mobile app development business plan

How to Write a Mobile App Business Plan + Free Template

Anthony St. Clair

11 min. read

Updated February 7, 2024

Free Download:  Sample Mobile App Development Business Plan Template

When Apple released the first iPhone in 2008, it also launched its App Store—with about 500 apps. Nowadays, the number of apps on the Apple App Store and the Google Play Store totals about 5 million. If apps were people, they’d outnumber the population of Los Angeles.

Sure, the “gold rush” days of app development are long behind us, but building apps remains a solid way to bring useful or entertaining services to market. An app can also be part of a narrow or broader business strategy.

But with so much competition, building a profitable, successful app takes more than just an idea and a team of mobile app developers. You need a business plan to help guide your vision and implementation. This article will cover the steps to create your mobile app business plan, along with some tips to run it successfully. 

Need more guidance? Download our free mobile app development business plan for a full business plan outline that you can use to inspire your own plan.

• How to write a business plan for a mobile app

A business plan can be as short or extensive as you need it to be, and not a page more. In fact, you could launch a successful business based on even a one-page plan for your app development firm.

Writing a business plan for your mobile app business comes down to thinking through where you are with your app idea, what you want to accomplish, and how you think you will get there. A good business plan gives you both a starting point and a road map, but you can always review it and update it as you go.

At its heart, that’s all your app business plan needs to do.

Here are some of the key things your mobile app development business plan should include.

1. Determine what kind of app you will develop

Competition and opportunity co-exist throughout every app sector. If you’re still trying to decide where you might want to target your app development , strong contenders and trending app verticals include:

• Productivity
• Shopping (mobile-specific and general eCommerce)
• Health and Fitness
• Personalization

The sector you’re developing your app for influences the type of app you’ll want to build. For example, will you code for Apple iOS, Google Android, or both? Will you focus on a web or hybrid app? Is the app an extension of a website or other business channel? 

You’ll need to have this information defined up front in order to conduct proper research and easily write your business plan . 

2. Conduct market research and identify competitors

It’s one thing to have a good idea for an app. But the real question is, does the idea have a market that will be hungry to buy in?

As you develop your business plan, understanding your potential customer base is key.

For starters, evaluate similar apps and competitors in the vertical you are developing for—especially if there is already an app doing something that you want your app to do. As you conduct research and put together a market and competitive analysis, be sure to think through the following questions:

• Who are their customers?
• Are they the same ideal customer and target market ? 
• What steps will your company take to engage the market and involve them in testing and promotion? 
• What are the demographics (such as profession, age, or sex) and psychographics (such as opinions, hobbies, and lifestyle goals) of your target market? 

If you don’t understand the market for your app, it will be difficult to get them to find, install, use, and tell the world about your app.

Researching the market and your competitors can also clue you into expected app features, pricing and revenue models, gaps in services, and pain points that customers feel aren’t being met.

Understanding these factors can also help your business plan address a potential threat to your app’s viability: abandonment. User retention can be challenging throughout the app market, with 25% of customers using an app one time and then ditching it. So, be sure that you take into account how to attract new customers as well as how you’ll keep them around.

3. Positioning and promotional strategies

Once you’ve proven the market demand for your app’s concept, you should start figuring out how to promote your app and position it in the marketplace. Your business plan doesn’t have to include a detailed marketing plan . But it can be the perfect place to set up a few essentials that can guide your app’s marketing throughout its development and release cycles.

At a minimum your plan should include foundational messaging for pitching, branding, mission, and your overall sales and marketing strategy for your app, such as:

Develop and refine your elevator pitch

How concisely can you get across what your app does, why it’s needed, and what will make people love it? Can you talk up those key points with anyone from potential investors to your ideal customer, developers, and engineers to your mom and your best friend?

Examine how you’ll build awareness, interest, and need for the app

Will early testers be part of your outreach? Will you work with social media influencers, traditional media, or celebrity endorsers? How will you articulate the problems your app solves or the joy it provides?

What are some of the branding and marketing tasks your startup will pursue? 

For example, what is the company name? The app name? How will you engage your market on the social media platforms they like to spend time on? What original supporting content will attract the interest of your key audience?

In your business plan, it’s essential to understand your startup from the point of view of a founder and key player. But the marketing and promotional components of your business plan help you see your app from the point of view of an outsider, such as a customer or investor. The better you understand these other points of view, the better you can develop your messaging, build your app, and make it a success.

Free Mobile App Business Plan Template

Use this proven business plan example to successfully launch a competitive mobile app development business.

Download Now

4. Startup costs, financials, and pricing

Figuring out the potential startup costs for your app is not a one-size-fits-all equation. Generally, these are some of the factors to consider as part of your financial plan .

Platform development

Expect different development costs when developing for iOS, Android, or both. Your process will include defining a function, outlining what you need for your MVP, wire-framing, coding, testing, designing, and more.

Internal employees or outside contractors? 

If you’re planning to build up a full-on firm with employees, benefits, and offices, you will be looking at a different cost structure than if you want to outsource to a contracted development company or work with a freelance team that’s not employed by your app startup. That team may need pros in charge of mobile and backend development, design, QA, customer support, design, marketing, managers, and more.

The resources you have and the resources you need

How long it’ll take to develop and release your app depends in part on the resources you have access to.

Successful apps monitor and improve. Did the app crash? Is it scaling sufficiently to handle increases in use and load? What usage metrics are you monitoring and analyzing? How will you need to update the app to deal with OS updates?

By understanding these and other potential costs, you can develop a budget in your business plan. For more in-depth financial considerations, you should develop forecasts to gauge costs, future cash flow , and how your app company might grow and change over time by hitting release and growth milestones.

5. Development milestones

The release of your app is a milestone that’s farther down the road. In the meantime, you’ll be developing milestones that reflect major accomplishments in the development process. Your business plan can reflect some of those milestones, such as:

• Production of key features and functions
• MVP completion
• Testing and refinement
• Acceptance of app in app stores
• Achievement of sales and adoption goals
• Implementation of new features and versions

Remember, app development takes time. Focus your initial milestones on pre-release goals. From there, you can set and work toward post-release milestones that can pave the way to future growth, releases, and profits.

• Mobile app development tips for startup growth

As you develop your mobile app’s business plan, here are a few other tips and considerations to keep in mind.

Native, hybrid, or web?

Creating apps tailored to each OS—Apple and Android—can cost the most to develop, but also can maximize your app’s performance. The better the performance, the most adoption and use you could see in your target audience. 

At the same time, other apps work solely on the web, and others are developed as hybrids. Hybrid apps can help you manage team and development costs, but they typically can’t take full advantage of each OS.

As a rule of thumb, typically the more complicated or intense the app’s function, the better it tends to be to develop a native app. Lightweight functions may work fine in a web or hybrid environment.

Security and privacy

Privacy and security are at the forefront of customers’ minds as well as industry discussions around app business models. If you are developing for regulated industries—such as health care or financial services—there may also be legal privacy and security requirement to adhere to.

Decide on a platform: Apple, Android, or both?

If your target market is predominantly on one OS, that can guide your development decisions. Developing for both platforms requires more resources, but can give you the benefit of maximizing your ability to develop the app for each OS, and reach the most customers. Another option to consider is launching on one platform and adding another over time, depending on milestones in your business plan.

Offline vs online

A growing consideration in today’s app development firms is whether the apps can only function online, or if it can function offline too. Some level of offline function—and messaging that the app is offline—can make for better customer satisfaction, since users will have access to at least some features regardless of their internet connection.

For example, Google Maps can download route information so a user still has the mapping and some functions, even if they enter a remote location or go through an area where they don’t have a cellular or wifi signal. 

Walking users through what they can and can’t do offline, and how functions can be completed or data can sync once online again—can also go a long way to winning trust and loyalty from your app’s users. You’ll also want to determine if the offline function is something you develop as part of the launch, or if you roll it out in a later version.

Revenue model: Free/freemium, subscription, in-app purchases, ads, or a combo?

Apps can drive revenue in many ways. A common strategy is a freemium model: Offer a free baseline app, but other features can be unlocked with purchase or subscription.

Subscription models (usually with a tie-based free trial period) have also become increasingly popular in companies, and they are finding broad acceptance in the market. An app can also drive revenue by being a mobile commerce tool, helping customers complete a transaction from the convenience of their phone instead of having to go to a browser, non-mobile device, or other fulfillment channels.

Some apps are only available for purchase, often as a way to showcase an app’s superior or unique place in the market. Once purchased, though, other revenue models can come into play. The popular game Minecraft is a prime example: Customers purchase the app, but the Minecraft Marketplace offers in-app purchases to further customize the game.

Test properly before launch

If your app doesn’t work at launch, it may never recover from that stumble.

As the app reaches development milestones, ongoing testing can help you find and resolve problems before you have to deal with them in the deployed product. Conducting extensive testing across various devices, users, and OS versions can help you catch problems before they harm your new app—and your startup’s viability and profitability.

• Download your free mobile app development business plan template

Our free mobile app development business plan can give you the template you need to start setting up your business plan—and your business. It’s just one of hundreds of free sample plans that have been time-tested by our team and by thousands of entrepreneurs all over the world.

The question is simple: What mobile app development business will you create? Whatever it is, your business plan can help you get there. Download your free plan now and get started.

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Anthony St. Clair is a business copywriter, author of the Rucksack Universe travel fantasy series, and a craft beer writer specializing in Oregon. Learn more at anthonystclair.com.

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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.

Mobile App Business Plan Example

Below are links to 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 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, history of the company, monetization strategy and milestones achieved.
• Industry Analysis – From your market research, you will provide an industry analysis. This will include a discussion of the current mobile app industry landscape, 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 – This section 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 target audience, pricing strategy, and promotional activities.
• Operations Plan – The Operations Plan section of your mobile app business plan will describe your business operations.
• Management Team – The Management Team section will provide information on the management members of your 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 Companies?

There are many types of mobile app companies across a variety of categories. There are mobile app companies 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 companies 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 companies 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 companies 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 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.

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How to Start an App Business in (2024): Step-by-Step Guide

Free Mobile App Business Plan Template

Matthew Khalili

19 Min Read

Are you a startup enthusiast with a brilliant business idea? Or do you want to expand your current business by getting digital?

Well, whatever your motivation is, developing an app is a promising way to translate your business idea into a successful business.

An average American adult spends nearly 88% of their total phone time on mobile apps. This leaves ample space for mobile app businesses to flourish, grow and develop.

Now, don’t let your lack of technical expertise stop you from starting an app. It is possible to not only start an app business but turn it successful if you follow the proper way.

If you are wondering how to start an app business, this blog is a perfect guide.

So without any further ado, let’s get started.

How much money do you need to start a mobile app business?

The cost of starting a mobile app in the US varies between $38,725-$267,850 and more. However, the cost can extend up to $500,000 or more depending on the complexity and scope of your SaaS app.

These costs are highly influenced by factors such as development costs, the complexity of the app, location, and much more.

Pros and Cons of Starting a Mobile App Business

Starting an app business is indeed a rewarding venture. However, like every business, there are both pros and cons to starting a mobile app company.

• Global reach: Easier to tap into the international market and capture a worldwide audience.
• Scalability: Easy scalability to accommodate more features, users, and new trends.
• Low overhead: Less operational and overhead expenses.
• Competition: Intensely competitive marketplace with millions of existing apps.
• Rapid technological changes: Demands constant updates to stay relevant.
• Monetization challenges: The easy availability of free apps makes vcc3 monetization difficult.

A Complete Guide to Starting an App Business

Table of Contents

• Research and validate your app idea
• Brainstorm a mobile app name
• Create an app business plan
• Secure seed funding for your app business (optional)
• Choosing a mobile app development platform
• Develop an app
• Register your app business
• Apply for business licenses and permits
• Get business insurance
• Apply for a bank account & business credit cards
• Pre-launch and mobile app marketing strategy
• Develop a monetization plan
• Build a team as you grow
• Make your app available in app stores
• Release timely app updates

Developing an app might be easier. However, starting a successful app business isn’t. Let’s uncover every detail that goes into starting an app business, right from idea validation to gathering user feedback to testing new ideas.

1. Research and validate your app idea

The first step in creating a sustainable cutting-edge application is to conduct a thorough market research. The quality research at this step will essentially lay the foundation for the success of your mobile application.

Ensure cover a detailed analysis of the following to create a fresh, innovative, and problem-solving solution for your audience:

• Target audience: Identify your target users and analyze their pain points with current solutions. Assess the market size for your solution and determine your targeted available market (TAM).
• Competitors: Identify your potential competitors and assess their standing in the market. Discover problems with their mobile apps and see if your solution fills the gap.
• Failed application analysis: Don’t only choose a successful app for your analysis. Look after failed applications and see where and what they did wrong to avoid the same mistakes in your application.

At this step, simultaneously, you will also work on validating your mobile app idea. The idea behind this entire analysis is to ensure that you chase a problem that’s real and demands a solution.

Instead of jumping in with the first idea, it is better to ideate, analyze, and then finalize an app idea that is better than the rest. Remember to give every idea an equal chance before scraping it off entirely.

Find an appropriate product-market fit for the validated idea and rework the areas where there is a scope for improvement.

Now, with your validated idea move ahead and brainstorm a name for your mobile application.

2. Brainstorm a mobile app name

Before you move to complex parts and start development, finalize the name of your mobile application. However, finding the right name is a struggle in itself.

Now, if you are already operating as a successful business, launch your app with the same name. This will make it easier for your existing customers to find you.

However, if you are launching a new business, here are a few suggestions that can help you brainstorm the perfect name for your app development company:

• Brainstorm the keywords that reflect your business offering. For instance, if you are launching an app in the health and fitness segment, include related keywords in your app name.
• Choose a simple, easy-to-recall and easy-to-spell name.
• Choose a short name. Different app stores have character limits. So better brainstorm the ideas within that range.
• Don’t use heavy jargon or phrases in the name.
• Use online name generators to find name ideas.
• Ask for suggestions from creative people in your social circles to finalize a perfect name.

Overall, keep your brand values and its value proposition in mind and find a name that’s a reflection of those values.

Also, ensure that the name is unique and is available for registration. If you are planning to register the business with some other name, finalize that as well.

Want a Unique Name for your Mobile App Business?

Generate a brandable and catchy business name in seconds with our free business name generator for mobile app businesss.

3. Create an app business plan

From determining the business strategy to executing app development to financing to launching the application and marketing- a lot needs to be planned, executed, and monitored while starting your own app.

Creating a mobile app business plan ensures that you understand the market thoroughly and have every step figured out to withstand the changing tides of the mobile app industry.

Moreover, if you are planning to raise funds for your mobile application, having a well-crafted app plan will give you the edge over other app developers.

Wondering what goes into writing a comprehensive app plan? Here are the most crucial components your business plan must include:

• Executive summary
• Business Overview
• Mobile app industry analysis
• Mobile app services
• Marketing and sales strategy
• Operations plan
• Key management team
• Financial plan

Writing a cohesive actionable business plan is a taxing job. It requires in-depth detailing to present your business idea thoroughly.

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4. Secure seed funding for your app business (optional)

Now, you need money for app development and other activities to turn those ideas into a reality.

Assess your monetary position and check if you require additional funds to start with the mobile app development. If so, how much?

Seek out a small loan from family members and friends to avoid any burden of repayment and high-interest rates initially. However, if that’s not the choice, identify the available funding sources and determine the best options for your needs.

Here are a few options for you to consider:

• Crowdfunding
• Angel Investors
• Venture Capitalist firms
• Credit card financing

If you are planning to seek funding from investors, you need to present a pitch of your business idea. For a certain stake in your business, they will provide you with equity.

However, you can always start small and seek funding from outside as you scale the app further.

5. Choosing a mobile app development platform

To begin the app development, first, finalize the ideal platform for your mobile app. All the mobile apps in the market have used one of these 3 app development processes to create apps:

Native apps

Native applications are developed to run on specific devices and operating systems. Such apps have access to the native device’s API, thereby, allowing you to build high-performance apps with a highly refined interface.

These apps are expensive to develop since you need different outputs for different operating systems. But they can be found easily by your target users for downloading. For reference, 80% of mobile traffic is generated through Native mobile apps.

Undertake the market research to gather an in-depth understanding of both the app stores- Apple App Store and Google Play Store. Assess the number of Android apps and iOS apps and the market share and revenue position of these platforms to make an informed choice.

For instance, as of 2023, there were more than 3.6 million Android apps and 1.8 million iOS apps on Play Store and Apple Store respectively.

Identify if your potential app users use Android or Apple devices and also consider the suitability of your native app with a respective operating system.

PWA (progressive web apps)

PWA is a hybrid of web pages and mobile applications. It is a web app that offers users a similar kind of experience to native apps.

These apps require no download and are indexed on search engines. They don’t require access to native device APIs to perform and are perfect for app businesses that require frequent updates.

It’s easier to target more customers with PWA than a native app and it is comparatively cheap to develop.

However, since the PWA’s don’t use native device’s API, it has a comparatively low performance in terms of features compared to native apps.

Lastly, there is an option of hybrid apps for you to consider. An app builder will help you build a cross-platform app for both platforms simultaneously using the same code.

Successful app business launches both Android app and ios app of their app to cater to a larger target audience.

Now allocate the resources depending on the app development method you choose.

6. Develop an app

Have you planned to develop a native app? If so, are you planning to develop an Android app, or iOS app, or both?

After choosing between native, PWA, and hybrid apps, it is now time to gather the resources and start working on the app development.

Here are 3 different methods to choose your development method:

Build your own app

This is perhaps the best method of cost-effective development, if you have proficiency in different programming languages, prior experience in building your own apps, and some time to invest.

Hire a freelancing app developer/ app development agency or an in-house team of app developers

If you are someone with no technical background, you need a bunch of people to undertake the development of your app ideas.

This method is costly. However, you can expect to have complete control over your product and its development.

Use an app builder

Similar to content management systems like WordPress, an app builder allows you to build a website without writing a single line of code. Watch how the user interface of your app turns out while the app builder builds it in real time.

As much as you focus on development, also draw your attention towards delivering a delightful user experience. Hire designers to help you attain a modern and intuitive user experience.

It takes anywhere between 6-10 months to turn your app ideas into a successful product. Follow this app development process to get a structurally correct product:

• Develop a minimum viable product
• Develop a wireframe
• Choose your programming language
• Start the coding
• Work on app design
• Test the app

Now, create a timeline for the launch and get the actual product ready.

7. Register your app business

Now, it’s time to give your mobile app business a legal identity. Register your business in these easy steps:

Select a business entity

A business entity is the legal structure of your business. The business structure you choose will determine the taxes, liabilities, and state regulations of your business.

Here are a few different entities you can choose for your mobile app business:

• Sole proprietorship
• LLC (Limited Liability Company)
• Partnership
• Corporation

Now, each of these entities has its own benefits and cons. Identify the suitable entity structure for your mobile application after thorough consideration.

LLCs and Corporations are more suited for businesses in a way that separates you from your business and keeps your liabilities under control.

Also, consider what are the prevalent business structures if you want to acquire funding from investors.

Apply for tax registration & business EIN

Now, quickly proceed with tax registration and get an Employer Identification Number (EIN) through an IRS portal .

The 9-digit EIN is like a social security number that allows you to open business bank accounts, apply for credit cards, fill the tax forms, and pay salaries.

Once the registration is complete, you go ahead and acquire the essential licenses and permits.

8. Apply for business licenses and permits

Business licenses and permits ensure that your mobile app business is legally compliant and sound. Depending on the nature of your app, its industry, functionality, and the area of operation; research and identify the essential licenses for your business.

Here are a few licenses and permits you must acquire for the mobile app business:

• Industry-specific licenses: Depending on your industry, i.e. gambling, healthcare, beauty, fashion, etc. get the licenses required in that specific trade.
• Zoning permits: If you are getting a commercial place for your app business, get essential building permits. Even if you are going to operate from home, check if your state requires zoning permits for home businesses.
• Software development license: Depending on your state of operation, you may be required to get a software development license to commence development.
• Sales tax permit: To sell physical and digital products, you may need a sales tax permit to accept and remit sales tax.
• Data protection and privacy compliance: Since you will be collecting personal and sensitive information from the users, you will be required to follow data privacy compliances applicable to your business—for instance, CCPA, GDPR, etc.

Hire a professional to look after these matters. Non-compliance with any rule may lead to extremely high penalties and fines.

9. Get business insurance

Insurance is not essential for compliance. However, it will safeguard your business against potential casualties and risks involved in the business.

Here are a few insurance you must consider getting:

• General liability insurance: If there is one insurance you must get, it is this. It offers protection against property damage, injuries, and a variety of business aspects that require coverage.
• Professional liability insurance: If you are going to provide services with your app, get yourself this insurance. It will protect against claims of professional negligence.
• Worker’s compensation insurance: For an app development business that will hire employees on a salaried basis, this license is mandatory. It’s a coverage plan for your employees.
• Cyber liability insurance: Since your business is going to operate in a digitized space, you need a license that protects your business in case of a security breach or leak of information.

Consider your requirements and acquire industry-specific insurance for your mobile app business.

10. Apply for a bank account & business credit cards

Set up a separate accounting system to keep your business and personal expenses separate. This will help you maintain your finances and will also ease the process of filing taxes.

Using that EIN number open a business bank account. Determine the best banking system that will work for your business. And also, apply for a business credit card.

Consistent credit card use will build your credit history and will help acquire loans in the future.

11. Pre-launch and mobile app marketing strategy

Making a perfect app is not enough. It needs to be marketed to the right audience through the right tactics to get traction and downloads.

Start working on your branding and marketing strategy before your app hits the app store. All the buzz and hype you create at this stage will help you when the app actually makes a launch.

Here are the marketing elements you should get in line with before launching your app on the app store:

• Clearly define your branding elements. What kind of image would you like to create in the market? Develop the app’s logo, designs, colors, and overall user interface keeping the branding in mind. Also, ensure that you deliver a consistent brand image through all your marketing channels.
• Identify where will you find your target audience. Will they be more responsive to social media or emails? Do they prefer written content or video content? Are they approachable through any offline channels?
• Create a landing page to promote the app and its features. A well-built landing page with correct strategic placements can be an invaluable asset in getting the desired outreach.
• Get in touch with influencers from your industry and collaborate with them to market your app.
• Create a content bank of content that can be reused for multiple purposes.
• Participate in industry-specific events and seminars to get in touch with your people.

Be generous with the marketing budget and put your app marketing plan into action.

Lastly, never put all your eggs in one basket. Try different marketing strategies and eliminate the non-useful ones as you monitor and analyze the results.

12. Develop a monetization plan

Are you planning to make money directly or through your app? If that’s the case, start thinking about a suitable app monetization model.

Here are a few methods popularly followed by other apps on iOS App Store and Play Store.

• In-app purchases: In-app purchases are for businesses that aim to sell physical or digital products through apps. Consider them as e-commerce apps that facilitate sales for your products.
• Freemium: These are downloadable free apps on the app store. However, only certain contents of these apps are free.  In this method, you earn when a user pays for paid content after using the free version.
• Subscription: You generate weekly, monthly, quarterly, or annual revenue by getting repeated subscriptions for your services.
• Paid apps: These apps aren’t available for free download. The user pays a certain fee to download the app and access its content.
• In-app ads: You can generate revenue by renting out advertising space on your app. However, ensure that you don’t sacrifice the user’s experience in this chase.

Each of these monetization models has its advantages and disadvantages. Identify the monetization methods used by your competitors or applications offering similar services. And plan your strategies accordingly.

13. Build a team as you grow

Don’t build a large team right from the beginning. Ideally, get the basic development of your app through freelancers or remote app developers.

Depending on whether you plan to launch an app on the Apple app store or Google Play Store, you will hire professional experts in respective programming languages.

Focus on a small but highly qualified team. Get the work like accounting, legalities, and marketing outsourced.

App development is a costly affair. You better plan the entire development process hourly to keep track of project completion.

14. Make your app available in app stores

You have come a long way. From undertaking market research for your app idea to preparing MVP and developing the app, you finally have your app ready to be launched.

Now you work on your app store optimization to make the app discoverable on app stores. The app market is intensely competitive. Whether you plan to launch an app on Apple’s app store or Google Play store, an optimized app stands a higher chance of being organically visible.

Here are a few things to consider while performing app store optimization:

• App name: Optimize your unique app name within its character limit. The character limit for an iPhone app is 50 while that for an Android app is 30.
• Keyword optimization: Add the relevant search terms of your app to make it easily discoverable.
• App icon: Use a clear distinct icon to your app to create a recalling power.
• Description: Add a captivating description of your app describing its features and benefits. Use bullet points, headers, and subheadings to keep the information easily scannable.
• Screenshots: Add important screenshots from your app design to help users understand what they can expect.
• Video: Add a video of your web app defining its clear purpose, message, and value proposition to connect with the users.

Manage your app store optimization by understanding the requirements of different platforms and making your apps available on app stores.

15. Release timely app updates

Launch the app as soon as your MVP is ready. Don’t wait for the development to end so that you have all the features ready. Focus on essential features and deliver them with your MVP.

Test the app on early adopters and gather the user data for performance on different mobile devices. It will provide invaluable user feedback from further development.

Launching the app is not the end of your app-building process. You need to regularly roll out updates, fix the bugs, and run beta testing of new features to stay ahead in the app market.

Ideally, an app development company should roll out new updates every 3 to 4 months.

Time to take the first step and validate your app idea. Already validated? Well, let’s build a solid foundation for your business idea by writing a stellar app business plan.

Writing a plan will ensure that there is no oversight in app planning and you get a clear direction to run your app business.

Upmetrics offers 400+ sample business plan examples for businesses from varying industries. These examples are perfect for writing a detailed and comprehensive business plan.

Now use our Upmetrics app business plan sample and get started.

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

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

Frequently Asked Questions

Do i need technical skills to start an app business.

Yes, you can start an app business without any technical skills. There is a variety of app maker that allows you to build an app with simple drag-and-drop options. Moreover, you can always hire a technical partner to look after app development and its complexities.

What platforms should I target for my app (iOS, Android, both)?

Whether to make an Android or an iOS app or launch an app on both platforms, depends largely on your target audience. Conduct research and understand whether your app users will belong to the Android or iPhone cohort. If you can generate a reasonable user base from both platforms, you can consider making a hybrid app.  

How do I create a business plan for my app startup?

To create a business plan for your app startup, begin by undertaking thorough and detailed market research. Now, translate your ideas onto a paper covering the key fundamentals of a plan. Writing a plan can be difficult. So, it’s better to use templates and plan builders that will help you write a compelling actionable plan.

What are some common mistakes to avoid when starting an app business?

Here are a few common mistakes to avoid when starting an app business:

• Working on too many ideas
• Delaying the launch
• Not marketing it enough
• Not paying enough attention to the user interface

How can I secure funding for my app startup?

Apart from personal savings, here are a few funding options for you to consider:

• Venture Capital Firms
• Credit line
• Friends and Family

How can I monetize my app and generate revenue?

Here are a few ways to generate revenue through your mobile app:

• Offering a freemium model.
• Offering in-app purchases for additional access and services.
• Making it a paid app.
• Generating revenue through ads in your business.
• Getting sponsorships on the app.

About the Author

Matthew Khalili is an experienced business planning expert and the founder of The Plan Writers. With over a decade of experience in the field, he has helped numerous entrepreneurs in creating investor-ready pitch decks and business plans. Matt has enabled 5000+ startups to raise over $1 billion through his business plan, market research, and financial modeling services. Read more

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Popular Templates

How To Write a Winning Mobile App Development Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for mobile app development businesses looking to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every mobile app development business owner should include in their business plan.

Download the Ultimate Mobile App Business Plan Template

What is a Mobile App Development Business Plan?

A mobile app development business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Mobile App Development Business Plan?

A mobile app development business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Mobile App Development Business Plan

There are a few key components of a successful mobile app development business plan.

Executive Summary

The executive summary of a mobile app development business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your mobile app development company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your mobile app development business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your mobile app development firm, mention this.

You will also include information about your chosen mobile app development business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a mobile app development business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the mobile app development industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a mobile app development business’ customers may include small businesses that need an app to increase their customer base and reach new markets.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or mobile app development services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your mobile app development business via word-of-mouth or by exhibiting at trade shows.

Operations Plan

This part of your mobile app development business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

You also need to include your company’s business policies in the operations plan. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a mobile app development business include reaching $X in sales. Other examples include developing new products or services, launching a new website, hiring new employees, and so on.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific mobile app development industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you ar e missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Mobile App Development Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Mobile App Development Company

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup mobile app development business.

Sample Cash Flow Statement for a Startup Mobile App Development Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your mobile app development company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is essential for any mobile app development company. It can attract investors, provide clarity and direction, and keep you organized and on track as you grow your business.

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With our Ultimate Mobile App Business Plan Template you can finish your plan in just 8 hours or less!

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Guide to writing a business plan for a mobile app business

✓ Updated on 25 April 2024

Mobile app business plans

Thinking of developing a mobile app? Done properly, app development requires a significant investment of time, money and resources. And therefore some careful consideration before you proceed. 

Writing a business plan for a mobile app business, in advance of any development, can really help to clarify your vision as well as identify the steps you need to take to maximise the return on your investment.

We’ve written about how to make an app . But in order to make sure your app pays for itself and provides an income , you really need to make sure you have an app business plan in place.

How to write a business plan for an app:

Make sure you’ve taken the right factors into account

What problem are you aiming to solve with your app?

It’s vital to understand what your competitors are already doing – and how your app will improve on this

Think about your app’s USP and how it benefits your users

No matter how good your mobile app business idea, good financial management will ultimately be key to its success

You will need to give some considerable thought to how you plan to market your app

1. Decide what to consider when writing a mobile app business plan

Mobile apps are continuing to grow in popularity year on year – in fact, mobile apps are projected to hit $188.9 billion in revenue by 2020 – up from just $88billion in 2016 ( Statista ).

It doesn’t seem entirely unreasonable to wonder  what the future holds for mobile apps  – and whether the market is already saturated.

And yet technology is constantly changing (think about the rise of voice-based apps such as Google Home, Amazon’s Alexa and Apple’s Siri for instance) along with consumer habits and expectations. 

So there is no doubt that the demand is still there for apps that can genuinely be shown to be more innovative and more engaging than their competitors.

Whatever your business, writing a business plan takes time. But it’s an iterative process can and one that can be hugely helpful in clarifying exactly what you want to achieve in the development of your own app.

So what are some of the key points you might want to consider when putting together a business plan for your mobile app?

To get you started, here is a app business template:

App business plan template

• Executive summary
• Company overview and business goals
• Industry analysis
• Customer analysis
• Competitive analysis and market research
• Marketing strategy plan
• Operational plan
• Management team (if you have one!)
• Financial plan and forecast

2. Define what kind of app do you want to develop

It is tempting to rush into the development of an app simply because other businesses similar to yours already have one.

But it’s worth giving some genuine thought to the ‘problem’ that you aim to solve with the creation of an app.

Businesses build apps for all sorts of reasons, such as branding, improving customer engagement, direct marketing etc. 

But as online publishing platform  Medium  says “Ultimately an effective mobile strategy involves more than just a mobile friendly website.”

3. Research your market

Once you have identified  why  the marketplace needs you to develop the app, it is vital to understand what your competitors are already doing – and how your app will improve on this.

When  conducting market research , you should look at both primary and secondary data and consider key information such as include the size of your market as well as a thorough understanding of pricing. 

A  SWOT analysis  can be useful for understanding your business’ Strengths, Weaknesses, Opportunities and Threats. 

LivePlan  explains “Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.

“Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.”

Building on this, there is also a value in conducting a  PEST analysis  to look at macro economic factors that may influence your business.  These are opportunities and threats due to Political, Economic, Social, and Technological forces. 

Pestle Analysis  explains these four areas in more detail: 

• Political   Here government regulations and legal factors are assessed in terms of their ability to affect the business environment and trade markets. The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
• Economic   Through this factor, businesses examine the economic issues that are bound to have an impact on the company. This would include factors like inflation, interest rates, economic growth, the unemployment rate and policies, and the business cycle followed in the country.
• Social   With the social factor, a business can analyze the socio-economic environment of its market via elements like customer demographics, cultural limitations, lifestyle attitude, and education. With these, a business can understand how consumer needs are shaped and what brings them to the market for a purchase.
• Technological   How technology can either positively or negatively impact the introduction of a product or service into a marketplace is assessed here. These factors include technological advancements, lifecycle of technologies, the role of the Internet, and the spending on technology research by the government.

4. Define your app’s unique selling point (USP)

So what problem does your app actually solve? What makes it different from all the other apps out there? Any why will someone download your app rather than another, similar one?

Identifying your app’s unique selling point (USP) is a useful exercise in really understanding what you plan to do that’s different to everyone else. 

It can also help you develop an ‘ elevator pitch ’ – a 20 second, one or two line summary that comprehensively explains your product. And which could, as the phrase suggests, be articulated to a potential investor between the floors of a buildings – should you be lucky enough to find yourself in a lift with someone on the lookout for your product! 

5. Understand your budget and how your app will make money

No matter how good your mobile app business idea, good financial management will ultimately be key to its success.

How, for instance, are you going to make money from your app? You might decide on a freemium model, where basic features are free but full functionality is hidden behind a paywall. You might prefer in-app advertising. Or your app might be for solely for in-app purchases. 

It is reassuring to know that  it is possible to develop a mobile app on a tiny budget  – but that budget still needs careful management.

Alongside all the usual business plan financial headings, you should also consider costs that are specific to app development. 

These can include customer acquisition cost, which  Appster  elaborates as cost per app install or CPI, suggesting “If you want to go one level deeper and be more exact, find out the cost per activation, keeping in mind that there will be a percentage of users who might install the app, and then uninstall it without engaging with the app.”

6. Decide how you plan to market your app

Developing an app is one thing but getting it to arguably saturated marketplace, with good take up is quite another.  

You will therefore need to give some considerable thought to how you plan to market your app once it is built (and possibly even before you have launched it). 

And so taking the time to put together a  marketing plan for your mobile app business  can pay dividends after launch.

Looking for a hand with writing a business plan for your mobile app business?  

If you would like a steer developing a business plan for your mobile app business, then the team at Creative.onl would love to help.

We are a friendly bunch with expertise across all of the following areas: 

• Digital strategy 
• UX design 
• App development
• Web development 
• Responsive web design
• Graphic design
• Video animation 
• Marketing support 

And we would love to help you with any aspect of your digital marketing strategy.

Whatever you are looking for,  get in touch with Creative.onl  to talk through the creative process.

App business plan FAQ

A mobile app business plan is exactly what is sounds like: a business plan, created specifically for a business based on launching a mobile app. Any startup business should have a business plan, and mobile app businesses are no exception.

Follow our 6-step process, and include the following 9 sections: • Executive summary • Company overview and business goals • Industry analysis • Customer analysis • Competitive analysis and market research • Marketing strategy plan • Operational plan • Management team (if you have one!) • Financial plan and forecast

If you feel that you have the expertise then you can go ahead and write your own app business plan yourself, without spending a penny: totally free. Or if you’d like some professional help, you can commission an app launch specialist like Creative.onl to write one for you: this might cost anything from £500 to £5000, depending on the level of support needed.

Every business is unique, whether it’s a mobile app business or otherwise. So this means that every mobile app business plan is also one-of-a-kind of tailored specifically to the business in question. But having said that, most app business plans follow the rough format we detailed, with emphasis added or removed from each section.

Send us an email to [email protected] and let us know what you need, we should be able to provide you with a PDF template.

✓ Reviewed by Joe Dawson , Managing Director

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 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.

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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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How to Start a Mobile App Business in 14 Steps (In-Depth Guide)

Updated:   February 9, 2024

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The global mobile app market is expected to be worth over $935 billion by 2023 as more businesses and consumers continue adopting mobile solutions. With over 204 billion mobile app downloads in 2019 alone and increased time spent in apps, it’s an opportune time to build a business in this industry.

You can target various segments from gaming and entertainment apps to business and productivity solutions. Identify an audience need, develop a minimum viable product, and validate it before going to market. Refine based on user feedback for product-market fit.

This guide will walk you through how to start a mobile app business. Topics include market research, competitive analysis, registering your EIN, obtaining business insurance, marketing, customer outreach, and more.

1. Conduct Mobile App Market Research

Market research is essential to building a mobile app business plan. Market research offers insight into your target market, market saturation, and even where to launch your app, including the Google Play Store or the Apple App Store.

Some details you’ll learn through market research include:

• The average user has over 100 apps installed and uses around 30 of them each month.
• There are over 5 million apps across Android and iOS app stores.
• User acquisition costs remain relatively low compared to other channels.
• Cost per install can range from $0.10 to $2 for non-gaming apps. Mobile video games are also incredibly popular across both major platforms.
• There are various app monetization models including advertisements, in-app purchases, subscriptions, and transactions/bookings.
• Business models catering to productivity, communication, social networking, entertainment, and gaming are particularly lucrative.
• Apps focused on e-commerce, fintech, health & fitness tech, online learning, and remote work have seen strong growth.
• To build a large, sustainable app business, the key is to drive high user retention after the initial installs by delivering core value catered to user needs.
• User acquisition remains cost-efficient compared to other channels. Monetization potential is substantial.

With some strategic planning, persistence, and commitment to understanding evolving user needs, the environment is ideal for building an industry-leading, highly scalable, and profitable mobile app business right now.

2. Analyze the Competition

Understanding the competitive landscape is crucial before building your app. This guides development and marketing strategies.

Some ways to research local Android app competitors include:

• Research existing apps in your target category on both Android and iOS stores. Analyze by several installs, ratings, reviews, and rankings.
• Study their user interface and user experience design. Sign up and thoroughly test features and functionality.
• Identify strengths, weaknesses, and differentiation opportunities.
• Check their public profiles to gauge traction like social media followers and engagement.
• See if they have raised any investments by searching press articles or platforms like Crunchbase.
• Search using keywords for their app name and category to find online reviews and discussions providing usage insights.
• Evaluate their go-to-market and growth strategy through app store listing optimization, social media, and online advertising campaigns.
• Assess effectiveness by installing their app through different channels.
• Research monetization models like subscriptions, in-app purchases, or ads.
• Study pricing page layouts and marketing copy effectiveness.
• Analyzing competition along these dimensions will reveal target users, their needs, and experience gaps to help position your app differently.
• It provides pricing guidance and sets customer expectation levels to deliver better value.

Ongoing evaluation even after launching your app is key to rapidly enhancing it based on the strengths competitors build while avoiding their weaknesses around negative reviews, low ratings, or stagnant installs. This market intelligence fuels product development and marketing priorities to sustainably gain market share.

3. Costs to Start a Mobile App Business

Launching native apps takes some startup capital. There are also ongoing costs associated with developing a successful app. Let’s break down mobile app development costs to better understand where your money goes.

Start-up Costs

• App Development – $50,000 to $250,000+ The complexity of your app and choice of developer will impact costs significantly. Basic apps with minimal functionality can be developed for as low as $50k. More complex apps with extensive features built on custom code can cost $250k+.
• Ongoing enhancements, new features, and fixes add more expense over time. Budget at least $25k annually for app maintenance and updates.
• High development costs upfront risk slowing progress if you run out of funds before launch. Consider an MVP first.
• Incorporation & Legal – $750 to $5000 Forming a legal business entity like an LLC provides liability protection. State filing fees are usually under $100 but legal services can cost $500 to $5000.
• Trademark registration for your business and app name can cost another $275 per registration. Complex partnerships may need extensive legal paperwork.
• Workspace Equipment & Software – $3000 to $15,000 desks, chairs, computers, and software for a small team of 2-5 employees can easily cost a few thousand dollars upfront. Cloud services and tooling add more annual expenses.
• Cloud Hosting & Web Services – $1000+ per year Hosting app servers, databases, storage and backups on scalable infrastructure like AWS can cost anywhere from a few hundred to thousands monthly depending on traffic and resources utilized.

Ongoing Costs

• Salaries – $5000+ per month Having at least a technical and marketing co-founder to build and launch the app is crucial. Later, grow your team in areas like design, engineering, analytics, customer support, etc. Average annual developer salaries range from $60k to $130k.
• Marketing & User Acquisition – $5000+ per month Paid user acquisition costs for mobile apps average $2-$4 per install. Budget at least $5k per month as you test channels and optimize conversions. Lifetime value must exceed the cost per install.
• Other fixed costs like office rent, payroll fees, and subscriptions can add up to thousands per month. Be frugal initially and focus directly on app development and user growth.
• Seek funding from angels, and VCs or apply for small business grants/loans if your savings cannot sustain at least 18-24 months of runway. Build traction before raising external capital.

Carefully projecting and tracking both fixed and variable costs from the start is vital to managing cash flows responsibly as you scale your app business .

4. Form a Legal Business Entity

To start a business launching your app, you must first form a legal business entity. There are four main business entities to choose from, including sole proprietorship, partnership, LLC, and corporation.

Sole Proprietorship

Simplest structure with a single owner. There is no formal business registration unless you choose to register a DBA. The owner has unlimited personal liability for debts and lawsuits.

• Pros: No special tax considerations. Profits are passed directly to the owner to include on personal tax returns.
• Cons: Easy to form but high financial risk make sole proprietorships ill-suited for mobile app businesses that require major upfront tech investment and have liability risks around security, privacy, and intellectual property.

General Partnership

Similar to a sole proprietorship but with two or more owners. You can register as a formal partnership for clearer legal status and protections through a Partnership Agreement but this is optional.

• Pros: It still carries major unlimited personal liability. Partnerships can be complex to set up profits/losses sharing or making big business decisions.
• Cons: While convenient for early co-founders to collaborate, establishing an LLC or corporation is better suited as your mobile app startup begins hiring employees.

Limited Liability Company (LLC)

One of the most flexible structures that limits owner liability and combines pass-through taxation with limited personal liability protection for debts and legal judgments.

• Pros: Requires more formal state registration and paperwork plus adherence to strict LLC operating guidelines. But for the liability shield, administrative effort is well worth it for mobile app startups.
• Cons: As your app scales needing more complex operating agreements and ownership changes, forming a C-Corp or S-Corp later remains simpler compared to if you had started as a sole proprietorship or partnership initially.

Corporation (C-Corp or S-Corp)

Most complex and regulated structure but also offers the strongest owner protections and credibility for raising private/public investment needed for larger scale mobile apps.

• Pros: Corporate profits are taxed at both the corporate and personal levels. But an S-Corp election enables pass-through taxation while retaining corporate limited liability protections.
• Cons: Forming a corporation too early can mean excessive legal fees and administrative overhead that delay progress for early-stage mobile app startups. Starting as an LLC filing as an S-Corp later is simpler if needing external capital to grow.

5. Register Your Business For Taxes

An Employer Identification Number (EIN) is a unique nine-digit tax ID number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for tax filing and reporting purposes.

Unlike a Social Security Number which is tied to an individual, an EIN is specifically tied to your business structure like an LLC or Corporation.

Mobile app companies structured as sole proprietorships can use the owner’s SSN for federal tax purposes instead of an EIN but having an EIN adds credibility and makes your business entity distinct even as a solopreneur.

And if you plan to take on employees or contractors down the line, obtaining an EIN becomes mandatory anyway so may as well secure it upfront.

Applying online at IRS EIN Assistant is free and only takes minutes.

You’ll need to provide your mailing address, ownership structure, and number of employees expected in the next 12 months along with their estimated wages and several other details.

The EIN is generated at the end of the application and also mailed to your business address for records within 2-4 weeks.

With the EIN, remember to register for state taxes in the state where your business is located even if selling apps nationwide. Every state has different rules for sales tax collection or remittance responsibilities. State tax IDs are used for local tax filings.

Stay compliant with federal and state tax requirements from the beginning to avoid any penalties or interest charges as your mobile app startup begins generating revenue.

6. Setup Your Accounting

Proper financial record keeping is crucial for mobile app companies to track revenues and expenses accurately as your business scales.

Accounting Software

Using small business accounting software like QuickBooks automatically imports and categorizes transactions from connected business bank/credit card accounts. This streamlines everything from invoicing to tax preparations.

Integrations with payment gateways also easily record customer app purchases. Dashboards provide real-time insights into cash flow, profits, and loss statements.

Hire an Accountant

While software handles much of the heavy lifting, working with an accountant from the start provides experienced guidance on specialized topics like:

• Setting up payroll, contracts, and payments to any remote developers, designers, or marketing freelancers
• Claiming relevant app development, asset purchase, or online advertising tax deductions
• Sales tax registrations and remittances across states as your customer base expands
• Quarterly/annual tax return filings ensuring full compliance and minimizing IRS audit risk

Expect to budget $200 – $500 monthly for a bookkeeping service and $1000+ for tax preparation filings. Worth the investment for legal protections and optimized savings.

Open a Business Bank Account

Keeping business finances distinct from personal helps tracking and reporting. Open a free small business bank account and apply for a dedicated credit card using your company’s details including the registered business name and EIN.

Apply for a Business Credit Card

Business cards offer higher limits thanks to revenue and asset consideration beyond just a personal credit score. However, you may need to provide financial statements or tax returns to demonstrate company cash flows. Qualifying is easier with an established business history.

7. Obtain Licenses and Permits

Unfortunately, there is insufficient information in your prompt to provide a robust overview of licenses and permits specifically relevant to mobile app businesses. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

The mobile app industry is still an emerging space without consistent regulation across different states and municipalities. However, here are some general considerations around compliance:

Business operations and data infrastructure If functioning only as a software app company without extensive physical business premises or inventory, permits about zoning, health codes, etc may not apply.

Focus compliance efforts instead on data security, privacy, and transparency to build user trust. Adhere to platform policies set by app stores, follow the latest industry best practices around accessible design, and commit to being good data stewards.

Tax registration As covered in previous responses, obtaining a federal EIN and registering for state/local taxes tied to where your business entity is registered/operates is vital to remain compliant right from launch.

Specific vertical apps If building apps in specialized verticals like healthcare, finance, or other highly regulated sectors, additional clearances around personally identifiable information (PII) or sensitive data collection may be needed so do consult attorneys or compliance experts familiar with those spaces.

The tech landscape evolves rapidly so monitor policy updates and changes to ensure your app adheres to the latest legal and ethical obligations users expect.

8. Get Business Insurance

Adequate insurance gives financial protection if unexpected crises threaten operations or trigger large liabilities. Some key policies to consider are:

• General liability insurance: Covers legal claims against accidental bodily harm or property damage caused by your operations. Limits damages paid.
• Professional liability insurance: Protects against claims alleging failure to perform services as promised or breaches of contract.
• Cyber liability insurance: Covers costs associated with data breaches, hacking incidents, or electronic privacy violations.

Not securing relevant policies can have catastrophic implications, for instance:

• User data gets compromised without cyber liability coverage for legal settlements or restoration
• Buggy app triggers major hardware damage for users that general liability has to pay out if sued
• Guaranteed app performance metrics contractual obligations are missed opening professional liability claims
• Founders split makes shareholder agreements complex lacking business insurance guidance

Reaching out to specialized commercial insurance brokers familiar with tech startups is recommended when exploring comprehensive protection.

9. Create an Office Space

Having a professional central workspace even as an app development company lets you host collaborators like remote engineers, conduct user tests, or record videos securely showcasing new features.

Home Office

Converting a spare room into a home office costs little allowing bootstrapped founders to conserve capital for app building initially. Provides flexibility to work odd hours and avoids commutes.

But ensuring fast, reliable connectivity, a comfortable and ergonomic desk setup plus avoiding household distractions take ongoing investment in converting residential spaces into productivity hubs.

Space Shared spaces like WeWork offer convenient pay-as-you-go access to office infrastructure from $300 per desk monthly. Utilize conference rooms to coordinate with remote teams or host client meetings as needed rather than getting year-long leases.

Coworking spaces cultivate community, learning opportunities, and networks helping early-stage mobile app entrepreneurs scale knowledge and make connections. Limits privacy for sensitive tasks.

Commercial Office

Leasing’s dedicated office space provides the most control customizing facilities especially to support app demos, events, or operating specialty equipment like video production studios and prototype labs.

But also most expensive at approximately $1500 monthly requiring longer-term commitments. Worth considering once your workforce expands needing extensive customization and private areas for calls, zen rooms, etc.

10. Source Your Equipment

As a predominantly digital business model, mobile app startups need limited physical inventory or materials for core operations beyond office infrastructure.

Focus on reliable computer hardware and productivity software enabling development and collaboration.

Order the latest Macbooks, iMacs, or Surface devices for $1000 to handle intensive coding, graphics, and video editing workloads. Optimize specs depending on specialized needs across operating systems with configurable memory, storage, and processors.

Buying Used

Consider 2-3-year-old refurbished devices on eBay saving 50% versus new prices while retaining ample performance for app-building duties. Reliability risks increase with very old equipment. Renting Subscription services like Grover offer short-term rental access to new consoles, drones, VR headsets, etc. for market research or testing innovative app integrations.

Flexible plans depending on duration avoid large upfront investments when experimenting or trying temporary pilot projects.

Payment solutions like the Upgrade Program from Apple split costs interest-free over 12-24 months allowing founders to utilize the latest iPhones for $30-50 monthly.

Trade back in before lease-end lets app developers always access modern test devices and preview iOS changes.

11. Establish Your Brand Assets

A consistent visual identity and professional digital properties help new apps appear credible earning user trust. This accelerates organic reach.

Getting a Business Phone Number

Toll-free numbers from providers like RingCentral project an established presence with call routing, voicemail transcriptions, and CRM integrations streamlining customer support as you scale.

Creating a Logo and Brand Assets

A sleek yet meaningful logo encapsulates your vision. Services like Looka offer quick affordable access to designers to create icons, color palettes, and typefaces that balance visual uniqueness with intuitive meaning.

Ensure brand elements guide all experiences customers have through your app, site, emails, and advertising. Familiar branding taps recognition accelerating growth.

Creating Business Cards and Signage

Business card design templates on Vistaprint help craft a cohesive, mobile-friendly identity with custom logos. Cards establish credentials for founder meetings with investors, partners, and media.

Signage can enhance office visits, trade show booths, or offsite pop-up demos showcasing your solution even if not having brick-and-mortar locations long-term.

Purchasing a Domain Name

The right domain name makes your web presence instantly discoverable. Check name availability on Namecheap during registration. Align names to your brand values with logical keywords buyers search for your niche.

Building a Website

Well-designed websites like Wix quickly establish thought leadership and convert visitors into engaged app users with clear messaging and frictionless calls-to-action.

If you lack design experience, specialized Fiverr freelancers provide affordable development support especially as content needs multiply.

12. Join Associations and Groups

Connecting with other local founders and established players in your city’s app ecosystem fosters mutual growth through idea exchanges, partnership opportunities, talent connections, and insight sharing.

Local Associations

Local association groups like the App Association organize frequent learning sessions about the latest iOS changes, UX principles, or scaling on AWS. Attending makes you visible to supportive community connectors opening doors wider than going solo. Carve time for these in-person collisions despite busy builds.

Local Meetups

Market-specific meetups abound on sites like Meetup around mobile gaming, crypto apps, medtech solutions, etc where entrepreneurs unite around shared passions.

Trade shows bring together app talent from designers and hackers to accelerators and angels. The energy is infectious leaving everyone recharged.

Facebook Groups

Thousands connect daily in niche communities like the App Developers Community group finding troubleshooting assistance or team members.

The reach enables access to specialty knowledge that local circles may lack like legal considerations around NFT integrations or spatial computing.

13. How to Market a Mobile App Business

Strategic marketing is imperative for any new app to connect with its initial users and expand visibility leading to organic growth and valuable user feedback for rapid enhancements.

Personal Networking

Tap your trusted circles first enthusiastic evangelists provide social proof helping apps seem credible. Reward referrals via in-app perks. Ask happy users for App Store reviews and testimonials to build credibility.

Digital Marketing

• Start Google/Facebook paid ads targeted using interest/behavioral data and app store optimization for efficient user acquisition
• Produce YouTube tutorials and TikTok videos guiding users through key features
• Guest blog for industry sites linking back to your app store listings
• Run an affiliate marketing program incentivizing external blogs/podcasts to feature your app
• Issue press releases to register on media radars as milestones hit
• Sponsor relevant email newsletters to get visibility among engaged mobile-first users

Traditional Marketing

• Print glossy product brochures for founder meetings with potential investors and partners
• Purchase local radio spots during commute when listeners often discover new apps
• Put up eye-catching about-town posters or placards at bus stops for brand impressions
• Hand out pamphlets and demo invites at busy public places like college campuses
• Run contests awarding cash prizes to incentivize app downloads

Continue testing various options balancing returns tracking conversion rates and cost per acquired user trends across efforts. Double down on the initiatives demonstrating the fastest traction first.

Capitalize on any initial spike through swift product improvements and proactive customer engagement to sustain serial referrals.

14. Focus on the Customer

Delivering empathetic support and promptly resolving issues earns loyal app users who refer others through word-of-mouth, the most trusted endorsement.

Some ways to improve customer focus in your app development process include:

• Set up multiple channels like in-app chat, email, and social media for reaching support easily. Train agents to personalize interactions using customer data and context from prior conversations.
• Acknowledge receipt immediately when requests come in. If there are complex inquiries, provide expected timelines and progress updates.
• Solve problems completely in one shot instead of handing them off between departments. Follow up proactively checking if further help is needed.
• Make self-serve options like FAQs, forums, and tutorials easily discoverable so for common questions, users have 24/7 access to answers.
• Pay attention to ratings and reviewer commentary across app stores. Categorize feedback into feature requests, bug reports, or experience issues. Set internal benchmarks for response time based on complaint severity.
• Exceed user expectations on support quality because their trust determines ratings and referrals. Pay attention to micro-details like tone, terminology, and resolution timeliness.

Earn gratitude through save offers or exclusive access for loyal long-time users who act as informal brand ambassadors among peers and contribute valuable inputs to shaping your app roadmap.

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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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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.

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Sample Mobile App Business Plan

Download our Ultimate Mobile App Business Plan Template

Having a thorough business plan in place is critical for any successful mobile app venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A mobile app business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The mobile app business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your mobile app as Growthink’s Ultimate Mobile App Business Plan Template , but it can help you write a mobile app business plan of your own.

Mobile App Business Plan Example – AppInnovate Solutions

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to AppInnovate Solutions, a trailblazing mobile app company nestled in the vibrant heart of Miami, FL. We are dedicated to revolutionizing the local mobile app market by offering a comprehensive suite of bespoke development services. Our expert team specializes in Mobile App Development, UI/UX Design, App Testing, Quality Assurance, and ongoing Maintenance and Updates. Additionally, we provide Consultation and Project Management to ensure our clients’ visions are seamlessly brought to life. Leveraging our deep understanding of both the local and global market, we are committed to creating intuitive, engaging, and technologically advanced apps that meet the highest international standards of excellence.

Our foundation for success is deeply rooted in the vast experience of our founder, combined with our commitment to delivering superior apps at competitive prices. Since launching on January 4, 2024, as a Limited Liability Company, we’ve made significant strides, including establishing a strong local presence in Miami and developing a unique brand identity. These initial steps have positioned us as a leading contender in the mobile app industry, with our dedication to quality, innovation, and affordability setting us apart as the go-to choice for mobile app development in the region.

The Mobile App industry in the United States is experiencing explosive growth, currently valued at over $120 billion. This growth is driven by an increasing dependency on smartphones and tablets, with a notable shift towards personalized and user-friendly apps. AppInnovate Solutions is uniquely positioned to capitalize on these trends, focusing on custom mobile apps that cater to the specific needs of Miami’s residents and businesses. Furthermore, the rise of mobile commerce presents an exceptional opportunity for us to provide innovative solutions to businesses aiming to engage in this lucrative trend, ensuring our competitive edge in the fast-paced mobile app market.

Our initial market penetration strategy targets local residents and tourists in Miami, offering them innovative app solutions to enhance their daily lives and travel experiences. By tailoring our app’s features to meet the needs of Miami’s diverse population, we ensure a wide range of functionalities from local service recommendations to event discovery. Additionally, we aim to serve local businesses by offering advertising opportunities and business tools within our app, fostering a beneficial relationship that enhances visibility for businesses while providing valuable, localized offers to our users.

Our main competitors are Pixels Media Inc, SDSol Technologies, and Business Site Designer, each offering a range of digital services. Despite the strengths of these companies, AppInnovate Solutions stands out for our ability to deliver high-quality, affordable mobile applications. Our competitive advantage lies in our innovative development techniques, cost-effective pricing, and deep understanding of the Miami market. This unique combination enables us to offer applications that are not only financially accessible but also resonate well with our target audience, ensuring high user engagement and satisfaction.

AppInnovate Solutions offers a comprehensive range of services, including Mobile App Development, UI/UX Design, App Testing, Quality Assurance, and ongoing Maintenance and Updates. Our pricing strategy is designed to cater to a broad spectrum of clients, ensuring affordability without compromising on quality or functionality. Our promotional strategy is centered around online marketing, leveraging social media, SEO, and email marketing to build a strong digital presence. Additionally, we plan to engage with the local community through events and partnerships, complemented by a referral program to organically grow our user base. This multifaceted approach aims to not only attract but also retain customers by establishing a strong brand presence and fostering community engagement.

To ensure the success of AppInnovate Solutions, we will engage in continuous market analysis, provide exceptional customer support, regularly update our app based on user feedback, and maintain rigorous quality assurance standards. Our operational strategy also includes targeted marketing campaigns, careful financial management, and fostering partnerships with other businesses. Crucially, we will focus on compliance, security, and fostering a collaborative work environment. Upcoming milestones include securing initial funding, finalizing product development, achieving operational stability, reaching 1,000 active users, and generating significant monthly revenue. These steps are designed to systematically reduce risks and establish a stable foundation for our long-term success.

Under the leadership of our CEO, Dylan Torres, AppInnovate Solutions boasts a management team with unrivaled expertise and a track record of success in the mobile app industry. Torres’s extensive experience and strategic vision are instrumental in navigating the complexities of app development and market penetration. His leadership ensures that our team remains focused on innovation, user experience, and scalability, driving AppInnovate Solutions towards achieving our ambitious goals.

Welcome to AppInnovate Solutions, a pioneering mobile app company catering to the vibrant community of Miami, FL. As a local mobile app business, we pride ourselves on filling the void in high-quality local mobile app services in the area. Our dedication to innovation and excellence sets us apart, ensuring we meet the diverse needs of our customers with unparalleled precision and creativity.

At AppInnovate Solutions, our offerings encompass a comprehensive suite of mobile app development services designed to bring your digital visions to life. Our expertise in Mobile App Development is complemented by our deep understanding of User Interface (UI) and User Experience (UX) Design, ensuring that every app we create is not only functional but also intuitive and engaging for users. We are committed to excellence through our rigorous App Testing and Quality Assurance processes, ensuring that every product we deliver operates flawlessly. Additionally, we provide ongoing App Maintenance and Updates to keep our clients’ applications at the forefront of technological advancements. Understanding the complexities of app development, we also offer Consultation and Project Management services to guide our clients through every step of the development process, ensuring a smooth and efficient journey from concept to launch.

Located in the heart of Miami, FL, AppInnovate Solutions is strategically positioned to serve the vibrant and diverse community of this dynamic city. Our deep understanding of the local market, combined with our global outlook, enables us to create apps that resonate with local users while meeting international standards of excellence.

Our unique position for success is rooted in the rich experience of our founder, who has a proven track record of running a successful mobile app business. This experience, combined with our commitment to creating superior apps at affordable prices, positions us as a formidable competitor in the mobile app industry. Our dedication to quality, innovation, and affordability makes us the preferred choice for mobile app development in Miami, FL.

Since our inception on January 4, 2024, AppInnovate Solutions has made significant strides as a Limited Liability Company. Our journey began with the creation of a distinct logo and the careful selection of our company name, which reflects our mission and values. Finding an ideal location in Miami has enabled us to establish a strong presence in the local market. These foundational steps mark the beginning of our journey towards becoming a leader in the mobile app development industry.

The Mobile App industry in the United States is currently booming, with a market size of over $120 billion. This industry has shown consistent growth over the past few years, and is expected to continue expanding at a rapid pace in the coming years. With the increasing reliance on smartphones and tablets for everyday tasks, the demand for mobile apps is only expected to rise.

One of the key trends in the Mobile App industry is the shift towards personalized and user-friendly apps. Customers are now looking for apps that cater to their specific needs and provide a seamless user experience. This trend bodes well for AppInnovate Solutions, as their focus on creating customized mobile apps for customers in Miami, FL aligns perfectly with this growing demand for personalized solutions.

Another trend in the Mobile App industry is the rise of mobile commerce, with more and more consumers using apps to make purchases and manage their finances. This presents a great opportunity for AppInnovate Solutions to tap into this market and offer innovative solutions for businesses looking to capitalize on the mobile commerce trend. By staying ahead of industry trends and providing top-notch mobile app development services, AppInnovate Solutions is well-positioned to thrive in the competitive Mobile App industry.

Below is a description of our target customers and their core needs.

Target Customers

AppInnovate Solutions will target local residents in its initial market penetration strategy. These customers are the backbone of the application’s user base, seeking innovative solutions to enhance their daily lives. The app will tailor its features to meet the specific needs and preferences of Miami’s diverse population, covering a wide range of functionalities from local service recommendations to event discovery.

The company will also focus on Miami’s vibrant tourist population. Visitors to the city are always in need of reliable, easy-to-use tools that can help them navigate the local scene, discover hidden gems, and manage their travel logistics effortlessly. By integrating features that cater to this segment, AppInnovate Solutions is set to become an indispensable travel companion for those exploring Miami.

Furthermore, AppInnovate Solutions will extend its reach to local businesses looking for innovative ways to connect with customers. By offering advertising opportunities and business tools within the app, it will create a symbiotic relationship that benefits both the businesses by increasing their visibility and the app users by providing them with tailored, local offers and services.

Customer Needs

AppInnovate Solutions meets the growing demand for high quality and functional mobile apps among Miami residents. Customers expect seamless, intuitive user experiences from their applications, which can range from everyday utility tools to complex business solutions. Our commitment to excellence ensures that each app we develop not only meets but exceeds these expectations, providing users with reliable, cutting-edge technology at their fingertips.

In addition to quality and functionality, there is a significant need for apps that are tailored to the specific lifestyles and interests of Miami’s diverse population. AppInnovate Solutions addresses this by offering customized apps that cater to various demographics, including tourists seeking to explore the city, locals in need of convenient service apps, or businesses looking to enhance their operational efficiency. By focusing on the unique needs of each segment, we ensure our apps provide relevant and valuable solutions for all users.

Moreover, with the increasing concern for digital security, AppInnovate Solutions prioritizes the protection of user data and privacy. Customers can trust that the apps they use are not only efficient and personalized but also secure against digital threats. This commitment to security fosters a trustworthy relationship between AppInnovate Solutions and its users, making it a go-to source for mobile app solutions in Miami.

AppInnovate Solutions’s competitors include the following companies: Pixels Media Inc, SDSol Technologies, and Business Site Designer.

Pixels Media Inc offers a wide range of digital services, including mobile app development, web design, and digital marketing. Their products target small to medium-sized businesses looking for comprehensive digital solutions. The price points for their services vary depending on the complexity and scope of the project, with custom quotes provided to prospective clients. Pixels Media Inc generates revenue primarily through project-based work and ongoing support contracts, with annual revenues estimated in the mid-range for the industry. The company operates primarily in the Miami area but has also served clients across the United States. Key strengths include a strong portfolio of successful projects and a multidisciplinary team. A potential weakness is their focus on a broad range of services, which might dilute their expertise in mobile app development specifically.

SDSol Technologies specializes in custom software and mobile app development. They offer solutions tailored to the needs of startups, small businesses, and large corporations. Their pricing model is project-based, with costs reflecting the complexity and custom requirements of each project. SDSol Technologies has a notable presence in Miami, Florida, but also caters to clients nationally and internationally. The company boasts significant annual revenues, indicating a robust client base and a successful business model. A key strength of SDSol Technologies is their extensive experience in developing innovative technology solutions. However, their high focus on custom projects may result in higher price points, which could be a barrier for smaller businesses with limited budgets.

Business Site Designer provides website design and development, mobile app development, and e-commerce solutions. They cater to small and medium-sized businesses, offering competitive pricing for their services. The company’s revenue comes from a mix of project-based fees and ongoing maintenance contracts. Business Site Designer operates primarily in Miami, FL, serving clients both locally and across various regions in the United States. Their strength lies in offering affordable solutions for businesses looking to establish or enhance their online presence. However, their focus on affordability might impact the customization and advanced features available in their mobile app development services.

Competitive Advantages

At AppInnovate Solutions, we understand the critical role that mobile applications play in today’s digital-centric world. Our core competitive advantage lies in our ability to create superior applications at a price point that is highly affordable for our clients. This unique positioning allows us to cater to a broad spectrum of businesses, from startups to established enterprises, ensuring that every organization can leverage the power of mobile technology without breaking the bank. Our commitment to quality and affordability does not mean a compromise on features or functionality; instead, we use innovative development techniques and efficient project management to deliver top-notch applications that meet our clients’ specific needs.

Beyond our competitive pricing and high-quality development, another of our key advantages is our deep understanding of the local market dynamics in Miami, FL. This localized insight enables us to design and develop applications that resonate well with our target audience, fostering greater user engagement and satisfaction. We also place a high emphasis on user experience (UX) design, ensuring that our apps are not only functional but also intuitive and enjoyable to use. This focus on UX is complemented by our dedication to incorporating the latest technological advancements, such as AI and machine learning, to enhance app functionality and provide a more personalized user experience. Through these concerted efforts, we ensure that our clients stay ahead of the curve in a highly competitive digital landscape.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

AppInnovate Solutions emerges as a comprehensive service provider in the realm of mobile application development, catering to the diverse needs of businesses aiming to enhance their digital footprint. Through a blend of technical expertise and innovative strategies, AppInnovate Solutions offers a range of services designed to bring ideas to life and ensure their successful implementation in the competitive market.

At the core of its offerings, Mobile App Development stands out as a pivotal service. AppInnovate Solutions specializes in creating custom mobile applications tailored to the specific requirements of each client. Whether for iOS, Android, or cross-platform solutions, the team leverages the latest technologies and methodologies to deliver robust, scalable, and high-performing apps. Clients can expect to invest an average of $20,000 to $50,000 for a comprehensive mobile app development project, depending on the complexity and features required.

User Interface (UI) and User Experience (UX) Design services are critical to ensuring that the applications not only perform well but also offer an intuitive and engaging user experience. AppInnovate Solutions places a strong emphasis on designing interfaces that are visually appealing and user-friendly. By understanding the target audience and business goals, the team crafts UI/UX designs that enhance user satisfaction and drive engagement. These services are typically priced from $5,000 to $15,000, reflecting the scope of the design work and the intricacies involved in creating a seamless user experience.

Ensuring the quality and reliability of mobile applications is paramount, which is why App Testing and Quality Assurance form an essential part of the service lineup. AppInnovate Solutions employs a rigorous testing methodology to identify and rectify any issues, ensuring that the final product is of the highest quality. This process includes functional testing, performance testing, usability testing, and security audits. The cost for app testing and quality assurance services ranges from $3,000 to $10,000, varying with the application’s complexity and the depth of testing required.

App Maintenance and Updates are crucial for keeping applications relevant and functioning optimally post-launch. AppInnovate Solutions provides ongoing support to address any technical issues, incorporate new features, and adapt to evolving user needs or technological advancements. Clients can expect maintenance and update services to cost between $1,000 and $4,000 per month, depending on the level of support and frequency of updates needed.

Lastly, Consultation and Project Management services are offered to guide clients through the development process, from conceptualization to launch and beyond. AppInnovate Solutions acts as a strategic partner, offering expert advice on market trends, technology selection, and project execution. This holistic approach ensures that projects are delivered on time, within budget, and to the client’s satisfaction. Consultation fees are typically charged on an hourly basis, with project management services priced between $10,000 and $25,000, based on the project’s scale and complexity.

Through its comprehensive suite of services, AppInnovate Solutions positions itself as a key player in the mobile app development industry, committed to delivering high-quality solutions that meet the evolving needs of businesses in today’s digital landscape.

Promotions Plan

AppInnovate Solutions, focusing on captivating the mobile app market in Miami, FL, embarks on a strategic journey to draw customers through a blend of innovative promotional methods. Online marketing stands at the forefront of these strategies, leveraging the power of social media, search engine optimization (SEO), and email marketing campaigns to create a robust digital presence. AppInnovate Solutions will utilize social media platforms to engage with the community, share insights about the app’s features, and provide value to potential users. By crafting content that resonates with the target audience, the company expects to foster a loyal following that eagerly anticipates app updates and releases.

In addition to social media, AppInnovate Solutions will employ SEO techniques to ensure that its website ranks highly in search engine results, making it easier for potential customers to discover their app. This approach includes optimizing website content with relevant keywords, improving site speed, and ensuring mobile-friendliness, all critical factors in enhancing online visibility.

Email marketing campaigns will serve as another pillar in AppInnovate Solutions’ promotional strategy. By collecting email addresses from interested users, the company will send out regular newsletters that provide exclusive insights, tips, and offers related to their mobile app. This direct line of communication will help in building a community of engaged users who are more likely to advocate for the app within their circles.

Beyond online marketing, AppInnovate Solutions will tap into local events and partnerships within Miami, FL. Participating in tech expos, local meetups, and community events will allow the company to demo their app directly to potential users, gather instant feedback, and enhance brand visibility. Collaborating with local businesses and influencers who share a similar target audience will amplify the app’s reach and credibility through co-marketing efforts.

Referral programs will also play a crucial role in attracting new customers. By incentivizing current users to refer friends and family, AppInnovate Solutions expects to grow its user base organically. These programs will not only increase the number of app downloads but also foster a sense of community among users.

In conclusion, AppInnovate Solutions embarks on a comprehensive promotional journey, leveraging online marketing, local engagement, and referral programs to attract customers in Miami, FL. Through these methods, the company expects to establish a strong digital presence, build a loyal community, and drive app downloads, ensuring its success in the competitive mobile app market.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of AppInnovate Solutions, there are several key day-to-day operational processes that we will perform.

• Market Analysis: Conduct continuous market research to stay updated on industry trends, customer needs, and competitor activities. This ensures that AppInnovate Solutions can adapt and evolve to meet market demands.
• Customer Support: Provide exceptional customer service, including a responsive help desk, FAQs, and troubleshooting guides. This helps to resolve user issues promptly and maintains high customer satisfaction.
• App Development and Updates: Regularly update the app for performance improvements, new features, and bug fixes, based on user feedback and technological advancements.
• Quality Assurance: Implement rigorous testing processes for every update and new feature release to ensure the app remains reliable, user-friendly, and free of bugs.
• User Feedback Collection: Actively seek and analyze user feedback through surveys, app reviews, and social media engagement to understand user needs and preferences better.
• Marketing and Promotion: Execute targeted marketing campaigns to attract new users and retain existing ones. This includes social media marketing, email campaigns, and local advertising in Miami, FL.
• Financial Management: Monitor and manage the company’s finances, including budgeting, forecasting, and financial reporting, to ensure sustainable business operations and profitability.
• Partnership Management: Cultivate and maintain partnerships with other businesses, such as tech suppliers, marketing agencies, and other relevant stakeholders, to enhance service offerings and expand market reach.
• Compliance and Security: Ensure the app and its operations comply with legal and regulatory requirements, including data protection laws. Implement robust security measures to protect user data and privacy.
• Team Collaboration and Communication: Foster a collaborative work environment with regular meetings, clear communication channels, and team-building activities. This ensures that all team members are aligned and motivated.
• Performance Monitoring: Use analytics tools to monitor app performance, user engagement, and operational efficiency. This data will guide strategic decisions and operational adjustments.

AppInnovate Solutions expects to complete the following milestones in the coming months in order to ensure its success:

• Secure Initial Funding : Acquire seed funding or early-stage investment to cover initial operational costs, including development, marketing, and staffing. This is critical for getting the business off the ground and to support activities leading up to and following the launch.
• Finalize Product Development : Complete the development phase of the mobile app with all intended features functioning as planned. This involves iterative testing, user feedback incorporation, and ensuring the app is fully operational for public use.
• Acquire Necessary Licenses and Permissions : Depending on the nature of the app, certain permissions or licenses may be required. Ensuring all legal and regulatory compliance is met before launch is crucial to avoid any operational hiccups.
• Launch the Mobile App : Officially release the app on relevant platforms (e.g., Apple App Store, Google Play Store). This milestone marks the transition from development to operational status and begins the process of user acquisition.
• Implement a Marketing Strategy : Develop and execute a comprehensive marketing plan that includes social media, content marketing, paid advertising, and possibly influencer partnerships to increase app visibility and attract users in Miami, FL.
• Achieve Operational Stability : Ensure that all backend systems (e.g., server infrastructure) are robust and can handle increasing loads. Operational stability also involves establishing customer support channels to handle queries and feedback.
• Reach 1,000 Active Users : Achieve a user base of at least 1,000 active users. This milestone is critical for validating the app’s market fit and serves as a foundation for scalability.
• Establish Partnerships with Local Businesses or Organizations : For an app serving customers in Miami, FL, partnerships with local businesses or community organizations can enhance the app’s value proposition and drive user growth.
• Get to $15,000/Month in Revenue : This financial milestone is crucial for proving the business model’s viability. Achieving this level of revenue signifies a healthy demand for the app’s offerings and supports further investment in growth.
• Expand the Team : As the business grows, expanding the team to include roles critical for scaling, such as sales, marketing, and product development, is necessary to support and sustain growth. These milestones are designed to systematically reduce the risks associated with starting and scaling a new mobile app business, ensuring a stable foundation for future success.

AppInnovate Solutions management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Dylan Torres, CEO

Dylan Torres brings to AppInnovate Solutions a wealth of experience and a proven track record of success in the mobile app industry. As a seasoned entrepreneur, Torres has previously spearheaded a mobile app business, demonstrating not only his capability to navigate the complex landscape of app development but also his skill in leading a tech company to achieve its strategic goals. His experience is vital in guiding AppInnovate Solutions through the various phases of growth, from product development to market penetration. Torres’s leadership is foundational to the company’s ambitions, ensuring that the team stays focused on innovation, user experience, and scalability to achieve lasting success.

To achieve our growth objectives, AppInnovate Solutions requires $316,000 in funding. This investment will be allocated towards capital investments such as location buildout, equipment, and initial working capital, covering essential operational costs like staff salaries, marketing, and insurance. This strategic financial planning is crucial for supporting our activities from development through to launch, ensuring a smooth trajectory towards profitability and long-term success.

Financial Statements

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Income Statement

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Mobile App Business Plan Example PDF

Download our Mobile App Business Plan PDF here. This is a free mobile app business plan example to help you get started on your own mobile app plan.  

How to Finish Your Mobile App Business Plan in 1 Day!

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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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Mobile App Business Plan Template [Updated 2024]

Mobile App Business Plan

If you have a mobile app startup or want to expand your current mobile app business, you clearly need a business plan.

The following mobile app business plan template and example give you the key elements to include in a winning plan.

You can download the Mobile App business plan template (including a full, customizable financial model) to your computer here.

Mobile App Business Plan Example

Below are links to a sample of each of the key sections of a solid business plan for a mobile app development company:

• Executive Summary – The Executive Summary provides an overview of the mobile app business and its goals. If you are seeking funding, this is the first section that a potential investor or lender will read, so it should be compelling.
• Company Overview – In this section of your business plan, you should provide a detailed description of your mobile app business including the history, mobile app concept, business model, mission statement, and the company’s growth plan.
• Industry Analysis – In the Industry Analysis section, you will describe the mobile app industry including recent developments, market research and trends, and the competitive landscape.
• Customer Analysis – The Customer Analysis section of a business plan for an app will provide details about your target audience including their demographics, needs, and preferences.
• Competitive Analysis – In the Competitive Analysis section, you will provide information about the strengths and weaknesses of your direct competitors (other mobile app businesses) and how you will establish your competitive advantage to gain market share.
• Marketing Plan – The Marketing Plan will detail the monetization strategy for your mobile application and how your company will promote your mobile apps and/or development services. This includes a comprehensive digital marketing strategy to reach your target customers on multiple platforms (Google Play, Apple Store, etc.).
• Operations Plan – The Operations Plan outlines the day-to-day operations of your mobile app business. This includes information about how you will manage your team and develop, launch, and support your mobile applications.
• Management Team – In the Management Team section, you will outline the qualifications and experience of your executive team members and advisory team.
• Financial Plan – The Financial Plan section will include a 5-year financial model and projections (income statement, balance sheet, and cash flow statement). This is important to show potential investors and lenders that you have a viable plan for the mobile app business.

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Mobile App Business Plan Outline

Step-by-Step Visual Guide to Mobile App Planning

Have a promising idea for an app on your mind? Great! That’s 20% of what you need to do to create a thriving product, already done!

Next comes the harder part of it, where you actually have to turn your idea into something that works.

We are about to dig into a visual strategy that could help you speed up your app development process. Read on to find out how to plan an app using easy-to-use visualization tools.

Goals for the App

Who is your target audience, brainstorm solutions, draw user flows, architecture diagrams, your app vs. your competitor’s app, outline your campaign process, putting it all together, working together, now you know how to plan an app. are you ready to plan yours, define the specifications.

There are a few specifications you need to define before you go ahead and develop your app.

These specifications come under your business plan – which documents what you want to do and how you plan to do it.

Check out how to visually improve your business plan here .

During the mobile app planning process, the goals you set will help you decide which features to add and how you should develop and design your mobile app.

Now, goals you set may vary from what you want your app to do to how you will market it to people. It is important to sit down and define what these are. Ask yourself

• What is the purpose of your app?
• How will it help simplify the lives of its users?
• How will it help solve the problems of its users?
• How do you plan to market it to your target audience?

Answers to these questions will help you outline the goals you need to focus on. And once you agree on them, prioritize your goals so you’d know where to start.

Tip: Usually it’s a good idea to keep your goals to 1-2 at max so that your app is focused and easy to use.

Understanding your target audience is vital to the development of your app.

Among information such as age, gender, career, location and other quantitative data, you should also learn about your user’s requirements, challenges, needs, and responsibilities.

Other qualitative information you should have a record of are the technologies your users use, what platforms (Android/ iOS) they are familiar with, what app functionalities they prefer etc.

For example, using a Venn diagram you can identify what app features you should prioritize given the different types of customers you would attract.

Now that you know who your target audience is and what problems they have, it’s time to figure out how to use your app to solve those problems.

This calls for brainstorming for ideas with your team. To facilitate the session, you could use a visual tool like mind maps .  What’s special about mind maps is that it increases productivity by helping you better structure or organize a free flow of ideas.

A completed mind map drawn around a single topic – in this case, the issue your user is facing – will give you a quick overview of how you should approach the situation and make quick decisions.

Tip: Color code – use different colors to represent each of your main branches – your mind maps to organize ideas better.

To determine which features to add to your app, you need to know how users are going to go through it. Is it a registered user who wants to edit information on her account, or is it a new user who wants to create an account?

All kinds of interactions that a user will have with your app can be visualized through use case diagrams – which are basically used to describe what a system does.

It’s the easiest way to convey to the developer what app features need to be focused on and show to your stakeholders what problems you are trying to solve.

Or you can draw some Flowcharts to explain how a user gets something done via the app. This will really help you zero in on how the app is supposed to work.

Start Sketching Your App

Now that you have identified how different users may interact with your app, it’s time to flesh it out. This means, turning your idea into pictures which will be converted into navigable screens during the final stage.

This is where you get to decide how many screens there will be and how each will look like. And putting them in a logical manner will help you get the idea as to how it will work.

Most apps will have some sort of data they have to capture and use. A great way to visually break it down is to use an  Entity Relationship (ER) Diagram. This will allow you to identify the key things you want to capture and how they are related to each other.

ER Diagrams are a really simple tool to do this even if it may sound daunting to use at first.

Based on your user flows and data needs identified earlier, it’s time to define how the app looks and works .

Wireframes are line sketches of the interface of your app. They show how it should work without really bothering about colors, placement, and other styling details. At this stage, it’s more about the functionality vs. styling.

Tip: Link the wireframes together via button clicks to show the navigation experience within the app.

When describing how your app works to outsiders such as stakeholders, you can use architecture diagrams like block diagrams or network diagram (example below).  They simplify complex processes that a non-tech savvy person might find confusing.

Plan Your Promotional Strategy

How many users you attract to your app depends on how you promote it.

Before you plan your strategy, you need to figure out where you are at compared to your competitors. This means analyzing the strengths and weaknesses of your app against that of your competitors, and opportunities and threats that you might have to face in the market.

A simple SWOT analysis will help you get a quick overview of these factors.

SWOT analysis to plan your promotional or marketing campaign step-by-step. Get the input of your marketing team as well.

And if you initially want to brainstorm for new ideas, use a mind map to generate promotional campaign ideas .

As you can see, there are a series of aspects that go into creating an app. A great idea is to link these Flowcharts , Mind maps , ER Diagrams and wireframes together in a sensible fashion. This way anyone can really walk someone through the entire app concept and know exactly how things are going to work.

We guarantee you that this clarity will save you a large chunk of money and time when it comes to actual mobile app development.

Building an app is usually not a single person’s job. You’ll have your developers, potential clients/customers, partners all wanting to have a say in how things should work and be done.

Using real-time collaboration when you are on a conference call or even in the same room to update and modify the diagrams as you make decisions is a great way to make sure that everyone is on the same page.

If you are using Creately , you can also use offline commenting so that you can have pointed discussions on various parts of your mind-map, wireframe or flowchart easily with everyone in your team.

Visualization makes communication easier, whether it is between you and your development team or your stakeholders.

As they simplify complex processes, help organize and communicate ideas, visual tools like these make planning an app -well – a piece of cake!

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

FAQs on Mobile App Planning

• Clarifies the purpose and goals of the app, ensuring it meets user needs and aligns with business objectives.
• Takes a user-centric approach by understanding the target audience, their preferences, and behaviors.
• Efficiently allocates resources, estimating budget, time, and development requirements.
• Mitigates risks by identifying and addressing potential challenges in advance.
• Facilitates a seamless development process with a structured roadmap and improved collaboration.
• Enhances user experience through well-planned UX and UI design.
• Considers scalability and future-proofing to accommodate growth and expansion.
• Optimizes cost and time by defining scope, prioritizing features, and streamlining workflows.
• Aligns the app with business goals, evaluating its impact on revenue, customer engagement, and brand awareness.
• Provides a competitive advantage by conducting market research and developing unique features or value propositions.
• Inadequate market research, leading to a lack of understanding of target audience needs and competition.
• Unclear objectives and goals, resulting in a lack of direction and purpose for the app.
• Poor user understanding, neglecting to consider user preferences and pain points.
• Feature overload, including too many features that can lead to a cluttered and confusing user experience.
• Ineffective planning and scope creep, causing delays, increased costs, and compromised user experience.
• Ignoring platform considerations, leading to inconsistent user experiences across different platforms.
• Poor UX/UI design, resulting in confusing navigation and unattractive visuals.
• Insufficient testing and quality assurance, leading to bugs and poor performance.
• Lack of analytics and metrics, missing out on valuable insights for optimization.
• Neglecting post-launch support and updates, hindering user satisfaction and app growth.
• Product manager: Defines app vision, sets goals, and coordinates development process.
• UI/UX designer: Creates intuitive and visually appealing user interface and experience.
• Mobile app developer: Implements app functionality using programming languages.
• Backend developer: Builds server-side infrastructure, handles data storage and integration.
• QA engineer: Tests app for functionality, usability, and performance.
• Project manager: Manages timelines, resources, and communication.
• Database administrator: Manages databases, ensures data integrity and security.
• DevOps engineer: Handles app deployment and CI/CD processes.
• Security specialist: Ensures app security and data protection.
• Marketing specialist: Develops marketing strategy for app launch and user acquisition.

More Related Articles

Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

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Home » Sample Business Plans » Technology

A Sample Mobile App Development Business Plan Template

Are you about starting an app development company? If YES, here is a complete sample mobile app development business plan template & feasibility report you can use for FREE . Starting a mobile app development business is one of the best things that could possibly happen to you. This is because of the very rich experience which you can garner in the quest of starting your business.

Much more than that is the level of wealth that you are able to attain when you start such a business. There are several apps that can be developed that is able to make life much easier for people.

1. Industry Overview

The advent of mobile apps has indeed contributed immensely to the revenue generation in the ICT world. Beyond every reasonable doubt, you can’t find any person that owns a smart phone who has never used a mobile application nor has mobile apps in his or her phones. As long as people make use of Smartphones, Tablets and Pads, the sale of mobile apps will continue to grow and the industry will continue to expand.

Basically, mobile application development is a term that is used to define the act or process by which application software is designed and developed to perform specific functions in handheld devices, such as smart phones / mobile phones, personal digital assistants, or enterprise digital assistants et al.

It is a fact that there abound loads of young people who are actively involved in the mobile apps development industry, simply because the cost of developing an app varies. The truth is that, just as the cost of mobile apps development varies greatly, so also the profits that you are likely going to generate from the success of a mobile app can be mega.

In this industry, the success of your business depends on the genre of mobile apps that you are developing. If you have interest in the mobile apps development industry, you will realize that those who are into the development of games are those who are leading the chart in terms of revenue generation.

Other factors that will aid the success of a mobile app is the position of the apps in the chart the end of the first day of sales and how good the user reviews are – if you have loads of 5 star reviews, you are likely going to generate loads of sales because people would automatically trust your app.

Statistics has it that the mobile app development industry has been experiencing steady growth, both in terms of revenue generation and of course in job creation as well. For instance a report that was released in 2013 estimated that there are about 529,000 direct App Economy jobs within the European Union 28 members, and 60% of it are mobile app developers.

Statistics also has it that the revenue generated at the Apple App Store to Google Play is put at a ratio of 8 to 1.No doubt, at a rate of 30 million a day, downloading apps is a popular hobby among consumers. Apple App Store does pay more for top developers who build their apps to be sold and not to be downloaded for free.

Despite the fact that the Windows 8 Store is still small in terms of its revenue generation when compared to Apple App Store and Google Play Store, it allows apps to run simultaneously on a PC, tablet and Smartphone hence increasing the numbers of mediums – more mediums, more downloads.

The process of mobile apps development is simple and straightforward. Mobile applications are first tested within the development environment first by making use of emulators and before subjecting it to field testing. Emulators basically provide an inexpensive way to test applications on mobile phones to which developers may not have physical access.

Lastly, if you are looking towards starting a mobile apps development company as an entrepreneur, then you should be aware that there are only three mobile app stores to sell your app. The mobile app stores are Google Play, Apple App Store and Windows Store.

2. Executive Summary

Tech Explorer ™ Mobile Apps Development Co. is an international mobile apps development and software programming company that is based in Los Angeles – California, united states. We are a software development company that is set to compete in the highly competitive ICT industry.

Tech Explorer ™ Mobile Apps Development Co. will be involved in the development of mobile apps especially games applications and other financial, medical, geographical and entertainment related mobile applications. Our business goal is to become one of the leading mobile apps development company in the United States and we will make sure that every mobile apps that leaves our lab can favorable compete with the best in their category.

Our workers are going to be selected from a pool of talented mobile apps developers in and around Silicon Valley and Los Angeles – California and also from any part of the world as the business grows.

We will make sure that we take all the members of our workforce especially mobile apps developers/designers through the required trainings that will position them to meet the expectation of the company and to compete with leading mobile apps developers/designers in the United States and throughout the globe.

We have put plans in place to build a state of the art mobile apps development studio in Los Angeles, California, which is why we have entered agreement with some key players in Silicon Valley to refer some of the best hands to us from time; mobile apps developers that can easily fit into our overall business goals and objective. Our studio will be well equipped and we will ensure that we follow the trend in the industry.

Tech Explorer ™ Mobile Apps Development Co. will design and develop mobile apps that will be comfortable with all the handheld devices such as smart phones/mobile phones, personal digital assistants, or enterprise digital assistants’ et al.

We will ensure that all our mobile apps are can easily be downloaded from the three mobile app stores (Google Play, Apple App Store and Windows Store). Aside from developing mobile software apps for the general public, we will also help our clients develop unique mobile apps for their businesses as request.

Tech Explorer ™ Mobile Apps Development Co, our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire consultants who are well experienced in a wide variety of business consulting and trainings et al.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Tech Explorer ™ Mobile Apps Development Co is founded by Bob Lockley and his friend and business partner Ted Benny. They are both products of Silicon Valley and MIIT. The organization will be managed by both of them.

3. Our Products and Services

There are quality products and services that we plan to have. Tech Explorer ™ Mobile Apps Development Co was established with the aim of producing highly entertaining and useful mobile apps that can be used on all handheld devices. Mobile apps that can be easily downloaded from the three mobile app stores (Google Play, Apple App Store and Windows Store).

We want to compete favorably with the leading mobile apps developers, which is why we have but in place a competent quality assurance team that will ensure that all our mobile apps meet and even surpass our customers’ expectations.

We will work hard to ensure that Tech Explorer ™ Mobile Apps Development Co is not just accepted nationally in the United States of America, but also in other parts of the world. Our products are listed below;

• Games Mobile Apps
• Finance Related Mobile Apps
• Entertainment Mobile Apps
• Geographical Related Mobile Apps
• Customized Mobile Apps as Requested by our Clients

4. Our Mission and Vision Statement

• Our vision is to establish a mobile apps development company whose products and brand will not only be accepted in the United States of America, but also in other parts of the world.
• Our mission is to provide professional and trusted mobile apps that assist businesses, individuals and non-profit organizations in operating sustainably.
• We want to build a mobile app development company that can favorably compete with other leading brands in the ICT industry.

Our Business Structure

Tech Explorer ™ Mobile Apps Development Co, is an ICT company that intend starting small, but hope to grow big in order to compete favorably with leading mobile apps developers in the ICT industry both in the United States and on a global stage.

We are aware of the significance of building a solid business structure that can support the picture of the kind of business we want to own. This is why we are committed to only hire the best hands that we can attract.

At Tech Explorer ™ Mobile Apps Development Co, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• General Manager

Human Resources and Admin Manager

• Sales and Marketing Executive
• Mobile Apps Developers/Programmers/Software Designers
• Quality Control Specialist

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

General Manager:

• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Contributes to team effort by accomplishing related results as needed.
• Responsible for managing the daily activities in the factory
• Responsible for supervising all the employees
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office and factory activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Pick ‘a’ Brain™ Finishing School
• Serves as internal auditor for Pick ‘a’ Brain™ Finishing School

Programmers and Software Designers

• Responsible for designing and developing mobile apps to meet the latest trend
• Stays abreast with the dynamics of the ICT industry with key interest in mobile apps and other related software applications
• Researches and advices the organization on style, genre and other trendy info as it relates to mobile apps.

Quality Control Officer

• Ensures that all our mobile apps meet the required quality before they are released in the market (mobile apps stores)
• Make certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and mobile apps development departments.
• Devises ways of improving the mobile apps design and development process to ensure higher-quality and users’ friendly mobile apps are developed
• Ensure that the mobile apps design and development department run smoothly and generate a consistently suitable output for their employers
• Ensures that the organization work in line with international best practices
• Handles any other responsibility as assigned by the general manager
• Welcomes students and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the school coordinator in an effective and timely manner
• Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries

6. SWOT Analysis

Tech Explorer ™ Mobile Apps Development Co engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured ICT business that can favorably compete in the highly competitive ICT industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Tech Explorer ™ Mobile Apps Development Co. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Tech Explorer ™ Mobile Apps Development Co;

Our core strength lies in the power of our team; our workforce. We have a team of young techies that are creative and highly proficient in mobile apps design and development, a team with excellent qualifications and experience in ICT straight from Silicon Valley. Aside from the synergy that exists in our carefully selected mobile apps developers and programmers our products are going be unique and diverse.

As a new mobile apps development company in Los Angeles – California, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated ICT industry; that is perhaps our major weakness.

• Opportunities:

No doubt, the opportunities in the ICT industry is massive considering the number of individuals and corporate organizations who would want to acquire new mobile apps in their handheld devices. As a mobile apps design and development company, we are ready to take advantage of any opportunity that is available in the ICT industry.

Every business faces a threat or challenge at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the business.

Some of the threats that we are likely going to face as a mobile apps development company that is based in the United States of America are unfavorable government policies that might affect business such as ours, the arrival of a competitor that is specialized in same mobile apps genre as our company and global economic downturn which usually affects spending/purchasing power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

One of the major trends in the mobile apps development industry is that any entrepreneur who is looking towards developing mobile apps must ensure that their mobile apps is compatible with different operating software and also that their mobile apps can be easily downloaded from the three mobile app stores (Google Play, Apple App Store and Windows Store).

One thing is certain, if a mobile app development company can successfully get their apps in all three mobile apps store, they know that they are in the pathway to success. This is so because the ratings they get from users in one mobile apps store can positively influence other apps stores and that will lead to more downloads and of course more income for them.

The success of a mobile app development company is their ability to be creative and flexible. Mobile apps developers take note of factors like screen sizes, hardware specifications and configurations when designing and developing mobile apps.

8. Our Target Market

It is important to state that here are only three stores to sell your app and they are Google Play Store, Apple App Store or Windows Store. So you must ensure you design you mobile apps to suit the platforms of your choice.

No doubt the mobile apps development line of business has the widest range of customers; everybody that owns any handheld devices, such as smart phones/mobile phones, personal digital assistants, or enterprise digital assistants et al are potential customers for your mobile apps

In view of that, we have created strategies that will enable us reach out to people that cut across different classes in the society; we will develop mobile apps that can be easily downloaded from the three mobile app stores (Google Play, Apple App Store and Windows Store) and used by all handheld device.

We have conducted our market research and survey and we will ensure that all our mobile apps are well accepted in the market place. These are the different group of people that we will be developing mobile apps for;

• Young Adult
• Children(games)
• Corporate Executives
• Corporate Organizations (Mobile Banking Apps, Currency Converter et al)
• Sports Men and Women (live score apps)
• Churches (Customized mobile apps)
• Police (Crime monitoring apps)

Our competitive advantage

No doubt the competition in the mobile app development business today is so brutal; you have to develop nothing less than the possible best and most useful or entertaining app in order to survive in the industry. The ICT industry is indeed a very prolific and highly competitive industry. Clients will only purchase your mobile apps if they know that it can meet their needs

We are quite aware that to be highly competitive in the mobile apps development industry means that you should be able to deliver consistent useful or entertaining mobile apps. You should be able to get good ratings from users of your mobile apps and above all your mobile apps must be users’ friendly and easy to download.

Our competitive advantage lies in the power of our team; our workforce. We have a team of young techies that are creative and highly proficient in mobile apps design and development, a team with excellent qualifications and experience in ICT straight from Silicon Valley. Aside from the synergy that exists in our carefully selected mobile apps developers and programmers our products are going be unique and diverse.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups mobile apps developing businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Tech Explorer ™ Mobile Apps Development Co is established with the aim of maximizing profits in the ICT industry and we are going to go all the way to ensure that we do all it takes to develop mobile apps that can be easily downloaded from the three mobile app stores (Google Play, Apple App Store and Windows Store) and used by all handheld device.

Tech Explorer ™ Mobile Apps Development Co will generate income selling the following mobile apps;

• Finance Related Mobile Apps (Mobile Banking Apps, Currency Converter et al)

10. Sales Forecast

One thing is certain; there would always be corporate organization and individual who would need mobile apps either for entertainment or for other purpose.

We are well positioned to take on the available market in ICT industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operations and grow our mobile apps development company.

We have been able to critically examine the mobile apps development market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – California.

Below is the sales projection for Tech Explorer ™ Mobile Apps Development Co, it is based on the location of our business and of course the wide range of mobile apps that we develop and the apps stores where our apps are listed;

• First Year-: $150,000
• Second Year-: $500,000
• Third Year-: $1,000,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor developing same unique mobile apps as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the mobile apps development industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the ICT industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Tech Explorer ™ Mobile Apps Development Co.

Our goal is to grow Tech Explorer ™ Mobile Apps Development Co to become one of the top 10 mobile apps developers in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.

Tech Explorer ™ Mobile Apps Development Co is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our mobile apps development company by sending introductory letters alongside our brochure to corporate organizations, households and key stake holders.
• Promptness in bidding for mobile apps development contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still develop customized mobile apps / software for them
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our mobile apps development company.

Below are the platforms we intend to leverage on to promote and advertise Tech Explorer ™ Mobile Apps Development Co;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our mobile apps
• Install our Bill Boards on strategic locations all around Los Angeles – California.
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Tech Explorer ™ Mobile Apps Development Co and the products we sell
• List our personal mobile apps development company in local directories / yellow pages
• Advertise our mobile apps in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Tech Explorer ™ Mobile Apps Development Co we will keep the prices of our mobile apps below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services to help them design customized mobile apps.

In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some students that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such students’ needs.

• Payment Options

At Tech Explorer ™ Mobile Apps Development Co, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a mobile apps development company; it might differ in other countries due to the value of their money. However, this is what it would cost us in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
• Equipping the office (computers, printers, projectors, markers, servers/internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need over two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard mobile apps development company firm in the United States of America.

Generating Funding/Startup Capital for Tech Explorer ™ Mobile Apps Development Co

Tech Explorer ™ Mobile Apps Development Co is a business that will be owned by Bob Lockley and his friend and business partner Ted Benny. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals/customers patronizing their products and services. We are aware of this which is why we have decided to develop a various mobile apps for different clients and for different purposes.

We will also work with corporate clients to help them develop customized mobile apps for their business. We know that if we continue to design and develop excellent, effective and useful mobile apps for both businesses and individual, there will be steady flow of income for the organization.

Our key sustainability and expansion strategy is to ensure that we only hire creative, competent and selfless programmers/mobile apps developers/software developers, create a conducive working environment and employee benefits for our staff members.

In the nearest future, we will give our most dedicated and prolific employees the opportunity to be part owner of the business. We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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Beyond the Pitch Deck: Crafting a Compelling Mobile App Business Plan for Your Startup

Summary: As the technology evolved, an array of business opportunities got unlocked; icing to the cake are multiple startup funding options that encouraged younger entrepreneurs to venture into several business startups. One of the most lucrative startup businesses today is the mobile app business, wherein you own a mobile app for a specific niche or service and enjoy money-spinning returns. In this guide, we shall talk about crafting a compelling business plan for your startup app. What are the core elements, how to write a mobile app business plan, what could be a marketing plan for your mobile app startup business, and many other essential factors.

Mobile applications have become a part of anyone’s personal and professional life. The changing habits of millennials about shopping online and ordering services through mobile phones have pushed service and product industries to have mobile applications for their convenience. Statista, a research giant portal, quotes several statistics about mobile applications  that can impress anyone to think of mobile app business in this digital era:

• Global mobile application downloads in 2023 reached 257 billion
• Average consumer spending on mobile apps in Q3 2023 reached USD 5.05
• In Q4 2023, the total value of global consumer spending on mobile apps touched a whopping figure of USD 70 billion  worldwide
• The mobile applications are projected to cross USD 613 billion in revenues  by 2025

These statistics are alluring enough to draw anyone’s eyeballs to have a mobile app for their business. So, now you need the answer to what to do if you have an app idea?  Of course, based on your funding requirements, you need to think of the next step. If you have made up your mind to raise some funds, you need a foolproof business plan for startup app.

Table Of Content

What is a mobile app business plan?

Why is a mobile app startup business plan essential, core elements of a business plan for a mobile app, how to write a mobile app business plan, tips to write a successful mobile app business plan.

Let us delve deeper into it.

A business plan is a document that outlines the purpose and features of your mobile app. Also, it includes the targeted audience/user/customers and revenue model along with a strategic marketing plan for your app. A mobile app business plan for startups helps define the idea clearly and communicate it clearly with potential investors and partners.

It is an essential document for startup mobile app funding  that can make a difference in helping entrepreneurs get the desired funds. The better planned and described the whole document is, the better the investors will receive it.

First thing first: for a perfect mobile app startup business plan, you should mind the following factors:

• A clear vision and goals for your app : What problems does your app solve? Who and where are your users? What are the benefits of using your mobile app? What are the measurement criteria for your app’s success?
• A well-researched and realistic business plan : How will you execute the mobile app development, and how will you launch and maintain your app? How much does mobile app development cost? What is your app monetization plan? What could be the risks and challenges of your mobile app business?
• Mistakes to avoid when creating a business plan : A business plan for your mobile app should not have unrealistic assumptions or projections. You should not ignore the competitors or the latest market trends. Also, do not overlook any legal, regulatory, or ethical issues. Lastly, you should test and validate the app idea with real users to avoid failures.

As an entrepreneur, you may go through our comprehensive mobile app development guide  to get a fair idea of how a mobile app is built based on the requirements provided.

While mobile app businesses can get you an easy flow of revenue, it is only when the product is successful. Despite the abundance of mobile phone users, more than 90% of mobile applications fail to achieve their revenue goals for one reason or another.

Let’s first look at the importance of a plan for a startup app:

• Guides Strategic Direction:  A business plan outlines the vision, goals, and target market for the mobile app, providing a roadmap for success.
• Defines Revenue Model:  It clarifies how the app will generate revenue, which is crucial for sustainability and growth.
• Shapes Marketing Strategy:  A well-defined plan helps in crafting an effective marketing strategy to reach and engage the target audience.
• Establishes Competitive Advantage:  Identifying strengths and unique selling points helps differentiate the app from competitors.
• Attracts Funding:  A comprehensive business plan increases investor confidence and attracts diverse funding sources.
• Mitigates Risks:  By outlining potential challenges and strategies to overcome them it minimizes the risk of failure.
• Builds Confidence:  Having a solid plan instils confidence in investors, partners, and stakeholders, increasing the likelihood of success.

Having a business plan for mobile app startup proves to be an essential strategy for your startup success as it helps you define several vital aspects of your app:

• App target market,
• App revenue model
• App marketing strategy
• App competitive advantage

As entrepreneurs, it is always a better approach to have diversified funding sources  for your startup and to present your idea to more than one potential investor or fund provider ; your mobile app business plan should be pitch-perfect.

If you know how to write a business plan for a mobile app, you will be able to attract multiple fund providers and target audience/customers who share the same vision as yours because, with such a plan, they would believe in your product. It is also essential to know about the top mobile app funding trends . Without a proper business plan for a mobile app, you might put your time, money, and resources at risk.

Interested in building an app for your Startup business?

A business plan for a mobile app is a document that outlines the goals, strategies, and feasibility of developing and launching a new app in the market. It helps to communicate your app’s value proposition and competitive advantage to stakeholders and potential investors.

A business plan for a mobile app typically includes the following core elements:

• Executive summary

Market Analysis

Product overview, company overview, marketing plan, financial plan.

• Risk Mitigation Strategies (RMS)

Writing a business plan for a mobile app requires you to follow specific steps with logic and emotions. The purpose is to convince the reader (investors) and give them confidence in your app business.

Executive Summary

This is a brief overview that covers the main points of the mobile app startup business plan. It may include the concerns that the app can address, the targeted market, revenue model/funding requirements, and the unique features or benefits of the product.

An executive summary in a mobile app business plan is simply an outline or a glance at your business venture. The reader should get a glimpse just by reading the executive summary. The executive summary can be further divided into three categories: summary, UVP, and target or objectives.

• Summary : The summary is a concise and compelling text that showcases a startup business plan to grab the attention of readers and provoke them to read ahead.
• UVP : The UVP (Unique Value Proposition) is the core message of your app business plan. UVP makes the app different from the rest and mentions why target users should opt for this app over other alternatives.
• Targets/Objectives : The targets/objectives mention the specific and measurable results you want to achieve through the app business in a specific timeframe. Whatever you mention should align with the UVP and particular market needs.

One of the critical aspects of crafting a compelling business plan for a startup app is to find out your targeted users and competitors with their unique value proposition. This helps you understand your potential customer’s needs and preferences.

Here are some steps that help you conduct market research and analysis for your app business with an example:

• Define the purpose : Identifying the problem or opportunity that your app business aims to solve or address will help you narrow down the scope and concentrate on a particular segment.
• Gather enough data : Researching to gather existing data and information about a specific industry and its market size to understand trends and customer behavior will overall help you understand competitors and their success.
• Ask the end-users : The best way to have a sure-shot startup business plan is to collect data and feedback right from the targeted customers or end users through tools and methods like surveys, interviews, focus groups, user testing, and polls.
• User segmentation : After gathering enough data, you should segment your target audience based on criteria such as demographics, psychographics, behavior, and geography.
• Market forecasts : The market forecast focuses on studying factors such as market size and demand as per the latest trends. The forecast shall also help you understand customer lifetime value (CLV).
• SWOT analysis:  Conducting a SWOT analysis is one of the mandatory steps of a business plan for a mobile app. It evaluates the strengths, weaknesses, opportunities, and threats for your app business. Through SWOT, you identify competitive advantages and challenges as well as any external factors that might affect your business success.

You can mention the app’s functionality, design, and user interface, along with probable user experience and technical specifications. The product overview also explains how the application is different from the competitors in the market by mentioning the value it could add to the users.

A product description is a brief summary of your product’s (a mobile app’s) main features, benefits, and monetization strategy. The reader or the investor needs to understand the product to build trust in the business plan. The product overview should include:

• App’s core functionality and purpose : You should mention the app’s main functions and why the app is built (the primary cause).
• App’s benefits and value for your users : The App’s benefits include showing what users will get with the app. For instance, for a fitness app, the user must be made aware of how the app will benefit them, keeping their mental and physical status optimum.
• App’s monetization model as per app’s goals and market : To investors and you, business does matter. How the app business works, earns money and sustains the tough market should be reflected in this overview.

One of the most essential factors in a mobile app business plan is a summary of the company by mentioning its background, mission, and vision. The organization overview introduces the team members and their roles, along with technical/marketing skills and qualifications.

The brand identity matters, and therefore, it is essential to include a thorough detail of the firm, agency, organization, or company. Startups in mobile app businesses should clearly define their company’s details.

• Overview : Mention the company, its origin, whose brainchild it is and what its vision and mission are.
• Team and advisory board : You should mention the board of directors, MDs, CEO, and other authorities as a team and advisory board in detail.
• Timelines and milestones : Defining the startup app business plan in phases such as timelines and a breakdown of short-term goals and long-term goals, will give readers a fair idea about how the app business shall grow and achieve its target.

Another aspect of having a mobile app startup business plan is to include a comprehensive analysis of the market opportunity by showcasing research on customer segments, competitors, and the latest trends for the app.

The detailed plan for marketing ideally outlines the marketing strategy and tactics through various social media channels as per specific budget and metrics to promote and distribute the app to the targeted customers.

Companies need proper marketing to sustain the competition. Marketing helps companies reach the targeted customers and inform them about the products and services while convincing them to buy. Mobile app businesses also focus on engaging and retaining end users for success.

• Outline objectives, strategies, and tactics : Objectives are the goals you want to achieve with your app business, like an increase in downloads and user retention with enhanced revenue. Strategies include a plan to target a specific market segment and create a unique value proposition. Tactics refers to specific actions that are used to execute a strategy.
• Promotion of the app : You need to identify your targeted users and their needs, find them, and communicate the benefits and features of your app compellingly and engagingly.
• Marketing performance metrics : For your mobile app startup business plan, you need to define key performance indicators (KPIs such as number of downloads/installs) that go with your vision and check them regularly.

A financial plan is the backbone of a business plan for a mobile app. It is a projection of the income statement and cash flow statement stated through a balance sheet and breakeven analysis. The plan preferably includes the assumptions along with sources and proper utilization of funds to develop and launch the application.

A financial plan is an essential part of a mobile app business plan because it helps you estimate your product’s revenue, expenses, and profitability. The plan enables you to evaluate the feasibility and viability of the app business idea; additionally, you pitch it to attract fund providers.

Here are some steps to create a financial plan for your app:

• Choose a revenue model : Choose from different methods to monetize your app. It could be an in-app purchase, subscription, advertisement, or freemium model.
• Project your app’s revenue : You should estimate how many users will download and use your app, how much they will spend or generate in revenue, and how long they will stay engaged with your app.
• Outline your app’s expenses and budget : In this, counting the costs of mobile app development , deployment, and maintenance of your app is considered. You may contact a mobile app development company for close-to-accurate estimation.
• Calculate your app’s profitability and breakeven point : Here, comparing your app’s revenue and expenses with market leaders to determine its profitability is mentioned. Also, it would be best if you represented how long it will take for your app business to reach the breakeven point.

Risk Mitigation Strategies

In a startup app business plan, RMS includes listing down the potential risks and challenges that may affect the success of the product and their remedies or precautions. The factors to include are possible technical glitches, legal issues, regulatory issues, market volatility, and operational issues.

Even if you have a well-thought-out startup business, many a times there is a chance that things might not work as properly as planned. For this reason, risk mitigation strategies  for startup apps are considered to be a critical aspect of a business plan.

This is to ensure that even if the startup may face some challenges, the entrepreneur is already prepared and thought about a way out. Some potential risks of mobile app startup business are:

Low user retention

Many users download apps but seldom use them. They are likely to uninstall them quickly. This affects the app’s revenue and growth potential.

Solution: Work on UI/UX. Conduct thorough research on peers – what they do and what their apps look like for retention.

High competition

The mobile app market is saturated with hundreds of similar or alternative apps as yours. This can make it hard for your startup app business to stand out and attract users.

Solution: Intense market research of trends and user expectations is needed. Come up with unique features and functionalities in your product.

Security breaches

Mobile apps store and transmit crucial data like personal information and payment details, which exposes them to cyberattacks or data leaks that harm users and the app’s reputation.

Solution: Spend a special budget on building multi-tier security measures and unbreakable digital walls.

Legal issues

Mobile apps have to comply with various laws and regulations, such as privacy, intellectual property, or taxation. This can create legal liabilities or fines if the app violates any of them.

Solution: Find a legal advisor who knows in and out of local and international mobile apps or digital trading. Get certificates/licenses. Spend a special budget on compliance. For example: HIPAA for medical apps.

Need help with business plan for your Startup App?

Let us glance at the entire process. Here is a quick look at what you need to do for the plan.

Closing thoughts on mobile app business plan

The conclusion of a mobile app startup business plan should summarize the main points of the document and highlight the value proposition of the app. The gist should also include a CTA (call to action) for the reader or investor so that they are invited to take action.

Once you have aced the funding dilemma, you need to keep up the good work going by knowing how to scale a startup .

Ready to build a mobile app to lead the market?

You must be thorough with how to write a mobile app business plan by now. So, you have an app idea and also know how to pitch your deck to investors and users. It is suggested that while making the pitch-perfect business plan for your mobile app, you should have a tech partner by your side to help you make the business plan foolproof.

We are a  renowned mobile app development company  that can help you draft the technical aspects and get you an estimated budget for your dream product.

Contact us now , and together, we can make your dream come true.

He is the Co-Founder and CEO of Prismetric . An enthusiastic entrepreneur, interested to discuss new app ideas, rich gadget tricks and trends, and admires signature tech business styles to readily embrace. He enjoys learning most modern app crafting methods, exploring smart technologies and passionate about writing his thoughts too. Inventions related to mobile and software technology inspire Ashish and he likes to inspire the like-minded community through the finesse of his work.

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