write an Executive Summary for a mobile app development project?

The Executive Summary is like an introduction to the business plan for your mobile app development project.

Keep it brief, not exceeding 2 pages. Stick to the crucial points.

When you show your business plan to an investor, this is what they will read first. It needs to get their attention and make them want to read the rest of the plan.

In the Executive Summary of your mobile app development project, answer these questions: what is your mobile app development project about? who is your target audience? are there any similar projects in the market? what makes your project unique? how much funding do you require?

How to do the market analysis for a mobile app development project?

The market study of your mobile app development project helps you understand external factors such as customer demands for mobile applications, competition within the app development industry, and emerging trends in mobile technology.

By conducting an extensive market study, a mobile app development project can understand user needs, offer innovative and user-friendly mobile app solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to increased user adoption, app downloads, and a prominent position in the mobile app industry.

This is what we've outlined in the "Market Research" section of our business plan for a mobile app :

• interesting data points and market insights about mobile app development, including app usage trends, app market revenue, and the growth of app-based services
• a list of potential customer segments for a mobile app development project
• the competitive research
• the competitive advantages for a mobile app development project

The key points of the business plan for a mobile app development project

What's the business model of a mobile app development project, business model of a mobile app development project.

A mobile app development project's business model revolves around creating and monetizing mobile applications for specific platforms such as iOS or Android. Revenue can be generated through app purchases, in-app advertising, in-app purchases, or subscription models.

The business model focuses on identifying market needs or gaps, designing user-friendly and engaging apps, developing robust and scalable code, testing and optimizing app performance, and implementing effective monetization strategies.

Success depends on market research, delivering high-quality user experiences, effective app marketing, regular updates and improvements, and staying responsive to user feedback and evolving industry trends.

Business model ≠ Business plan

Please don't mix up the terms "business plan" and "business model."

A business model outlines the way a company creates value, generates revenue, and operates.

In a business plan, you demonstrate your business model using a structure called the Business Model Canvas.

Rest assured, we provide a Business Model Canvas in our business plan for a mobile app .

How do you identify the market segments of a mobile app development project?

Market segmentation for your mobile app development project involves dividing your potential clients into different groups based on their app development needs, industries, and target audience.

These categories may include factors such as iOS app development, Android app development, gaming apps, or clients from specific industries (e.g., healthcare, finance, education).

By segmenting your market, you can offer specialized app development services and solutions that cater to each segment's specific requirements. For example, you might provide iOS app development services and design user-friendly and intuitive interfaces for Apple device users, offer Android app development services and optimize apps for a wide range of Android devices and versions, specialize in gaming app development and create immersive and engaging gaming experiences, or develop industry-specific apps tailored to the needs of clients in sectors such as healthcare, finance, or education.

Market segmentation allows you to effectively target your marketing efforts, showcase your app development expertise, and deliver high-quality and customized mobile app solutions that meet the unique needs of each client segment.

In the business plan for a mobile app , you will get a detailed market segmentation, helping you understand your target audiences and their needs.

How to conduct a competitor analysis for a mobile app development project?

Without surprise, you won't be the only mobile app development project in the market. There will be other developers working on innovative and user-friendly mobile applications.

Your business plan should encompass an extensive market study that examines your competitors' characteristics, strengths, and weaknesses.

Address their weaknesses (such as inefficient app development processes, lack of user testing, or poor app performance).

Why should you focus on these elements? Well, these weaknesses can hinder the success of mobile app development projects. By addressing these aspects, you can offer innovative and user-friendly app designs, provide efficient and reliable app development and testing processes, and deliver excellent customer support, positioning your mobile app development project as a trusted and preferred choice for businesses and individuals seeking high-quality and functional mobile applications.

It's what we call competitive advantages—building them is key to standing out in the market.

Here are some examples of competitive advantages for an app: user-friendly interface, innovative features, regular updates and improvements.

How to draft a SWOT analysis for an app?

A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that can inform the development of a successful mobile app.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a mobile app

The strengths for a mobile app development project

When we talk about the "S" in SWOT, we mean Strengths, which are the project's positive attributes or advantages.

For a mobile app development project, possible strengths could include a user-friendly interface, comprehensive testing, scalability, and a secure back-end system.

The weaknesses for a mobile app development project

The "W" stands for Weaknesses, referring to the areas or aspects of the project that need to be addressed.

In the case of a mobile app development project, potential weaknesses could include an inexperienced development team, lack of proper project management, and poor quality assurance processes.

The opportunities for a mobile app development project

O represents Opportunities in SWOT, referring to the external factors or conditions that can create opportunities for the project's advancement.

In the case of a mobile app development project, potential opportunities include creating a social media app, a productivity app, a gaming app, and a shopping app.

The threats for a mobile app development project

When we mention the "T" in SWOT, we're referring to Threats, which are the external risks or negative factors that can impact the project's performance.

How to craft a marketing strategy for an app?

A marketing strategy plays a pivotal role in a business plan as it defines how a business will entice customers and generate sales.

An app can attract users by implementing a well-crafted marketing strategy that showcases its unique features, user-friendly interface, and how it solves a specific problem or meets a particular need.

Users won't choose your app without effective marketing; highlighting its features, usability, and benefits is necessary.

Have you explored marketing approaches to attract customers to your app? Consider optimizing your app store presence, running targeted advertising campaigns to reach your target audience, and utilizing social media platforms to engage with users and receive feedback.

No worries if you don't know anything about marketing and communication.

How to build a 3-year financial plan for an app?

A solid business plan must include detailed financial information such as projected income, expenses, cash flow, and balance sheets.

When creating your business plan, you must include anticipated revenue figures for your mobile app development project.

To earn the trust and confidence of potential investors, it's crucial to have revenue projections in your business plan that are based on believable and well-founded assumptions.

Our financial plan for a mobile app is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

It goes without saying that you'll have to develop a provisional budget for your mobile app development project. Pay attention to every expense and don't leave any out (our financial plan includes a complete list for your convenience).

The break-even analysis is central in the financial plan as it will tell you whether your mobile app development project will generate profits or not.

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How to Write a Business Plan For Mobile App Startup

Tech Editor and Content Team Lead

Tech Researcher and Writer

Table of content

Idea, plan, and implementation. These are 3 cornerstones of any project’s success. In the constantly changing modern IT world, it’s impossible to forecast success with 100% confidence. However, if you pay enough attention to each of these cornerstones, your chances to reach the top grow.

However, some entrepreneurs skip the stage in which they should create an app business plan. These people often believe practice to be a better way to reach the expected results, hoping spontaneous decisions can build the road to the top manufacturers' list. Unfortunately, this type of approach leads nowhere.

We have carefully analyzed issues that our clients and partners have come to us with, measured the performance of their projects and analyzed how a tech startup business plan impacts the overall company’s success. Today, we will explain the importance of a business plan and guide you through the main steps of developing your own.

Why You Need a Business Plan for Your Mobile App

Mobile apps brought an unexpected revolution to the digital era. The number of unique and useful apps increases daily.

Just a year ago, the number of applications available on the App Store exceeded 2.2. million.

The mobile industry is forecasted to bring in almost $190 billion of revenue in 2020.

If you would like to join this beneficial industry, and already have a great app idea, it’s time to take the next step towards your goals and bring into being a great app business plan.

But first, let’s clarify why you actually need a brilliant business plan for an app .

Attracting great minds and great investments

Depending on the type of business model you want to use, you have to decide between startup co-founders or investors. In some cases, you need to attract both. An application business plan is your sole way to fulfill this task quickly and proceed with more significant steps towards your company’s growth.

Reducing the risks

Recent reports show that writing a business plan will bring you closer to your goals and ambitions. Entrepreneurs with extensive business plans are more likely to develop their company and increase their revenue than those who without a plan.

Planning is a simple way to secure loans and investments.

Keeping to the defined strategy

In a world full of interruptions, it’s hard not to miss the important things. Every day you, as a startup owner, will face new issues and obstacles. But a set of points on your blueprint will act as a quick reminder of why you started it and where it should take you.

Preparing properly

“By failing to prepare, you are preparing to fail.” ― Benjamin Franklin

Benjamin Franklin wasn’t involved in software development, but these words highlight the app business plan significance. By writing a plan, you are enhancing your knowledge about the market you plan to break into. This will clarify your goals, set your priorities and help you build more accurate forecasts. It’s your chance to reveal possible risks and find your own voice in the industry.

Managing and delegating effectively

Being a good manager is an art. A mobile app business plan is your tool for creating a masterpiece. It provides a vision of critical tasks, helping you delegate each of them to the responsible person.

An App Business Plan Template

Now that you know how meaningful a business plan is for any project is, let’s find out what it actually is. Typically, a business plan is a set of:

bullet points describing your vision.

some statistics providing real numbers about the industry you plan to enter.

tables with defined steps and strategies you would like to implement to reach your goals.

Is the product viable? Does it have the potential to bring new experiences to the user and measurable benefits to its founders? Those are 2 primary questions your app business plan should answer. Include the following components to make your triumph inevitable.

Section 1. Executive Summary

This is the introduction to your business plan. This is the first thing your potential investor will see when becoming acquainted with your idea. Make it clear and remarkable, and answer these questions in your summary:

What problem do you want to solve?

Even though the market is chock-full of different solutions, consumers always face some obstacles and complications. You need to find these problems and identify the one that you can solve. Analyze your target audience’s needs at the moment, why the existing solutions do not satisfy these needs, and what you can offer to solve this problem.

What is your solution?

First of all, make sure your project is capable of addressing this problem. Then, introduce your idea but do not dive into details. This is not the right moment to introduce the functionality to investors. It’s time to generally highlight what your app will do to make app users happy. 

How will your app change the market? 

Answering the first question, you have possibly come to the conclusion that similar solutions already exist. Provide proof that your app is better than other apps. Share facts, numbers, and forecasts; avoid using clichés and make your answer as profound as you can. 

What goal are you pursuing? 

The primary goal of any business is financial return. In this section, you need to explain what your goal looks like, provide your vision of the app’s future, state how many users you expect to download your app, and what profit it will bring. Visualize your short-term plans and enhance your answer using metrics.

Section 2. Make a Business Description of Your Company

Create an attractive overview to increase interest. This section is how you get closer to potential partners by presenting the following things:

Basic info about your organization

Either your company is an LLC or another entity, the potential investor should know this. The company’s structure defines the way processes will be organized in the future.

Location is essential. If your team works remotely, mention it, too. And don’t forget to emphasize the reasons you have decided on this location or opted for remote collaboration.

A few words about the history

People like storytelling. So explain the company’s history. How did you come up with the idea of founding your own business? What did you start with? Make your story short but catchy so you can win the reader’s attention.

Team introduction

The app startup business plan should include details about your team so you could get even closer to the reader. By adding a few words on the company’s specialists, you can turn a boring description into a virtual introductory meeting.

Tell the potential investor about your managers. Provide information about the engineering team. Specify names, positions, experience, and even hobbies. Writing your app business plan, make the readers feel like they know the people you talk about.

One more actionable tip is to provide details about your advisory team. These experts help you with decision making, and their names can make a difference in the local market.

Section 3. Market analysis

To launch an app startup, you should know everything you can about the industry you are entering. By understanding its past and present, you can impact its future. This stage moves a hypothesis to real statistical data.

How big is the market?

To answer this question, you must analyze the following factors:

Total Available Market, or market demand for your app.

Serviceable Available Market, or the number of users you are able to reach out to.

Serviceable Obtainable Market, or the segment of your first users.

How does the market change?

Compare and analyze the market size 5 years ago and now. What has changed? How many influencers have broken into the market? How many failed? The amount of money spent in the industry will make your own potential income clearer.

What is the customer persona?

The only way to develop a legendary app is to look at it through your customers’ eyes. This is why you need to understand the target audience and create a portrait of your customer. A customer persona is a detailed description of what users that install your app look like. Define gender, name, occupation, education, hobbies and daily challenges they face. This is a portrait of the real person your app will serve.

Section 4. Marketing strategy

A solid mobile app business plan should describe how your app will get to potential user smartphones. Let’s have a glance at our step-by-step guide on how to build a successful marketing strategy:

Identify the channels you can acquire customers from

Today, social media marketing is considered the most effective way to promote a product. But will it be enough for your app? Go back to the research phase and find out how many potential users you are able to meet on Facebook, Instagram, or Twitter. Provide the readers with information on what channel may be most profitable.

An app landing page is an excellent way to reach out to your target audience, too. Develop an engaging mockup and provide the partners with information on how many customers will find out about your product from a landing page.

Decide on metrics

During the beginning stages, your success will be measured with the number of installations or conversion rates, not with financial revenue. So decide what metrics will be useful for your project’s evaluation.

Consider participation in referral programs

Referral programs could become your growth fuel. Decide on which companies to collaborate with and explain to the app business plan readers why this cooperation is expected to be fruitful.

Don’t forget to optimize your website and mobile application to improve SEO. And remember:

“Be undeniably good. No marketing effort or social media buzzword can be a substitute for that.” - Anthony Volodkin, Hype Machine founder

Section 5. Define Your Competitors

If you are not Elon Musk, you definitely have competitors. And if you have competitors, you should learn from them. Make sure your business offers unique functionality and has the ability to cater to users’ wishes like no other tool could. But at the same time, be aware that there will always be someone doing something similar.

Know your competitors. Study the market and increase your awareness of potential rivals, as well as their history and capabilities. Study their weaknesses and brainstorm how to turn these into your strengths.

Section 6. Choose a Monetization Strategy

As we reach the finish line of your app development business plan template building, we will talk about finances. Running a non-profit project is good, but when it comes to mobile apps, which have a market of billions of dollars of revenue annually, the monetization strategy deserves exceptional attention.

How can you turn your efforts into financial profit?

• Use advertising

You can simply advertise other products with your mobile app. This is one of the fastest and easiest ways to monetize it. However, you should have an impressive number of active users to implement this strategy.

• Charge a fee for installation

There are so many free apps all over the web that users ignore the paid ones. Be ready to demonstrate unique features to convince users to install your app.

• Add a Paid Account option

Offering a free trial is an attractive option. After the trial period ends, allow an account upgrade. If your app demonstrates good performance and powerful functionality, it is very likely that users will be ready to pay for it.

Choose your strategy before you start your sample business plan. Potential partners and investors will not support your idea unless the monetization strategy is well-defined and clear. So be ready to answer questions about what financial profit you expect to make from this app.

Section 7. Startup Costs & Funding

Did you know that one of the key reasons startups fail is financial issues?

29% of companies simply run out of cash and 18% of companies have other types of cost issues. Now, when you are closer to your first technology startup business plan example than ever, consider the importance of costs and funding for your business.

Why is the financial component of planning so important?

It is vital for you to understand what type of funding you need to get your app up and running.

Your potential partners must know how much money you need.

Your startup financial model should reflect the forecast for the next 3-5 years. Add the following data to your plan:

Talk about required funding

You have a rough estimation of how much money you need. Try to foresee possible issues. A backup financial plan may be useful, too.

Specify payment frequency

Some costs should only be paid once. Other costs, like salaries or maintenance costs, are repeatable. A detailed financial plan is the final thing you need to provide in your application business plan.

In Conclusion

Strive to create an excellent app business plan, keeping in mind the following tips:

Make it simple and clear.

Be professional and realistic.

Avoid slang.

Proofread, then proofread it again. Also, don't neglect grammar checkers like Grammarly . Such a tool will not only correct your spelling or grammar but also advise you on the style of your writing.

Isn’t it exciting? Now you know how to write a business plan for an app! Now you are one step closer to fruitful business relations and considerable funding to bring your idea to life. And now you are one great step ahead of your competitors.

We have seen dozens of business plans on our path. Now we can say for sure which plan is the right first step to great achievements in the future.

Want to know more about the project cost?

How to write a business plan for your app startup

Table of Contents

Executive summary

Company description , market analysis, market size, projections, competitors, swot analysis, unique selling point (usp), marketing strategy, customer acquisition strategy, social media, startup costs and funding, monetisation strategy, final thoughts…, manage your finances better.

Writing a business plan is the first step to developing your app. It helps you clarify your vision and identify the steps you need to take to reach your goals. 

This guide will show you how to write a business plan for your app startup to help you attract investors, secure funding, and guide your overall efforts. 

You’ll need to include:

• Company description
• Unique selling proposition (USP)
• Monetisation plan

Every business plan should answer whether it’s profitable to produce the product and invest in the business. Use the following sections to get that point across.

This section is the first thing potential investors will see when reading your business plan, so make sure it packs a punch. 

Your executive summary should hook the reader and entice them to keep reading your plan –– and invest in your app startup.  

Make your summary clear and memorable, and answer the following questions:

• What problem do you want to solve with your app?
• What is your solution?
• How will your app change the market? 
• What goal are you pursuing? 
• Why will you succeed?

While your executive summary comes first in a business plan, it’s best to write it last to ensure it highlights all key aspects of the document. You can learn more about how to write an executive summary here .

This section introduces your app startup and app concept to help potential investors understand more about you. Who are you, and what makes you unique?

When describing your business and app, share the following details:

• Business structure (is it a sole proprietorship or limited company ?)
• Company location 
• Information about you as the owner
• Problem your app will solve
• Business mission (why you created your app startup)

Quick tip: People love a good story, so use your company description to tell yours. Explain how you came up with your app idea and why you think it’s important. Keep it short and catchy to win the reader’s attention quickly.

Next, investors need to know how your app will fit into the market. After all, you’re trying to convince them that you’re worth investing in.

First, research what the current market looks like. There are three key parameters to base the market size:

• Total available market (TAM) – the maximum demand for a solution in the commercial market.
• Serviceable available market (SAM) – the portion of the total available market you can target through sales and marketing.
• Serviceable obtainable market (SOM) – this defines the segment of the serviceable available market that includes the first people to use your product or service.

How likely is your app to succeed in the market?

Research firms like Nielsen or Forrester can help you understand your target market size and your industry’s potential for growth . Use success stories of similar businesses to give readers proof that your idea can be profitable.

Key point: Only include statistics that relate to your business. For example, if your app will only serve the local market, try to find local statistics. 

Also research your competitors to demonstrate how your app measures up against other solutions. What makes you different?

Study other app businesses in your industry, including their niche, branding, app functionality, audience size, pricing, marketing, and so on. 

Identify your strengths, weaknesses, opportunities, and threats ( SWOT ) to define where you stand in the market and against your competition. 

Demonstrating your strengths and opportunities shows potential investors why your app startup is a worthwhile investment.

And highlighting your weaknesses and threats shows investors that you know your limits and have a plan to overcome challenges you might face.

Your unique selling point (USP) is what differentiates your app and business from others in your industry. How is your app better than your competitors’?

Explain who you’ll do differently that will make people download your app instead of another, similar one. 

When considering how to write a business plan for your app startup, think about how you can prove to potential investors that you have a plan for promoting your business. 

You want to write a section that details your marketing strategy , including the following aspects:

Lay out your strategies for acquiring new customers, talking about each channel and tactic you plan on using to attract them. 

Try to estimate how much it will cost you to acquire one customer from each channel. For example, if you plan on using paid advertising, how much do you think you’ll need to spend on it?

It’s important to have numbers to show investors to give them an idea of how much money you might need.

Social media marketing is one of the most effective ways to promote a product these days. When developing your marketing plan, find out how many potential customers you could reach through platforms like Facebook, Instagram, TikTok, Twitter, and so on. 

Provide readers with details about what channel you believe will be most profitable and why. Remember, you want them to want to invest in you.

Include a reasonable estimate of how much it’ll cost to get your app startup up and running. Investors want to know where their money will go. 

Mention one-time costs, recurring charges, fixed costs, and any other expenses you think you’ll incur. Give an estimation of how much money you’ll need and why. 

This section explains how you’ll generate revenue from your app. The most common ways to monetise an app are: 

• In-app ads – your app is free for people to use, but other brands pay to advertise their solutions to your users. 
• Paid app – this is where users pay a small fee to download and use your app. 
• In-app purchases – here, you offer a basic version of your app for free and encourage people to pay for more features or other privileges.
• Subscription – you can charge monthly or annual fees for people to use your app. Netflix is an example of a subscription app. 

Knowing how to write a business plan for your app startup isn’t always easy. The idea is to prove that your idea is a worthwhile investment by demonstrating:

• Your knowledge about the market.
• Your understanding of your target audience.
• Why your app will succeed in the current market.
• That you’ve done your research to support your concept.

Once you’re done with your research and have written your business plan, remember to proofread it . Use writing tools like Grammarly to make sure your spelling, grammar and style are spotless.

Now that you have a better idea of how to write a business plan for your app startup, you’re one step closer to bringing your idea to life!

You can improve almost every aspect of your business with new technology, including your business bookkeeping. That’s why hundreds of app startups use Countingup to make their financial admin easier. 

Countingup is the business current account and accounting software in one app. Keep your money where you can see them, and your financial data easily accessible whenever you need it. 

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

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Home / Blog / Business Plan for App Development – Everything You Need to Know

Reduce the Risks 

Attract great minds and investments, better preparation , keep a definite strategy, manage and delegate effectively.

• Executive Summary - App Development Business Plan
• Problem Analysis - Mobile App Business Plan
• Market Analysis - Business Plan for App

Marketing Strategy

• Financials - Business Plan for Developing an App

Funding Required

How do travel apps make money, core features of travel business plan for app, how to create a travel app, business plan for app development – everything you need to know.

A goal without a plan is simply a wish. If you want to achieve your goals, invest your time and efforts in developing a descriptive business plan for the app . Is there a winning formula that guarantees success and reduces the mobile app development business’s risk of failure?

It’s not something you are inherently proficient at, being an entrepreneur and not your expertise niche. If you are confused or doubtful regarding what you must incorporate in your mobile app business plan, refer to the following detailed article. 

But, you must be wondering as to why is mobile app business plan is essential, right? Here, it is.

The Need for Business Plan for App

The following reasons represent why a business plan for app development is so important:

As per the recent reports, writing a business plan brings you closer to your goals and ambitions. Entrepreneurs with proper business plans are more likely to build their company and increase revenue than those without a plan. Thus, you reduce the risk of failure. 

Planning is one of the easiest ways to secure loans and investments. 

Depending on the type of business model you use, you have to decide between investors and startup co-founders. Sometimes you need to attract both. The application business plan is the only way to quickly fulfill your task and proceed towards the company’s growth.

“By failing to prepare, you are preparing to fail” – Benjamin Franklin .

Benjamin Franklin wasn’t a software developer , but the above words highlight the significance of app business planning. Through writing a plan, you enhance the knowledge about the market you are planning to break into. It clarifies your goals, sets priorities, and helps to build more accurate forecasts. Thus, revealing the possible risks and finding your voice in the industry. 

In the world of interruptions, it’s hard not to miss out on essential things. Every day you face new obstacles and issues as a startup owner. But, a set of blueprint points act as a quick reminder of why you started it and where it should take you.

It’s an art to be a good manager. A business plan for an app works as your tool to create a masterpiece. It gives you a vision of critical tasks to delegate to responsible people. 

Now, as you know the importance of writing a business plan, let’s jump into how to write a business plan for your app startup. 

Read about: Find Investors for Your Mobile App Development Idea

Steps to Write a Business Plan for App

You might be wondering how to write a business plan for a mobile app. A business plan is a set of:

• Bullet points that describe your vision.
• Some statistics that provide real numbers about the industry you are planning to enter.
• Few tables with definite steps and strategies you would like to implement for reaching your goals.

Is your product viable? Does it have the potential of bringing new experiences to the user and measurable benefits to the founders? These are the two primary questions your application business plan should answer. Include the below pointers to make your triumph inevitable. 

Executive Summary – App Development Business Plan

Be very clear and concise in this section, especially for the ones seeking investment. It’s easier to write the introduction to this at the end, once everything is on paper. In this section, you have to deal with the following points:

Unique Value Proposition

Unique Value Propositions change with time. No business plan for app development survives without contact with real customers and the market in action. But, you should have a starting point.

If you plan to create an entirely new market, it would be harder to define it. But for the ones entering the established markets, you can use this opportunity to outline why you are different from the competition. Here, it’s difficult to claim that you are better than the competition. There are chances that they have more resources and customers. You need to explain how you are different and how it will help you gain market share. 

Objectives 

If you seek investment, you need to know if your goals are aligned with the portfolio. Now, you can define success. Is it:

• An exit – IPO or acquisition?
• A specific revenue target?
• How soon do you want to achieve that (e.g., 3 to 5 years)?

You can also use a mobile app business plan template , e.g., the ones provided through HubSpot.

Problem Analysis – Mobile App Business Plan

A problem is something that you know your potential customers have. Either there is no practical solution, or the current solution may be having severe shortcomings. It should demonstrate that the problem impacts enough people to make your app startup a viable commercial proposition. 

Now, introduce your app and explain why it’s a suitable solution to this problem. Explain how it solves the issues identified and why people or companies will turn to it as a potential solution.

Read This: A Comprehensive Guide To Mobile App Development Costs

Your team means everything to you. It is the primary reason why investors put money into startups. Accelerators, like TechStars and Y Combinator, pick startups for the teams behind the idea.

In this section of the business plan for startup app, outline the following:

• The legal entity, when the company was formed, and where the company is registered.
• The number of employees and/or the shareholders.
• Where are you based, and how the team operates together when some members are remote?

Company History

Now, outline the history. How did you uncover the problem you wanted to solve? What steps did you take to understand the customer pain points and the market? How did you assemble the team?

Listing important milestones is also a useful indicator of how you have grown and lessons learned along the way.

Management Team

It’s a vital section. For all those involved, whether full-time or plays a crucial role in the company’s strategic direction, investors want to know more regarding them. Give details about their involvement, role, and responsibilities, along with professional and academic experience in business plan for app development or related fields. 

It’s useful for the advisory team to list who’s onboard and how they support your startup. It serves to give investors further confidence in your plan.

Market Analysis – Business Plan for App

Few of the most successful startups of the last decade entered huge markets. Take Uber and Airbnb, for instance: transport and travel. Enormous global markets. It took billions to disrupt those markets, thousands of staff, and many struggles before making a profit.

Everyone doesn’t need to be ambitious, but it certainly helps investors about three key metrics – if you work them out or find them about your market:

• Total Available Market (TAM) = total size of the market you know that exists.
• Serviceable Available Market (SAM) = percentage of the market you can reach through your sales/marketing and partner channels over a specific timescale (e.g., 3 to 5 years).
• Serviceable Obtainable Market (SOM) = known size of the early adopter market you reach in the initial 6 to 12 months.

TechStars’ article is a useful starting point to figure out those numbers.

If you enter an established/growing market, then the research firms such as Nielsen or Forrester must have an idea of the market size and anticipated growth projections. Gartner can give you an overview of competitors. All this research must be publicly available.

SWOT Analysis

If you face established competitors – whether they’re startups or big players, it is essential to do a SWOT analysis as part of the mobile app business plan development.

SWOT = Strengths, Weaknesses, Opportunities, and Threats.

Make it clear that you are aware of all the potential challenges. Investors can sense false confidence when they see it. This plan also lets you convince others to join the team; then, they need to know that they are working with ones who have a realistic view of the road ahead.

It’s a bridge that allows your product to fall into customers’ hands. You have to convince your investors about you having such a bridge. To succeed, use the following marketing strategies for your mobile app:

Target Market

The first step is to attract the audience by choosing a specific group of consumers for aiming your product. The target audience should be defined based on habits, demography, online behavior, and lifestyle. Analyze how your ideal client would use your app.

Competitor Analysis

Researching competitors is a part of business analysis. It will help you highlight the features that distinguish you from competitors, allow you to improve the processes, and solve problems in your market.

Create a Landing Page

It will help you expand your target audience for your mobile application to inform readers about innovations and updates. Make sure that your page contains the app’s name, functionality description, promotional videos, etc. 

To improve your application rating in search results in the app stores, you need to improve the characteristics. For example, by optimizing the mobile app in terms of loading time. A high position in search results draws the attention of potential customers. 

Product Growth

Expanding the user base is different from the type of app startup, and the business strategy to enter other markets also varies. For instance, a massive advertising attack would make sense only in markets where consumers understand your product or service and its usefulness. Take an example from apps that have successfully implemented massive marketing campaigns: Uber and HouseParty.

Financials – Business Plan for Developing an App

It’s time to sit down and crunch some numbers. For any mobile app business plan, the investors need to see the following:

• How will you make money/
• What will it cost to run your business?
• How much funding is required?

Startup Costs

Investors must know what everything is going to cost and what the variables are. 

App design and development costs may vary depending on the app’s features, developer’s rates, and complexity. For accurate estimates, you may request an app development quote from IT experts.

Some costs are fixed, such as salaries, office rents, and subscriptions. In comparison, others will increase as your business scales, e.g., server space. Base the cost projections on your revenue so that the investor can see how the company should scale over time and start registering a profit. 

Revenue Models

For the app founders, the following revenue models are available:

• Advertising: It works if you intend for your user-base to be the product, where they get it for free, and the advertisers would pay to reach them.  
• In-App Purchases: It is the most viable route to revenue for consumer apps. Base revenue projections on a percentage to make a purchase. Don’t be over-optimistic and use prompts like referral discounts to encourage upgrades.
• Paids: Many people are opposed to pay for downloading, but apps can still generate revenue this way. If you go this route, iOS and macOS app stores are where you will most likely find users willing to pay, alongside selling apps through your own and third-party websites. 
• Subscription: It’s a popular choice for B2B apps and is becoming more commonplace with consumer apps.

To secure investment with these numbers in hand, you must outline how long it will take to achieve profitability and the funding required. It’s the amount you are asking for. In exchange, you have to say how much equity you are giving away or work out how long it will take to bootstrap until profitability – once you have an app to launch.

Learn about: 101 Mobile App Ideas for Startups in 2021

Why do Startups Fail

You can avoid fate by analyzing the costs you may require. Plus, it is essential to mention all the details to the investors regarding the costs and expenses you may need and for what. Since the devil lies in the details, here is what you should include – one-time costs, fixed costs (rent, utilities, etc.), recurring costs (rent, inventory, etc.), variable costs (salary of employees), etc.

It is time to ask for funds and reveal all the information related to it. Address the questions in this section:

• How much money would you need?
• What equity percentage are you willing to give in return?
• Will it be a convertible note or a preferred stock?
• For what duration will this money suffice before you need to propose another funding round?

Tools for Creating Effective Business Plan for App

You may have a million-dollar idea, but it would fail if you do not have an effective mobile app business plan to execute it. Below are some online tools and resources to help you create a business plan and get established, irrespective of the experience. 

• Office Online Templates
• The $100 Startup’s One-Page Business Plan
• Write my Essay
• Rocket Lawyer
• Bizplan.com
• Law Depot Business Plan Samples

For more information: 10 App s and Tools for Entrepreneurs to Write a Winning Business Plan 

Free Mobile App Business Plan Template 

The mobile app business plan template includes the following sections:

Travel Application Business Plan

When planning a trip, most travelers rely on mobiles more than ever. As per Travelport Digital, 80% of travelers used a mobile app to research trips in the year 2018. So, travel app development is a vital niche to bring in investments. But, if you are planning to build a big-time travel app, then you need to carefully choose the right business model, features and decide the budget. 

There are mainly three revenue models for tourism app development:

• Merchant model (Expedia)
• Advertising (TripAdvisor)
• Commission Fees (Booking.com)

Here are the must-haves for most of the travel apps:

• Sign-up/ Profile Management
• Search and Filters
• Listing Information 
• Messaging Channels
• Booking 
• Review System
• Notifications 

Use the following pointers to make your travel app engaging and useful:

• Work for your target audience
• Pick the right team
• Collaborate with the hosts

Read more: Travel App Development Guide 

Conclusion 

Regardless of the category, your mobile app belongs to, the business plan for each one is essentially the same, for the most part. A business plan is static as opposed to a business model, which is dynamic. It’s because the document is created only once and is not rewritten once the purpose is fulfilled.

Are you looking to Hire Mobile App Developers for your business? Then, we have a team of highly skilled and dedicated professionals in the market.

FAQs – Business Plan for App

• How do I propose an app idea?

You can develop your app idea using the following steps: Research your idea, create a storyboard, get feedback, and develop a business plan.

• How do free apps make money?

Free apps make money through the following mediums: Advertising, in-app purchases, referral marketing, subscriptions, paid apps, crowdfunding, etc.

• How long does it take to create an app?

While it varies greatly, the general answer would be 4-6 months. It doesn’t mean that the first version of an app – a v1.0 app – can’t be built faster than four months or would not take longer than six months. But, it’s an average figure.

•  Do I need to meet with an attorney before writing my business plan for the app?

It’s your call, and different types of businesses have different needs, but meeting with an attorney who is well-versed in legal issues affecting small businesses is invaluable.

• What are the three primary purposes of a business plan?

The three primary purposes of a business plan are as follows: Establish a business focus, secure funding, and attract executives.

• What is the most essential part of a business plan?

The Executive summary is the most essential part of your business plan and maybe the only one to read. So, make it perfect. Its sole objective is to get the investor to read the rest of your business plan.

• What are the types of business plans?

Types of business plans include but are not limited to startup, strategic, internal, feasibility, growth, and operations strategies.

Siften Halwai

In addition to serving as a Content Writer & Content Marketing Strategist, Siften Halwai is a certified Cambridge English: Business Vantage (BEC Vantage) who empowers to create content that his targeted audience loves to read and engage with. His IT educational background and years of writing experience have given him a broad base for various content formats. Also, he’s a great cook, always ready to explore food, cultures, and adventures.

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How to Make a Solid Business Plan for a Successful Mobile App Startup

3 Jan, 2020

Business plan template

In recent years, we have seen a significant shift in technological advancements. We have gone from desktops to laptops and smartphones, and every year the number of smartphone users rises by tens of thousands. With that, mobile apps of various types are an automatic demand. And so, mobile app development is not an option anymore; it’s a necessity!

In particular, startups need to design mobile apps to target more users and reach the millennial population. A well-thought mobile app business plan is the first step to developing your app. The business plan must cover the entire cost of app development, including planning, designing, marketing, and after-sales support.

It’s not enough to launch the app on the app stores. Whether you are a B2C or B2B industry, there is a lot of competition in the mobile app market. So, a sufficient portion of your budget will go toward marketing tactics to get users to search for and download your app.

Additionally, an adequate app business plan also mentions the total cost of app development, including the feature cost. Here’s a rundown on making a useful app development business plan to ensure the successful launch of your startup:

A well-crafted, detailed, and insightful business plan is the first step toward a potentially successful mobile app startup. Ensure that you cover all areas for a descriptive analysis for your company as well as investors.

This includes key points such as market analysis, competitive analysis, marketing strategy, and your app development business plan. You need to also consider your budget, resources, timeline, and team. As you devise your app development business plan, make sure you consider the audience you are targeting, the features that will be included, and the cost of development. Also include the resources you will need to manage the app, such as a support team, server costs, etc. A comprehensive and well-thought-out app development business plan is key to the success of your mobile app startup.

Executive summary

The summary section of the mobile app business plan is where you introduce the project to the investors. It should be clear and precise, mentions the relevant details, including how the idea came to you and how it solves the problem:

Problem identification

The problem defines a difficulty within the society with no apparent solution or insufficient solutions. For your project’s success, identify and understand the gap in the supply and demand chain in the market. The app startup business plan should highlight the following points:

What troubles your target audience?

Does it have a significant impact on their daily lives?

Is there a solution to their problem? How effective is it?

List down potential solutions

The next step is to shed some light on your app idea. The purpose of the mobile app startup business plan is to introduce the app idea to investors. In this section, explain precisely how the app eliminates the problems highlighted above.

Mention only the points that answer the questions above instead of listing the distinct features of the app. You should include:

What the app allows users to do that they couldn’t before

How will it tip the status quo in favor of the target audience?

Explain the unique selling point

The App Store has 2 million+ apps, while the Play Store offers around 2.5 million apps. Your app must be unique enough to stand out.

The application business plan needs to state how your app is different from the various other similar apps, to get investors interested in your app idea. In a perfect world, your unique selling point would be solely yours, differentiating your mobile app from the competition.

No value propositions or USPs are set in stone; it may change with updates and new features when introduced into the market. But it is best to have a definite starting point to show the investors.

Define clearly the USPs of the app when writing your mobile app business plan . It will be challenging if your target market is unexplored. In the case of entering an established market, mention what makes the app different and how it will help gain a market share.

Strategic objectives of the business plan

Any investor funding your project would like to know if their long-term targets match with yours. When defining your mission, values state:

Your target revenue

End goal: IPO or Acquisition Strategy

The timeline to achieve these goals (3 to 5 years)?

Build a well-crafted company profile

Investors need to know who their partners are. Under the company section of your app startup business plan, write details of your startup, including where it is registered and when it was established. Additionally, highlight the team’s key players, the shareholders, and the different operations the company undergoes.

Firstly, identify the structure of the company:

Where and when it was set up

Are you an LLC, C-Corp, or some other corporate office?

The number of employees in the company

Are any employees working remotely?

Are you working from an apartment or office space?

Under the history section of your application business plan, share the idea behind starting the company. Mention briefly what inspired you, what you and your team have done since establishing the company, and more. Highlight your milestones and achievements, location changes, products launched, and everything relevant to the experience that inspires investors’ trust.

Introduce your critical players, whether they are part-time, full-time employees, working remotely, or as part of the in-house team. Mention details of their educational background, work history, and experience in mobile development or related industries.

Not just the management team but also mention the advisory members. Instill investors’ confidence in your app idea by letting them know who supports the startup and how.

Conduct thorough market research

Before you can go on with the development phase, it’s best to validate your app idea and research the market. Investors need to know the target market, the size of the market, the competition, and more. Your mobile app startup business plan should include:

Market size

There are three key parameters to base the market size:

Total Available Market (TAM) – the maximum demand for a product or service in the commercial market.

Serviceable Available Market (SAM) – this is the portion of TAM that you can target through sales and marketing channels.

Serviceable Obtainable Market (SOM) – it defines the segment of SAM that includes the first individuals to use your product or service.

Projections

Explore research firms like Nielsen or Forrester to understand your target market’s size and the potential growth projections for your industry. You should mention the growth rate for companies with a similar business niche and the amount invested in the industry.

A point to note is that you only include statistics of companies in your target market. If you are entering the local market, do not mention the global economy.

Competitors

Another layer of market research is learning from your competitors. Gartner helps you study your competition in various parameters, including the level of functionality, niche, audience size, and pricing.

Swot analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It defines where you stand in the market and against the competition. In your app business plan, share with the investors your strengths and weaknesses.

Highlighting your weaknesses and threats will also help encourage investors’ confidence. They will know you acknowledge your limits and are working to fix them.

Finally, build the app

You identified the benefit of your app, its USP, and its market worth. Now, share the details of your app idea, including the type of app it is, the features you will add, and its MVP.

The type of app to develop

The type of app you develop depends on your company’s requirements. In your app startup business plan, mention what kind of app you are creating, an Uber-like app for movers, a gaming app, or a file manager. Every app offers distinct features, each of which has a different monetary value. Additionally, state whether the app will be a hybrid or native app or a web app.

The platform choice and features will determine the final cost of the price. For example, native platform development can cost $5000 each, whereas cross-platforms are estimated at $8,750. Mvp app development

Part of smart business planning is launching a prototype in the market than a full-functional, expensive product right off the bat. Share with the investors your plan for developing an MVP for your product, include the cost of developing an MVP , the factors that will influence its price, and other details.

Marketing strategy

Your marketing strategy is the one aspect of the business plan that will need periodic revisions. According to the market conditions, you need to change how you get the product to the target users. Share your marketing tactics with the investors, including the following:

Customer acquisition

Marketing is possibly the costly phase of developing a new product. You need to target multiple platforms to spread the word and bring the app to your users. Plus, the continuous reevaluation of the strategy raises the total cost of marketing.

Customer Acquisition is the marketing phase where you convey the details of how you plan on gaining new users. Share with the investors the channels you will target, their benefits, and the cost per acquisition of one customer from each channel.

It’s imperative to be quantitative and detailed with the cost, so your investors know the plan’s risks.

Reward program

Offering referral rewards is one way to grow your audience base. After gaining some traction with the app, you can leverage network effects with a referral program built into the app. Key metrics

Instead of targeting multiple benchmark parameters, a startup focuses on one or two metrics to better analyze your growth. It will help you understand your progress and understand where you need to improve.

Finances before and after launch

Investors are funding your app idea, so they need to know the exact numbers involved. After reading through the entire business plan, share:

The total funding you need.

The cost to develop the app and run the business.

How will you monetize your product?

Cost of running the company

Mention a reasonable estimate of the total cost it will take to get your startup up and running. Include the emergency costs, the utility, recurring charges, one-time payments, and others. Be clear and concise with the payment frequency and price stability.

Monetization

To get a return on investment, you need to devise a revenue model for your app. Here are some ways you can monetize your product:

In-app Advertisements – If you intend to increase your target audience, then in-app adverts are the best option. The app remains free, while advertisers pay to reach their consumers.

Paid App – Get users to pay to download the app. Although many Android users are reluctant to download paid apps, iOS and MacOS users willingly pay for downloads.

In-App Purchases – It is the most viable option for a consumer-oriented app. You would have to use prompts and referral discounts to encourage users to make the purchase.

Subscription – Like Netflix, you can charge a monthly or yearly amount. Subscription models bill users until they unsubscribe from their account.

Development costs

The cost for app design and development varies depending on the app, its complexity, and the integrated features. Additionally, the charges also depend on whether you hire a freelance developer to build the app or a development company.

Each feature in the app has a different price, and advanced features cost even more. For example, simple email sign-up costs $2000 , and social media sign-up can cost $3000 . Integrating straightforward profiles cost $4000 , while complex profile pages cost $7000 . If the app has in-app navigation, then a simple map integration costs $3500 , while geofencing can cost $8000 . Find costs as per features, platforms, and more to get an idea of app development costs.

The business plan mentions the cost projections on your revenue to let the investors know how the company will progress over time.

Funding required

Lastly, answer the following questions for your investors:

The amount of money you would need?

When will you start earning profits?

The equity you will give away?

How long till you need another investment?

Write your business plan for a mobile app startup

No business is without its bumps and hurdles, but the start of every successful startup is with a well-thought-out business plan. Get investors interested in your idea, bring your team on board, and consult with our experts to design your app.

You might want to trust an expert app development agency to take care of your business plan and other technicalities. Let’s hear your app idea! We can help you turn your dream into a reality with a business plan for a mobile app. A business plan for a mobile app is essential for success, and it can help you build a successful and profitable app.

Spanning a diverse range of content, our Editor keeps a close eye on all published materials while publishing and making edits to existing posts.

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How to Write Business plan for your Mobile app?

The search giant Statista quotes that in 2026, users are likely to download 143 billion mobile apps from the Google Play Store, and for the Apple Store, it is 38 billion. These figures show a remarkable growth between 15-30% from the previous years. Even further, during the third quarter of 2022 , more than 3.55 million mobile apps were available on the Google Play Store.

Hence, it is not exaggerated to say businesses should have a foolproof mobile app business plan to find a permanent place on users’ mobile phones because the chances of user engagement and conversion are manifold.

At present, businesses are on the verge of getting completely automated, and any business that does not offer ease to its end users or customers to avail services or buy products are likely to get vanished. If you are an entrepreneur and aim to lead the market with your brand, it is indeed necessary to write specifications for mobile app development before you even think of outsourcing a project to top mobile app development companies.

Table of Contents

Importance of Mobile Apps for Businesses

There are many significant reasons why mobile apps are mandatory for any business; today, mobile apps are not just a trend, but a necessity for businesses in the modern world. They help businesses increase their sales, customer loyalty, brand awareness, accessibility, analytics, revenue generation, and customer service. Mobile apps can also serve as a powerful marketing tool that can reach and engage the target audience with personalized and timely messages.

Here are some reasons why mobile apps are mandatory for businesses today:

Improves accessibility

Mobile apps can improve accessibility by making the business available 24/7 to customers. They can also offer offline access, location-based services, push notifications, and other features that can improve the user experience and convenience.

Increases sales

Mobile apps can boost conversions by offering a fast and convenient way for customers to browse, compare, and purchase products or services. They also offer discounts, coupons, rewards, and other incentives to encourage repeat purchases and referrals.

Marketing tool

Customized mobile apps serve as a marketing tool that can promote the business’s products, services, offers, and events to the target audience. Mobile apps can also leverage social media platforms, email marketing, SMS marketing, and other such digital marketing services to increase the reach and impact of marketing campaigns.

Customer loyalty

Mobile apps foster customer loyalty by providing a direct and constant communication channel with customers. With it you can also offer features such as feedback forms, chatbots, social media integration, and loyalty programs that can help you to enhance customer satisfaction and retention.

Brand awareness

A good mobile application increases brand awareness by creating a unique and memorable identity for the business. You can turn an app idea into reality and portray your business’s values, vision, mission, and personality through design, content, and functionality.

Better analytics

Enterprises, especially startups, primarily focus on analytics as they largely depend on this data to build other business strategies. Thoughtfully built mobile apps can provide better analytics by collecting and analyzing data on user behavior, preferences, feedback, and satisfaction. You can also get better insights into market trends, customer segments, and competitors that can help you improve your business strategies and performance to increase profit and get the best Return on Investment.

Better customer service

Mobile apps can offer better customer service by providing instant and personalized support to customers. It can also offer features such as FAQs, tutorials, videos, chatbots, and call options that can resolve customer queries and issues to increase User Experience (UX).

Having a mobile app is important for businesses today as it can provide many benefits that help them to grow and succeed in the competitive market. With mobile applications, business owners can attract, retain, and delight their customers with a seamless and engaging user experience.

How To Write a Business Plan For a Mobile App?

Executive summary

A concise and clear part about how your product works is an executive summary. Whether you are a CEO of an upcoming big startup or a small business owner, expressing your product should be translucent. The three things to keep in mind while writing an executive summary for your mobile application are:

Unique value proposition

A Unique Value Proposition or a Unique Selling Proposition (USP) is a section that expresses your mobile app business idea’s uniqueness and distinct selling points about the product or services that you offer.

This is the list of things you will need to incorporate:

• Identify your ideal customer
• List your product’s benefits, value, and how it stands out
• Focus on clarity and specificity
• Test and optimize your UVP and USP

Objectives are the specific steps you and your business organization need to take in order to reach long-term goals. It includes what the business aims to achieve and the overall ideals of the organization. These objectives are based on your analysis for mobile applications.

It mainly focuses on your end goals and the timeline to achieve your goals. These objectives improve customer services, enhance worker productivity, increase profits, and attract investors to your business plan for mobile app development.

This part is a brief outline of the business organization’s goals and purpose for the app development business plan. A good outline includes

• Brief description of products and summary
• Summary of objectives
• Solid description of market
• High-level justification for viability
• Snapshot of growth potential
• Overview of funding requirements

Company synopsis

It is a shortened version that gives the basics of your business plan for a mobile app idea. It attracts financial lenders and inventors to bring in new capital. The pro tip is to include only-need-to-know information by keeping it brief and punchy.

Here are the foundational elements you will need to include in your business description:

The overview is like an introduction to your business. It comprehends the official company name, business entity, year of establishment, headquarters, and other locations if any.

Type of business

Whether it is a limited liability company(LLC), sole proprietorship, corporation, or partnership, this part includes the business structure of your enterprise. Entrepreneurs should carefully consider mentioning the type of business in the company overview.

The facts and concrete details about your business are essential for the readers of your company synopsis, but it is also important to share a glimpse of your mission and future goals. This section provides clarity behind what, who, and why of your company. The best mission statement typically is a succinct single but catchy line.

Statement of Concept

This is the part where you convert your words into reality. Readers by now know who you are and what you do but this acts as a guide and a persuasive tool in decision making. It simply identifies the target audience, defines the problem, and implies how your mobile app will address the problem.

Tell your story. A part of what makes your business plan for mobile application development unique from other businesses and organizations is your story and your experiences. Try to add interesting details and characteristic patterns of where your company comes from, how it came into existence and how you think, feel, and work.

You can list your achievements and milestones through a diagram or a chart so that readers can track your mobile app’s entire journey feasibly. If it’s not a startup, this is the space where you can also talk about the evolution of your mobile app business plan, how it was when it was first launched, how it has grown and changed over the years.

Share the names, photos, and key roles of the ownership and management team of your company. Whether they are remote workers, full-time, part-time employees, app development team, or advisory board members, stakeholders, mention details of their work history, educational background, and skills.

The importance of this section is often understated but giving the details about all the people involved within the company is vital. The readers will be intrigued about your app development team and investors will want to know more about them. Adding a section of your advisory panel and board members who are extremely experienced can be a center of attraction.

Industry Analysis

This section involves a lot of research-based information about your business, rivals, sales, and the overall market. As an entrepreneur, it is vital to collect every grain of information regarding your mobile app business idea from market history to current trends. There are a lot of business factors to consider before launching a mobile app.

The overall information about the market can hugely impact business statistics. This part includes two main segments market analysis and market forecast:

Market analysis

One of the main factors in realizing your mobile application development idea for your business should be data about the state of the market. Collect current information, make short-term forecasts, and have a marketing plan. Market analysis hugely impacts the viability of your mobile app business plan.

Market forecasts

This is an integral part of writing a business plan to realize your mobile app development. Usually, the data on the growth in the number of companies in the mobile app development industry and data on the money spent is incorporated in market forecasts.

SWOT analysis

SWOT analysis is method of strategic planning that allows you to give a well-structured description of where you stand in the market. It can be used to study new projects, enterprises, regions or even entire countries linked with your mobile app. SWOT analysis is a decisive factor in understanding businesses and plays a huge role in customer satisfaction. Here are the details on what exactly SWOT analysis stands for;

The positive tangible and intangible attributes within the business organizations’ control are mentioned in this part.

All businesses have their individual weaknesses and it is quite normal. The knowledge of potential problems acts as a strong motivator to address solutions to its significant weaknesses.

• Opportunities

The externally attractive factors that represent the reason for an organization to exist and develop are opportunities. List out the opportunities that exist in an environment propelling the organization.

The external factors beyond your organization’s control and can act as an operational risk to your mission should be considered beforehand. Having contingency and backup plans can be a big help to address the threats that may or may not occur.

Marketing Strategy

This section is the bridge that strategically allows your mobile app business plan to fall into the hands of your customers. It helps you outline exactly where your business plan for developing an app fits into the market and how will you price, promote, and sell your mobile app.

The correct marketing strategy gets you more sales and acts as an important source of information for potential investors interested in analyzing your mobile app business plan.

Target audience

You need to pick your target audience and understand them thoroughly before developing a mobile app. For any experienced mobile app developer, knowing the target audience is a critical point. It gives them a chance to figure out the structural behavior of your mobile app.

Eventually, knowing your audience and targeting just them helps save a lot of money and time for app marketing. Market segmentation strategies also play a huge role in targeting app customers.

Landing page

A landing page is an excellent way to reach out to your target audience. For this, you will need to develop an engaging mockup and provide your collaborators with data on how many customers will discover your product from this landing page.

A mobile app landing page is specifically made for promoting your mobile app concept by describing features and value propositions. A landing page entices users to click on the link, download and install your app.

App rating and review

Mobile app rating is just one of the approaches to position your app for success, but it’s a critical one. Hence, including it in your mobile app business plan is necessary. Nowadays, user often rely on app ratings and reviews to decide whether they should download the mobile app or not. Google is coming up with a new rating formula that rates apps in the Play Store based on their current performance.

Research shows that almost 79% of people will read reviews and ratings before installing an app. So, it is also an important user acquisition factor. Furthermore, you can leverage app reviews to accelerate app growth.

Competitor analysis

Competitor analysis is an indispensable element of any business plan. All businesses religiously perform this step, regardless of the organization type, size, or industry.

Define your competitors, study their weaknesses, brainstorm them into your strengths, learn from them and be aware of their history and capabilities. Make sure, mobile app that you build offers an ample amount of functionalities and is able to cater to customers better than your rivals.

As Gillian Morris states, if you invest in growth before you have customer retention, you are not acquiring mobile app users. You are renting them. You need to focus on activation first and not acquisition.

Your success will be measured by conversion rates or the number of installations and not financial rates, especially in the beginning stages. Mobile app growth can be fueled by referral programs and collaboration with business organizations.

Customer acquisition strategy

The most effective way to promote a product, especially a mobile app concept is through social media. It is simply a marketing phase where you can convey the details and strategies of how you plan to attract new users.

By targeting multiple platforms and spreading the word, you will be bringing your mobile app closer to the intended users. Some of the many marketing channels you can aim to achieve a perfect business plan for monetizing your mobile app after development are:

• Search engine marketing
• Social media ads
• Mobile app walls ads
• Email marketing
• Press releases
• Content marketing
• App store optimization
• Push and in-app notifications
• Incentivized user downloads
• Organic installs
• Public relations
• Event marketing
• Retargeting campaigns
• Partnerships
• Mobile site redirection

Operational strategy

Operational strategy is a total pattern of decisions that shape long-term capabilities of a mobile app and its contributions to the overall strategy. This is the part that drives the business’ operations. It is a strategy for customer relations that also allocates funding to the business. By planning this, a business can examine and implement effective systems for using resources, personnel, and work processes.

Here are the two steps you will need to encounter:

Users process

Since the users first hear about the mobile app and start using it, the user process is a detailed outline of how users are using the mobile app. It involves information about users’ behavior from start to end.

Personnel plan

The personnel plan incorporates all the information about the employees and people working on the project. The process of hiring the employees, their salaries, and expenses are included in this section. The hierarchy of the organization, norms, and stages are outlined in this section.

Financial Plan for Mobile Application

The final step in planning a successful mobile app development for your business is you need to predict the expected revenues and finances of your mobile app. Before moving forward, you must clearly understand the type of finances you are going to need.

Required funding

This is the part where you reveal all information related to funding and finances for your mobile app business plan.

Here are the questions you will need to address:

• How much finance or funds do you require?
• How are you going to make money?
• How much percentage of equity are you proposing to give in return?
• How long will the money be sufficient before you need to propose another funding round?
• How is it going to be, preferred stock or a convertible note?

The two things investors will be most interested in will be the costs and the variables. The cost to develop a mobile app varies depending on app features, app developers’ rates, and the complexity of the application. For a precise estimate, you may request the top mobile app development company for a quote. Some costs are fixed while some are not, here are a few costs you will need to take into consideration:

• One-time costs
• Periodic costs
• Fixed costs
• Variable costs

Revenue models

Revenue models are strategies and resources for managing and promoting a business’ revenue stream. It took 8 years for Facebook and over 3 years for Snapchat to introduce monetization models. But if you do it right, you can achieve amazing results. One of the best examples is Amazon Prime, with analysts pegged Prime’s yearly user retention rate at over 90%.

While planning for mobile app monetization, it is important to monitor the marketing metrics and benchmark them against the industry. This will help you spot weaknesses and align your marketing efforts more efficiently with MVP development .

Revenue models can turn out to be successful with continuous testing and iteration Among a lot of revenue models to earn money via mobile app, we have penned down the most popular and efficient ones here:

• In-App Purchase
• In-App Advertising
• Subscription-Based Model
• Freemium Model
• Premium Subscriptions
• Sponsorship and Partnership
• Affiliate Marketing
• Referral Marketing
• Data Monetization
• Pay Per Download

The average time spent by mobile users on their smartphones is 170 minutes per day. Out of that, apps account for 89% of mobile media time versus around 13% on the web. This is just the data, reality is right in front of us, right in front of you on your screen at the very moment. So, if you have a mobile app business idea , don’t hesitate to make a wonderful plan and create a groundbreaking mobile app because it will grow significantly. Last but not least, plan for what is difficult while it is easy, and do what is great while it is small.

Frequently Asked Questions about Mobile App Business Plan

What is a business plan for a mobile app.

The business plan for a mobile app is detailed documentation that acts as a guide for all the business stakeholders involved in the development project. it enables them to know how to build and launch the app profitably.

How long does it take to write a business plan for an app?

Business plan creation for the app involves identifying USP, target user and competition research and analysis, and the right marketing channels search, which takes around 1-3 months based on the app’s complexity.

Is it possible to create an application without a business plan?

Yes, it’s possible to create an app without a business plan, but an app released in an unplanned way ultimately fails at a later stage even if it’s able to gain enough traction. Having a business plan helps you move in the right direction.

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A professionally engaged blogger, an entertainer, dancer, tech critic, movie buff and a quick learner with an impressive personality! I work as a Senior Process Specialist at Topdevelopers.co as I can readily solve business problems by analyzing the overall process. I’m also good at building a better rapport with people!

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How To Write A Mobile App Business Plan For A Startup?

Idea, planning, and execution. These three things are essential for any project to succeed. 

Yet, many business owners would forego the planning stage, believing that they should get started right away and create something after that. Trust us when we say that, for the most part, such kind of thinking won’t help you succeed. “By failing to prepare, you are preparing to fail”.

Writing a mobile app business plan can help you understand everything you now have, how the pieces of the project should fit together to form a roadmap, and what extra has to be done to get the best outcome.

As a leading software development company  we understand how to create a mobile app business plan after years of working closely with our clients and partners. Here you can find a comprehensive guide on developing a company strategy that will effect overall success.

Mobile App Business Plan

Why a mobile app business plan is crucial for your company

Several studies support the importance of having a well-thought-out business plan for organizations at various phases of their business journeys. And a plan plays an even more important role for startup.

According to one survey of 3,000 business owners from various professions, those who had business plans were nearly twice as likely to succeed as those who did not. Furthermore, such strategic-planning businesses were more successful in acquiring investment or obtaining loans.

Attract business interest and investments

Most of the time, you will need to get funding for your new company.

You must choose between startup co-founders or investors depending on the sort of company strategy you wish to employ. You may need to attract both in certain cases. An application business plan is the only method to complete this work swiftly and move on to more crucial milestones in your company’s growth.

Lower risks

According to recent studies, establishing a business plan can help you get closer to your goals and desires. Entrepreneurs who have detailed business plans are more likely to grow their firm and improve their income than those who do not.

Planning is an easy approach for securing loans and investments.

Stay on track

It’s difficult not to overlook the vital things in a world full with distractions. As a business entrepreneur, you will confront new problems and challenges every day. However, a series of points on your blueprint will serve as a fast reminder of why you started it and where it should lead you.

Prepare thoroughly

Writing a plan can help you learn more about the industry you want to enter. This will help you clarify your goals, identify priorities, and create more accurate forecasts. It’s your chance to expose possible risks and establish your own voice in the business.

Execute effective management

Being a good manager takes skill. A mobile app business plan is your instrument for building a masterpiece. It gives a view of key tasks, allowing you to assign each one to the appropriate individual.

Is a business plan for a mobile app different from one for other software?

Mobile applications, websites, and other software solutions all have individual advantages and disadvantages. Their marketing strategies, monetization plans, and feature sets differ greatly from one another. Because of this, the business strategy for various solutions will also vary.

A mobile app company’s business strategy may resemble the format of a traditional software development business plan. Any document that represents the company and its products shall, nevertheless, have a distinctive content. It makes sense since every project is different, has specific goals, and an exclusive target audience.

Components of a mobile app business plan

Now that you are aware of the need of a business plan for any enterprise, let’s learn more about what it entails. A business strategy often consists of:

• A list of bullet points outlining your goals.
• A few facts that provide accurate data about the sector you intend to enter.
• Tables with clearly defined procedures and tactics you want to use to accomplish your objectives.

Is the product viable? Does it have the capacity to provide users fresh experiences while offering its creators with quantifiable advantages? These are the two main concerns your app business plan has to address. The inclusion of the following components will guarantee a successful outcome.

Section 1. Executive summary

Let’s start with the executive summary.

It is the first and most important section of your mobile app business plan since it will be the first thing an investor reads. Without going into specifics about how your product functions, the executive summary should be clear and concise. You must discuss the market scenario, your target market, and the specific challenge that your application may resolve in this section.

To set your business apart from the competition, make your proposal unique. In other words, create a unique value proposition (UVP) . Use your imagination to visualize your executive summary as a teaser for a movie, with your investor as the audience. How can you make a teaser that would entice your investors to see the entire film?

Define your objectives . The goals outlined in this section have to be based on your business analysis. Investors will assess your goals to see whether they meet their needs. Additionally, you must decide what your exit plan’s ultimate objective is. Create a list of your company’s funding requirements as well as how the money will be used to accelerate business expansion. Making sure there is a high degree of transparency at every level – this is one of the key components of your startup business plan for your mobile app.

Make your document compelling . To do this, ensure that the concept and objectives of your product are clear and consistent across the entire plan. Give the reader (your investors) accurate information and attainable goals for your project. Of course, don’t forget to check that the names of your team members and the person who wrote the business plan and executive summary are used consistently throughout the document.

Section 2. Business description

This is where you may give a brief overview of your business, starting with some general facts before moving on to your proposed mobile app. Your company’s values, goal, product vision, and key success factors should all be covered.

This is the second most critical part following the executive summary. You must also entice the investors with this section. For example, Y Combinator, a technology startup accelerator, believes raising funds to be by far the simplest part whereas working on ideas is the most important aspect of any company’s success. Before presenting newly-formed ideas to investors, Y-Combinator-like businesses frequently require that a complete business plan be prepared.

Company overview

This part should provide investors with comprehensive information about your startup, including its legal name, headquarters location, and organizational structure (LLC, corporation, etc.). Be sure to provide further details about your team, such as the number of employees, their names, positions, etc.

The mission statement of your organization should specify its goals as well as the guiding principles that drive it. After defining your objective, highlight the key issues and the solutions your business may provide.

Company history

Before presenting any business proposal, outline your company’s background, how your team got together, and how you came up with your idea. Furthermore, you may discuss the major stages of your company’s development as well as the experience that preceding the product introduction.

Team introduction

The app startup business plan should include information about your team so that you can get to know the reader better. You may convert a simple description into a virtual introduction meeting by including a few lines about the company’s expertise.

Inform the investors about the management team. Give details about the engineering crew members. Names, roles, experience, and even interests should be mentioned. When writing your app business plan, make the audience feel as though they know the folks you’re talking about.

Another useful approach is to include information about your advisory team. These professionals assist you in making decisions, and their names might make a difference in the local market.

Section 3. Market analysis

The essential aspect in the implementation of your app idea should be market information. This is a vital part of every company plan. You must be aware of the situation at the moment in your industry, as well as the elements that influence it, have up-to-date information, and be able to develop a short-term forecasts.

To perform market research, follow these steps:

• Examining the current economic landscape
• Creating a list of market research criteria
• Identifying your total available market (TAM), service available market (SAM), and service obtainable market (SOM)
• Acknowledging your direct competitors
• Analyzing your target audience and determining the cost per acquisition (CPA)

Remember that no market research in the mobile app sector can be undertaken without first evaluating Google Play and Apple App Store rankings for top paid, free, and top-grossing applications, as well as user reviews.

Market predictions

Forecasting is an important part of creating a business strategy for the reality of an app development company .

Forecasts from widely recognized research organizations such as Nielsen and Forrester can be valuable when building any business plan, whether it is a mobile app business plan for app development, a website, or a typical software startup business plan. To generate accurate market predictions, you can:

• Provide statistics about the growth of businesses that offer solutions similar to your mobile app.
• Include data on the amount of money invested in similar businesses (platforms such as Crunchbase can help with this).
• Add a few forecasts about the target customer’s behavior to your company plan.

The ultimate purpose of this research is to determine whether your product has a real market, whether there are enough consumers in the market, and, therefore, whether those customers are willing to shell out money for your product.

Business analysis

Here, you will access how your business will perform in the targeted market. There are several approaches to present this to your investors, but one of the easiest ways is using SWOT analysis. A SWOT analysis is a strategic planning technique that allows you to offer a structured overview of your company’s current state. The reasons? It is simple enough to visualize, and it covers the four perspectives (strengths, weaknesses, opportunities, threats) that your audience is definitely interested in.

You should not try to hide your business’s weaknesses. It is normal for a company to have some aspects they are not excellent at. By knowing your weaknesses and risks, you know the aspects that need to be improved for a better performance. 

Section 4. Marketing strategy

An app marketing strategy is a link that allows your product to reach your clients. You must persuade investors that you have such a bridge. This is a critical component of the mobile app strategy. When creating a business strategy, you must specify which approaches you planned on using for application promotion.

Identify the marketing channels

Social media marketing is now often regarded as the most successful method of promoting a product. But will it be sufficient to advertise your app? Return to the research step and determine how many prospective people you can meet on Facebook, Instagram, or Twitter. Provide readers with information on which channels are likely to be the most profitable.

A landing page for your app is another powerful approach to reach out to the target market. Make an appealing mockup. Include the name of the application, a description of its features, promotional videos, and so on.

Decide on key metrics

Initially, your success will be determined by the number of installs or conversion rates, not by financial revenue. Decide which metrics will be useful in evaluating your project.

Estimate marketing budget

Based on the market analysis described in the preceding part of the business plan, you may estimate the cost of marketing services. Understanding the marketing budget is critical for all parties, including you, the app owner, investors, and other stakeholders.

Think about product growth

Growing the user base strategy varies depending on the type of app startup, as does the business plan for entering different sectors. If you’re still developing a business plan, consider how you’ll build your user base ahead of time. This will greatly help you with future product development.

Select product launch type

In your company plan, be sure to include the type of product launch. There are two sorts of launches: hard and soft. The first is to provide a finished product to your whole target audience. A soft launch is when you release your app’s MVP or full version to a small group of users.

Section 5. Financing

To properly lay out this section of your business plan, you must first fully understand the type of funding you will need to proceed forward. Furthermore, the objective is to describe it as clearly as possible so that a potential investor gets it.

The financial model typically comprises a three- to five-year prediction of all key forecast indicators, such as profit and loss, cash flow, balance sheets, start tables, unit economics calculation, and expected revenues and expenses for your app. To establish the real cost and distribution of assets in the best way, your financial record must have the following components, each with a clear explanation.

Business expenses/funding required

Inform your investors of the estimated expenses. We recommend making fair estimations and allowing for additional costs because these figures may change.

• One-time expenses (for example, relocation fees, office space costs, equipment, servers, software, and licensing
• Fixed expenses are those that do not fluctuate regardless of whether you build anything or not (for example, rent, insurance, lease payments, and fixed salary).
• Variable costs: expenses that vary with production volume (for example, labor).

Monetization strategy

It is another topic that you must address in your plan. By displaying your monetization tactics, you will show your investors and other stakeholders that your project will be successful and deliver a return on investment with favorable unit economics. It will also assist you in determining whether your startup will reach its break-even point.

The most popular mobile app monetization models are:

• Advertising
• In-app purchases
• Pay per download
• Subscription
• Sponsorship/Partnership

Writing the first page of a mobile app business plan for a mobile app idea is the most daunting part of the process. In that situation, many people scramble in search of a free copy of another company’s business plan. They mistakenly think that using someone else’s business plan will help them accomplish their objectives. But it won’t, not at all!

A company strategy cannot be copied. It must be unique and express your passion and zeal for achieving your idea. A strong business plan should show how financially desirable and feasible your company is. The higher the viability, the greater the investment prospect.

What Is A Mobile App Business Plan?

A mobile app business plan is a strategy for launching and/or expanding your mobile app business. It defines your business concept, identifies your target clients, shows your marketing approach, and details your financial projections, among other things.

How To Write A Mobile App Business Plan?

An executive summary, firm description, goods & services, strategy planning, management & optimization, and a financial statement are all elements of a mobile app business plan.

What Are The Steps To Write A Business Plan For A Mobile App?

Finding a unique selling proposition, focusing on a user persona, and employing the appropriate marketing channels make up the three processes.

How Long Will It Take To Make A Business Plan For An App?

A effective business plan may be written in two to eight weeks, based on our experience.

Can An Application Be Developed Without A Business Plan?

It is indeed possible. A business strategy for apps, however, entails more than merely outlining your concept. It also includes a thorough strategy, financial planning, and market research. It could improve the prospects for business success.

Savvycom – Your Trusted Tech Partner!

With over 25 years of experience, Savvycom has used digital technology to help businesses grow in a variety of industries. We offer high-quality software development services , including technology consulting and end-to-end consulting, to help you optimize your business potential.

Savvycom is what you need. Contact us now for more consultation:

• Phone: +84 24 3202 9222
• Hotline: +84 352 287 866 (VN)
• Email: [email protected]

About Vance Duong

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Mobile Application Development Business Plan

Published Jul.28, 2013

Updated Apr.23, 2024

By: Cynthia Turner

Average rating 4.2 / 5. Vote count: 19

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Table of Content

Mobile application development business plan for starting your own company

From being just another technological gimmick to becoming something we use for pretty much anything, mobile apps have come a new way. As of now, everyone needs a mobile app. Businesses, services, retailers, all of them. We are presenting this mobile app business plan that you can use to establish your own mobile app development business.

Read through this document if you want to know how to write a business plan for an app . This mobile application business plan template will cover all there is to starting a mobile app development business from planning to the finances involved in it. The requirements for this are just like those for a online dating business plan .

Executive Summary

2.1 the business.

Rob Developers will be a cutting-edge company in the field of mobile application development and will act as an example for this mobile application startup business plan that you are about to go through. The business will be focused at providing all mobile application development services under one roof. It will be owned by Rob Hancock who will also be the chief executive.

2.2 Management of Mobile Application Development Business

If you want to know how to write a business plan for a new mobile application, the next step is learning the management structure of the business. As said earlier, the business will be headed by Rob Hancock. He will be hiring 3 managers for business process improvement . These managers will be responsible for external relations, operations, and sales of the business.

Just like a video games business plan , the managers will be answerable to Rob and all the important matters would be brought to his notice as and when they arise. Rob will exercise supreme power over the business and his decision, after consulting the concerned manager, will be final.

2.3 Customers of Mobile Application Development Business

As mobile application development is a diverse business, the customers will also be from a range of different categories. The main customers of this business will be:

• Businesses who want online store apps.
• Corporations that need apps for employees.
• Educational institutions needing campus management system apps.
• People who want to get mobile apps developed for a business.
• Companies who want apps developed for their products.

2.4 Business Target

Subjectively, the target of Rob Developers is to become the leading app developer in the US. The following objective targets are set at the start of the business:

• Having at least 10 permanent long-term clients by the end of the first year.
• Starting to generate at least $27,000 in profits per month by the end of the three years.
• Bringing innovation into the business wherever possible.

Company Summary

3.1 company owner.

This mobile app development business will be headed by Rob Hancock. Rob is a software engineer and has been the mobile app development team leader at a reputable software solutions firm for 5 years. He is passionate as well as well-educated and experienced for this job.

3.2 Why the Mobile App Development Business is being started?

Looking at app business plan examples, we can tell that it is a must to have a strong reason, other than money, for starting a business. The reason Rob is starting this business is that he ahs a passion in developing mobile applications. He has been doing it for a very long time.

In addition to that, Rob has made quite a lot of friends in the field. He is confident that he can bring together the perfect combination of developers and clients onboard that will make it very profitable to run the business.

Let’s now see some other aspects of this business plan for app startup.

3.3 How the Mobile Application Development Business will be started?

Step1: Planning Phase

Planning is one of the most important aspects of any sample business plan for mobile app is the planning phase. This is the phase where the business owner needs to conduct research on the demand and supply situation in the field to see if the venture is even worth investing the money.

Different surveying tools will be used to make sure that the field has enough space for a new entrant to enter and actually make profit.

Step2: Brand Development

As the mobile app development field is a pretty crowded one, the business needs to make a brand that people can trust. Only then can they be successful in getting enough customers.

Step3: Establish An Office

People cannot trust a company which does not have an office. Rob Developers will establish an office in Downtown Manhattan where the business will operate from.

Step4: Establish a Web Presence

It goes without saying that any technology-related business has to have a web presence. Rob Developers will establish a website that will serve as an interface for connecting with the customers as well as for marketing.

Step5: Promote and Market

An elaborate marketing plan will be made to make the business and the brand known to the target audience.

Now that we know these things about establishing a mobile app development business, the next thing this mobile application business plan template needs to cover is the services this company will be providing to the customers. In a broader sense, we will be providing all the services of software development.

However, just like a business plan online store the services of this app development business plan can be divided into the following four categories.

• Mobile Application Development

This, as the name suggests will be the chief service provided by the company. We will cater the needs of any and all people who need to have a mobile app made for any purpose. The company’s bulk resources, and manpower will be dedicated to this service.

• Web Development

This service will be provided to augment the apps as well as in the form of a dedicated service. We will provide all sorts of web development services for mobile and desktop use scenarios.

• Cybersecurity

Cybersecurity is one of the chief concerns for the people using mobile apps. We will provide this service so that the people coming to us can get all the services in one place.

• Cloud-Native Development

The software world is shifting to the cloud faster than we think. It is imperative to include cloud-native development services in our menu to make sure we get substantial business and long-term clients.

Marketing Analysis of Mobile Application Development Business

Having an in-depth knowledge of the industry is a must for making a business model mobile app. In this section, we will be looking at the marketing analysis of this start up application mobile. The industry we are looking at is a $170 billion industry. This means that if you start a successful business in this field, we can make some serious money.

Before you know more about how to make a business plan for an app, there’s another thing that you need to know. The mobile app development industry is going to grow to the size of $470 billion by the end of 2026 which is a projected growth the like of which no industry has seen in the recent history. This makes this application for business proposal a lucrative one for any investor.

5.1 Market Trends

Now, we have to have a look at the market trends of the app business plan. Just like starting a virtual assistant business , this field has seen its fair share of growth in the past years. The main thing to be noted here is that this industry has not been easy to enter by newcomers, not even by a long shot.

Just like any business plan for a video game company , we need to make sure that we bring something new to the table. Only the companies focusing on innovation and novelty have been successful in this field.

5.2 Marketing Segmentation

The expected market segments that the mobile application development business will be serving will include:

5.2.1 Corporate Clients

These will be the long-term clients that will give us a steady stream of income. These will not be in a large number but will be the high-paying ones.

5.2.2 Educational Institutions

This will also be a source of sustained income. These clients will hire our services to get campus management systems made.

5.2.3 Individual Clients

These will be the small business clients looking to have mobile apps made for their business. These will not be very high paying but will be in a large number.

5.2.4 Small Businesses

Small business who want to have a mobile app for their products will also be one of the market segments for our business.

5.3 Business Target

• To be the leading mobile app development service provider in the USA.
• To start making sustained profit of more than $27,000 a month after three years.
• To have long-term corporate clients who can give us business on a permanent basis.
• To be the first to accept new things and innovation in the field of mobile app development.

5.4 Product Pricing

We will price our products and services around the average of the competition, a bit higher. This is because we will be hiring the best professionals of the field and that comes at a price.

Marketing Strategy

Moving on, the next thing needed to complete this mobile app business is the mobile app marketing strategy template because the business plan cannot be complete if we do not have a mobile app marketing plan pdf. The marketing strategy of this business will be centered around two things, innovation, and experience.

We will be an innovative company and will be hiring some of the most experienced people of the industry from all over the country. Those are the most important things for any  “https://www.ogscapital.com/article/writing-a-business-plan-for-an-internet-based-company/”business plan for an internet startup  and will give us the competitive edge we need to be successful.

6.1 Competitive Analysis

• After running an extensive competitive analysis, we have determined that we will be the leading providers of cloud native development services in the area.
• The second competitive edge we have is the CEO of Rob Development, Mr. Rob Hancock. He is an experienced and educated man who will be a great asset for the company.
• The third competitive edge Rob development is going to have will be the innovation. We planned to be the first company in the US to adopt any new tech that comes to the market.

6.2 Sales Strategy

• We will use print, electronic, and social media to advertise the business to drive sales.
• We will use all possible ways to get projects from notable clients that can earn us top dollar.
• We will price our products and services according to the competition in the field.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

The mobile app development business plan also needs to discuss the staff that will be needed to start and run the business. If you need to know how to create a business plan for an app, here is a rough outline of the staff the company will need.

7.1 Company Staff

• Rob Hancock will be the CEO.
• 3 Managers for operations, sales, and external relations.
• 5 App developers.
• 3 Web developers.
• 2 Cloud-native developers.
• 2 Cybersecurity experts.
• 1 Office boy.

7.2 Average Salary of Employees

Financial Plan

The next thing we need is the financial plan for mobile application. Here is the rough outline of the finances that will be needed to start the business.

• The cost of setting up the office.
• Salary of the staff for the first six months.
• The money needed for promotion of the business.
• The money needed for hiring the staff and conducting the interviews.
• The money needed for setting up the website of the business.

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Mobile Application Development Business Plan Sample in pdf

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Your Ultimate Guide to Mobile App Development in 2024

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“Mobile is the future of everything.” - Forbes

Forbes is right on the money. Mobile is indeed the future of everything, from business and healthcare app development to gaming and all-things good in between. And industry by industry insights and overall usage numbers agree.

Mobile internet access has overtaken desktop internet usage big time. In 2018, more than 70 percent of all web traffic originated from mobile devices, up from 57 percent in 2017. Quartz estimated a jump of 80 percent in 2021.

Not just that, American adults are now spending an average of 3+ hours each day on their mobile gizmos browsing internet, and only 2.2 hours on a desktop computer.

100+ companies trust us with their mobile app development needs. Watch the video below to learn why.

Mobile app development refers to the process of writing software that works on a mobile device (smartphones, tables, wearable). But app development is not only about coding a native, HTML5 or hybrid app. It is about the strategic process of defining, designing, building and launching a successful mobile product.

In this article, based on our experience in building mobile apps for over ten years, you will learn everything we know about mobile app development.

Product development

Create an exceptional digital experience.

We take you through every step of building a great mobile product: from ideation to market validation, persona definition to creating beautiful designs, creating a robust development architecture and writing clean code, followed by how you build a marketing plan to hit the ground running the day your app is published on the App Store.

But most importantly, read this article to learn from the mistakes of many app builders, investors and entrepreneurs. Building a great app isn’t cheap. We’ve seen people waste millions, literally, on building bad products or launching poorly designed apps. Don’t be that person.

Take the time to read this article, beginning to end, to make sure you build the best possible app that will do justice to your amazing idea.

Mobile app usage prove the business case for building a mobile app

In 2019, there were more than 5.11 billion unique mobile users, accounting for over 90 percent of all global internet users.

According to the State of Mobile 2019 report by App Annie, global app downloads reached 194 billion in 2018, with consumers spending a whopping $101 billion on app stores. In fact, companies leveraging mobile capabilities enjoyed a staggering 360 % higher IPO valuation in 2018.

The worldwide mobile app economy hit $6.3 trillion in 2021, and app revenue is expected to experience an uptick of 113 percent to reach $188 billion .

These numbers are loud and clear: it’s time you join the mobile app development train. After all, most likely, your competitors are already doing it.

On the other hand, research from Gartner estimates that fewer than 0.01% of apps were considered a financial success in 2018.

With an average investment of $270,000 to design, build and launch an app, it's not a small project by anyone's standards.

But the stark reality is that most mobile apps fail. So, it is very important to be clear about the strategy, plan and execution before committing time, money and resources to building an app.

The Harsh Reality - Why Mobile Apps Fail

This might be a hard pill to swallow, but it’s true, nonetheless. Out of every 10,000 mobile apps developed, only 1 will triumph while the other 9,999 will go puff into oblivion. As an entrepreneur, this means that the odds are greatly stacked against you.

But don’t let this big number bog you down. It is only ill-planned and ill-executed apps that are set to fail from the first day. That’s why you need to learn why apps fail in the first place. After all, why not learn from failures of others so you do not repeat the same mistakes?

No matter how you look at it, mobile app development is all about arming yourself with industry knowledge and having a solid go-to-market plan & strategy. It’s a prudent way to safeguard your app from becoming part of the 99.99 percent.

With that being said, here are the four key areas that make mobile apps fail. As a forward-thinking entrepreneur, it is critical to consider these pitfall areas as a wake-up call. And, more importantly, you need to find ways to turn them into positives.

1) You must have a robust mobile app strategy

Every successful product - no matter what it does, whom it is designed for or who created it - begins with a great strategy.

The same goes for a mobile app.

Mobile App Strategy refers to the creative effort required to translate consumers’ needs into an app that can be used seamlessly to accomplish a specific task. The goal of a mobile strategy is simple: to help a user 'do something', quickly and effectively, every time a mobile app can fulfill that user's need.  

Without a well-designed, researched and implemented strategy at every level of development, your app is poised to go down the drain. This is especially true if you are trying to get your feet wet in a new or an upcoming niche/industry.

That’s why it comes as no big surprise that a poor move at the strategy level is one of the key areas where most apps fail. Of course, there are more specific reasons why mobile apps fail at this planning phase:

     a. Bad or lack of market research

How much do you know about your target market and the end user of your mobile app?

If your app does not address a market need or problem, then it will not get downloaded and, if it does end up on a user’s phone, it might not be used.

According to a report by SAP , close to 80 percent of mobile apps end up being abandoned just after their first use. Why? You guessed it right: they aren’t a good fit for the user, and lack a stellar mobile app strategy.

Considering the big bets everyone is placing on mobile, poor market research can quickly turn into a nightmare and lead to disappointment.

That’s why you need to kick off your app development journey with a thorough user/market research.

In other words, what solution will your app provide that your specific target audience needs?

Market research makes it imperative that you clearly define your target audience, and investigate further about them. What’s their core problems, needs, interests, and pain-points? By learning the ins and outs of the market, as well as getting an in-depth understanding of your specific users, you will most likely create an app that is tailored to what they are actually looking for.

But your market research doesn’t have to stop there.

Due diligence on your closest rivals can also come in handy. Do a win-loss juxtapositioning, and comprehensive competitor analysis to better inform your mobile strategy.

When all is said and done, your market research should act as a means of connecting your app idea with your target audience. And this should be your step #1 and an overarching aspect of your mobile app development at all stages.

     b. Improper planning of app marketing activities

This one is a no-brainer, and yet it is still one of the most common reasons why mobile apps fail at the strategy level. If you don’t plan the execution stages in detail, your app will most likely flop.

For instance, how are you planning to let your target users know about your new app? Do you have plans in place for app-install campaigns?

Proper planning includes marketing and ranking factors like ASO, SEO, PR push, and so forth.

If you neglect them until the last minute, you will be caught in the motions of trying to execute an app that has low to zero buzz.

Even worse, you’ll have no avenue of getting preliminary user feedback and therefore can’t get your app truly ready for the market.

We’ve actually written the playbook on adequate app launching techniques.

Read: The 2021 Mobile App Marketing Guide with 25 Pro Tips

     c. Lack of clearly defined goals

Goal-setting is a paramount step in the strategy and planning phase of your app creation. If you don’t hammer out clearly defined objectives, your app is set up to fail right from the outset. They are important in the grand scheme of things, especially when it comes to marketing your mobile.

With clearly defined goals on hand, you will easily map out your strategy on how to get there. When working on defining your goals, you need to ask yourself the following tough and important questions:

• What issue(s) will my app hope to solve for target market?
• What will be my app’s selling point or appeal?
• What features should I incorporate into my app?
• What benefits should my app offer the user?

2) You must invest in breath-taking designs

App developers are also faced with myriads of pitfalls during the design and software development phase. These failures and design issues can stall your mobile strategy even before your app makes it to launch date. They include but not limited to:

     a. Bad design = bad business

Mobile app design refers to the process of ideating, defining, planning and building the user experience seen by a smartphone user while interacting with a mobile app. Mobile app design combines visual (colors, photography, animations) and graphical elements (topography, font, writing) into a unified user experience.

When executed correctly, a user will NEVER thing of the mobile design of an app. They would only think about how easy it is to accomplish a certain task on a specific app. Great design = happy customers.

When done poorly, users have only jarring things to say about apps with bad design. They will ditch your poorly designed app in the first crucial 8 seconds, and you’ll never see them again. That’s the harsh reality of app design.

While there are many elements that make for a pleasant user experience, at the very minimum, your app should be easy and intuitive to use. If users have a hard time finding or using some of the fundamental features/functions of your app, you have little to no chance of keeping them.

The design is what the user sees when interacting with your app. But overall poor app usability can result from a number of other things like tediously long and complex sign-up process; lagging, slow or buggy features that affect the overall performance of the app; inaccessible features, and painfully long load times. When one or more of these issues come together, your mobile app will fail.

You need to take care of user experience issues during the design and software development stage. Another trick is to have the app tested for usability right from its infancy so that you can go back to the drawing board as many times as you can, make necessary refinements, and by the launch date, your app will optimally user-friendly.

     b. Bad technology or improperly implemented technology will lead to epic failures

Not all mobile app development agencies are created equal. If your team isn’t up to date with the latest development standards, your app might not see the light of the day, or worse, it may be launched and never get any active users.

The same goes for developers who use substandard coding methods. The bottom line is that bad technology  has no room in app creation. That’s why you need to work with a team that stays on top of the latest app development best practices.

     c. Lack of proper QA will ruin your app

Conducting several QA tests throughout the creation of your app will help you deliver a product that’s bug-free and user-friendly. Unfortunately, it’s hard to tell right from day 1 how much time you will require to test your app for quality, and what the QA test itself will entail.

Smart mobile developers usually take plenty of time to thoroughly QA test the app, which might end up costing more and consuming more time. However, not QA-testing your mobile app comes with dire consequences. And skipping the testing altogether is often the reason why some apps go to rack and ruin.

3) How to execute correctly on building a great mobile app

So you have come up with a great mobile app strategy and plan. It’s now time to execute the plan. Before we show you how to do it successfully,  there are still some potential app-killing problems and failures lurking around the corner. These include:

     a. Too much competition or many similar products

There are over 2.2 million app s in the App Store alone, with another 2.6 million  populating Google Play. There are thousands more entering the fray on a daily basis, not to mention that some apps are not listed on these two app marketplaces.

No matter how you look at it, you have some serious competition up ahead. If you don’t have an original idea or offer something appealing to your target audience, your app won’t cut it.

And so we are clear, a mobile app can succeed even if there’s a lot of other players in the field. You just need to have a unique value proposition, even if the core functionality of your digital product is similar to others.

Here's an example:

LivingSocial was launched in 2007 and became the biggest deals website in the world, once worth 6 billion dollars and considering an IPO. In November 2008, Groupon was launched with an identical business model. Even the two competitor websites did not truly differentiate themselves that much, outside of basic visual elements like colors and topography.

Yet, what Groupon understood better than anyone else was the power of compelling content.

They double-down and invested heavily in professional copywriters, recruiting every gifted writer they could find to provide deals listings that were compelling, funny, and long.

They were the first e-commerce site to understand, even before Amazon, the power of long-form copy. Fast forward to 2016 - Groupon buys LivingSocial for pennies on the dollar. Today, Groupon leads the market despite competing with other 600 daily deals sites .

Moral of the story. You can absolutely disrupt a crowded market. But you need to do one thing better than everyone else. And that comes from thoroughly studying your competitors.

     b. Team issues & conflicting priorities

There’s a good chance that you are building your app with a partner or with the help of a team. Either, you should expect some sort of conflicting priorities from some key members. If your team of developers breaks down, the road ahead will be a tough one and your will app will likely flop.

When you move forward with building a mobile app, you need to make sure you do it with people you can trust. Because there will be conflicts. And you need to be able to work well with those you choose to build an app with.

At Digital Authority Partners, the most successful app we’ve ever worked was led by two brothers with incredibly complementary personalities. There were many issues along the way, by they sorted them all out and the app is now worth a bit over $50 million (and we continue to work with them!).

This isn’t to say you should only build an app with members of your family. It simply means you need to build it with people you can trust and who will be there when times are tough or when you’re dealing with a lot of uncertainty.

     c. No idea how to monetize your app

Monetization woes cause most apps to fail.

After all, if you don’t have a well-defined road to profitability, your mobile app will sooner or later fail. Good thing, there are plenty of ways to monetize your creation.

You can run paid ads, offer paid subscriptions, provide in-app purchases/features or drive users to your e-commerce store/website.

Whatever it is, make sure to have a definite road-to-profitability strategy right from the outset. This will make your execution-level progress without any hitch.

     d. Cash shortages to take the app to the next stage

Your app will cost money to plan, design, develop, launch, market … the whole shebang.

If you run out of cash at the beginning, in the middle or even near the end, you are in for a big surprise.

Even after building and launching your app, you still need some money to tide your company over until profitability. That’s why it is important to have a conservative budget that’s well planned and generously funded.

Here’s a real life example. A client of ours spend 1 million on building an app. Then they came to us to market it. But they completely missed the market. He tried riding on the hype of mobile app development, without proper market research. In his industry, the majority of people using an app, did so to research the topic at hand, NOT to buy. The client went against our advice and launched the app. It tanked.

He then scrambled to find money to build a website. Eventually he did. But then he ran out of money to market the product.

The rule of thumb any investor will tell you is this: whatever your budget is, reserve 30% of it to marketing and growing your app. I would say 90% of our clients fail to do that and then they launch a great product but fail to market it adequately. The lucky ones secure funding from investors and they course correct the ship. The unlucky ones abandon the project. Always plan for a robust marketing budget or you won’t be able to take an app to the next stage.

4) Let’s talk about mobile app marketing

You have built an incredible app that’s capable of raking in money.

That’s all good and dandy, but if you don’t market it rigorously and offer effective support, it might still fail.

Typical app marketing failures that you need to avoid include:

      a. No clear cut marketing message

You should have a crystal-clear marketing message for your app.

Your marketing message, most notably the description copy, should tell your app story, highlight its best features, and how it stands out from the crowd.

If your marketing message isn’t clear enough, users will move on to the next app, leaving you high and dry. How to keep your marketing message on the up-and-up?

• Aim the message directly at your target customers
• Keep your message clear, concise and to the point
• Focus on the solution that your app offers.
• What’s in it for the target user?

If you are interested in mobile app marketing, you may also want to check out our comprehensive guide titled: A Step by Step Guide for Driving Android App Downloads

     b. Lack of reviews and ratings

It is customary for users to dig into reviews and check out user ratings before downloading a mobile app.

It makes sense because why would you want to download an app that hasn’t been tried, tested, and rated?

This can be particularly painful if your app is competing with other apps with lots of ratings and reviews.

Having many poor reviews and bad ratings can do you more harm than good.

It is not even uncommon for some apps to fail just because they could not garner enough ratings quick enough. To avoid this, start your app-install campaigns on a high gear and don’t be afraid to ask for reviews/ratings and make sure you have features that encourage users to share the app with their friends and family, rate your app in the app store and more.

      c. Unclear branding and differentiation from competitors

Your app needs to pop up in a crowd. It needs to differentiate itself from those of your rivals. If it is just another run-of-the-mill app on the market, you will be put in the back burner.

The same is true for unclear branding.

If you don’t have a well-defined and stand-out brand, your app will be at risk of failure. As such, you need to polish your app’s brand by defining your core values and principles that differentiate you from your rivals.

Why Build An App? - Top Reasons

Now that we’ve walked you through the main reasons why mobile apps fail, you may even be inclined to ask yourself: should I even build an app?

If you just look at the high costs and low success rates you may feel discouraged. So, why even build an app? There are plenty of reasons. Here are some of the top ones:

1) Improve & increase sales through mobile app development

In the digital age and era of instant-everything, the case for developing an app for your business is strong, but knowing that it will help you increase sales makes it even more appealing.

Developing a well-designed and user-friendly mobile app allows businesses to digitize their services and make them readily available on any mobile device.

If you own a brick-and-mortar or e-commerce store, for instance; it is a no-brainer to build a mobile store app. The app will provide you with yet another direct marketing channel. It would allows allow you to run geo-location based campaigns. Check out Sephora for example. They’ve built a companion app which users can take advantage off while inside the store. The app shows them past purchase history, provides product recommendations, limited offers only available on the mobile app and a lot more.

Other companies use mobile apps to show in-store price information, product descriptions, user accounts, feedback functionality, search filters, and so much more. However, nothing beats the fact that you can make your app a great place for users to find sales, promos, discounts, and other exciting offers. They’ll all be right there at their fingertips.

When it comes to using a mobile app to improve sales, numbers don’t lie: a mobile app is a great sales tool.

The number of unique mobile users has increased from 122.9 million in 2013 to close to 200 million at the end of 2018. Even better, mobile apps enjoy a 3x and 1.5x higher conversion rates than mobile websites and desktop respectively.

Mobile app users tend to view 4.6x more products than browsers of mobile websites. Talking of sales value, the average order value of mobile apps is 140 percent higher than mobile sites and 130 percent higher than desktop websites.

That being said, not having a mobile app could be hurting your sales. Given that mobile app users spend 2x as shoppers who make their shopping on mobile or desktop websites, this provides you with yet another chance to make more sales.

And you don't want to ignore the fact that 19 percent of all online retail sales in the United States are made on a mobile device.

2) Improve customer experience

Customers are now interested in immersive experiences more than ever before, especially when they are shopping.

They want to feel valued and appreciated. More importantly, they want to know that the brand behind a service or product is worthy of their money and attention. That’s where a well-defined mobile app strategy can come into the picture.

There are a ton of reasons why mobile apps do a bang-up job when it comes to enhancing overall customer experience. Let’s look at a few ways mobile redefines how brands provide added-value to their users through amazing mobile app strategies.

A mobile app makes it possible to provide the customer with a seamless shopping experience . The purchasing process can be made effortless by using one-click payment options, SMS confirmations, push notifications, and other mobile elements that will deliver a best-in-class customer experience.

Mobile apps allow for next-level personalization . Delivering a top-notch customer experience is all about personalization. This can be achieved by engaging the user throughout the purchasing process.

Loyalty perks : loyalty benefits like cash back, discounts, freebies, special promo codes, and flash sales are what make for great customer experience. All of these can be achieved with greater outcomes on a mobile app, encouraging the customer to keep coming back. Running a loyalty program easy and hassle-free on an app.

Leverage p ush notifications to the fullest extent allowed : this is the little-known secret to boosting user and customer experience using mobile apps.

However, you don’t want to bombard the user with constant pop-ups and push notifications. They can be annoying and might coerce the user to uninstall your app. Relevant push notifications can revolutionize how engaged users are with your brand. And don’t forget - push notifications are clicked on (technically tapped on) more than ANY other channel. The click through rate for push notifications is 7.9% according to a recent study based on notifications sent to 900 million users.

3) Become competitive in the market

65% of all small businesses (including your competitors) have already built a mobile app.

Why would you want to be left behind in an increasingly competitive business environment?

Mobile app development gives you a chance to either stay ahead of the curve (read: your slow-to-mobile competitors) or catch up with those who already have an app.

4) Create a direct marketing channel

It is always an excellent idea to have every potential strategy in your marketing toolkit - and having a mobile app is a good addition.

The odds are that you are struggling to show ROI for your email marketing, paid ads, TV ads, print, and other digital marketing channels.

Building an app helps you create a direct marketing channel. It’s, therefore, a strategy that will pay for itself sooner than later.

5) Engage customers better

Having a mobile-ready site used to be enough to keep mobile users engaged.

That’s no longer the case.

You need a mobile app to provide users with better engagement and communication avenues.

It doesn’t matter what you are products or services are, your customers must have an effective way of getting in touch with you. That’s exactly what a mobile app can offer.

Incorporate a help desk, feedback or live chat feature within your mobile app.

These features can make a huge difference in the way your business interacts, connects and communicates with the customer.

A customer-centric mobile app is a phone, text messaging app, email, and chat box, all rolled into one.

6) Boost brand awareness and recognition

If done right, an app can do wonders for your company’s brand awareness.

Remember that your app is much akin to an empty billboard sign. You can perk it up with educative content, make it stylish or engaging.

Whatever the case, you want your app to be something that users will love and cherish. But, more crucially, make sure that your mobile app is superbly designed, stunning-looking, and well branded.

A good app can also take your recognition to a whole new and exciting level.

The more your app gets used and downloaded, the more familiar your brand/products/services will become among your ideal customers. In the ad world, this what is known as “effective frequency.” As a rule of thumb, if the users can see your product or interact with your brand more than 20x, they will become easily recognizable to them.

How To Build a Successful App. A 12-step Process

So far in this article, we’ve talked about why apps fail and why you should build a mobile app. We chose this structure because I am a firm believer that this is how you should approach building an app.

First - understand why others have failed. When the knowledge on what causes failure, you are more likely to avoid it. I’ve built Digital Authority Partners from scratch with only two people around the dinner table. Along the way, I’ve made a lot of mistakes. Many of these mistakes would have been avoidable if I had known the pitfalls of running an agency. I didn’t know them - very few agency owners talk about lessons learned - so i had to make these mistakes on my own and then learn from it.

The first section of this article is nothing more than a collection of failures we have seen first-hand with many of our clients. Learn from them - and avoid them if you can.

Second - I walked you through the benefits of building an app. How an app can improve your bottom line is critical to your success. You don’t build an app just because everyone else does it. You build an app because mobile is a channel that can attract new customers, improve your relationship with your current customers  or it improves your operational efficiency.

Before you build an app - you need to answer that for yourself: which customer-centric key performance indicator will my app address? What is my desired reach in terms of current and potential customers? And will my app be better than the apps of all my competitors?

Armed with this knowledge, you can now begin the process of really immersing yourself in the twelve steps outlined below which all successful apps have in common!

Let’s get to them.

Section A: The fundamentals of an expert mobile app strategy

Step 1: Value proposition

Your app shouldn’t be an exact copy of your website or e-commerce store.

It should offer much more than information and run-of-the-mill features to the user. That’s because of a simple reality. Downloading an app is, dare I say, an intimate act. As a user, you take the time to download an app on your most personal device in hopes it can produce value to yourself in the long term. There’s nothing more personal than that!

Because getting an app download isn’t easy, you need to create a unique, simple and compelling value proposition for your new digital product.

A well-executed value proposition is what makes your app stand out in a sea of choice.

How is your app different from other similar apps?

What are the benefits that your app will bring to users?

How will the app make the lives of the user better, more enjoyable, etc?

You need to hold a brainstorming session with your partners or strategic consulting team to come up with your unique value proposition.

Not just that, you should write down exactly how your app will solve a specific problem, then move on to brainstorm about what makes your brand unique, who your target market is, and how you will position your app in the market to maximize downloads and engagement rates. Your value proposition statement should also touch on your niche and how you stack up against competitors.

While it might sound like it, your Unique Value Proposition (UVP) is not a statement, a catchphrase or a catchy slogan for your app.

The UVP must clearly and concisely describe what customers get out of using your app that they won’t get through any other channels. There are 4 core attributes of an amazing unique value proposition:

• Clear - it should be free of corporate jargon
• Benefits-focused - it should tell your app’s benefits
• Unique - clearly lay out what makes your app different from your competitors’
• Concise - a user should understand your app’s value prop in an explanation that takes no more than 10-15 seconds to present.

Still a little hazy? Here are some of the UVPs that will drive the point and truly inspire yours:

Let’s start with coffeeshop giant, Starbucks.

Their customers can use the Starbucks app to pay in the store, earn stars or even order ahead of getting to the store. This way, they can skip the line (phew! Have you seen Starbucks line in the morning?) This is an incredible value to the customer because the app helps them save at least 15  minutes of their busy mornings. Wouldn’t you install such a time-saving app? The benefit to Starbucks is two-prong : (1) it encourages more app installs, and (2) increases foot traffic to their locations.

Another wonderful example is Uber.

“Tap the app, get a ride”. The value proposition here is providing customers with extreme convenience. The name of the app -  uber - in and of itself communicates much of their value proposition. Why does it win? First, the app makes it possible for a user to get a rideshare with one tap. Second, payment for the ride is cashless and only takes one tap. And, thirdly, the driver already knows where you are heading two. That’s like killing three birds with one stone!

"On Bumble, ladies always go first"  is a real class act. Why? It proposes a fresh approach to online dating, away from the popular “swipe right” or “swipe left.” Secondly, the app empowers its target customer, the millennial lady. Most importantly, it touches on the app user’s pain point, which in this case, is an online dating world that’s dominated by men.

Step 2: Market research and SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis to determine viability

SWOT analysis is a strategic planning session designed to help any company or entrepreneur identify the strengths, weaknesses, opportunities and threats tied to a specific business idea. The goal of a SWOT analysis is to uncover “unexpected” surprises tied to a project before you invest lots of time and money in it.

Performing a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats) before creating a mobile app is a crucial step. Unfortunately, 99% of app makers never bother with this.

SWOT helps you validate the concept first - before you spend money, effort and time on it. As such it is the most important step to prevent that big ‘Only if I had known earlier’ moment later.

How does SWOT analysis help you achieve better mobile app development outcomes?

It should be noted that a SWOT analysis doesn’t actually offer a true solution to what app exactly you should build. Nonetheless, it helps you find and analyze the overarching problems affecting your mobile strategy or idea.

Strengths - By understanding the strengths of your mobile app idea, you can answer important questions about your strategy. What are the key benefits that your app will deliver to your ideal users? Will it eventually lead to a sale or an action that will improve your bottom-line? How is your app better than your competitors? What your app’s unique appeal?

Weaknesses - This encompasses limitations and hurdles that put your app at a disadvantage on the market. However, the analysis should help you identify these weak points so you can devise ways of turning them into advantages. By engaging in this step, you can anticipate failures and plan how to avoid them accordingly.

Opportunities - Take a close look and your strengths and weaknesses, and think how you can transform them into improvements and new opportunities. The good news is that opportunities in the mobile app development are a dime a dozen.

Think about: what are your competitor's weaknesses that you can exploit? What's trending in another niche that you can duplicate the success in your own niche?

Threats - When developing a successful app, you must be able to deter any threat. That’s why this phase of the SWOT analysis is all-important. To identify your potential threats, ask yourself these crucial questions: How do your rivals deter their threats? Is your app prepared to take on challenges brought about by technology changes, market shifts, and changes in consumer behavior?

You must also invest in market research before spending a large amount of time and money in building an app. Is the market ready? Who are the top competitors? What are the threats?

Great market research not only educates one about the state of the market but also sheds light on hidden opportunities that others may not have looked at. Once the market data is in, start planning a course of action

Step 3: Outlining the goals of your mobile app

Setting well-defined goals is an indispensable part of the mobile app development journey.

It is at this point that you will set your priorities and determine a clear course of action for the next several weeks or months. These goals will tell you where you are currently, where you want to be and how to get there.

What are the primary goals of your mobile app? How do you know if the goals you are setting are the right ones?

Here are a few tips that might come in handy when outlining your mobile app development goals.

First, list the three or four most important ways your ideal users will interact with your app. Make sure these goals are SMART (specific, measurable, achievable, realistic, and time-bound) and in line with your overall  business objectives.

Second, spend half a day brainstorming the actions that users will perform within the app at launch. Through this exercise, your goal is to map out what the user journey is within the app, the primary use-cases and what you want your ideal users to achieve when they interact with your product.

Examples of these actions would be defining the registration process (or lack of!), the primary action you want the user to take within the app, high level notifications strategy, whether a user will use a geolocation feature or not etc.

Next up, you have to define the KPIs to measure the success of these goals.

I n simple terms, what actions will users take within the app that you will consider a success? This could be things like making a purchase, completing a task, returning to the app X times during a specific time period, engage with your content. Here’s a simple formula to follow: ‘My ideal customer will do this task, so many times during the week. If that happens, this app is a success.”

In addition, you need to define specific metrics you need to track. Let’s take a specific example. Say you are an online shop and have launched a mobile app. Yes, you’ll want to track conversion rates (how many purchases are made through the app).

But there’s a LOT of other metrics out there you should also track.

Things like:

How often do people use the app?

How many app visits until a purchase is made?

When do people abandon your app?

How many people download the app but don’t register?

What’s my app churn rate (people who don’t use the app over a period of time)?

There’s an endless supply of questions - and analytics - you need to track users’ actions and collect data about their behavior inside your app.

Other standard KPIs include app open rate, uninstalls, session rates, monthly active users (MAU), daily active users (DAU), number of unique new users, daily/monthly downloads, session length, and so forth.

Lastly but not least, take a peek over the fence. Take a closer look at the great mobile app in the market (preferably within your niche), and learn what and how they do things well.

Here’s a simple example of a task we do during the discovery process at Digital Authority Partners when we get a new customer who wants to build an app.

We simply identify the main competitors and then have an analysts review 50-100 app reviews for each competitor.

We then create a report which shows what competitors do well, what they don’t do at all and what they can improve on. That report is then used to define the set of features our client should include in their new app.

Step 4: Brainstorm the primary app use cases and ideal user types

Once you have documented the primary goals of your app, start defining the primary use cases for your new app. Use cases are great for user engagement and overall usability.

Don’t try to define EVERY single use case imaginable. Start with the primary goals only.

Let’s take the Starbucks mobile app as an example. The primary use cases for the Starbucks app are the following:

• Starbucks users can quickly pay using their app in store.
• Starbucks users can order on their app and pick up in store.
• Starbucks users can monitor & redeem rewards using the app.
• Starbucks users can be notified of upcoming deals and discounts via the app.

Of course, the Starbucks app does a LOT more than this (see purchase history, listen to Spotify playlists curated by Starbucks, see rewards history, learn about new Starbucks drinks, add money to their app, manage gift cards, find stores, receive/ buy Starbucks cards as gifts etc).

But what’s important to realize is that the primary use cases outlined above are clear, actionable, easy to understand. And all other features are built to support the primary purchasing experience.

That said, do not clutter the app with everything for everyone. Rather, build it for a specific set of use cases meant for a specific group of people and perfect those.

Here’s the holy grail behind expert mobile app development initiatives. You build an app which your ideal users can make a mental connection to, a connection that is simple and memorable. Practically, you want a user to think this: ‘I go to this app to do this one thing, any time I need it.’  

The most successful apps ALL do this. I go to Candy Crash to decompress for a few minutes. I go to Uber to get a ride. I go to Amazon to buy stuff. I go to Snapseed to quickly edit my photos. I go to Grubhub to order good. I go to Facebook to see what my friends are up to. I go to TikTok to see some super short videos and have fun.

Do you see how a mental connection is made, in my mind, in relation to the apps mentioned above? And guess what - all these apps have tens of millions of users. Because they’ve successfully created a mental association between one task and their app. And everything else builds on top of that primary use case!

So, apply this recipe to your own mobile app. Determine which users will be your primary audience and solve one primary problem they may have.

Additionally, invest time in creating app user segmentation. In other words, various users will do different things within your app based on their motivation, frequency of using the app and a LOT of other factors.  

How To Segment Your App Users (High Level Ideas)

A unique article can be created only on the topic of app user segmentation. That’s not the point of the current article. So look at the various user app segmentation as being just a quick way to look at users and by no means, a comprehensive list.

App segmentation is one of the primary strategies tied to mobile app analytics. If you are interested in the topic of app analytics, you can also check out the other resources we’ve put together over time.

User Experience Optimization Through A/B and Multivariate Testing The 2021 Mobile App Marketing Guide with 25 Pro Tips

And you can also check out the Analytics Services Page from Digital Authority Partners . It must also be noted that app segmentation is not something that can ‘happen’ overnight or something that is typically an out of the box functionality. Instead, companies and entrepreneurs need to leverage analytics solutions that can collect and report on these metrics. Digital Authority Partners is a certified partner for analytics solutions like Mixpanel (see our joint press release here ) and Amplitude.

In the meantime, here are four standard metrics tied to app user segmentation you should keep a close eye on:

1. By device info

You can segment users based on device details such as the type (tablet, smartphone, etc), OS version (iOS, Android or Windows), and the type of hardware (Samsung S10, iPhone XS, etc.) This is a crucial segmentation criteria because user experience and app engagement rates typically vary from device to device.

2. By geographical location

This is a no-brainer segmentation approach.

You’d want to drill down on your users’ behavior based on their geographical information like country, city, town, zip code area, state, and so forth. This is will be especially useful if you intend to offer location-specific features and functionalities.

3. By user info

Who's your app's audience?  How'd you categorize them on available information?  Are they attendees, visitors, employees, consumers, members, fans, leads, partners, B2B clients, B2C customers, etc.

Don't just stop there.

Specific app usage information like language setting, use frequency, if they have enable push notification, etc can come in handy when segmenting  global audience.

4. By user behavior

How users interact with your app should be at the core of your mobile app strategy.

What is the average session duration for your users?

How many days does the user take between opening, making a purchase, etc.?

What do users tap on within your app?

How long does it take until a user converts?

How do users react when you release updates to your app?

Better user segmentation translates into a better app and better marketing strategy. Think of this section as planning how to engage users. There will be another section on how to actually engage them.

The questions above, by no means exhaustive when it comes to app analytics, related to specific tangible behaviors user can exhibit within an app. Asking these - and many other questions - upfront and setting us the right tracking to turn data into insights is absolutely mandatory if you want your app to succeed.

Step 5: Have a clear grasp on your app’s monetization model

An app cannot succeed unless it becomes self-sustaining. And to become self-sustaining, it needs to make money.

So, the bigger question is: how will you monetize your app when most users are used to free apps?

A proper monetization model is critical to ensure the long term longevity of the app.

When all is said and done, however, your monetization strategy should take two things into consideration:

• User intent
• Your users' journey using your app

Here at Digital Authority Partners, we rarely advise clients to force users to pay to download the app. This model MAY work for some games, but it rarely works for everyone else.

Creating a sound monetization strategy is a fine balancing act to ensure the app makes optimal revenue while not pushing away potential users by becoming too expensive.

With that said, there  are several different monetization models you can adopt. The most common and revenue-generating models include:

Model #1. Pay per download

Let’s face it; paid downloads is a monetization approach that only works for highly sought-after mobile apps.

The idea behind this model is pretty simple and straightforward: whenever a user downloads your app, they will part with a fee which is often upfront or paid after a free trial period ends.

This is the easiest and the least complicated way to earn from your sweat.

After all, the higher the fee and the more the paid downloads made, the more your app revenue.

Needless to say, pricing the app wrongly can impact negatively on the number of downloads and hence revenue.

Check out this report regarding revenue from Candy Crush ,  one of the top freemium apps in the world. Candy Crush is free for all to play but they charge for upgrades and special powers. They made $2.16 billion in 2020.

To put this in perspective, in the paid app report above, all Android developers in 2013 made a combined 900 million in revenue. Last year, one single app, Candy Crush, made more money through a freemium model than ALL Android developers.

Freemium model is ALWAYS preferred.

Model #2. Ad revenue

This is the go-to monetization model for most app developers, and with good reason.

In-app ad revenue is a great way to keep your app free for the users and still remain afloat.

You just to be careful about what types of ads you run in your app. Generally, there are 3 types of in-app ads for generating revenue: (1) Cost per Action (CPA), Cost per Click (CPC) and Cost per Thousand Impression (CPM).

If you are looking for UX-friendly ad type, go for CPM.

While the revenue tends to be on the lower end, CPM ads are usually less intrusive and not annoying, offering a better user experience.

You can choose to run native ads, banner ads, interstitials or list ads. Whatever your choice, stay away from lewd, irrelevant or low-quality ads that will paint your app in a bad light.

Here’s an example of an app which has implemented an ad revenue model BETTER than any app I currently use.

It is a puzzle game called Two Dots . Two dots, in many ways is similar to Candy Crush and all Candy Crush wannabes. Occasionally (definitely not every time!) before the beginning of a specific level I get this message: I’m referring to the message which says: ‘watch a video for a free Booster Box!’

If I tap on that button, I have to watch an annoying ad, usually less than 30 seconds, but I get a power-up. I’ve probably watch hundreds of these short ads so far. As a user, I get something tangible out of this. As a company, Two Dots likely makes 5-10 cents of me. It’s not huge revenue, but they are making money. According to one estimate , Two Dots makes ~700k / month through this model and through the in-app purchase options.

Model #3. Freemium features - upgrade to use premium feature or to remove ads

An ad seen on the app called Browser which allows users to surf the internet in private mode and download any video from youtube and other video storage websites. Every time a user returns to the app, an ad is played as seen in this screenshot.

This monetization model usually goes hand in hand with the in-app ad model.

The freemium model is simple.

A user can download a mobile app for free but the user would see ads interrupting their experience from time to time. You can happily get rid of the ads in their apps for a small fee. If you intend to go down this road, you will have to create at least two versions of your app. First one will feature ads and free to use. The other one will be a paid version that’s free of ads (this is what developers call a premium app).

Model #4. In-app purchases

Above, a screenshot of in-app purchase options for Candy Crush Saga

In-app purchases account for the biggest portion of app revenue.  In fact, it accounts for around 47 percent of the worldwide revenue generated from apps.

The good thing is that the in-app purchase feature can be incorporated with other monetization models like paid downloads, in-app ads, etc.

Model #5. Affiliate programs

Joining an affiliate program to promote network products, services or solutions is yet another great way to monetize your app.

There are plenty of credible app affiliate programs run by companies like Apple, Microsoft, and Google.

These are usually the ones that’ll pay you handsome money to promote an array of apps, but there are smaller affiliate programs you can join and rake in some income too.

The idea behind this monetization model is that you’ll earn a recurring commission when the user takes an action.

Model #6. Hybrid

If one or more monetization approaches deliver good results, why not combine the best of their worlds?

That’s right; you can create a hybrid monetization strategy that may bring revenue- generating ways like in-app purchases, mobile marketing automation, freemium features, affiliation and so forth under one roof.

Parting Shot: building a free app might be an amazing idea because the long-term ROI would be incredibly high. That said, you need to plan to stay afloat before the app becomes profitable and it is equally  important that you have a strong marketing strategy and budget right from day one.

Section B: Getting to business - planning

Once you’ve decided your ideal target audience, outlined the overall mobile app strategy and decided on a robust monetization model and analytics framework, the real fun is about to begin. You are now in a position to make tactical yet incredibly powerful decisions around actually building the app.

Step 6: Determine the framework of the app

When you are ready to get down to business, you ought to plan for the quickest turnaround possible.

That’s why determining the framework and planning your app make for the most important steps in the mobile app development process. There are several basic steps to doing so:

     a. Decide which platform is right for you

Right from the start, you have to decide if you are going to build an Android app only, iOS app only, Windows app only, two or all three. Hint, virtually no one build a Windows app anymore.

The kind of platform you are building the app for will determine several elements of your final product, including features to include, how to optimize user experiences, how to monetize, and how to structure your pre-launch marketing campaigns.

Your use cases will also determine which kind of app you will need to build.

For example, what if you are an e-commerce store?

It’s a smart move to build apps for at least iOS and Android to cater to the largest percentage of the smartphone user population.

     b. Native or hybrid?

You’ll also have to decide if your app will be native, 3rd-party, carrier-specific or hybrid. This decision will have a huge bearing on the number and the type of functionality you will eventually incorporate into your app.

Hybrid versus native is a discussion for another time and it fully deserves its own article. However, high level, here’s the main differences.

Native apps are faster (better performance) and easier to discover in the app store. They can fully leverage a smartphone’s native features (geo-location, camera, address book etc) and easily work in an offline mode (when you lose reception). That said, they’re more expensive because they have completely different code bases between iOS and Android. They have better security and better user experience.

Hybrid apps are cheaper to build, leverage one code base across iOS and Android but continue to have difficulties fully leveraging native components on a smartphone. On the other hand, the time to market is significantly faster to make.

There’s a lot of pros and cons to both approaches and it all comes down to one thing: what’s the most important key performance indicator when you’re launching the app to market. That should drive the decision on what kind of app to build.

     c. Plan your technology stack

At this stage, you should brainstorm with your team on the array of mobile app development technologies that will be leveraged to build your app.

This way, you can plan the technology stack that will ensure maximum return on investment while an eye on the future.

While SDK tools offered by app stores might come in handy, they can be a little restrictive which is why you need to think about a set of scalable technology that will allow you to build a seamless app for all target devices and platforms.

How will they help integrate your app with both public and private cloud servers?

But most importantly, the technology stack is the backbone of your entire app because everything else you will build for this app will fall on the decisions made when choosing the tech stack.

Having a great team here cannot be underestimated. This is actually where we see most issues with clients who come to us asking for a ‘quick fix’ for their app. Code codes that look like spaghetti code, complex and unsustainable APIs. Great technology stacks and app architectures are neatly organized, well built and modular. Horrible tech stacks are convoluted, make no sense and have no documentation you can reference when trying to make sense of it.

So take the time and work with a development team that understand app architecture well. Trust me, if you don’t, you will pay tenfold later.  

     d. Plan your app data strategy

What sets of data do you plan to collect when the app hits the App Store?

Remember, no app can be a do-all solution.

That’s why you need to know which data will be made available through your app right off the bat.

After all, including too much data into a single app can be a huge mistake in terms of sustenance, functionality, and user experience. They can be especially hard to navigate and security a diversity of user-provided data can also become quite tricky.

In addition, it’s not enough to know which data will be available on your app, you will have to decide how you will protect and leverage this information in your crucial business decisions and app improvement.

Have a data handling strategy planned right out of the block.

Step 7: Working with the right team

When it comes to mobile app development, you are only  as good as the team around you. That’s why it is very important to round up a team of top-notch app designers, developers, strategists, and other key experts who will ensure your product will not only stand out but also take the market by storm.

The right team can make, while the wrong team will break it.

Remember that people are key to mobile app development.

Most importantly, you need to collaborate and hire people who know what they are doing.

Who to include in your team?

There are some positions that are indispensable when it comes to developing a killer app.

At a minimum, your team should include talented mobile developers to code, product managers to lead the way for the team and drive the vision/strategy of the app into reality, and designers to create the app's UI and spruce up the UX.

That being said, here are some factors that will help you zero in on team members who will certainly do a bang-up job:

Start with the skill set that’s right for your app and target market

Choose the people with the right skills that will position the app for a long time success.

While there are myriads of skills that make for a great app development team, here are the topmost ones to keep in mind:

UX/UI - User experience and user interface are two key elements will wow and amaze your users or disappoint them - usually, there’s very little in between.

If the UI and UX of your app are shoddy, you will definitely have a tough time finding or retaining users.

That's why you need team members who are UX/UI-focused. The people who know what it takes to craft a truly user-friendly app.

Product management - This is a skill that will help transform your ideas into an incredibly lovable app. This member will act as a liaison between all the stakeholders involved in building the app, the proverbial jack of all traders. A development team without a product manager will falter along the way when issues like conflicts of interest, changing priorities, lack of direction and strategy.

Scrum management - any agile team needs a scrum manager. This is especially important for situations where there's a lot of back and forth between various team members and the development team. The scrum master also acts as your default project manager, shepherding the project along the way and making sure everything is done on time and on budget.

Design - Your app will be going up against remarkable beautiful and easy to use apps on the app market. That's why you need A-level designers to take care of the feel and look of the app.

Business analysis - Creating an actionable mobile app strategy requires great business analysis skills. This person will put the app vision into perspective and help map your objectives into development roadmap for the development team. This team member will also spend a lot of his or her time on market research, competitive analysis, feature set documentation and much more.

QA testing - Testing your app several times during the development and final phase will help deliver a truly market-ready product. That's why you need experts who are conversant with industry standards of QA testing.

Technical app development skills - these are the most important ones to take into consideration. After all, it is a team of developers/coders who will actually hammer out the app. Good developers are well versed in modern coding languages, cloud infrastructure, cross-platform skills, data integration, cloud integration, security integration, and much more.

Who will build your app?

Decide if the app is to be built in-house or by working with an external vendor. Whichever road you choose, be sure to do due diligence before putting together your team or contracting an external vendor.

Step 8: Define the product roadmap and detailed requirements

A strategically built product lasts forever.

And a mobile app will only be successful if it has a well-planned product roadmap.

This is a plan which maps out both the short term and long term goals of your app.

More specifically, your product roadmap will help define your app vision, as well as act as a blueprint for the execution of your mobile app development strategy.

In most cases, the roadmap will help clarify the overall app development strategy to vendors, investors, clients, and other key stakeholders.

Once you have your goals set, you can easily create a product roadmap. Ensure that your goals are clearly defined and easily measurable, which means that you need to have some metrics and KPIs in place.

Let’s quickly talk about minimum viable product

What is the minimum viable product (MVP)? Is it good enough to pique users’ interest? That’s exactly what a good product would help you achieve.

A minimum viable product refers to a set of features and functionalities that are enough to make your app successful at launch. An MVP is manageable, realistic and only covers features you simply cannot go to production without.

In other words, the MVP should be structured in such a way that it helps you build only the app features most closely aligned with your primary objectives and goals.

In addition, your definition of MVP should be data-centric.

An app-driven MVP roadmap delivers better outcomes. Implementing the right data analytics will help you establish your team’s success right from the outset.

For your MVP, it would be wise to focus on a small set of essential metrics.

Your final product, however, should encompass metrics like UX, featured usage, customer churn, user retention, UX, adoption rates, and product quality, just to mention a few.

Section C: Bringing the concept to life - and executing it

If you have reached this point, and done everything we covered in this article so far, then you’re in an amazing shape.

I will let you in on a little secret.

The eight steps above are the single most difficult and nerve-wrenching part of building an app. And by default, the most important.

Everything else we talk about below is a breeze to execute if the previous eight steps were done correctly.

Let’s carry on with the ‘fun part’ of building an app

Step 9: Mobile app designs that wow users

The usability and design of the app will either make users come back to your app or make them uninstall the app right after the first use.

There are many things to keep in mind when designing an app that’ll resonate well with the end user.

Great apps are not complex to use. In fact, far from it.

They are easy and simple to use.

But simple design is the toughest form of design. Nonetheless, that should be your goal first and foremost.

Try to imagine why you want to design the app and why you are looking to achieve.

What exactly do you want your app to look like and do?

How will you ensure that your app will pique the user's interest?

What's the solution do you want to offer with your app?

How will your app stand out in terms of design?

Determine the style of your app. Work with your creative team on the design guidelines that fully align with goal of your app.  Go for a style that will help your app set itself apart from the rest.

In addition, keep cognitive loads to a minimum. Remember that the user’s brain has a limited processing power and you shouldn’t subject them to cognitive or information overload (by which you mean your users will become easily frustrated if they can’t figure out, at a glance, how to use your app).

This is an area of design that you need to get a handle on to prevent users from being overwhelmed. If they do, they will most likely abandon your app.

Create and test multiple design ideas until there is one that is the right concept. Then build on it. The design process should be all about feedback, refining, and repeat. If you leave your users hanging, you will likely design an app that will be a pain to use.

Step 10: Develop the app

Your app designs is looking great and you’re rocking that invision prototype. Now what? Of course, the next step is to build the actual app.

Start with a prototype to ensure that the app is indeed what was planned. Build the flow that will be most used and test it. Ensure that it is an embodiment of the concept. Once the prototype is successfully tested, move ahead with the full development process.

Be ready to make adjustments quickly as the app starts taking shape.

The later in the development stage, the more complex it becomes to make changes. So, design an app architecture that is flexible, while still being scalable (this goes back to the point above regarding choosing the right technology stack).

Of course, there are a few key mistakes that you need to avoid at all costs to ensure that your app building process is hitch-free:

     a. Not keeping security top of mind

In today's digital world plagued with data security breaches, you need to build your app with security at the heart of everything. It is a fact of life that hackers and other ill-reputed cyber-criminals will go above and beyond to crack your app.

Does your app have the necessary security framework to be impenetrable? Have TLS, SSL and AES encryption technology in place to keep your mobile app hacker-proof.

     b. Not building your app with expansion top of mind

The chances are that you are building your app with specific users in mind.

That's all good, but the actual architecture of your app should be crafted with global audiences in mind. Remember that your app should be built in a way that it easy to scale in order to accommodate growth and expansion.

Step 11: Test, test, then test your app again

Test, test, and test should be your mobile app development mantra.

And let’s be candid - after putting in countless hours of effort and hard work into building a great app, the last thing you want to see is a barrage of negative user reviews and ratings.

You need to come up with a proper app testing strategy and follow it to the dot.

What makes a solid app testing strategy?

Your QA testing strategy should align with a number of your goals, including customer expectations, business goals, the user experience, as well as industry best practices.

It should take care of all aspects of the app, including data requirements battery usage, app speed, memory usage and so forth.

Be religious about testing the app at every opportunity.

Bugs are one of the top reasons why customers choose to delete apps, or not use them any longer.

In addition, consider all target user personas. Drill your app tests down to the last user. There are several different app user personas, and you need to test for all of them. You will also have to think about technical users, those who speak different languages, different age groups, those with accessibility issues, and so forth.

Keep your tests fresh and data-driven. More importantly, keep updating the text plan to include new test cases and modify older ones as the app keeps evolving.

Furthermore,  as a rule of thumb, a great app test should take into account every possible way the user will use the app.

It should also consider unusual use cases. What happens when they swipe with two fingers instead of one, or vice versa? What if a user exits the app by mistake? It is crucial to map your entire mobile app to test every use case/scenario.

In addition, conduct tests on every relevant device.

Once the app is launched, start with alpha and beta testing to ensure the expert users are good with the end product, before launching to the masses.

By the way, there are at least two approaches to after-launch app testing: manual or automated.

Automated app testing is ideal when your app is still in development. However, it can be costly. If that’s an issue for you, manual testing might appeal to your lean budget.

Usability testing - The fundamental functionalities of your app are tested at this point. Usability tests include UI testing, compatibility testing, external factors testing, and ADA compliance testing.

Performance testing is another crucial component of the QA process that you need to conduct to establish how your app stacks in terms of power management, memory use, and scalability.

Finally, don't forget to perform compliance and security testing. If you are building a telehealth app, for instance; you need to be compliant with a series of industry regulations like HIPAA, HITRUST , ISO, etc. You should also test the security readiness of your app.

Once all the tests are over, you should have a comprehensive and highly detailed report that entails:

• Quality of testing report
• Important info revealed by the tests
• App quality
• Incident report stats
• All types of testing done and time each took

At this point, you should have plenty of insights and information to leverage to improve your app before launch or for the next iteration.

Step 12: Launch, learn and optimize. Have proper support in place

The final step of the mobile app development process is finally here. You are finally ready to deploy it.

This  step will ensure that your launch will be a breeze and hassle-free.

Your launch date is not just for building buzz and getting your app on the store. It should provide you with an opportunity to carry out user a plethora of interviews, collect feedback, and get ready for the next step: iteration.

You’ll need a good post-launch strategy and plan. Yes, life after launching your app should be bliss, but that isn’t always the case.

Here’s a checklist for creating an awesome post-launch plan:

     a. Obtain user feedback

The user is king. So, listen carefully to what users are saying, especially about the first impression and use of your app. At this stage, you should ramp up your user ratings and reviews - they are the most valuable and reliable sources of user feedback to help inform your next step.

     b. Gather app data

Churn rate, user satisfaction rate, sales, revenue, the average duration of a user session, daily active users, monthly active users, and the number of installs are some of the data metrics that you need to analyze to get a better understanding of your app usage and acceptance.

     c. Invest in a comprehensive analytics tool

Great analytics tools will allow for the complete monitoring of your app and give a clear picture of how well the app is doing with the target audiences. More crucially, look at and understand the numbers and then take the right steps to optimize the app.

     d. Market, market, market your mobile app

Let everyone know that you have launched a fantastic app. Use all marketing channels and resources your marketing dollars can afford. Strategies like content, SEO, and ASO will cost you virtually nothing yet they deliver great results. If you got to this point, read out comprehensive article on The 2021 Mobile App Marketing Guide with 25 Pro Tips .

     e. Get award-worthy mobile app support

Another pitfall of many apps is minimal or zero support.

Invest in mobile app support.

The better the experience users have after they download your app, the more likely they will be to recommend the app to others.

And support plays a big role in that experience. You should provide users will great support 24/7. This way, you can get your app off the ground on the right foot with the users.

Round Up: Why Quality App Building Matters

It is not an impossible task to translate a great idea into a great app. There’s a ton to be said about developing a great app. It’s a very precise job.

There are several pitfalls between an initial concept and when an app becoming successful. But with a proper strategy, the right people, the correct processes, and a clear plan to grow, these pitfalls can be avoided.

These pitfalls that can happen at any stage or level of mobile app development, including these top four:

Strategy level: bad/lack of market research, improper planning of execution stages, and lack of clearly defined goals are a few reasons why your app is set to fail right from the strategy level.

Design and software development level: Lack of a robust QA testing strategy, bad app design, back tech stack or improperly implemented technology, and poor execution could kill your app before it is built.

Execution level: You mobile app can fail at the stage due to a number of reasons, including teams issues when there are conflicting priorities, too much competition/heat from similar apps on the app, cash shortages that make it hard to take your app to the next level, and if you have no clue on how to monetize your app.

Support and marketing level - Having no crystal-clear marketing message, lack or no user ratings/reviews, unclear branding, and lack of differentiation from competitors can plague your app at the support and marketing level.

So, why build an app when the above reasons can be so deterrent? As we have seen in this guide, there are plenty of reasons to build a mobile app. These include the following:

An app can help you increase sales - with 19 percent of retail sales coming from

mobile, an app can help you tap into this increasingly important consumer base. After all, mobile apps deliver 3x more conversions than mobile sites.

Improve customer experiences (UX) - a well-defined app can help you meet your customers where they need you most: mobile. Building a user-friendly app will also improve your customers shopping and purchasing experiences.

Become competitive on the market - 65 percent of SMEs and all big companies already have (or are in the process of building) an app. Build one to stay competitive.

Deliver excellence through another amazing channel - an app is a marketing and sales tool that can do wonders for your customer acquisition, pleasing, loyalty and retainment.

Better customer engagement - an app with a feedback mechanism, live chat feature or a help desk, as well as interactive features like push notification can do wonders for your customer engagement.

Boost recognition and brand awareness - the more users open your app, the more recognizable your app will be. Ensure that your app is stylish and loaded with engaging content to promote your brand and boost credibility and trust.

Building the actual app is no easy walk in the park. As we’ve mentioned above, you need to follow 12 key steps to make the whole process easy and successful.

Summary for App Building Essentials

Step #1. Value proposition - Create a unique value proposition for the app. How is it different from other similar apps, the benefits it will bring to users, how it will make their lives better, etc.

Step #2. Market Research and SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis To Determine the viability of your product.

Validate the concept first, then invest in market research before spending a large amount of time and money on building an app. Is the market ready? Who are the top competitors? What are the threats? Once the market data is in, start planning a course of action.

Step #3. Outline your app goals. List the 3-4 most important goals of the app that will determine how users will interact with the app. Next, brainstorm the actions that users will perform within the app. Don’t forget to define the right key performance indicators to measure success, and look at the great apps in the market to learn how they do things well.

Step #4. Brainstorm the primary use cases of your app and which users to target. In doing so, do not clutter the app with everything for everyone. Rather, launch with a specific set of use cases meant for a clearly-defined group of people.

Step #5. Create a monetization model. A proper monetization model is critical to ensure the long term longevity of the app.

Step #6. Determine the framework of the app. At this stage, you need to decide if the app is going to be on iOS, on Android, or both. Also, plan your technology stack to ensure maximum return on investment while keeping an eye on the future.

Step #7. Build the perfect development team. The right team can make the make, the wrong team will break it. Choose product managers, designers, developers, amazing developers and gifted QA analysts.

Step #8. Define the product roadmap of your app. Don’t forget to define a detailed set of requirements for your app. What is the Minimum Viable Product (MVP)? Is it good enough to pique users’ interest?

Step #9. Design the app. Set proper design goals and keep it easy to use. Apps with great UX design are most likely to get used often.

Step #10. Build the app. Start with a prototype, then build the user flow that will be most used and test it. Once the prototype is successfully tested, move ahead with the full development process. Be ready to make adjustments quickly as the app starts taking shape,

Step #11. Test, test, test. Build a proper app testing strategy and follow it to the dot. More crucially, keep updating the text plan to include new test cases and modify older ones as the app keeps evolving.

Finally … Step #12. Launch the app. Start off by creating a scalable and robust deployment process. Not just that, learn from user feedback and data analytics to optimize your app for usability, performance, etc.

Talk to the App Development Experts

In a nutshell, know your users and cater to their needs. That should be the driving philosophy every app maker adopts.

An app should be built around a user, not the other way round. With the ultimate guide, it is our endeavor to educate people and organizations on how to build an app geared for success.

Not sure if you can do this on your own? No worries. That’s why we are here to help.

Digital Authority Partners has worked on hundreds of amazing mobile apps. Feel free to drop us a note at [email protected] or call us at 312-820-9893. Let’s build a great app together!

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How To Start A Business In 11 Steps (2024 Guide)

Updated: Apr 7, 2024, 1:44pm

Table of Contents

Before you begin: get in the right mindset, 1. determine your business concept, 2. research your competitors and market, 3. create your business plan, 4. choose your business structure, 5. register your business and get licenses, 6. get your finances in order, 7. fund your business, 8. apply for business insurance, 9. get the right business tools, 10. market your business, 11. scale your business, what are the best states to start a business, bottom line, frequently asked questions (faqs).

Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, along with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching and growing your business.

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The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.

Consistency Is Key

New business owners tend to feed off their motivation initially but get frustrated when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away.

Take the Next Step

Some business owners dive in headfirst without looking and make things up as they go along. Then, there are business owners who stay stuck in analysis paralysis and never start. Perhaps you’re a mixture of the two—and that’s right where you need to be. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may take minutes while others take a long time. The point is to always take the next step.

Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at. For example, you may love music, but how viable is your business idea if you’re not a great singer or songwriter? Maybe you love making soap and want to open a soap shop in your small town that already has three close by—it won’t be easy to corner the market when you’re creating the same product as other nearby stores.

If you don’t have a firm idea of what your business will entail, ask yourself the following questions:

• What do you love to do?
• What do you hate to do?
• Can you think of something that would make those things easier?
• What are you good at?
• What do others come to you for advice about?
• If you were given ten minutes to give a five-minute speech on any topic, what would it be?
• What’s something you’ve always wanted to do, but lacked resources for?

These questions can lead you to an idea for your business. If you already have an idea, they might help you expand it. Once you have your idea, measure it against whether you’re good at it and if it’s profitable.

Your business idea also doesn’t have to be the next Scrub Daddy or Squatty Potty. Instead, you can take an existing product and improve upon it. You can also sell a digital product so there’s little overhead.

What Kind of Business Should You Start?

Before you choose the type of business to start, there are some key things to consider:

• What type of funding do you have?
• How much time do you have to invest in your business?
• Do you prefer to work from home or at an office or workshop?
• What interests and passions do you have?
• Can you sell information (such as a course), rather than a product?
• What skills or expertise do you have?
• How fast do you need to scale your business?
• What kind of support do you have to start your business?
• Are you partnering with someone else?
• Does the franchise model make more sense to you?

Consider Popular Business Ideas

Not sure what business to start? Consider one of these popular business ideas:

• Start a Franchise
• Start a Blog
• Start an Online Store
• Start a Dropshipping Business
• Start a Cleaning Business
• Start a Bookkeeping Business
• Start a Clothing Business
• Start a Landscaping Business
• Start a Consulting Business
• Start a Photography Business
• Start a Vending Machine Business

Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart? If market analysis indicates your product or service is saturated in your area, see if you can think of a different approach. Take housekeeping, for example—rather than general cleaning services, you might specialize in homes with pets or focus on garage cleanups.

Primary Research

The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Surveying friends and family isn’t recommended unless they’re your target market. People who say they’d buy something and people who do are very different. The last thing you want is to take so much stock in what they say, create the product and flop when you try to sell it because all of the people who said they’d buy it don’t because the product isn’t something they’d buy.

Secondary Research

Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research.

Conduct a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis allows you to look at the facts about how your product or idea might perform if taken to market, and it can also help you make decisions about the direction of your idea. Your business idea might have some weaknesses that you hadn’t considered or there may be some opportunities to improve on a competitor’s product.

Asking pertinent questions during a SWOT analysis can help you identify and address weaknesses before they tank your new business.

A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:

• Executive summary: The executive summary should be the first item in the business plan, but it should be written last. It describes the proposed new business and highlights the goals of the company and the methods to achieve them.
• Company description: The company description covers what problems your product or service solves and why your business or idea is best. For example, maybe your background is in molecular engineering, and you’ve used that background to create a new type of athletic wear—you have the proper credentials to make the best material.
• Market analysis: This section of the business plan analyzes how well a company is positioned against its competitors. The market analysis should include target market, segmentation analysis, market size, growth rate, trends and a competitive environment assessment.
• Organization and structure: Write about the type of business organization you expect, what risk management strategies you propose and who will staff the management team. What are their qualifications? Will your business be a single-member limited liability company (LLC) or a corporation ?
• Mission and goals: This section should contain a brief mission statement and detail what the business wishes to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic and time-bound).
• Products or services: This section describes how your business will operate. It includes what products you’ll offer to consumers at the beginning of the business, how they compare to existing competitors, how much your products cost, who will be responsible for creating the products, how you’ll source materials and how much they cost to make.
• Background summary: This portion of the business plan is the most time-consuming to write. Compile and summarize any data, articles and research studies on trends that could positively and negatively affect your business or industry.
• Marketing plan: The marketing plan identifies the characteristics of your product or service, summarizes the SWOT analysis and analyzes competitors. It also discusses how you’ll promote your business, how much money will be spent on marketing and how long the campaign is expected to last.
• Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.

Learn more: Download our free simple business plan template .

Come Up With an Exit Strategy

An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. There are a few different options for exiting a business, and the best option for you depends on your goals and circumstances.

The most common exit strategies are:

• Selling the business to another party
• Passing the business down to family members
• Liquidating the business assets
• Closing the doors and walking away

Develop a Scalable Business Model

As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.

Some common scalable business models are:

• Subscription-based businesses
• Businesses that sell digital products
• Franchise businesses
• Network marketing businesses

Start Planning for Taxes

One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.

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When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations and whether your personal assets are at risk.

An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent . These owners are referred to as members.

• LLCs offer liability protection for the owners
• They’re one of the easiest business entities to set up
• You can have a single-member LLC
• You may be required to file additional paperwork with your state on a regular basis
• LLCs can’t issue stock
• You’ll need to pay annual filing fees to your state

Limited Liability Partnership (LLP)

An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.

• Partners have limited liability for the debts and actions of the LLP
• LLPs are easy to form and don’t require much paperwork
• There’s no limit to the number of partners in an LLP
• Partners are required to actively take part in the business
• LLPs can’t issue stock
• All partners are personally liable for any malpractice claims against the business

Sole Proprietorship

If you start a solo business, you might consider a sole proprietorship . The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

• Sole proprietorships are easy to form
• There’s no need to file additional paperwork with your state
• You’re in complete control of the business
• You’re personally liable for all business debts
• It can be difficult to raise money for a sole proprietorship
• The business may have a limited lifespan

Corporation

A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.

• Corporations offer liability protection for the owners
• The life span of a corporation is not limited
• A corporation can have an unlimited number of shareholders
• Corporations are subject to double taxation
• They’re more expensive and complicated to set up than other business structures
• The shareholders may have limited liability

Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.

Helpful Resources

• How To Set Up an LLC in 7 Steps
• How To Start a Sole Proprietorship
• How To Start a Corporation
• How To Start a Nonprofit
• How To Start a 501(c)(3)

There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:

Choose Your Business Name

Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).

Business Name vs. DBA

There are business names, and then there are fictitious business names known as “Doing Business As” or DBA. You may need to file a DBA if you’re operating under a name that’s different from the legal name of your business. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA.

You may need to file a DBA with your state, county or city government offices. The benefits of a DBA include:

• It can help you open a business bank account under your business name
• A DBA can be used as a “trade name” to brand your products or services
• A DBA can be used to get a business license

Register Your Business and Obtain an EIN

You’ll officially create a corporation, LLC or other business entity by filing forms with your state’s business agency―usually the Secretary of State. As part of this process, you’ll need to choose a registered agent to accept legal documents on behalf of your business. You’ll also pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN) and business bank accounts.

Next, apply for an employer identification number (EIN) . All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS and you’ll typically receive your number in minutes.

Get Appropriate Licenses and Permits

Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.

• Best LLC Services
• How To Register a Business Name
• How To Register a DBA
• How To Get an EIN for an LLC
• How To Get a Business License

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Open a Business Bank Account

Keep your business and personal finances separate. Here’s how to choose a business checking account —and why separate business accounts are essential. When you open a business bank account, you’ll need to provide your business name and your business tax identification number (EIN). This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit.

Hire a Bookkeeper or Get Accounting Software

If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.

Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.

There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.

Determine Your Break-Even Point

Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.

Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.

When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.

In contrast, the contribution margin = total sales revenue – cost to make product

For example, let’s say you’re starting a small business that sells miniature birdhouses for fairy gardens. You have determined that it will cost you $500 in startup costs. Your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each.

Let’s write these out so it’s easy to follow:

This means that you need to sell at least 456 units just to cover your costs. If you can sell more than 456 units in your first month, you will make a profit.

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There are many different ways to fund your business—some require considerable effort, while others are easier to obtain. Two categories of funding exist: internal and external.

Internal funding includes:

• Personal savings
• Credit cards
• Funds from friends and family

If you finance the business with your own funds or with credit cards, you have to pay the debt on the credit cards and you’ve lost a chunk of your wealth if the business fails. By allowing your family members or friends to invest in your business, you are risking hard feelings and strained relationships if the company goes under. Business owners who want to minimize these risks may consider external funding.

External funding includes:

• Small business loans
• Small business grants
• Angel investors
• Venture capital
• Crowdfunding

Small businesses may have to use a combination of several sources of capital. Consider how much money is needed, how long it will take before the company can repay it and how risk-tolerant you are. No matter which source you use, plan for profit. It’s far better to take home six figures than make seven figures and only keep $80,000 of it.

Funding ideas include:

• Invoice factoring: With invoice factoring , you can sell your unpaid invoices to a third party at a discount.
• Business lines of credit: Apply for a business line of credit , which is similar to a personal line of credit. The credit limit and interest rate will be based on your business’s revenue, credit score and financial history.
• Equipment financing: If you need to purchase expensive equipment for your business, you can finance it with a loan or lease.
• Small Business Administration (SBA) microloans: Microloans are up to $50,000 loans that can be used for working capital, inventory or supplies and machinery or equipment.
• Grants: The federal government offers grants for businesses that promote innovation, export growth or are located in historically disadvantaged areas. You can also find grants through local and regional organizations.
• Crowdfunding: With crowdfunding , you can raise money from a large group of people by soliciting donations or selling equity in your company.

Choose the right funding source for your business by considering the amount of money you need, the time frame for repayment and your tolerance for risk.

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You need to have insurance for your business , even if it’s a home-based business or you don’t have any employees. The type of insurance you need depends on your business model and what risks you face. You might need more than one type of policy, and you might need additional coverage as your business grows. In most states, workers’ compensation insurance is required by law if you have employees.

Work With an Agent To Get Insured

An insurance agent can help determine what coverages are appropriate for your business and find policies from insurers that offer the best rates. An independent insurance agent represents several different insurers, so they can shop around for the best rates and coverage options.

Basic Types of Business Insurance Coverage

• Liability insurance protects your business against third-party claims of bodily injury, property damage and personal injury such as defamation or false advertising.
• Property insurance covers the physical assets of your business, including your office space, equipment and inventory.
• Business interruption insurance pays for the loss of income if your business is forced to close temporarily due to a covered event such as a natural disaster.
• Product liability insurance protects against claims that your products caused bodily injury or property damage.
• Employee practices liability insurance covers claims from employees alleging discrimination, sexual harassment or other wrongful termination.
• Workers’ compensation insurance covers medical expenses and income replacement for employees who are injured on the job.
• Best Small Business Insurance
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• How To Get Product Liability Insurance
• Your Guide to General Liability Insurance
• 13 Types of Small Business Insurance

Business tools can help make your life easier and make your business run more smoothly. The right tools can help you save time, automate tasks and make better decisions.

Consider the following tools in your arsenal:

• Accounting software : Track your business income and expenses, prepare financial statements and file taxes. Examples include QuickBooks and FreshBooks.
• Customer relationship management (CRM) software : This will help you manage your customer relationships, track sales and marketing data and automate tasks like customer service and follow-ups. Examples include Zoho CRM and monday.com.
• Project management software : Plan, execute and track projects. It can also be used to manage employee tasks and allocate resources. Examples include Airtable and ClickUp.
• Credit card processor : This will allow you to accept credit card payments from customers. Examples include Stripe and PayPal.
• Point of sale (POS) : A system that allows you to process customer payments. Some accounting software and CRM software have POS features built-in. Examples include Clover and Lightspeed.
• Virtual private network (VPN) : Provides a secure, private connection between your computer and the internet. This is important for businesses that handle sensitive data. Examples include NordVPN and ExpressVPN.
• Merchant services : When customers make a purchase, the money is deposited into your business account. You can also use merchant services to set up recurring billing or subscription payments. Examples include Square and Stripe.
• Email hosting : This allows you to create a professional email address with your own domain name. Examples include G Suite and Microsoft Office 365.

Many business owners spend so much money creating their products that there isn’t a marketing budget by the time they’ve launched. Alternatively, they’ve spent so much time developing the product that marketing is an afterthought.

Create a Website

Even if you’re a brick-and-mortar business, a web presence is essential. Creating a website doesn’t take long, either—you can have one done in as little as a weekend. You can make a standard informational website or an e-commerce site where you sell products online. If you sell products or services offline, include a page on your site where customers can find your locations and hours. Other pages to add include an “About Us” page, product or service pages, frequently asked questions (FAQs), a blog and contact information.

Optimize Your Site for SEO

After getting a website or e-commerce store, focus on optimizing it for search engines (SEO). This way, when a potential customer searches for specific keywords for your products, the search engine can point them to your site. SEO is a long-term strategy, so don’t expect a ton of traffic from search engines initially—even if you’re using all the right keywords.

Create Relevant Content

Provide quality digital content on your site that makes it easy for customers to find the correct answers to their questions. Content marketing ideas include videos, customer testimonials, blog posts and demos. Consider content marketing one of the most critical tasks on your daily to-do list. This is used in conjunction with posting on social media.

Get Listed in Online Directories

Customers use online directories like Yelp, Google My Business and Facebook to find local businesses. Some city halls and chambers of commerce have business directories too. Include your business in as many relevant directories as possible. You can also create listings for your business on specific directories that focus on your industry.

Develop a Social Media Strategy

Your potential customers are using social media every day—you need to be there too. Post content that’s interesting and relevant to your audience. Use social media to drive traffic back to your website where customers can learn more about what you do and buy your products or services.

You don’t necessarily need to be on every social media platform available. However, you should have a presence on Facebook and Instagram because they offer e-commerce features that allow you to sell directly from your social media accounts. Both of these platforms have free ad training to help you market your business.

• Best Website Builders
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• The Best E-Commerce Platforms
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To scale your business, you need to grow your customer base and revenue. This can be done by expanding your marketing efforts, improving your product or service, collaborating with other creators or adding new products or services that complement what you already offer.

Think about ways you can automate or outsource certain tasks so you can focus on scaling the business. For example, if social media marketing is taking up too much of your time, consider using a platform such as Hootsuite to help you manage your accounts more efficiently. You can also consider outsourcing the time-consumer completely.

You can also use technology to automate certain business processes, including accounting, email marketing and lead generation. Doing this will give you more time to focus on other aspects of your business.

When scaling your business, it’s important to keep an eye on your finances and make sure you’re still profitable. If you’re not making enough money to cover your costs, you need to either reduce your expenses or find ways to increase your revenue.

Build a Team

As your business grows, you’ll need to delegate tasks and put together a team of people who can help you run the day-to-day operations. This might include hiring additional staff, contractors or freelancers.

Resources for building a team include:

• Hiring platforms: To find the right candidates, hiring platforms, such as Indeed and Glassdoor, can help you post job descriptions, screen résumés and conduct video interviews.
• Job boards: Job boards such as Craigslist and Indeed allow you to post open positions for free.
• Social media: You can also use social media platforms such as LinkedIn and Facebook to find potential employees.
• Freelance platforms: Using Upwork, Freelancer and Fiverr can help you find talented freelancers for one-time or short-term projects. You can also outsource certain tasks, such as customer service, social media marketing or bookkeeping.

You might also consider partnering with other businesses in your industry. For example, if you’re a wedding planner, you could partner with a florist, photographer, catering company or venue. This way, you can offer your customers a one-stop shop for all their wedding needs. Another example is an e-commerce store that partners with a fulfillment center. This type of partnership can help you save money on shipping and storage costs, and it can also help you get your products to your customers faster.

To find potential partnerships, search for businesses in your industry that complement what you do. For example, if you’re a web designer, you could partner with a digital marketing agency.

You can also search for businesses that serve the same target market as you but offer different products or services. For example, if you sell women’s clothing, you could partner with a jewelry store or a hair salon.

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To rank the best states to start a business in 2024, Forbes Advisor analyzed 18 key metrics across five categories to determine which states are the best and worst to start a business in. Our ranking takes into consideration factors that impact businesses and their ability to succeed, such as business costs, business climate, economy, workforce and financial accessibility in each state. Check out the full report .

Starting a small business takes time, effort and perseverance. But if you’re willing to put in the work, it can be a great way to achieve your dreams and goals. Be sure to do your research, create a solid business plan and pivot along the way. Once you’re operational, don’t forget to stay focused and organized so you can continue to grow your business.

How do I start a small business with no money?

There are several funding sources for brand-new businesses and most require a business plan to secure it. These include the SBA , private grants, angel investors, crowdfunding and venture capital.

What is the best business structure?

The best business structure for your business will depend entirely on what kind of company you form, your industry and what you want to accomplish. But any successful business structure will be one that will help your company set realistic goals and follow through on set tasks.

Do I need a business credit card?

You don’t need one, but a business credit card can be helpful for new small businesses. It allows you to start building business credit, which can help you down the road when you need to take out a loan or line of credit. Additionally, business credit cards often come with rewards and perks that can save you money on business expenses.

Do I need a special license or permit to start a small business?

The answer to this question will depend on the type of business you want to start and where you’re located. Some businesses, such as restaurants, will require a special permit or license to operate. Others, such as home daycare providers, may need to register with the state.

How much does it cost to create a business?

The cost of starting a business will vary depending on the size and type of company you want to create. For example, a home-based business will be less expensive to start than a brick-and-mortar store. Additionally, the cost of starting a business will increase if you need to rent or buy commercial space, hire employees or purchase inventory. You could potentially get started for free by dropshipping or selling digital goods.

How do I get a loan for a new business?

The best way to get a loan for a new business is to approach banks or other financial institutions and provide them with a business plan and your financial history. You can also look into government-backed loans, such as those offered by the SBA. Startups may also be able to get loans from alternative lenders, including online platforms such as Kiva.

Do I need a business degree to start a business?

No, you don’t need a business degree to start a business. However, acquiring a degree in business or a related field can provide you with the understanding and ability to run an effective company. Additionally, you may want to consider taking some business courses if you don’t have a degree to learn more about starting and running a business. You can find these online and at your local Small Business Administration office.

What are some easy businesses to start?

One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms such as Amazon or Etsy.

What is the most profitable type of business?

There is no one answer to this question because the most profitable type of business will vary depending on a number of factors, such as your industry, location, target market and business model. However, some businesses tend to be more profitable than others, such as luxury goods, high-end services, business-to-business companies and subscription-based businesses. If you’re not sure what type of business to start, consider your strengths and interests, as well as the needs of your target market, to help you choose a profitable business idea.

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Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.