business plan for mobile app development

Mobile App Business Plan Template

Written by Dave Lavinsky

Mobile App Business Plan

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

Download our Ultimate Mobile App Business Plan Template here >

What is a Mobile App Business Plan?

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

Why You Need a Business Plan for a Mobile App Company

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

Source of Funding for Mobile App Companies

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

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

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

Finish Your Business Plan Today!

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

Your business plan should include 10 sections as follows:

Executive Summary

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

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

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

Company Analysis

In your company analysis, you will detail the type of mobile app you are operating.

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

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

In addition to explaining the type of mobile app you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

Finish Your Mobile App Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

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

Competitive Analysis

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

Direct competitors are other app businesses in your niche.

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

Putting together a business plan for your mobile app is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the app business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful mobile app.

Mobile App Business Plan FAQs

What is the easiest way to complete my mobile app business plan.

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

Where Can I Download a Free Mobile App Business Plan PDF?

You can download our mobile app business plan PDF template here . This is a template you can use in PDF format to create a business plan for an app.

Don’t you wish there was a faster, easier way to finish your Mobile App business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business planning advisors can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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.

• Case studies

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 .

You may also find interesting .svg-wave path { transition-duration: 0.8s !important; } .svg-wave.active path { stroke-dashoffset: 0 !important; } @media (max-width: 640px) { .svg-wave path { stroke-dashoffset: 0 !important; } }

Search suggestions:

• check your spelling
• try more general words
• try different words that mean the same thing

Got an idea in Mind?

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Small Business Tools

Strategic Planning Templates

E-books, Guides & More

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.

Not very good at writing? Need help with your plan?

Write your business plan 10X faster with Upmetrics AI

Plans starting from $7/month

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

Reach Your Goals with Accurate Planning

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

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.

Finish Your Mobile App Business Plan in 1 Day!

Wish there was a faster, easier way to finish your mobile app business plan?

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

Other Helpful Articles

Best Mobile App Development Business Models

Why create a business plan for a mobile app?

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

A business plan helps steer the enterprise in the right direction

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

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

It will also help you to better manage your team :

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

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

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

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

What does a mobile app business plan look like?

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

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

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

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

Things to keep in mind when creating a business plan

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

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

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

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

Fact-based estimates

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

External review

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

How to create a business plan for an app

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

Write an executive summary 

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

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

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

The four key components of an executive summary

Prepare the company overview 

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

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

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

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

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

Potential investors will definitely want to know this information.

Describe your products & services

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

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

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

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

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

Conduct an audience analysis

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

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

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

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

Carry out a competitive analysis

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

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

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

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

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

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

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

Conducting a SWOT analysis is important for proper positioning

Outline your marketing strategy

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

Describe your financial strategy

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

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

Exit strategy

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

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

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

Compile an appendix

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

How to fund your app startup

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

And now a bit more about every source of funding.

Bootstrapping

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

Personal networks

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

Crowdfunding

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

Angel investors

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

Startup contests at IT events

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

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

Monetization strategies

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

One-time purchase

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

In-app purchases

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

Subscriptions

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

This strategy is also known as the freemium business model

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

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

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

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

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

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

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

Commissions

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

What is a business plan for a mobile app?

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

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

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

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

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

Gamification in Banking: features, benefits & costs

• Fintech apps

How To Start a Fintech Company: All You Need to Know

How to Create a Neobank From Scratch: must-have features & costs

Thanks for your inquiry. It usually take up to 24 hours to get back with reply.

Wanna schedule an online meeting?

Free Download

Mobile App Development Business Plan Template

Download this free mobile app development business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

How to Write a Business Plan for Investors

How to Write a Business Plan

Simple Business Plan Outline

How to Start a Business With No Money

Industry Business Planning Guides

How to Create a Business Plan Presentation

10 Qualities of a Good Business Plan

Business Plan Template

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

From template to plan in 30 minutes

• Step-by-step guidance
• Crystal clear financials
• Expert advice at your fingertips
• Funding & lender ready formats
• PLUS all the tools to manage & grow

The quickest way to turn a business idea into a business plan

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Bug reporting

Debugging made way easier

Crash reporting

Full stack, not just stack traces

Here’s what Shake can do

Product managers

QA engineers

Internal app testing

Beta testing

Tech support

Documentation

Set up and effectively customize Shake

See, suggest and vote for upcoming features

Hot takes on various development topics

System status

Realtime updates on Shake service status

Integrations

Plug Shake into tools you use in minutes

Help center

Answers to common questions about Shake

• Get started

Writing a business plan for your mobile app idea

Before your mobile app idea can come to life, you should create a detailed business plan that describes its vision, breaks down development costs, and lays out a marketing strategy. 

Building an app is a long and complex process that involves careful planning and execution. Trying to create one based only on an idea, without any additional planning, can easily lead to disaster. 

A lack of pre-defined project structure, coupled with delays due to slower development times, is enough to get any app idea scrapped or put off. 

Even if it does get built, you’ll have no idea how to market your app or attract any potential investors without a business plan in place. That’s why it’s essential to plan before committing resources to bring your idea to fruition. 

In this article, we’ll explain in detail how to write a complete business plan for your app.

Table of Contents

Why should you write a business plan for your app?

One of the main reasons you should write a business plan is to minimize the risk involved while allowing you to attract potential investors at the same time. 

App development can be costly and carries inherent risks. A business plan is a way to minimize those risks. 

Apps whose creation was mapped out well grow at a more exponential rate and secure more investment capital. The reason for that is simple. 

Get unreal data to fix real issues in your app or web.

Having a complete overview of what you aim to achieve lets you track progress and act towards future goals more effectively. This is also a great way to attract investors, as a business plan will help make a good impression and convey your app’s mission .  

Let’s say you’re looking to build an app like WhatsApp . 

You’re going to have to perform an in-depth analysis of the cost, team size, and man-days spent to see what the development requirements are. That’s what writing a business plan is all about – planning for what’s ahead. 

Writing a business plan for your mobile app

Now that we’ve covered the reasoning behind why creating a business plan is a good idea, it’s time to focus on how to write a business plan for your app. 

Executive summary 

As an introduction to your business plan, you should write a summary of what your company does and what your app should do. This will act as a quick overview of what’s being presented further down the line.  Therefore, make sure it’s on-point and easy to understand. 

A good summary should focus on explaining how your project works without going into too much detail. You’ll have plenty of time to talk about the specifics later, as the main goal here is to introduce and communicate your app’s unique value proposition to the reader. 

You’ll be able to do exactly that by answering the following questions: 

• What am I trying to accomplish with my app?
• What is the general purpose of my app? 
• What does my app do better than the competition? 
• Who is my app’s target audience?

Once you’ve answered all of these questions, a reader will have a pretty good idea of what makes your app unique, and what your goals are. These are pretty important, especially if you’re looking to attract potential investors. 

Well-defined goals don’t just serve as a personal roadmap—they show transparency and help investors easily determine if the product meets their needs. 

“…what makes our service unique is our sticky vendor network and user base.” Unique value proposition, PubHub business plan  

Companies like YCombinator have built an entire business focused on funding startups at an early stage of development. For a chance to get funded, you’ll need a great summary that explains what the app is all about and your vision for its future development.

General information

After the executive summary, it’s time to talk about your business, company, and team.

Business overview

In this section of your business plan, you’ll introduce your business values, its goals, and pitch your app idea.

Anybody reading your business plan (e.g., investors) will first want to find out more about the values that drive your business and how you make a profit. 

Try and keep this part relevant and stick to the key characteristics of your business, such as: 

• Core values 
• Business objective & goal
• Key success factors

After that, it’s time to pitch your app idea to the reader. 

The best way to do that is to present a problem you’ve identified and then explain how your app aims to solve it. This should reflect your app’s unique value proposition . Here’s an example: 

Be sure to make your value proposition as concise as possible. Implicitly show how your app solves the problem(s) and how it’s different from others. 

To help you do that, you can try using the what-how-why method when you write. 

Company overview

After an introduction to your business, it’s time to provide the reader with some more general information about your company. 

Here’s a list of things you’ll want to include in the overview: 

• Company structure 
• Location 
• Type of entity 
• Number of employees
• Current targeted market 
• Mission and vision statement

This will give anyone interested in your company the gist of what you’re about.

Last but not least, you should introduce your team and their skills. This helps humanize your business plan, showing the real people behind your company, their skills, and experience. 

To introduce your team properly, start by adding a picture of each team member. 

After that, share a bit of information about each person, like their name, position and work experience. If you want to make these descriptions more interesting, you can add a personal touch by mentioning their hobbies or interests, as well. 

Let’s look at two different approaches to writing team member descriptions:  

The second description is more personal and helps create a sense of human connection with the reader, which can be quite useful when pitching your business plan. Choosing which one to use will depend on the type of investor you’re looking for.

Market analysis

If you want to successfully market your app, you’ll need an understanding of how the industry you’re about to enter works and what the competitive landscape is like. 

That’s why the next step in writing your business plan is to conduct a market forecast and a SWOT analysis. The goal here is to show your app idea’s short and long-term viability and analyze its strengths and weaknesses. 

Market forecast 

To prove your app idea is viable, you’re going to need a market forecast. 

Market forecasts are used to assess if there is a real market for your app and can be used to predict its success rate over time. They’re based on market research .

Considering they’re usually done by outsourced companies , they carry additional credibility and are the foundation of any marketing strategy. Adding a market forecast to your business plan is used to reinforce your unique value proposition and prove its market viability.

Market forecasts can be done using any of the three different methods : qualitative techniques, time series analysis and projection, and causal models. Make sure you choose the method that provides you with the data set you need to reinforce your claims.

SWOT analysis

Your market analysis should also include a strategic analysis of your app’s strengths, weaknesses, opportunities, and threats.

Much like any other type, SWOT analysis is based on data. You’ve added a market forecast to your plan in the previous section, and you can use its data to help write your analysis.

Your goal here is to present insights you’ve gained so far according to the SWOT framework. Here are a few questions to help guide you:

The biggest benefit of a SWOT analysis is that it highlights the challenges your app will have to face and outlines the weaknesses in your app that require more work. 

Take Botanical Bounty as an example. 

Their weakness is a lack of established reputation in the market, which means they’ll be focusing on building one in the future. Identifying it enables them to dedicate resources towards solving the problem as part of their marketing strategy.

Marketing strategy

Once you’ve laid out your analysis of the market, it’s time to reveal more about your marketing strategy. Using the information you’ve gathered so far, you’ll need to decide how you’re going to reach users, introduce them to your app, and eventually turn them into customers. 

To create a marketing strategy you should start small and base your decisions on data you’ve collected. 

From there, you’ll be able to scale up and cover a bigger time frame. The initial goal of a marketing strategy is to test out ideas against the market and see which one works best. 

Look at your competitors to see how they acquire customers and draw inspiration from them. The more insight you gain, the easier it will be to create a bulletproof strategy.

As part of your app market strategy, you’ll want to try out different marketing channels:

• Content marketing
• Advertising
• Organic marketing 
• Social media 
• App store marketing

Each one serves a unique purpose, and offers short-term or long-term benefits. For example, advertising is a short-term strategy that offers immediate results but has no long-term effect. Once your budget runs out, your exposure is gone with it. 

On the other hand, organic and content marketing might not show any immediate results, but they will help your app get discovered more easily in the future. 

The channels you choose will become part of your marketing mix, which incorporates all of the insights and data you’ve gathered so far into an actionable strategy. 

Creating a marketing strategy isn’t a one-off task. As the market evolves, so will the trends. 

Even the best market research can’t prepare you for certain changes, which is why you should consider adopting an agile approach to marketing.

After completing your marketing strategy it’s time to define finances, both present, and future. 

They’re crucial if you want to make your app idea work, as one of the biggest reasons that startups fail is the lack of money . 

The goal here is to present a projection of your finances moving forward, by laying out your funding projection, requirements, and defining an exit strategy. 

This will serve as a reference point for any investor that might come along. 

Funding projection 

The funding projection estimates the total cost of developing and marketing your app in the upcoming year(s). 

The ideal format for writing a funding projection is a table. You’ll want to divide all your financial tasks into categories, allocating part of your budget for each one. 

After that’s done, you’re ready to spread the allocated funds throughout the desired time period. 

Here’s what a funding projection table looks like: 

While writing your projection, watch out for varying costs and try to leave a little room for other expenses. As mentioned earlier, the market can be unpredictable and it’s always good to have a bit of extra money stored away just in case. 

Funding requirements

When you complete your funding projection, let potential investors know how much funding it will take to make your app a reality. 

Writing funding requirements is a straightforward process. Specify the amount you’re seeking, and what you’re willing to offer in return, e.g., a percentage stake in the company. 

Then, add an overview of how the proposed investment will be spent, and at what pace. The best way to show potential investors what you intend to do with their money is to use milestones.

Here’s an example of PubHub milestones: 

Each milestone in your funding requirements projection is binding, which means that any serious investor will hold you accountable. 

Make sure they’re based on measurable data, as setting unrealistic milestones may easily get you in trouble.

By specifying your funding requirements, you give investors an easy overview of what you offer and what they can expect if they decide to fund your app idea. 

Exit strategy

As the name suggests, an exit strategy for your app tells potential investors under which circumstances you’d be prepared to sell your business or a part of it. 

Even though you might not be planning to sell your business anytime soon, it’s still a good idea to define your terms for doing so. You never know when an offer you can’t refuse might come along. 

There are several different types of exit strategies , depending on what your goal might be:

• Lifestyle company exit
• Mergers and acquisitions
• Management and employee buyouts
• Selling your stake to a partner or investor
• Initial public offering (IPO)

An exit strategy will allow investors to gain insight into the ways in which your personal and business goals overlap , adding additional value to your business plan. 

Monetization strategy

A monetization strategy is an essential part of your business plan, which predicts your app’s return on investment (ROI) based on the business model you’ve chosen. It also includes details on how your app is going to generate revenue and which methods will be used. 

To create a great app monetization strategy, you’ll need insight into current and future mobile app industry trends . Such insights will help you avoid mobile market pitfalls and outdated practices.

Here’s a list of the most popular app monetization strategies : 

• Subscription model 
• Freemium model 
• In-app purchases
• In-app advertising 

The strategy you choose will depend on the app you’re planning to build and for whom. The subscription model is great if your potential customers have a high willingness to pay , and your app centers on providing content rather than features. 

According to statistics, the majority of apps today are based on a free model , combined with either in-app purchases or advertising. The reason is that they offer a lot more flexibility and scalability than paid or freemium ones.  

Your monetization strategy shouldn’t be fixed. As mobile app trends change, it needs to be flexible enough to evolve alongside your app and its goals.

Writing a business plan is the best way to minimize the common risks (e.g., running out of money) involved in app development and attract potential investors.

It doesn’t only serve as a way to plan for the future; it’s also a proof of concept of what you’re trying to achieve and how you aim to do it. Without it, you’ll have a hard time building your app.

Keep in mind that every business plan is unique to what you’re trying to achieve. There are no shortcuts and there is no point in copying someone else’s plan. It should be exclusively based on your goals and the data you’ve gathered while researching.

About Shake

Shake is a bug and crash reporting tool for mobile apps. It helps developers solve reported issues in their app faster, without having to bother the user.

Help your app be the best version of itself.

Add to app in minutes

Doesn’t affect app speed

GDPR & CCPA compliant

• Business Ideas
• Registered Agents

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

Updated:   February 9, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

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.

You Might Also Like

February 22, 2024

0  comments

How to Start a Wind Farm Company in 14 Steps (In-Depth Guide)

The global wind energy market is projected to reach $278.43 billion by 2030, growing ...

January 24, 2024

How to Start a Solar Farm in 14 Steps (In-Depth Guide)

The solar energy market is booming. According to research, the global solar farm market ...

January 17, 2024

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

The app market is booming, with $420.80 billion in revenue earned in 2022. As ...

January 8, 2024

How to Start a Crypto Mining Business in 14 Steps (In-Depth Guide)

The global cryptocurrency mining market was valued at $1.49 billion in 2020 and is ...

Check Out Our Latest Articles

How to start a dog clothing business in 14 steps (in-depth guide), how to start a vintage clothing business in 14 steps (in-depth guide), how to start a bamboo clothing business in 14 steps (in-depth guide), how to start a garage cleaning business in 14 steps (in-depth guide).

Mobile App Business Plan

Are you ready to revolutionize the mobile app industry? On this page, you will discover the essential steps to launch your own successful mobile app startup . 

In the digital era we live in, mobile apps have become an integral part of our lives, offering convenience, entertainment, and endless possibilities. If you’re ready to turn your brilliant mobile app idea into a thriving startup, this comprehensive guide is your roadmap to success. We’ll explore crucial topics like creating a mobile app development plan, selecting the optimal app for business planning, understanding the mobile app business model, launching a business app, establishing an app development company, effective marketing strategies for your mobile app, and crafting a compelling business plan for your tech startup. Let’s dive in!

Developing a Mobile App Business Plan

Before diving into the mobile app development process, it is crucial to have a well-defined plan. Start by identifying your target audience, understanding their needs and pain points. Conduct market research to analyze the competition and identify opportunities. Outline your app’s features and functionalities, and create a development timeline with clear milestones. Define the technology stack, choose the appropriate platforms (iOS, Android, or both), and establish a budget for development and ongoing maintenance.

Choosing the Best Mobile App for Business Planning

When it comes to business planning, having the right tools is essential. Look for mobile apps that cater specifically to business planning needs. These apps typically offer features such as financial projections , budgeting tools, goal tracking, and collaboration capabilities. Research and compare different options to find the one that aligns with your specific requirements and integrates seamlessly with your business processes.

Understanding the Mobile App Business Model

To build a successful mobile app startup, you need to understand the various business models available. Common mobile app business models include: 

Freemium: Offering a basic version of the app for free and charging for premium features or upgrades.

In-App Purchases: Providing additional content, virtual goods, or services within the app that users can purchase.

Subscription: Charging users a recurring fee to access the app or its premium features on a monthly or annual basis.

Advertising: Generating revenue through in-app advertising or partnerships with advertisers.

Sponsorship: Collaborating with brands or businesses to promote their products or services within the app.

Choose a business model that aligns with your app’s value proposition, target audience, and revenue goals.

Creating a Business App

Creating a business app involves understanding unique needs, providing solutions, and streamlining processes. Prioritize user-friendly interfaces, seamless integration, and regular updates based on feedback. Develop a mobile app to enhance engagement, streamline operations, and drive growth. Identify audience needs, design a user-friendly app, integrate with existing systems, and iterate for success.

Starting a Mobile App Company

If you aspire to start an app development company, consider the following steps:

Define your niche: Identify a specific industry or market segment to specialize in. This will help differentiate your company and target a specific audience.

Build a talented team: Assemble a team of skilled professionals, including app developers, designers, project managers, and marketers.

Establish partnerships: Collaborate with other businesses, agencies, or freelancers to leverage their expertise or fill skill gaps.

Create a portfolio: Develop a portfolio of successful apps or prototypes to showcase your skills and attract clients.

Market your company: Utilize digital marketing strategies, attend industry events, and network with potential clients to generate awareness and build a reputation.

Marketing Strategies for a Mobile App

Marketing plays a crucial role in the success of your mobile app startup. Some effective marketing strategies for mobile apps include:

App Store Optimization (ASO): Optimize your app’s name, description, keywords, and visuals to improve its visibility in app store search results.

Social Media Marketing: Leverage popular social media platforms to create engaging content, interact with your target audience, and build a community around your app.

Influencer Marketing: Collaborate with influencers or industry experts who can promote your app to their followers and provide credibility.

Content Marketing: Create informative and engaging content related to your app’s niche to attract and educate your target audience.

App Install Campaigns: Run targeted advertising campaigns to drive app installs, leveraging platforms such as Google Ads, Facebook Ads, or mobile ad networks.

User Referral Programs: Incentivize your existing users to refer your app to their friends and family, offering rewards or discounts for successful referrals.

Crafting a Business Plan for a Tech Startup

A well-crafted business plan is essential for attracting investors, securing funding, and guiding your mobile app startup. Your business plan should include:

Executive Summary: Provide a concise overview of your mobile app startup, its value proposition, target market, and revenue potential.

Market Analysis: Research and analyze the target market , industry trends, competitive landscape, and potential opportunities or challenges.

Product Description: Describe your mobile app, its unique features, functionalities, and how it addresses user needs.

Marketing and Sales Strategies: Outline your marketing and sales strategies , including user acquisition, monetization, and retention plans.

Financial Projections: Present detailed financial projections , including revenue forecasts, expenses, and anticipated profitability.

Team and Management: Introduce the key members of your team, highlighting their skills, experience, and roles within the company.

Funding Requirements: Specify the funding you require to develop and launch your mobile app startup, along with potential sources of investment .

As technology continues to advance, more individuals and entrepreneurs are recognizing the potential of starting their own mobile app businesses. This surge in interest reflects the growing importance of mobile apps in various industries and the desire to capitalize on their benefits. 

Our team of mobile app business plan writers have developed a sample business plan specifically tailored for the mobile app industry in New York City, New York . This comprehensive business plan takes into account the unique characteristics and opportunities of the local market. We believe this mobile app business plan sample will be an invaluable resource for your mobile app business startup. 

Have Questions? Looking To Get Started?

• Your Name *
• Email Address *
• Phone Number

Executive Summary

“Lizzy App” (herein also referred to as “the company”), led by Founder Ava Liz, is in the strategic planning phase of developing Lizzy (herein also referred to as “the platform”), an exclusive mobile dating app designed specifically for American-born South Asians. The platform’s mission is to create a meaningful space for users to find love and companionship with like-minded people.

The online dating industry is currently undergoing a significant transformation, becoming more inclusive and adaptable to the diverse needs of various ethnic and cultural groups. However, amidst this progress, there is a unique blend of cultures that often remains overlooked—American-born South Asians. These individuals, born in the US to parents who emigrated from South Asian nations, navigate between the traditional cultures of their parents and the diverse norms of the US. As a result, they require a dating app that understands and respects their unique cultural nuances.

Lizzy aims to fill this gap by providing a platform specifically tailored to the needs of American-born South Asians, offering a unique value proposition centered around exclusivity and assured through a meticulous user vetting process. By understanding and integrating the specific requirements of this demographic into the platform, Lizzy goes beyond mere surface-level compatibility and facilitates genuine connections based on shared cultural experiences and values.

To bring this vision to life, the company is seeking a bank loan of $150,000. T he funds will be allocated toward app development, marketing initiatives, operational expenses, and other startup costs. The loan will be repaid by implementing a cash capture mechanism, primarily through tiered membership fees. Additionally, the company expects to generate additional revenue through various in-app purchases, creating a sustainable revenue stream to support the growth and sustainability of the platform. 

With a robust business strategy, a steadfast focus on customer satisfaction, and backed by a visionary Founder with a strong commitment to bridging cultural divides, Lizzy is positioned to emerge as the ultimate platform for North American-born South Asians, revolutionizing the dating experience for this unique community.

Business Overview

Lizzy App is an emerging company poised to revolutionize the dating scene for American-born South Asians through the development of the limited-access dating app, Lizzy. The key differentiating factor of the platform lies in exclusivity, as all users are required to submit an application and pass a meticulous screening process based on undisclosed criteria before being accepted into the platform. This careful vetting process ensures that users have a higher chance of connecting with like-minded individuals who share similar cultural backgrounds and values.

Lizzy’s revenue model is built upon two primary streams: membership fees and in-app purchases. The platform offers tier-based membership options that grant users access to a range of benefits and features, each available at different price points. To foster long-term commitments and establish a stable revenue stream, Lizzy implements a cash capture mechanism and offers discounts for extended membership durations. Moreover, in-app purchases provide additional avenues for revenue while enhancing the user experience with premium features and options.

Leveraging the Founder’s extensive network, Lizzy will initiate a beta launch in NYC Metro in April 2024. This beta launch will serve as a crucial phase to gather early user feedback and insights, allowing the company to make any necessary refinements before launching to the rest of the American market in June 2024. Once established in the American market, Lizzy has ambitious plans to expand its operations to the United States, reaching a larger audience of North American-born South Asians and solidifying its position as a go-to platform for meaningful connections and relationships.

Mission Statement

Our mission is to create a respectful, and exclusive digital space which enables North American-born South Asians to find meaningful connections which respect their unique blend of cultural identities.

Vision Statement 

Our vision is to create harmony within the South-Asian community; ensuring North American-born South Asians can safely and privately connect and explore one another.

Core Values

Lizzy’s culture is built upon a foundation of core values that shape the way the company interacts with customers, partners, and employees. These values are fundamental to all business activities and decisions and are deeply ingrained in the company’s ethos.

Community-Centered Approach.

The company believes in creating a platform that resonates deeply with the North American-born South Asian community. By fostering a sense of belonging and prioritizing the unique cultural values and aspirations of this demographic, Lizzy delivers a genuinely inclusive and personalized user experience.

User Safety and Secur ity.

Lizzy places the safety and security of its users at the forefront of its priorities. The company maintains stringent security measures and thorough vetting processes to ensure a safe and respectful online environment.

Excellence and Quality.

Lizzy is committed to delivering an unmatched user experience. By continually refining the platform to enhance ease of use, d esign aesthetics, and overall user satisfaction, the company strives to exceed user expectations at every touchpoint.

Collaboration and Openness.

Lizzy promotes a collaborative environment where ideas, feedback, and innovations are openly shared and valued. By actively encouraging collaboration between team members, users, and partners, Lizzy ensures a collective effort toward the betterment of the platform and overall user experience.

Uncompromising Integrity.

Upholding the highest ethical standards, Lizzy fosters a culture of trust, honesty, and transparency with team members, partners, and customers. The company treats all stakeholders fairly, ensuring transparent communication in all business activities.

Goals and Objectives

Let's Get Started!

Market analysis.

As the online dating industry evolves, understanding market trends, government regulations, and the competitive landscape is essential for positioning Lizzy for success.  This market analysis will provide a comprehensive review of these key factors, providing valuable insights into the industry that will help the company develop a winning strategy.

Global Dating App Industry

The dating application industry refers to a sector of the digital market that provides platforms or services for individuals to meet potential romantic partners. Dating applications, or dating apps, are a modern form of matchmaking, primarily accessed via smartphones and tablets. They allow users to create personal profiles, list their preferences, and search for other users who meet their desired criteria. These apps typically utilize algorithms to match users based on various factors, such as shared interests, age, geographic location, and more. Some apps also leverage advanced technologies, such as machine learning and artificial intelligence, to create more sophisticated matching mechanisms.

The global dating app industry has experienced significant growth in recent years, driven by the increasing popularity of online dating applications among young individuals, particularly millennials. The market size of the global online dating application industry was valued at $7,939.2 Million in 2022, with a projected CAGR of 7.6% from 2023 to 2030. One of the key factors contributing to the growth of online dating applications is the rise in usage among the LGBTQ+ community, who have found these platforms to be a safe and inclusive way to connect with potential partners. Moreover, the convenience and accessibility offered by smartphones and high-speed internet have fueled the adoption of dating apps worldwide.

In terms of revenue generation, the subscription segment led the market in 2022, accounting for more than 62% of the overall revenue. This dominance is attributable to the additional features offered by paid subscriptions, such as an ad-free experience, unlimited likes, and read receipts, among others. The subscription segment is anticipated to grow at a CAGR of 7.7% during the same forecast period.

Regionally, North America held the highest share, approximately 36% in the global market, largely due to the presence of major players such as Tinder and Bumble. The United States alone accounted for about 58% of the market share in this region in 2022. However, the US is anticipated to exhibit the fastest growth rate, with a projected CAGR of 7.3% during the forecast period. The Asia Pacific region, led by China and India, is also expected to witness rapid growth.

American Online Dating Industry

The American online dating industry has been experiencing steady growth, with revenue reaching $56.64 Million in 2022. This trend is set to continue with a CAGR of 2.53% in the next five years, pushing the market volume to an anticipated $66.21 Million by 2027. This growth can be attributed to the increasing number of Americans turning to online platforms to seek romantic relationships and companionship.

American Online Dating Industry Historical and Projected Revenue, 2017 to 2027 

Moreover, the number of users in the online dating market is expected to increase, with projections estimating approximately 3.05 Million users by 2027, representing a growth of 0.23 Million users compared to the figures in 2022. This upward trajectory will also be reflected in the penetration rate, which is expected to rise from 7.4% in 2023 to 7.6% by 2027. This gradual increase indicates a broader acceptance and adoption of online dating applications among the population.

In addition to the growing user base, the average revenue per user is expected to show positive growth. In 2022, the average revenue per user amounted to $63.10, and by 2027, it is projected to reach $66.56. This indicates that the industry is not only expanding in terms of user numbers but also generating higher revenue per individual user.

Market Trends 

This section provides an overview of the latest trends in the online dating industry, helping Lizzy stay ahead of the competition and identify new opportunities for growth. By examining key market drivers, consumer behavior, and industry challenges, the company can refine and innovate Lizzy’s business model to meet the evolving needs of users.

Inclusivity for Exclusivity

The online dating industry has experienced a significant shift in user preferences, with a notable focus on value-driven, niche dating platforms. Instead of engaging in mindless swiping through countless profiles, users now prioritize the search for a sense of belonging and meaningful connections within specific communities. This emerging trend is exemplified by the success of platforms like Grindr, which caters exclusively to the needs of gay, bisexual, and bi-curious men. Additionally, a diverse range of other niche dating apps has emerged, catering to users’ unique preferences, hobbies, or interests. These specialized platforms have capitalized on the demand for inclusivity by narrowing their focus to specific segments of the population, effectively transforming exclusivity into a unique selling point.

As a dating platform exclusively catering to North American-born South Asians, Lizzy is well-positioned to tap into the demand for a specialized and inclusive dating experience within this specific community. By providing a platform that understands the cultural nuances, values, and aspirations of this demographic, Lizzy will be able to create a sense of belonging and connection that is often lacking i n mainstream dating apps. With a focus on inclusivity, cultural resonance, and tailored connections, Lizzy has the potential to become the go-to dating app for individuals seeking meaningful relationships within their own cultural context, setting it apart from other generic dating platforms.

Gamification

Gamification is an emerging trend that adds an element of fun and interactivity to the online dating experience. By incorporating gaming elements into dating apps, platforms have found innovative ways to engage users and encourage interaction. Bumble’s “Ice-breaking Questions” and Tinder’s mystery game “Swipe Night” are prime examples of successful gamification strategies. These unique features created a buzz among users and even attracted new users to these apps. To introduce gaming elements, some app publishers have revamped the dating app profile by incorporating users’ interests or character types, allowing users to find potential dates based on compatibility and shared personalities. Ur My Type (UMT) stands as a notable example of this enhancement, as the app matches users based on their Myers-Briggs personality types.

In line with these trends, Lizzy will incorporate elements of gamification into the platform. This will involve Daily Login Rewards. In order to encourage users to engage with the platform on a daily basis, Lizzy will offer rewards for consecutive log-ins. These rewards will include free swipes, cumulative points that can be exchanged for in-app purchases, or other additional features and benefits. This strategy aims to maintain user engagement, foster a daily habit of using the app, and provide users with incentives to continue their interaction with Lizzy.

User Safety

Alongside the rapid rise of online dating, concerns over user safety have also escalated. In the past, dating apps have been subject to criticism for insufficient protective measures against harassment, catfishing scams, and other forms of online abuse. A survey by the Pew Research Center revealed that 10% of dating app users had endured threats of violence, 35% received unsolicited sexually explicit messages or images, 28% faced offensive language, and 9% were threatened with physical harm. In response to these concerns, the industry has started to place greater emphasis on implementing effective safety measures. Enhanced privacy settings, advanced user verification methods, and features designed to report and block abusive users are now standard requirements for dating apps.

To address user concerns over safety, Lizzy is committed to implementing robust security measures in addition to standard protocols such as data encryption and privacy protection. As part of the company’s safety strategy, Lizzy will establish a comprehensive vetting process for all users, ensuring the verification of identities and profiles to create a safer and more trustworthy platform. Additionally, Lizzy will introduce a report and block function which will allow users to report any suspicious activities and promptly block individuals who engage in inappropriate behavior. To further enhance user support, Lizzy will expand the customer support team to efficiently handle disputes, address complaints, and provide timely assistance as the user base continues to grow.

Dating App Burnout

The trend of dating app burnout is on the rise, with a majority of users experiencing stress and disappointment due to unsuccessful dates and mismatched intentions, according to recent research by Badoo. The study found that, on average, singles go on six failed dates per year and spend approximately $350 on these unsatisfactory experiences. Approximately 31% of respondents admitted they find it challenging to express their intentions out of fear of judgment, and 82% expressed a desire to be more honest about their intentions to benefit future relationships. Misunderstandings also stem from assumptions made based on people’s profiles and gender, adding to the existing frustrations.

Lizzy aims to address this issue by implementing an efficient vetting process to ensure a high-quality user pool, thus increasing the chances of successful, compatible matches. The platform will also encourage users to be open about their intentions from the outset, alleviating concerns about judgment and promoting honest communication. Additionally, Lizzy’s focus on North American-born South Asians reduces the breadth of assumptions made based on profiles, as users share a common cultural background. By recognizing and addressing the common causes of dating app burnout, Lizzy will be able to offer an enhanced, satisfying dating experience to all its users.

Government Regulations

This section outlines the various government regulations and guidelines that directly affect Lizzy’s operations in the US. Upon expansion to new territories, the company will diligently review the relevant laws and regulations in each jurisdiction with the guidance of legal consultants. This proactive approach will enable the company to mitigate potential risks of non-compliance and maintain a high level of trust and credibility with stakeholders.

USA’s Anti-Spam Legislation 

Enacted in 2014, USA’s Anti-Spam Legislation seeks to promote ethical practices in electronic messaging and to combat spam and related cyber threats. Such threats encompass identity theft, phishing, and the distribution of harmful software, including viruses, worms, and trojans, collectively known as malware.

Under the regulations of USA ASL, companies are encouraged to adopt a more disciplined approach to managing their electronic marketing programs. This entails obtaining consent before sending commercial electronic messages. Requesting consent is a crucial gesture that demonstrates businesses’ respect for consumer privacy. Moreover, it ensures that businesses engage with individuals who have a genuine interest in their products or services, leading to improved open and click-through rates.

As a company operating a digital platform, specifically an online dating app, Lizzy will be engaged in constant electronic communication with users. To ensure compliance with the CASL, Lizzy will:

• Obtain Consent: Lizzy will only send commercial electronic messages to users who have expressly given their consent. Consent will be sought during the application process, and users will have the option to revoke their consent at any time.
• Provide Identification Information: All electronic messages sent by the company will clearly identify Lizzy as the sender and provide contact information, including a physical mailing address and either a telephone number, email address, or website URL.
• Provide an Unsubscribe Mechanism: All commercial electronic messages will include a clear and simple mechanism for recipients to unsubscribe. Upon receiving an unsubscribe request, Lizzy will promptly remove the user’s contact information from the mailing list.

Competition Act 

The Competition Act is the main federal statute in the US that prescribes rules against false or misleading advertising and deceptive marketing practices. The Act prohibits making public representations that are materially false or misleading. Such representations can be reviewed under civil provisions and are prohibited under the Act’s criminal provisions. The criminal and civil provisions are identical, but the criminal offense necessitates a “knowing” or “reckless” mental state.

The Competition Bureau, the regulatory body responsible for enforcing the Act, can choose to pursue either the criminal or civil track when enforcing compliance with misleading advertising laws. Typically, the Bureau reserves the criminal track for particularly severe cases. The Act also includes specific prohibitions that apply to certain types of advertising issues, such as pricing claims, performance claims, promotional contests, testimonials, bait-and-switch selling, and sale above an advertised price. Furthermore, the Act mandates that all statements, warranties, and guarantees be backed by “adequate and proper” testing. This provision places the burden on the advertiser to substantiate any claim before it is made public.

In alignment with the provisions of the Competition Act, Lizzy commits to transparent, honest, and accurate advertising. This includes clearly representing its services, pricing, and promotional offers, and ensuring that all claims, whether related to the functionality of the app or success rates, are supported by proper evidence or testing. This practice is not only intended to maintain regulatory compliance but also to build a solid reputation for integrity and trustworthiness, which is fundamental to gaining and retaining user trust.

State Regulations

Personal Information Protection Act of New York

Since the initial user base of Lizzy will originate from the Founder’s personal network in New York, it is important to acknowledge that the state has its own private-sector privacy law, which is substantially similar to the federal PIPEDA. Generally, establishments subject to a similar provincial privacy law, such as New York’s Personal Information Protection Act, are exempt from PIPEDA with regard to the collection, use, or disclosure of personal information that occurs within the state.

PIPA is a privacy act that governs the private sector in New York, outlining how all private sector organizations must manage the personal information of employees and the public (including customers). The act establishes common-sense rules for collecting, using, and disclosing personal information, striving to balance an individual’s right to protect their personal information and an organization’s need to collect, use, or disclose personal information for reasonable purposes.

The act also grants individuals the right to access the personal information an organization holds about them and request corrections if they believe the information is incorrect or incomplete. Personal information, as defined by PIPA, includes information that can identify an individual (e.g., name, home address, home phone number, or ID number) and information about an identifiable individual (e.g., physical description, educational qualifications, or blood type). However, it does not include business contact information or work product information.

Under PIPA, personal information can be collected, used, or disclosed for practical purposes only. In the context of the act, “reasonable” refers to what a reasonable person would deem appropriate in a given situation. Factors such as the type or amount of personal information collected, the intended use of that information, and the potential recipients of that information will determine what is considered reasonable.

Competitive Analysis

The global online dating market is characterized by high competition, with dominant players influencing the industry landscape. These market leaders have successfully implemented sustainable growth strategies and are actively pursuing various methods of expansion, such as mergers, acquisitions, collaborations, and agreements. To better understand Lizzy’s position in this market, a competitive analysis has been conducted to identify the primary competitors and their respective strengths and weaknesses.

Competitor A is positioned as a dating app for South Asians to connect and engage in serious, long-term relationships, thus leaving a gap for apps which offer a space for casual connections.

Competitor B’s traditional approach to matchmaking may not resonate with modern, urban, professional South Asians looking for a more contemporary and dynamic platform like Lizzy.

Competitor C is a less tailored choice for American-born South Asians. Competitor C does not account for the cultural nuances and shared experiences that Lizzy integrates into the platform.

Products and Services

Lizzy’s primary source of revenue comes from membership fees, which are provided in various tiers tailored to the diverse needs and preferences of vetted members. Each membership tier offers different benefits, with higher tiers providing users with a greater number of daily swipes and likes, as well as unlocking exclusive features.  As part of Lizzy’s cash capture mechanism, membership fees are priced based on the duration, with discounted rates offered for longer commitments. This strategy not only encourages users to commit to a longer membership but secures a more predictable revenue for Lizzy.

To stimulate user activity and maintain consistent engagement, the number of swipes and likes is replenished after a 24-hour period. This daily renewal system keeps the platform dynamic and encourages users to interact with the platform regularly. Understanding the value of flexibility, Lizzy offers both auto-renewal and manual renewal options, allowing users to control their membership status according to their convenience.

These in-app purchases not only offer users more flexibility and control over users’ experiences but also allow Lizzy to generate additional revenue, providing a win-win for both parties.  Moreover, these additional features fulfill the desire of users to optimize their matching chances, maximize their reach, and enrich their overall dating experience. By offering these options, Lizzy enhances user satisfaction and engagement, which in turn will lead to long-term loyalty and revenue growth.

Competitive Advantages  

The following competitive advantages differentiate Lizzy from other online dating platforms:

Highly Vetted User Base: While many dating platforms struggle with fake profiles and fraudulent activity, Lizzy ensures user authenticity by meticulously vetting all users. Through referrals, social media checks, and committee reviews, Lizzy creates a secure and trustworthy environment for its users, enhancing the quality of interactions on the platform.

Niche Market Focus: Lizzy caters specifically to North American-born South Asians, a niche often overlooked by broader dating platforms. This targeted approach eliminates the need for users to navigate through a multitude of unsuitable profiles, offering a more efficient and culturally compatible dating experience.

Limited Swiping : Unlike other platforms that bombard users with endless profiles to swipe through, Lizzy carefully curated matches for users. This approach mitigates decision fatigue and enhances the overall user experience by presenting only the most relevant matches, making each connection more meaningful.

Exclusivity: Lizzy introduces an element of exclusivity through its selective application process, distinguishing it from other dating apps. Prospective users or “applicants,” will undergo screening based on undisclosed criteria, resulting in a curated user base. This approach enhances overall user quality, attracts individuals seeking an exclusive dating experience, and fosters a safer and more genuine community.

Competitive Pricing : Lizzy offers an affordable alternative to platforms like Dil Mil, providing excellent value for money. This is achieved by combining user-focused features with a more accessible pricing model, making Lizzy a cost-effective choice for users seeking quality connections.

Ad-free Experience: Unlike many dating apps that disrupt the user experience with ads, Lizzy offers an ad-free platform. This allows users to focus on their connections and conversations without interruptions, providing a more comfortable and immersive experience.

Key Success Factors

Lizzy’s success will be driven by the following key factors:

Strategic Marketing and Branding

Effective marketing and branding strategies will play a crucial role in raising awareness and driving user adoption. Showcasing Lizzy’s unique selling points and creating a strong brand identity will be vital for attracting users, especially in the early stages of operations.

Scalability

Lizzy’s ability to scale efficiently and effectively will be key to its long-term success. The platform must be prepared to handle increased user volume and expansion into new geographical areas while maintaining its high level of service and performance.

Healthy Churn Rate

User turnover is inevitable for dating platforms, as a percentage of individuals join with the goal of finding a long-term relationship and eventually leaving the platform. Therefore, Lizzy will focus on implementing user retention strategies while also attracting new users to keep the community lively and dynamic.

Sustainable Monetization

Lizzy will strive to strike a balance between generating re venue and offering value to its users. The company will implement monetization strategies that are fair and transparent, ensuring that the prices charged align with the true value provided to users.

Continuous Innovation

The digital landscape, especially the dating app market, is continually evolving. To stay competitive, Lizzy will continuously innovate, introducing new features and improving user experience based on market trends and user feedback.

Customer Service Excellence

Providing exceptional customer service will enhance user satisfaction and loyalty. Lizzy will strive to offer responsive, empathetic, and effective customer support, resolving user issues promptly and professionally.

Sales and Marketing Plan

The sales and marketing plan lays out the company’s strategy for expanding Lizzy’s user base and growing the community. This section examines the key channels the company will use to promote its services, as well as the metrics that will be used to gauge success. Additionally, the plan will identify the strengths and weaknesses of the company, opportunities for growth and expansion, and potential threats that could impact business operations.

Target Customers

Lizzy will primarily cater to American-born South Asians, also referred to as “second-generation South Asians.” According to the American Government’s Classification of Generation Status, the term “second-generation” refers to individuals who were born in the US and have at least one parent born outside of the country. This classification essentially represents the children of immigrants.

The platform will initially launch in NYC Metro, a vibrant region with a robust South Asian community. In this area alone, there are approximately 40,640 American-born South Asians within the 20 to 54 age group, providing an excellent launchpad for Lizzy. The initial focus on a geographically confined area will allow the company to build a strong local presence and gather valuable feedback for refining the platform.

Following three months of intensive beta testing and platform refinement, Lizzy intends to roll out the platform to the rest of the American market. Nationally, there are roughly 230,000 American-born South Asians aged between 20 and 54. This population is expected to increase at a CAGR of 10.17% to reach approximately 550,000 by the year 2030. These statistics indicate a promising future for Lizzy in the American market, presenting ample opportunities for growth and success.

Furthermore, Lizzy has long-term plans to expand to the United States, a move that will provide access to an even larger pool of potential users. This planned expansion is another strategic step in positioning Lizzy as the premier dating platform for American-born South Asians, extending its reach beyond the American market.

American-Born South Asians

American-born South Asians represent a unique segment of the USA’s diverse population. Born in the US to parents who emigrated from South Asian nations such as India, Pakistan, Bangladesh, Sri Lanka, and others, these individuals straddle two worlds—the traditional South Asian cultures of their parents and the diverse, multicultural norms of the US. This group, while inherently familiar with American societal norms, maintains a deep connection with their South Asian roots through family customs, food, language, and more. Being born and growing up in the US, they often face unique challenges when it comes to dating and finding a suitable partner. The cultural nuances, expectations, and traditions of their heritage can sometimes clash with Western norms, making it difficult for them to find someone who understands and appreciates both aspects of their identity.

American-born South Asians trace their roots to a variety of regions across the South Asian subcontinent. Notably, individuals of Indian descent represent the largest segment within this demographic, constituting over half of the population. Other significant sub-groups include those of Punjabi, Pakistani, Sri Lankan, Tamil, Bangladeshi, Gujarati, Jatt, and Bengali descent, as well as those who identify more generally as South Asian without specifying a particular country or region.

Key Channels

Lizzy’s marketing plan hinges on a multi-tiered approach to connect with American-born South Asians who form the core of its user base. The Founder’s personal network will serve as a launchpad for the initial phase, while Instagram, TikTok, Facebook,  and Youtube will be key platforms for outreach given their popularity among the target demographic. The marketing approach will be designed around the marketing funnel, concentrating on various stages including awareness, consideration, conversion, loyalty, and advocacy.

At this stage, the company’s objective is to make the target demographic aware of Lizzy and its unique value proposition. This involves highlighting the features and benefits of Lizzy, building a strong brand presence, and generating excitement within the community to capture the interest of potential users. As this is the first point of contact between Lizzy and potential users, efforts will be focused on creating a positive and compelling impression.

Founder’s Personal Network: The founder possesses a strong network of individuals who have a significant number of followers. By leveraging these connections, Lizzy can tap into a sizable pool of potential users. It is anticipated that each of the 30 contracts will bring in approximately 10 users, leading to an estimated initial user base of 300 individuals.

Paid Social Media Ads : Lizzy will run targeted paid advertising campaigns on popular platforms such as Instagram, Facebook, TikTok, and YouTube. Leveraging advanced targeting options, these ads will reach individuals interested in dating apps or related content. By utilizing these platforms, Lizzy aims to enhance visibility, connect with a larger, more specific audience, and effectively communicate its unique value proposition through culturally relevant and engaging advertisements.

Influencer Collaborations: Lizzy plans to collaborate with influencers who have a significant following within the American South Asian community. These influencers will play a vital role in introducing Lizzy to their followers, creating a buzz around the brand. Collaborators will be carefully selected based on their credibility and alignment with Lizzy’s brand values.

Public Relations: Lizzy will also engage in public relations activities, such as issuing press releases, to local media outlets and South Asian-centric publications. This will help increase brand visibility, build credibility, and reach potential users who may not be active on the aforementioned social media platforms.

Website: To attract organic traffic to the website and position Lizzy as a trusted authority in the niche dating market, the company will invest in creating high-quality website content optimized for search engine optimization (SEO). This will include informative articles, blog posts, and guides related to dating, relationships, and South Asian cultural topics.

Consideration

In the consideration stage, the objective is to engage the interest of potential users and nurture them into becoming Lizzy users. This stage involves a detailed showcasing of the platform, its unique features, and the benefits users can experience from it. Here, the focus is on strengthening the connection between Lizzy and potential users, persuading them to consider Lizzy as their preferred dating app.

Organic Social Media Engagement: To build a stronger connection with potential users, Lizzy will engage in organic social media activities. These activities will be tailored to each platform:

• Instagram: Lizzy will regularly post visually appealing images and videos showing the app in use, user testimonials, and content that resonates with the cultural nuances of the target demographic. Instagram Stories will also be used for limited-time content and to engage followers with interactive elements like polls and questions.
• Facebook: While also sharing similar content as on Instagram, Facebook will be used to foster a community around the Lizzy brand. This includes creating a Facebook Group for users and potential users to interact, ask quest ions, and share their experiences.
• TikTok: Lizzy will create and share engaging, short-form video content on TikTok. This includes tutorials on using the app, highlighting unique features, and other culturally relevant content.
• YouTube: Long-form video content will be created for YouTube. This includes detailed walkthroughs of the app, interviews with successful matches, and content about love and dating within the South Asian community in the US.

Lead Capturing Landing Pages: Lizzy will create targeted landing pages designed to capture the contact details of potential users. These landing pages will include a prominent call to action, encouraging visitors to provide their email addresses in exchange for updates, exclusive information, or possible early access to the platform.

Email Marketing: Once the contact details of potential users have been captured, an email marketing campaign will be implemented. The campaign will aim to build interest and anticipation for the platform during the initial stages. In the later stages, regular newsletters will be sent out to provide more in-depth information about Lizzy, showcase success stories, and provide updates on new features.

The conversion stage is the turning point in the marketing funnel, where interested individuals take definitive action to become users of Lizzy. Given that Lizzy is an exclusive platform, this step involves completing an application process and undergoing a screening before being accepted. Both the application and screening process can be completed either via the Lizzy app or on the website, making it accessible to a wide range of users. During this stage, strategies will be centered around persuasive tactics aimed at encouraging sign-ups, membership purchases, and various in-app transactions.

User-Friendly Application Process:  Lizzy will ensure a streamlined and user-friendly application process to encourage conversions. Clear instructions and expectations will be provided from the beginning to minimize potential drop-offs and create a smooth and efficient experience for applicants.

Onboarding Program : Once a user is accepted, a comprehensive in-app onboarding program will take place to ensure they understand the platform’s various features and benefits. This not only helps in conversion but also ensures users utilize the platform to its fullest extent.

Trial Memberships: Lizzy will offer trial memberships to new users, providing them with an opportunity to explore the benefits of a full membership. These trials serve as a powerful incentive for users to convert into paying members.

Discounted Rates: To encourage long-term commitment, Lizzy will offer discounted rates on longer membership plans. This approach not only helps in securing revenue through a cash-capture mechanism but also enhances user retention by incentivizing users to choose longer subscription periods.

In-app Pop-ups: Lizzy will utilize in-app pop-ups to promote additional in-app purchases, including options such as extra likes, swipes, search options, and unlock additional features. This strategic approach aims to drive revenue while enhancing user engagement within the platform.

At this stage in the funnel, the focus is to encourage users to continue their relationship with Lizzy and consistently use the platform. Loyalty is cultivated through a positive user experience, excellent customer service, fostering a sense of community, and creating a safe and enjoyable environment where users can find meaningful connections.

Personalized User Experience: Lizzy will leverage its data-driven approach to provide a personalized experience for each user. This will involve tailored match suggestions, personalized messages, and other customized content that make users feel valued and understood.

Robust Customer Support: A critical aspect of user loyalty is the assurance of support when needed. Lizzy will provide comprehensive customer support, handling queries, concerns, and complaints promptly and professionally.

Promoting User Safety: Lizzy will promote safety features, such as the ability to report and block users, through various communication channels. By doing so, Lizzy reassures users that their safety and comfort are a top priority, thereby fostering a sense of trust and loyalty.

Regular Updates: Lizzy will maintain an ongoing commitment to improving the platform based on user feedback. This will be executed by regularly updating the platform and introducing new and exciting features.

Daily Login Rewards: In order to encourage users to engage with the platform on a daily basis, Lizzy will offer rewards for consecutive log-ins. These rewards will include free swipes, cumulative points that can be exchanged for in-app purchases, or other additional features and benefits. This strategy aims to maintain user engagement, foster a daily habit of using the app, and provide users with incentives to continue their interaction with Lizzy.

Community Engagement: Lizzy will actively engage with its user community on social media platforms. This will be done through regular posts, discussions, and interactive content. By creating a lively and interactive social media presence, Lizzy can cultivate a sense of community and belonging among its users, contributing to increased loyalty.

At this point in the marketing funnel, the objective is to turn loyal users into brand advocates. Advocacy occurs when users are so satisfied with their experience on Lizzy that they actively recommend it to others in their network. This not only provides a powerful testament to the value and quality of Lizzy but also helps attract new users to the platform through word-of-mouth. Here, the strategies will be focused on encouraging users to share their positive experiences, refer their friends, and actively promote Lizzy within their social circles.

Referral Program: A referral program will be put into place where existing users can invite their friends to join Lizzy. For each successful referral that results in a new user, the referrer will receive certain benefits such as premium features, extended memberships, or other in-app incentives. This gives existing users a compelling reason to spread the word about Lizzy.

Community-Building Events: Lizzy will host community-building events, both virtually and in person, as a means to further establish a sense of community among its users. These events can also act as a platform for users to share their positive experiences with Lizzy, reinforcing their role as advocates for the brand.

User Testimonials: Real-life success stories or testimonials from users can be a powerful form of advocacy. Lizzy will encourage users to share their experiences and stories, which can then be featured on Lizzy’s social media platforms and website. This not only promotes the brand but also adds a level of authenticity and trustworthiness to the platform.

Engagement with User-Generated Content : Encouraging users to share their Lizzy experiences on their personal social media accounts can create a viral effect. Lizzy will engage with such content by liking, sharing, or commenting on user posts, which can further boost visibility and reach.

Brand Ambassadors: Lizzy will identify power users or influencers within the Lizzy community and extend invitations to them to become brand ambassadors. These individuals will play a crucial role in promoting Lizzy within their network, generating buzz around the platform, and serving as relatable faces for the Lizzy brand. Their endorsement and engagement will contribute to increased awareness, trust, and loyalty among the target audience.

Key Performance Indicators

To effectively track Lizzy’s progress and ensure continued success, the company has identified the following KPIs:

• User Acquisition
• Number of new user applications
• Application acceptance rate
• Member referral rate
• Monthly user growth rate
• User Engagement
• Daily active users (DAU) and monthly active users (MAU)
• Average time spent per session
• Number of connections made between users
• Number of in-app activity
• Membership Retention
• Retention rate of active members
• Average duration of membership
• User churn rate
• Monetization
• Average revenue per user (ARPU)
• Revenue generated per membership tier
• Revenue generated from in-app purchases
• App Performance
• App Store and Play Store rating and reviews
• Number of reported crashes and technical issues
• Cost per lead and user acquisition cost 
• 4:1 return on ad spend 
• 5% monthly website traffic increase
• 2% monthly follower growth rate on all social media platforms
• Gross margin 
• Net profit margin 
• Positive cash flow

SWOT Analysis

• Exclusive platform that caters to the unique cultural context of American-born South Asians
• Founder’s expertise and deep understanding of the unique needs of the target demographic
• Founder’s extensive network within the South Asian community in NYC Metro
• Thorough user vetting process that ensures a high-quality user base
• Diversified revenue streams through membership fees and in-app purchases
• Limited user base due to the exclusive focus on North American-born South Asians
• New entrant with limited brand recognition compared to established dating apps
• Potential for a slower user growth rate compared to broader demographic dating apps
• Revenue heavily reliant on membership fees and in-app purchases
• Limited resources for aggressive marketing and user acquisition

Opportunities

• Increasing demand for niche dating platforms
• Growing consumer spending on online dating services
• Expansion into the American market to tap into the population of American-born South Asians
• Potential collaboration with influencers or celebrities to increase the platform’s visibility
• Integration of gamification features to attract and retain users
• Intense competition from both mainstream and other niche dating platforms
• Regulatory changes impacting user data privacy and app operations
• Economic downturns affecting users’ capacity to pay for premium services
• Rapidly evolving user preferences and expectations in the online dating industry
• Negative experiences or incidents that can damage the platform’s reputation

Operational Plan

The operational plan serves as the backbone that outlines the fundamental actions required to ensure Lizzy’s operations run efficiently and effectively. This section provides a comprehensive overview of the company’s day-to-day activities, covering critical areas such as hours of operation, location, app development, project timeline, platform mechanics, compliance with laws and regulations, and risk management. 

Hours of Operations

The operating hours for the different departments of the company will vary depending on their respective responsibilities.

Management Team

To ensure optimal productivity and efficiency, Lizzy’s management team will operate during standard working hours. This will enable the team to work collaboratively and be available for communication with contractors and stakeholders during regular business hours.

Additionally, this operating schedule promotes a healthy work-life balance for employees, which is crucial for maintaining high morale and productivity. Having weekends off allows employees to recharge, ensuring they are motivated and ready to provide exceptional service during the workweek.

App Operations

The App Operations team, consisting of the Customer Service Department and the Account Review Department, operates on a 24/7 schedule. Team members will be working in shifts to provide round-the-clock support for the platform, seven days a week. Each team member will follow a standard 40-hour workweek, ensuring that customer queries are promptly addressed and user profiles are efficiently reviewed. This schedule enables the team to deliver excellent customer service, enhance user satisfaction, and maintain active engagement on the platform.

Office Location

During the initial phase, the Lizzy team will adopt a fully remote work model, leveraging modern technological tools for communication, collaboration, and project management. This approach allows the company to save on infrastructure costs, ensuring that more resources are available for critical areas such as platform development and user acquisition. The remote work model also provides the advantage of recruiting talent without being limited by geographical boundaries, thereby opening up a wider pool of potential employees.

Once the company achieves a lucrative financial standing, the plan is to establish a physical headquarters in New York City, New York, a city renowned for its thriving tech industry and vibrant startup ecosystem. This office will house senior management, administration, human resources, and other corporate functions, fostering a collaborative and centralized work environment.

App Development

The development of Lizzy will be entrusted to Simply Designs, a renowned application development firm in New York City, New York. Led by Scott Jackson, Simply Designs has built a strong reputation in the industry, specializing in custom software and app development across multiple platforms. Their expertise lies not just in coding, but extends to wireframing, graphic design, project management, testing, and facilitating app store approvals, making them an ideal partner for this project.

Simply Designs’ team of skilled mobile app developers will manage the process from concept to deployment. This includes creating a user-friendly interface, ensuring smooth functionality, and optimizing the app for both iOS and Android. In addition to the mobile app, the contractor will also be responsible for creating Lizzy’s website, ensuring a consistent brand image and user experience across all digital touchpoints.

The decision to outsource the app and website development to Simply Designs not only guarantees high-quality output but also provides financial advantages for Lizzy. Outsourcing will save the company the associated costs and time involved in hiring, recruitment, and managing an in-house development team. Furthermore, this approach ensures that the technical aspects of the project are entrusted to capable hands, allowing Lizzy to concentrate on other core areas such as market research, user acquisition strategies, and delivering superior customer service.

Project Timeline

The following illustration represents the projected timeline for Lizzy, detailing the key milestones and development stages that the company intends to accomplish. This timeline offers an informative roadmap of the company’s strategic goals, showcasing the planned trajectory from the acquisition of funds to the anticipated platform launch.

Platform Mechanics

The following diagram illustrates the key functionalities, steps, and interactions that a typical user will encounter from the application process to engaging with other users on Lizzy. This visual representation showcases the platform’s unique features, intuitive design, and user-friendly interface, providing a clear understanding of how Lizzy strives to deliver a seamless dating experience to its users.

Lizzy will adhere to the federal and provincial laws discussed in Section 3.2 Government Regulations , as well as other pertinent regulations, bylaws, and standards. The company will take all necessary steps to ensure that it obtains the required government permits to conduct its business operations legally and ethically.

Labor and Employment

The company will strictly adhere to the legal standards for payment, compensation, and working conditions as mandated by the New York Employment Standards Act. The management team will ensure open communication channels with employees to promote a positive work-life balance that enhances welfare. Moreover, the company will continuously monitor its adherence to labor laws and periodically review compensation packages to ensure they meet the legally mandated minimum wage requirements.

Risk Analysis

Slow Adoption Rate 

As a relatively new platform, Lizzy faces the inherent risk of slow user adoption which could significantly impact the company’s growth, market position, and long-term sustainability. 

Apart from leveraging the Founder’s personal network, Lizzy will implement a robust marketing strategy to boost awareness and attract users. Incentives will also be provided to early adopters, encouraging user referrals and positive word-of-mouth.

User Data Breach

A breach in user data could result in unauthorized access to user profiles and personal information, eroding user trust and potentially exposing the company to legal consequences.

Lizzy will adopt rigorous security measures, including encryption, regular security audits, and secure access management. In the event of a breach, Lizzy will promptly inform affected users and take immediate corrective action

Negative User Behavior

Users engaging in harassment, catfishing, or other inappropriate behaviors could damage the platform’s atmosphere and deter potential users.

Lizzy will implement a stringent user vetting process and enforce strict community guidelines to keep the community safe.  Users will also be encouraged to actively report any suspicious or inappropriate behaviors.

Regulatory Changes

New regulations or amended regulations on online services could have an impact on the operations of Lizzy, potentially resulting in additional costs or requiring modifications to the business model.

To ensure ongoing compliance, Lizzy will stay updated with all regulatory changes in the industry and work closely with legal consultants. The company will allocate the necessary resources to accommodate any adjustments required as a result of regulatory changes.

Economic Downturn

Changes in the economy can influence user spending behavior. In an economic downturn, users may be less willing to pay for premium features.

Lizzy will monitor economic indicators and adjust its pricing strategy as needed. The company will also strive to offer a range of features and price points to cater to users with different spending capacities.

Technological Malfunction

Any disruptions to the operation of the platform, such as crashes, bugs, glitches, or performance issues, can have a negative impact on user experience, potentially resulting in the loss of account.

To ensure the seamless functioning of the app, Lizzy will invest in high-quality technology infrastructure and conduct regular testing and maintenance. Additionally, prompt technical support will be provided to address any issues that may arise.

Market Competition

The online dating industry is highly competitive, with numerous platforms vying for user attention. An increase in competition could lead to a loss of market share for Lizzy and impact its growth.

To set the platform apart from competitors, Lizzy will focus on a differentiation strategy. This will involve continuously innovating and improving its service offerings to align with the specific needs and expectations of North American-born South Asians.

Organizational Plan

The organizational plan outlines the company’s approach to managing human capital, including the organizational structure, management team, personnel plan, and recruitment plan. This plan will be regularly reviewed and updated to ensure the company remains adaptable and responsive to emerging opportunities and challenges.

Founder and Owner

Ms. Ava Liz is a results-oriented professional with over 20 years of extensive experience in the social service sector. Ms. Liz’s expertise, characterized by a deep understanding of mental health and a proven ability to establish and maintain productive relationships with team members and clients, has led to a career filled with impactful social initiatives. Leveraging these skills, Ms. Liz has transitioned into tech entrepreneurship as the Founder and Owner of Lizzy, a venture that carries the same level of social commitment and determination.

A respected member of the South Asian community, Ms. Liz holds a Bachelor of Arts in Sociology and a Bachelor in Social Work, alongside an active registration with the New York College of Social Workers, highlighting academic proficiency and commitment to professional development. Moreover, Ms. Liz’s past success in fundraising, notably raising over $20,000 for the ALS Society within the South Asian Community, demonstrates tenacity, resourcefulness, and commitment to effecting positive social change. These attributes, along with Ms. Liz’s keen understanding of the target demographic’s unique needs and experiences, will play a crucial role in leading Lizzy to unprecedented heights in the dating app industry.

Key Personnel

This personnel plan provides an overview of the duties and responsibilities of each employee and contractor within the company, offering clarity on individual duties and fostering a culture of accountability and effective management. By clearly defining the scope and mandates of each team member, Lizzy aims to cultivate a cohesive and efficient team capable of working collaboratively toward achieving the company’s goals. 

Account Reviewer

Full-time Contractor

• Review and evaluate user applications based on predetermined criteria
• Make decisions on whether to approve, deny, or place applications on a waitlist
• Ensure the application process is fair, consistent, and aligned with Lizzy’s policies
• Communicate decisions to applicants and provides feedback when necessary
• Uphold the integrity and standards of Lizzy’s user community

Customer Support

Offshore Contractor

• Provide email support to assist users with inquiries, issues, and technical problems
• Respond promptly and professionally to user queries and concerns
• Resolve user issues and escalate complex problems to the appropriate team
• Offer guidance and assistance in navigating the platform and its features
• Deliver excellent customer service at all times and ensure user satisfaction

Industry Advisor

• Offer industry-specific knowledge and insights to guide Lizzy’s strategic decisions
• Provide expertise on trends, market dynamics, and best practices within the dating app industry
• Assist in identifying opportunities for growth, innovation, and differentiation
• Offer advice and guidance on industry regulations, compliance, and emerging technologies
• Helps shape the overall industry positioning and competitive strategy of Lizzy

Market Advisor

• Conduct market research and analysis to identify market trends
• Assist in defining and refining Lizzy’s target market and value proposition
• Provide insights on competitor analysis and market positioning
• Collaborate with the marketing team to develop effective marketing and promotional strategies
• Guide market entry and expansion strategies based on market dynamics and opportunities

Growth Advisor

• Drive the development and execution of growth strategies for Lizzy
• Identify opportunities to increase user acquisition, retention, and engagement
• Analyze user data and performance metrics to identify areas for improvement
• Collaborate with cross-functional teams to implement growth initiatives and experiments
• Monitor and evaluate the effectiveness of growth strategies and make adjustments as needed

Chartered Professional Accountant

• Manage financial records and bookkeeping with accuracy
• Ensure compliance with accounting standards
• Prepare financial statements, handle tax filings, and provide financial analysis and reporting
• Assist in budgeting, forecasting, and financial planning
• Provide guidance on financial strategies and helps ensure proper financial management

Financial Plan

The following financial projections have been carefully crafted by the management team of Serenity Farm Co. All projections are forward-looking and are dependent on securing the required financing.

Pro Forma Income Statement

How can we help you?

Get in touch with us or visit our office

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.

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

We're hiring

How to Create the Best Business Plan for an App? Guide to a Business Plan App

Summary: The world has witnessed a great upsurge in the mobile app market. As per a report, the global mobile app market size was at USD 206.85 billion in 2022. And it is all set to increase at a CAGR of 13.8% till 2030. We all know that these and many other stats are right and effective.

On what basis are we so confident about? There is a major increase in the internet and the adaptability of online apps. So, now businesses tend to make calculative moves by developing mobile app business plans. Let’s have a look at how to write a good business plan for your mobile app.

Key Takeaway:-

• Such a business plan for the app will help you measure the risk factors beforehand.
• Steps to curate an app business plan are stated below to ensure a proper direction for your mobile app.
• Why should you opt for a mobile app plan? Ensure your futuristic success with a plan on hand prior to the SDLC.
• What good will such a business plan do? You will be able to figure out every necessary point in time & also get a good team to execute the plan.

Introduction

Anything well-planned always gives a better outcome than an unplanned thing.

Imagine the scenario in which you want to go on a trip.

In the first scenario, you have yet to plan the trip. You reach there and have to do a rekey of things. You will have to look for a nearby stay, have food, and have fun. Eventually, it did consume a lot of your time, money, and energy.

A planned trip with all the things right from the hotel to food and fun will help in a hassle-free holiday. Now you have travel apps and agents to go and get every booking document way before your trip.

So, while reading too, the first thought that came to your mind was a planned & well executed trip.

The same goes for apps. Plan it to win the online spectrum at the right time.  

In this competitive online space, who will not want a great curated business plan? Every startup or enterprise has to expand and grow to survive the online world.

Now, let’s directly chase the question.

Why Do You Need a Mobile App Business Plan?

• In general, the revenue in 2023 is over $935 billion. 
• 21% of millennials open an app 50+ times per day. 
• 49% open an app 11+ times each day. 
• A typical mobile user uses 30 apps per month and 10 apps per day.

All these mobile app statistics are alarming. To ace in the digital world, you have to strike hard with a business plan.

There are 100s of apps made on the same concept. Why will a user use your app? How will you lure them to stay for long? What are the other futuristic business ideas? Thus, you need a roadmap to discover your project phases and needs.

How will your mobile app startup succeed? From where will your app get funds? How will you survive in the later SDLC stages? All these things and many more can be noted in a mobile business plan app.

And most importantly, such advance plans always help to get to the user base.

What is the worth of a business plan? Know it from the best tycoon:-

Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones, and have a strategy in place to set yourself up for success. – Yogi Berra .

Perks to Get an App Business Plan

• You need a strong business plan to transform your ideas into actions.
• A plan will always help you to improve. 
• It defines growth points and steps to expand in the future.
• You can raise funds by presenting it to the investors.

Now, without further due, let’s get into some exceptional steps to follow for your PRD.

How to Write a Successful Business Plan for Your Mobile App?

Pave a winning road with a business plan. It does not matter whether you are an SME, enterprise, or startup; every app idea will need a plan to flourish in the unknown online space. 

The key factors that you should know for a business plan are budget and investment returns on a timely basis. Apart from that, you have to provide maximum transparency to achieve each milestone in real-time. 

Let’s have a look at some of the intricate steps to follow when creating an app business plan.

8 Steps to Create a Good App Development Business Plan

#1 Executive Summary

As the name has, it is ‘summary’. We all know it means a precise & concise way to define one’s business; when you approach an investor, they do not have time to read every bit about you.

You need to jot down the essential details of your company and its offerings. 

What should be the overview?

• Make a unique proposal
• Create an excellent UVP
• Specify your goals
• Provide accurate documents

Your business plan must contain the current and expected market situation along with target customers. It should also have the crux of your app, i.e., what problem will it solve? But all the details are to be mentioned in a precise way.

#2 Introduce Your Firm

For a good plan, you need to start with your firm’s details and end with a mobile app idea. You have to show your investors your company’s mission, product vision, and other factors for your startup’s success. 

Describe Your Firm

Write the details of your startup. It should give a reader details like the company name, location, headquarters, team size, hierarchy, etc. The mission statement of your firm should specify its goals. Also, list the main problems and the likely answers your startup may provide.

Always ensure that your business plan is easy to read. And also, one should understand the mission of your firm from the very beginning of your plan.

Company History

Every investor is interested to check a firm’s background. How did your company come into existence? How did you come up with such an idea? What were the stages of your company’s development? How have you decided to launch your product? All these details will help you to win the trust of your fundraisers. 

Your Tech Team

Why will a third party take an interest in your venture? There are two reasons to believe you.

• Your app idea and its growth perspects.
• The team backing your app idea with their tech brains.

Whether you outsource app development or have an in-house team, you need to have a detailed description of the team members. From work expertise to company responsibilities, the business plan should consist of all of it.

#3 Marketing Analysis & Strategies

Details about your app idea’s market are very crucial. You have to keep a watch on the industry and consumer needs. Every factor, along with its impact and solution, has to be given into the plan. A forecast of your ideal situation is a must. Such details help to know your overall market knowledge and the analysis for the future.

What should be your intricate steps?

• Review the current business environment
• Define your research criteria
• Get to know your overall market, SAM, and SOM
• Know your rival
• Analyze your audience

Expert advice: One has to study Google Play Store and Apple App Store. You will easily come to know about who is at the top, who is paid more, and which apps are grossing well. Ensure that you get the nerves of every app in the store right. And prepare for the missing pieces in your app.

#4 Forecast Your Market Possibilities

Why should your mobile app business plan have such a market forecast? How will it help your market credibility? A market forecast always shows your app idea’s efficacy to grow in the later stages. And if you are someone with a startup app idea , then, of course, such a step is a must for you. 

Now, what are some of the reliable points to showcase in your plan?

• Describe the expansion of businesses.
• Include data about the amount of funds received by your firm. And who has invested in it so far?
• Add some forecasts about the behaviour of your target users.

Your goal is to look into a long term situation. Study and analyze deeply whether there is a real market for your product. Is there enough customer base? Will you be able to maintain money & funds in the future? All these factors do matter a lot. 

Being an IT professional in web and mobile app development , we know the importance of market forecasts. With every app idea before making our first move, we ensure to analyze every bit of the market. Thus, it gives our team of experts a proper picture of the current needs. And provides great insight to the project owner about the future.

#5 SWOT Analysis

Now, this is a well-known method to get the right analysis of your business. Every brain understands SWOT.

• Opportunity

Every business has a weakness; you cannot simply deny it. With SWOT, you will get all the loopholes in time. And can work on them to convert them into prospects. Such findings also represent a futuristic expansion for your business.

#6 Create a Marketing Campaign

How will anyone come to know about your app? Via Marketing. Obvious answer! One needs to be careful about how they present themselves to the world.

The market awaits eagerly about new entries. You need to focus and strike at the right time among the right audience. With so much of the online and offline world, you need to be on the right channel to meet your potential client. Let’s have a look at some examples:-

Create a Landing Page

A landing page is a trustworthy face for your brand. You need to showcase features, functionalities, and the motto of your online product on the page. Ensure that you use the logo and the name correctly. Also, to engage more audiences, you can integrate an explanatory video. 

Launch a Website & Blog

Today, the very first thing we all do is to check a brand, product, or service’s online presence. So, as we say, it has become a mandatory move to build a website and start to blog for a better SERP rank. You have to promote your app with keywords and all the other SEO rules to be among the untouched global audiences. 

It is a modern and trusted way of advertising your business.

Social Media Platforms

Of course, this is The Way to be among all kinds of age groups. Market yourself thoroughly on all the popular social media like Facebook, Instagram, Twitter, Threads, etc. It helps a lot as these have their in-house plans, which helps a product reach and market itself well in advance.

You have to put aside a budget only for social media. And look into the analytics of your page to improve on every online front. It is very easy to be in the public eye, but to catch their attention for seconds is the game to be aced. 

The Market as per Budget

Marketing is an integral part of creating an app business plan. You have to get an estimate to spend on these strategies. You have to keep a check on your money spent. And the response achieved to be on the right strategy and meet the end goals on time.

#7 Product Growth & Launch

Every app is different and varies in user base, too. So, the growth of every online business differs a lot. An ABC tactic that worked for XYZ product is not necessarily apt for your venture. To expand in the right direction, you need a good sense of the market. And attract apt audiences that tend to make a loyal user base in a short span.

Now, as far as the product launch is concerned, there are two kinds of launches. In every app development business plan, you will have to mention one of these types. 

• Full-fledged deployment: You deploy a full bloomed SDLC. The one with all the features, tech stacks, and other growth criteria.
• MVP model: This is a minimalistic version of your idea. The MVP app development contains much needed features and functionalities. It is the best way to explore and know the possibilities of growth from the user’s perspective. 

#8 Finances

The financial model has a three- to five-year outlook for all the key forecasted indicators, like:-

• Profit and loss
• Balance sheets
• Start tables
• Unit economics calculation
• Revenues and expenses 

These will help you get an actual cost & asset value. In the future, it will help to figure out budget ways. 

Now, the investor might ask you about how you will monetize your app in the later stages. Here is a brief on it before ending the blog.

Monetization Strategy for an App Idea

If you are creating an app business plan, the strategy display is a must. Your firm will make profits in the future, and you are confident of it. 

Here are some of the common money-making tactics for your app business:-

• The charge for the services (You have a premium app model. Ensure that the users pay and use it.)
• In-app purchases are a great model for mobile apps on both iOS and Android.
• Subscriptions (this monetization strategy is very common. And continues to make revenue until the user decides to cancel the subscription. And so most apps offer a free trial period.)

Classic Tip from Our Experts

To flourish in your app business plan, you should take an MVP model with you. With such an app or software development, it becomes easy for the third person to understand your intent and be with you in the discussion.

A business plan with a functioning model is what will definitely make its way through. You can address your audience most effectively with such a profitable move. For more query on the topic, you can consult our experts. Also, get a free quote for your app idea!

On a Concluding Note!

Bring out your unique app business plan. No clone successfully made its way up to an original Uber, Netflix, Amazon, and Flipkart. Get yourself out there with our tech brains. Let’s explore the best for you and your business together. Invade the online space with a great mobile app business plan.

1. What is a business plan for a mobile app?

The app business plan is a document with all the details of the business and step wise representation of a futuristic SDLC. 

2. How does a mobile app business plan look like?

It starts from a brief history of your company to the marketing plan, launch date, investor details, and more. Every minute upgrade which will happen in the future has to be mentioned in the plan. 

3. What is the price to create a business strategy for an app?

It depends on the size of your business and the entire project scope. Our cost to create a business plan starts from $3000.

Mobile App Business Plan

Are you looking for a perfect project partner?

Subscribe to our newsletter.

Stay Updated to the Technology Trends for Every Industry Niche.

Bharat Patel

The software development world has been filling the gaps between customer and businesses at a lightning speed. Being an expert for 17+ years in the tech industry, I have been into multiple roles right from management to consulting. My team and I ensure to craft the best large scale apps with intricate designing to meet all the required and complex needs of a business.

Check Related Blogs

6 Effective Stages For A Successful Mobile App Development Lifecycle

The growing popularity of mobile apps has provided developers with an organized process of developing solutions.

Pramesh Jain

An Introductory Guide: What Will Be the Cost of Building a Mobile Application in 2023?

Are you interested in developing a mobile application at an effective cost? Refer to this blog to learn the basic cost of creating an application, factors affecting the cost of the app, and other mobile complexities, etc.

30+ App Ideas For Startups To Launch In 2023

Post-pandemic, every business is eyeing online ventures and their revenue. The millennials are highly dependent on instant services, a fingertip-away ordering concept and more

Book a Meeting

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.

Comments are closed.

Mobile App Business Plan Outline

• Public Entities
• Enterprises

We believe in change driven by technology and innovation.

Meet the brains behind our smooth running and powerful machine.

Join our team of experts to make a difference in the real world.

Learn about Appinventiv's product lifecycle development process.

Our software development services are built to evolve your business idea into a successful growth story

• Mobile first Design
• Supply chain management
• Legacy Modernization
• ERP Software development
• AR/VR Development
• IoT Development
• Microservices
• Cloud Managed Services
• Cloud Consulting
• Business Intelligence
• NFT Marketplace
• Metaverse Development
• Dapp development
• Healthcare IT Consulting Services
• Generative AI

that deploy customized solutions in a wide range of industries

to steadfast success for top globally leading brands

A leading digital platform to offer engaging shopping experience to users

A transforming ERP Solution for the world's largest furniture retailer

A mobile app to digitalize & expand KFC's digital footprint

A refined UX strategy for Domino's to increase their conversion rate by 23%

The MIT Innovation award-winning app with $52 Million funding reshaping the employment landscape

A SaaS-based financial literacy and smart money management platform for kids

A mobile app to digitalize & expand KFC's digital footprint

• Schedule a call contact us
• Android Development

How to Create a Convincing Business Plan for Your Mobile Apps?

Steps To Create a Business Plan For Your Mobile App

1. detailed summary, 2. company introduction, 3.  all about the industry, 4.  marketing strategy, 5.  operational strategy, 6.  financial plan, why make a mobile app business plan, magnetizing investments, reducing the risks, helps you keep everything in perspective, wrapping up.

Having an app idea is simple. But planning the business needs is quite tedious and crucial!

If you choose to develop an application without doing the research, then while characterizing the audience, and planning use cases and features that will interest that audience, you risk developing a product you assume individuals will need, but in reality they don’t.

Therefore, having a business plan for a mobile app is crucial. A business plan not only helps in the initial planning and discovery phase of a project, but also acts as a reminder of all the critical aspects that should be taken care of during the mobile app development. 

So without further ado, lets move on to our main discussion “How to build Business Plan for a Mobile App Startup” or “How to Write Business Plan for Mobile Application Idea?”

You have to start somewhere! Thus, a short overview of your detailed mobile app business plan is something you must pay special attention to, since this is going to be the first thing that the potential investors will encounter. 

Things that make this section ideal are – convey more while writing less , refrain from mentioning the working of the product, and so on . Instead, focus more on market scenario, targeted users, and make sure you implement the below mentioned steps –

Focus on problems addressed

‘Problems’ are something that always prevails. Meaning, there is always room for improvement and innovation. What you are supposed to do here is analyze the problems users are facing with the existing solutions and find out –

• The needs and demands of the users at the moment 
• Problems users are facing with the products similar to yours
• why these solutions fail to satisfy – what are they lacking that you can provide in a better and different way.

State your proposed solution

Try not to divert from the path of the problem while explaining its solution, i.e., do not go into the functioning and features of your app, rather stay focused on the problem and the ways in which your app addresses them.

Unique Value Proposition

This is where you can boast of the things that differentiate you from other organizations and solution providers, something about your app that is unique in itself. Not just better but definitely different. For example, the USP for Domino’s Pizza is “You get fresh, hot pizza delivered to your door in 30 minutes or less or else it’s free.”

End objective of your app

After everything’s said and done, it all comes down to this – The goals you plan to achieve with your app. 

You MUST state the vision of your app’s future, i.e., how many downloads you are initially expecting on your application, how much profit you are expecting, and much more. It is best to visualize your short-term plans and then improve your answer through metrics.

The next step while making a detailed and convincing business plan is to prepare your company’s information. Since the future is unpredictable, the things you have mentioned in the above section may not be as appealing to the investors as you may conjecture. 

Firms like Y Combinator, TechStars, to name a few, are known to select startups for funding based on the team and the founders. So, you see how crucial this section just became for you. Moreover, it would add as a plus point if you could provide information about the MVP or a prototype you have developed.

The things you should cover here are –

Provide an overview

There are some questions that you need to address in this section to help investors understand your organization and develop trust in it.

• Type of entity – Are you an LLC or privately owned organization? 
• Location – Where is it housed?
• Duration – When was the organization established?
• What is the team size of your company?
• Do you operate off-shore as well or not?
• What are the problems your company is currently going through?
• What is the ultimate goal of the company?
• What is your vision?

Take it from the top

Like a novel, you must tell the story of your organization while briefly touching on all the preliminary motivations, business app ideas, problems, etc. that you encountered at the time of its inception.

List everything about the history of your company that is worth knowing, since it could be a lot damaging if any crucial information is withheld from the investors and is revealed later. It can include the locations you have operated in, early hires, major pivots, product launches, and such.

Management team

Remember each and every person in your company is an important cog in your organization’s machinery. This is why you are required to mention the names of all the members of management with all the relevant information related to them, i.e., qualification, professional experience, expertise, KRAs while mentioning the organizational hierarchy.

Advisory panel

Almost every mobile app development company is backed by an advisory team. The panel consists of industry experts with years of experience under the belt. More often than not, they are the makers of some successful apps. Creating a list of such advisors can immensely improve your brand image and credibility, boosting the chances of getting funds.

Essentially, your end product is going to target a particular industry. Hence, it is obvious for you as an entrepreneur to know every grain of major information, from market history to current trends related to your targeted industry.

Market size

The most basic thing that you must know and also showcase in your app startup business plan is the size of the market. This includes – total available market (market demand for the app), serviceable available market (number of users you can target say in 3 to 5 years), and serviceable obtainable market (the segment of your initial users in 6 to 12 months).

If you are wondering how to do so then, you can always refer to the credible data provided by some trusted third-party platforms, namely, Sensor Tower , App Annie , and Statista .

Keep updated with market projections

You need to understand the market’s past and present to gain insight into future predictions. The best thing to do here is to compare and analyze the market size of the past 5 years, mention the number of new entrants in the industry, the number of total fundings, and so on.

Competitors analysis

Competitive analysis is an indispensable element of any business on this planet. Regardless of the organization type, industry, size, etc. – all religiously perform this step. 

Various models around this have been devised to gain the attention of angel investors. Out of the many, the one we recommend is the 2 x 2 matrix model, in which variables portray these four aspects: challengers, leaders, niche players, and visionaries. In order to highlight the execution and vision of the app as it progresses, these four elements are displayed via an x-y axis scale.

Self-assessment through SWOT

SWOT analysis representing four components – Strengths, Weakness, Opportunities, and Threats is used for self-assessment by all organizations. It enables you to give a structured description of your company’s situation in an efficient way in your business plan for app development .

Acting as a bridge between your app and the end-users, a solid mobile app marketing strategy wields the most power. Your role is to devise such a marketing strategy that acts as a ‘deal-sealer’ between your firm and the investors. This will show the investors that you have the medium to make your app reach the users’ smartphones from an app store.

These are some points that you can include in your marketing strategy- 

Describe the user persona first

Creating user personas is very beneficial . This is something you would be able to identify while you are doing your research on the market. In case there is more than one user personas, you must mention them in your app development business plan . The more in-depth it is, the more promising your business plan seems to the angel investors.

The said information is to be included in the user personas – Age, Gender, Occupation, Location, Income group, and Marital status. Other information that is classified as psychographic data includes attitudes towards money (price-sensitivity or value shoppers), the context of app usage, personal/professional aims, hobbies, preferred sites and apps, tech-savviness, and so on.

Customer acquisition strategy

Once you have identified the user personas of your app, you can determine your customer acquisition strategy. One thing you have to be absolutely sure about is your CAC (customer acquisition cost). You will be able to estimate the right cost once you have established which channels and campaigns you will employ in marketing your mobile app business strategy highlighting your app’s USP (unique selling proposition). 

Here are some channels that you can try to achieve great results –

• Incentivized user downloads
• Search engine marketing
• Organic installs
• Social media (Facebook/Twitter/Instagram) ads
• Partnerships
• App store optimization
• Content marketing
• Push and in-app notifications
• Retargeting campaigns
• Mobile site redirection
• Mobile app wall ads
• Email marketing
• Event marketing

Product driven growth

Change in product driven growth is one of the most common elements of pivoting a startup . If your business model needs a large mainstream user base, then it is of utmost prominence for you to build a referral program in your mobile app business model to leverage network effects. A well-known and effective mobile app business plan example is Uber. For instance, Uber offers a coupon on the users’ next ride as a reward for referring to others and the referred person also enjoys coupons on the first ride.

Make a landing page

A landing page can really help you in numerous ways. One of which is that it can help you expand your horizons in terms of target users. It keeps the readers informed and updated about innovations and further updates of your app. One thing to keep in mind whilst doing this is to make sure it contains the name of your app, its description, promotional videos, etc.

Define your key metrics

There are several metrics on the basis of which you can measure your business growth and popularity of your mobile app. This is something that you must include in the web or mobile app business plan . You have to be careful while picking the right metrics suitable for your business model. An example – if your app is a social media application, then your ideal key metrics should be the daily active users instead of the number of downloads.

Stating the strategy regarding your daily operation imparts an impression of awareness and readiness on your part to the investors, something which always works in the favor. This also includes your strategy for customer relations.

You must describe and map out how you are going to handle customer services and maintain quality assurance. It also includes how you are going to perform the app development process and manage it. Other things to cover in this section are-

Users Process

You can mention information such as how your users are going to behave from the start to the end, i.e., when they first hear of your app and start using it. 

Personnel plan

This outlines all the data related to the employees. It concerns how and when you will hire the employees, how salaries will be expensed, how will you set the hierarchy in the organization and so much more. 

It is the stage where you could literally say “Let’s talk numbers”. What the investors would want to see in this section are the answers to the questions – how will you make money? What will be the cost to run the business? What will be the financial plan for mobile application? And how much funds do you need?

Devise an app monetization strategy

Just like for marketing, you need to have an efficacious mobile app monetization strategy ,  something that we have also covered in detail in our article named “ How to choose the right pricing strategy for your mobile app project ”. 

Startup costs

According to CB insights , 19% of the startups fail because they get out-competed.  In the graph below, you would find that 29% of the startups get shut down as they run out of cash.

You can avoid this fate by analyzing the costs you may need. Similarly, it is crucial for you to mention to the investors all the details related to the costs and expenses you would be needing and for what.

Since the devil is in the details, here is what you should include – one time costs, recurring costs (rent, inventory, etc.), fixed costs (rent, utilities, etc.) variable costs (i.e, the salary of employees) and a lot more.

Funding needed

It is here at this stage that you are going to ask for the fundings and reveal all the information related to it. Address these questions in this section –

• How much money do you require?
• What percentage of equity are you proposing to give in return?
• Is this going to be a convertible note or a preferred stock?
• For what duration this money will suffice before you need to propose for another funding round?

Now that we have discussed in detail about the steps to create a business plan, it is now time to sit down and ponder on the “why” of creating a business plan for your mobile application. 

According to Statistics, in 2023, mobile apps are projected to generate more than 935 billion U.S. dollars in revenues through paid downloads and in-app advertising.

Another report by Statista states that by 2023, it is estimated that the annual number of app downloads worldwide will amount to 299 billion .

Now you can see the importance of mobile apps and the importance of making a business plan for your mobile app.

The most obvious reason to create a mobile app startup , as you might have surmised as well, is to bring in more and more investments. This is to attract investors and even start-up co-founders – the choice is yours to make, and sometimes you need to have the support of both. 

An efficacious business plan will help your vision be represented in a crystal-clear way while displaying the scope of your mobile app concept and business app ideas as well.

Un-planned actions pertain to risks, and risks in business are synonymous to cost-inefficiency and loss.  

When you devise a business plan, you actually map out the whole journey of your business, something that can provide you great insights into the many unanticipated and probable risks. 

When making big decisions, it is common to forget and leave out certain important aspects that can make or break the foundation of your business at a much later stage. However, when you have a blueprint including a set of points acting as a reminder of those crucial aspects, it becomes easy for you to remember them. Mobile app development business plan is that blueprint. 

Regardless of what category your mobile application belongs to, the business plan for each one is essentially similar, for the most part. A business plan is static in contrast to a business proposal for an app , which is dynamic. This is because it is a document created only once and is not rewritten after the purpose is fulfilled.

We hope that this article has provided you with detailed and good insights on business plan for your mobile app. If you need any assistance on mobile app development services, then you can opt for Appinventiv, a top mobile app development company in USA for quality results.

How Much Does It Cost to Build a Food Delivery App Like Deliveroo?

In europe's culinary landscape, the food delivery industry has flourished, revolutionizing the gastronomic experiences for millions of people. this surge is driven by factors such as busy lifestyles, increasing demand for diverse cuisines, and the recent emphasis on contactless services. as consumers increasingly look for the convenience of doorstep dining, businesses entering the food delivery….

How Much Does It Cost to Develop a Food Delivery App like Glovo?

Food delivery businesses have progressively increased in the last few years, assisting companies in augmenting operational efficiency by prioritizing customers. behind the success of food delivery businesses, apps like glovo play a significant role helping through strategic execution, targeting audiences, and enhancing customer retention. building a food delivery app like glovo is a strategic process….

How Much Does It Cost to Build a Translation App Like DeepL?

When it comes to the evolving global digitization, the imperative for effective communication across linguistic borders has become more pronounced than ever. now, stepping into the forefront of this linguistic evolution is deepl, a translation app that addresses the need for effective communication across languages in the digital landscape. it stands out by using advanced….

B-25, Sector 58, Noida- 201301, Delhi - NCR, India

79, Madison Ave Manhattan, NY 10001, USA

Appinventiv Australia, East Brisbane QLD 4169, Australia

Tiger Al Yarmook Building, 13th floor B-block Al Nahda St - Sharjah

Suite 3810, Bankers Hall West, 888 - 3rd Street Sw Calgary Alberta

1600+ transformation engineers delivered

3000+ game-changing products.

• Insights , Software Development

What Is a Mobile App Business Plan and Why Is It Important?

• March 1, 2022

Alex Kugell

More on this topic

How to Create a Mobile App: A Complete Development Guide

Applications of Facial Recognition Technology

How To Outsource Developers in Argentina?

Listen to this content

Share this article

A mobile app business plan is a strategic way of playing a role in emerging markets.

Smartphones have become so pervasive that it’s likely even you are doing the tasks that you once did with a console or a computer with a pocket-sized flatscreen.

While 96% of all Americans own a cellphone, as much as 81% use a smartphone specifically. 

For those with businesses centered around technology, this means creating a business plan that can cater to a new horizon of innovation. Where smartphones are concerned, the most efficient way to cater to this need is through mobile apps.

Developing a mobile app starts with a good idea that you think will interest your target demographic. But to truly see your app thrive, you need a mobile app business plan.

Today, you’ll learn why this is such an important piece of the puzzle and what steps you should take to start your mobile app business plan.

Why Is A Mobile App Business Plan Important?

The market for mobile applications is continuing to grow. More and more businesses and entrepreneurs are trying to get into the game before the market gets too saturated.

Venturebeat expects the market to grow 270% to $189 billion by 2020. More than 50% of the market is held by gaming apps , the most popular kind of mobile apps.

As appealing as it sounds, creating a valuable and profitable app is not as easy as you may think. Creating a business plan for your application should be the first step to a successful launch. 

A comprehensive mobile app business plan serves as a guide for everyone involved in the project. It also gives insight on how the app should be introduced to the market in the most lucrative way.

Coming up with a good mobile app business plan is fairly straightforward. A business plan will provide you with a clear vision of your app along with marketing and financial logistics.

Whether you decide to bootstrap development or not, a good business plan usually contains the following:

• App overview
• Unique selling proposition
• Market analysis
• Estimated marketing costs
• Revenue projections
• Marketing plan & launch strategy
• Projected profit/loss statements
• Break-even analysis
• Cash flow projection

How To Write a Business Plan for a Mobile App

Documentation is the best way to organize any idea, no matter the industry. Mobile app business plans do not differ in this regard.

A business plan includes several sections:

Executive Summary

This is an opportunity for you to summarize your business plan in a concise manner. Readers should be drawn to your business and want to learn more about your goals at this point.

Leaving this part for last – after you’re done writing the rest of your business plan – might help you better formulate your words for this section.

Company Description

A company description is exactly what it sounds right. That said, don’t be afraid to be detailed about various elements of your business.

For example, your company’s legal structure, financial highlights, and suppliers should be part of this description as well as a brief history and overview of your company’s objectives and consumers.

Products & Services

In short, what are you selling? Write a detailed description of the product or service you’re providing with a focus on how customers benefit.

Again, be descriptive here. Include, copyrights, patents, research and development proposals , and how the product fares in the market.

At this step, you should start drawing conclusions based on market analysis, which should be composed of details such as a sketch of your target customer segments, an overview of your industry, historical and current market projections, and an inquiry of your competitors.

All this should be backed up by quantitative and qualitative data.

Combining all the information you have gathered, illustrate a strategic means of reaching your goals from promotion to costs to labor to operational management and lifecycles.

Management & Organization

Explain the roles and responsibilities of the people in your company. Even advisors like accountants and attorneys should be listed. Stakeholders should be included too with a description of their percentage of ownership.

Use an organizational chart that categorizes different departments with the names of each employee and company associate.

Now it’s time to get down to business. You’ll need to come up with some projections of how much your app will make.

Also, make some statements about your financial history for the past few years.

3 Steps To Building a Marketing Plan for Your Mobile App

The creation process of a memorable mobile application is not limited only to software development.

No matter how awesome your app is you need to know how to introduce it to the market. This means making sure that it reaches the right audience and starts generating revenue within the first days.

Building a user-friendly optimized application is crucial for the project’s success. But without knowing how to market it, it will take you much longer to reach your business goals.

A marketing plan shows that you know your product well and understand the needs of your audience and the market.

A good marketing plan addresses at least the following points:

1. Identify a Unique Selling Proposition

What makes your app different and/or better than the competition?

Knowing what differentiates your product will help create the proper positioning and brand messaging you need to market effectively.

2. Target a User Persona

Who are you targeting? What are their interests? This answer can contain one or more types of people, but you must outline them as detailed as you can.

Creating a user persona often puts together the following demographic information:

• Marital status

Psychographic data is also important. This allows you to understand the mindset of your target. Here are some examples:

• Challenges (personally or professionally)
• Personal/professional goals
• Favorite sites/apps

Think of developing a user persona as if you are creating a character for a story. Only you want your character to be as objective and realistic as possible.

In the beginning, you will define your user personas based on your own perception. It’s important to know that your perspective is subjective. Research is required to be true to the user persona you create for your product.

3. Use the Right Marketing Channels

Depending on your target, you should tailor the channels you use to reach out to them.

If your potential user base is on Instagram, then you should market on Instagram. Don’t waste your time on LinkedIn.

A common pitfall people make when marketing is to do everything. In theory, that sounds great. Except it’s a no stone unturned approach that will spread you thin.

Get to know your target audience and find where they congregate. Think like a fisherman.

The hot technique these days is growth hacking. Growth hacking is a means of rapidly trying out new methods to increase brand awareness. It’s great for businesses with very little funding that are looking for creative ways to market.

Here is a list of marketing channels for you to consider:

• Social Media ads
• Search engine Marketing
• Partnerships
• Content marketing
• Email marketing
• Event marketing
• App store optimization
• Organic or Incentivised downloads

A good way to get ideas is to study apps that have become successful. Find out what they did in their early stages to move the needle.

Monetization Strategies for Mobile Apps

The classic growth model apps use is to develop a user base and then monetize them later. But that is not the only path to success.

Other options for advertising include:

• In-app advertising
• Incentivized advertising
• In-app purchases
• Subscription

To validate your strategy, check out what competitors are doing. What strategies are they using and what are they charging?

4 Financial Key Metrics for Your Mobile App Business Plan

Once you’ve decided how to monetize your app, you need metrics to know you’re doing it right. You should keep these metrics in mind as you plan to monetize or validate your mobile app.

Before you build your app, these metrics will be speculative. However, they can still help you understand how your app and business will perform in the long-term.

1. Customer Acquisition Cost (CAC)

In the context of mobile, this metric would be called cost per app install (CPI). If possible, you can go further to find out the cost per activation (CPA).

Since this type of information doesn’t exist yet for you, you will have to rely on industry benchmarks. Companies like Fiksu can give you information on cost per thousand (CPM) from month to month.

2. Lifetime Value (LTV)

Ideally, you will want to know how much money you can make on average from a single user.

A low LTV will be considered a yellow flag, and if your acquisition costs are high then you’re going to have a hard time breaking even.

3. Burn Rate, Runway, and Cash Flow

Your burn rate is essentially the rate at which a startup ‘burns’ its liquid cash. This can be measured in monthly increments. Another way to think of this is as negative cash flow.

Cash is spent through fees, hosting charges, and other variable and fixed overheads. Like any good business, you will want to keep cash flow down.

Runway refers to how much time you have before your business runs out of costs. To calculate runway, use this formula:

Runway = (Total funds) / (Burn Rate)

Naturally, your cash flow will be determined by your monetization strategy and how well it is executed.

4. Profit & Loss Statement

Finally, you should project your profits and losses over a period of a year. This section identifies the liabilities and assets you might gather.

When estimating your possible earnings it makes sense to look at the situation from different angles: a best-case scenario; a worst-case scenario; and, well, realistic conditions.

Analyzing these three different outcomes will give you an idea of where you might want to cut costs. Ideally, you don’t want to go bankrupt during the first few months in business.

If you are able to recapture the expenses during your first year in a worst-case scenario stimulation, that gives a lot of promise for your app in the market.

5 Channels to Validate an App

Before investing in the development of your mobile app you want to make sure that your idea will have demand in the market.

Creating a mobile application requires both time and money. Early idea validation will ensure that you are investing in the right project.

Start with researching the market and getting feedback from industry experts and potential final users to get an idea of how viable your idea is.

You should also think about what you might want to change to make your app more viable .

There are multiple ways to validate your app. Here are a few ways:

1. Google Ads & Facebook Ads

If you already have a landing page set up, you can get straight to work. With a small budget, you can test a targeted audience and evaluate the response.

2. Google Trends

Google Trends allows you to compare keywords for relevancy. If you are entering a growing market then you can validate the market potential based on search volume.

This tool won’t work for apps that are novelty ideas though.

3. App Store

In the app store, be sure to check out the category that aligns with your app. You will see other apps that are competing.

Download a few of them and learn their strengths and weaknesses. This will help you come up with your unique selling proposition.

More importantly, read the reviews to see what users like and dislike about the app.

It would help if you asked yourself the following questions:

• Why do people like the app?
• What makes the app stand out?
• Does the app work the way it should?
• How are they marketing their app? (Check out the screenshots, icon design, and descriptions.)
• What is their competitive advantage?
• Does the app have any traction outside of the app store?

4. Third-Party Analytics

Companies like App Annie and Sensor Tower provide market data to help drive growth for applications.

5. Primary Research

Surveys and questionnaires can be very insightful if done correctly. This method will give you the best insights about customer behavior which can make or break your plan.

All for the better, of course.

How you choose to go about it is up to you. Some people are comfortable asking strangers on the street. Others tap into their social networks and ask their friends and acquaintances.

Finally, there are polls, which you can leverage to package your questionnaire in a presentable format.

Some people get obsessed with ideas but have no idea how to flesh it out.

They learn that mobile apps are lucrative, learn Java or Swift, and try to dive headfirst into something they know nothing about. In effect, they fail before they even get started.

Fortunately, the steps outlined here should help you build a more effective strategy around the development of your app.

Monetization, financial metrics, and figuring out what makes your product unique are a few principal points to take away from this.

>>> Keep learning: A more in-depth look at how to develop a mobile app on the Trio blog .

Hire Exceptional Developers Quickly

Build dev teams you can trust Companies are growing their business faster with Trio.

• Visit Author page

Related content

C Developers Hiring Guide

• Software Development , Tech Stack

iOS Development: The Complete Guide To Getting Started

What Is HubSpot COS and Why Are Companies Using It?

Brazil's Best in US Tech: Elevate Projects with Elite Developers

Harness the Vibrant Talent of Brazilian Developers: Elevate Your Projects with Trio’s Elite Tech Teams, Pioneering Innovation and Trusted for Global Success

• Staff Augmentation
• Distributed Team

Inside Trio

Hire Senior Developers by Location

• Hire Brazilian Developers
• Hire Argentinian Developers
• Hire Chilean Developers
• Hire Polish Developers
• Hire Filipino Developers
• Hire Eastern European Developers
• Hire Mexican Developers
• Hire Colombian Developers
• Hire South African Developers
• Hire African Developers
• Hire Indian Developers

Hire Senior Developers

• Hire React Developers
• Hire JavaScript Developers
• Hire React Native Developers
• Hire HubSpot Developers
• Hire Python Developers
• Hire Node Developers
• Hire Java Developers
• Hire Vue.jsDevelopers
• Hire AI Developers
• Hire Front-end Developers
• Hire Back-end Developers

Hire The Best React Developers

Take your business further with Latin American talent. Drive your projects beyond expectations and surpass your business objectives.

• Copyright © 2024 Trio
• Terms of Use
• Privacy Policy
• Copyright © 2023 Trio

eCommerce & CMS

• Know who we are
• Our Executive Team
• Client Speaks
• Vision and Mission
• Infrastructure
• Certifications and Alliances
• Company Profile
• Partner with Us
• Development Process
• Delivery Methodologies
• Pricing Methodologies
• Quality Policy
• Confidentiality
• Job Opportunities
• Life @Prismetric

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.

Get thoughtful updates on what’s new in technology and innovation

Related Articles

• Best Practices to Follow During Design a Mobile App
• Must-have Features in User-Friendly Mobile App
• Everything About Mobile App Maintenance
• Mobile App Development Trends in 2024

Streamline your operations and grow your business by getting the best application built

Our Recent Blog

Know what’s new in Technology and Development

Mobile App Architecture: A Comprehensive Guide

How much does Healthcare App Development Cost? Decoding Budget Estimation

The Ultimate Guide to Food Delivery App Development Cost

Have a question or need a custom quote.

Our in-depth understanding in technology and innovation can turn your aspiration into a business reality.

Please leave this field empty.

Connect With US

Business Mobile App Development: A 9-Step Guide to Follow

• Business Model , Development

Table of Contents

In today’s dynamic digital landscape, mobile applications’ role in reshaping businesses cannot be overstated. As more people turn to their smartphones for daily tasks and transactions, the importance of business mobile app development has never been more pronounced. 

This development isn’t merely about creating a mobile presence; it’s a powerful tool that can catapult a business to new heights, transforming how they interact with customers, manage operations, and unlock exponential growth.

In this blog, we will discuss the role of mobile apps for businesses; we will explore how they are becoming a cornerstone of success in today’s digitally driven world.

Let’s begin!

What is Mobile App and App Development?

Mobile app development refers to designing and creating software applications that run on mobile devices such as smartphones and tablets.

It’s a field that merges art, science, and business, involving careful consideration of user experience, technical capability, and the ability to create tangible value for a business.

These apps can be pre-installed on devices during manufacturing or delivered as web applications using server-side or client-side processing to provide an “app-like” experience within a web browser.

In a business context, mobile apps often serve as a medium to provide services, engage customers, streamline operations, or even as a product in itself.

Let’s take a look at mobile app revenues of recent years –

Why Build an App?

The shift towards a mobile-first world is becoming increasingly evident, with statistics showing that mobile apps account for over half of all time spent consuming digital media. For businesses, having a mobile app can offer a multitude of benefits.

For starters, mobile apps provide a direct channel to customers. Businesses can effectively communicate with their user base through push notifications and updates.

Apps also facilitate a personalized user experience, enhancing customer satisfaction and retention. They serve as a platform to showcase products and services, and with integrated payment options, can significantly boost sales.

Small businesses, particularly, can benefit significantly from mobile app development services. In addition to improving visibility and accessibility, mobile apps can help small businesses to stand out in a competitive market.

They can foster customer loyalty, collect valuable customer data, and create a new revenue stream through in-app advertisements or purchases.

Types of App Development

When it comes to developing an app, businesses have three main choices: native, hybrid, and web apps. 

• Native apps are developed for a specific platform, such as iOS or Android, and offer the best performance and user experience. However, they require more resources and time to develop since they require a separate codebase for each platform.
• Hybrid apps , on the other hand, utilize a common codebase that can be deployed across multiple platforms. While they may not offer the same level of performance as native apps, they are quicker and less expensive to develop.
• Web apps are not actual apps; they are websites that look and feel like native apps but are not installed on a device. They can be accessed via a web browser and are easier to maintain.

The relevance of cross-platform mobile app development for businesses is evident in today’s multi-device world. It ensures the app is accessible to a wider audience, regardless of their device or operating system.

With cross-platform development, businesses can maintain consistency in design and functionality across all platforms while saving time and development costs.

The following image represents a graph containing the number of apps used for business purposes in recent years.

What Steps Does Mobile Application Development Entail?

While exciting, the journey of business mobile app development is also complex. It involves a series of carefully executed steps that transform a mere concept into a powerful business tool.

Here is a step-by-step guide to developing a mobile application.

• Conceptualization: The first step is to identify the app’s purpose and how it fits into the broader business strategy. This step also involves understanding the target audience and their needs.
• Market Research: This involves examining competitor apps, current market trends, and potential opportunities for differentiation.
• Defining Features & Functionality : Based on your research, list all the necessary features and functionalities your app needs. This step often involves creating a rough sketch or wireframe of the app.
• Choosing a Development Approach: Decide whether to develop a native, hybrid, or web app. This decision is crucial as it affects the cost, time, and resources required for development.
• Designing the UI/UX: The design phase is where you create the look and feel of your app. A compelling UI/UX design can enhance user engagement and satisfaction.
• Development: This phase involves coding and building the app. Depending on the complexity, this could be done in stages, with key features being built first.
• Testing: Once the app is built, rigorous testing is essential to identify and fix any bugs or issues. The focus areas for testing include functionality, usability, performance, and security.
• Deployment: After testing and necessary adjustments, the app is ready to be launched. The app store submission process can vary depending on the platform (iOS or Android).
• Maintenance and Updates: Post-launch, regular updates, and maintenance are needed to ensure the app stays relevant and up-to-date. This may involve adding new features, fixing bugs, or improving user experience.

While detailed and intricate, the business app development process is not a one-size-fits-all strategy. Each business needs to tailor this process based on its specific needs, resources, and objectives.

How to Plan Your Business Mobile App Development Journey

The planning phase of any business mobile app development project is critical. This is where you align your team, establish your vision, and strategize how to achieve your goals.

Here are some key components of an effective business mobile app development plan:

• Identify Your Target Audience: Understand who your users will be. Their needs, preferences, and behavior will dictate many aspects of your app, from design to features to marketing. They are the ones to whom you provide the services, after all!
• Establish Clear Objectives : What are your goals for the app? Are you looking to improve customer engagement, streamline operations, or introduce a new product or service? Having clear objectives will guide your development process.
• Formulate a Marketing Strategy: Think about how you will promote your app. Explore various marketing solutions, from social media campaigns to in-app promotions, to ensure your app reaches its intended users.
• Plan Your Resources: Consider your team’s capabilities, the potential need for an app development company, and the required budget. Evaluate different subscription models, and decide on a suitable one based on your resources and needs.
• Define Your Features: Based on your audience and objectives, decide on the features your app needs to offer. 
• Create a Development Timeline: Have a realistic timeline that accounts for all phases, from conceptualization to launch. Rushing an app development project could lead to an inferior end product.
• Consider Maintenance and Updates: Your plan should include ongoing support and updates. This is key for your app’s longevity and relevance.

An effective business mobile app development plan can significantly enhance the success of your project. It offers direction, aligns your team, and helps manage resources effectively.

It’s the roadmap that guides your development journey, so investing time and thought in this phase can set the foundation for a successful app.

The Role of an App Development Company

When embarking on the business mobile app development journey, one of the critical decisions businesses have to make is whether to build the app in-house or partner with an app development company.

Each approach has benefits, and the choice largely depends on your resources, expertise, and specific needs.

Let’s take a look at an image that illustrates the percentage of different types of business apps found in Apple Store and Google Play Store.

In-house development gives you greater control over the project and allows for more flexibility in making changes. However, it requires a skilled team, robust infrastructure, and potentially a longer development timeline.

On the other hand, partnering with a mobile app development company can offer several advantages:

• Expertise and Experience: These companies are specialists in mobile application development. They have experienced developers who are up-to-date with the latest industry trends, programming languages, and software development best practices. Choosing unsuitable people is a big obstacle to a company’s success, especially if it’s a small one!
• Resource Efficiency : Outsourcing to an app development company can be more cost-effective. It eliminates the need to hire and train an in-house team, procure necessary hardware and software, and manage employee salaries and benefits.
• Time-to-Market: With a dedicated team focused solely on your app, the development process can be accelerated. This allows you to launch your app sooner and stay ahead in the competitive market.
• End-to-End Services: Most app development companies offer comprehensive services. This includes concept validation, UX/UI design, development, testing, launch, and post-launch support. By handling all aspects of the project, they provide a hassle-free experience.
• Post-Launch Support and Maintenance: Mobile app development companies often provide maintenance and support services. This includes regular updates, bug fixes, performance optimization, and adding new features to keep the app up-to-date with changing user expectations and market trends.

Step-by-Step Business Mobile App Development

Developing a mobile app for a business involves multiple steps, from the ideation phase to deployment and beyond.

Here is a step-by-step guide to help you understand the process:

Step 1: Market Analysis and Idea Validation

Before diving into development, evaluating the market and validating your app idea is crucial. This stage involves identifying gaps in the market, studying competitors, and ensuring a demand for your proposed solution.

Key Activities:

• Conduct market research to identify opportunities and gaps.
• Perform a competitor analysis to assess strengths and weaknesses.
• Validate your idea through surveys or prototype testing with a focus group.

Step 2: Setting Objectives and Scope

Clearly articulate what your app aims to achieve. From solving a specific problem for users to meeting particular business goals, defining these early on will guide the development process.

• Outline the main features of the app.
• Specify the problem your app seeks to solve.
• Lay out business objectives, such as revenue targets or user engagement goals.

Step 3: Project Planning

This stage involves setting up the roadmap for your app development, from selecting technology to setting milestones.

• Decide on a monetization strategy.
• Select the appropriate technology stack (languages, frameworks, tools).
• Set project milestones and deadlines.

Step 4: Design Phase

Visual and interactive elements take shape in this phase. The design stage is crucial for crafting a compelling user experience.

• Create wireframes for the app’s layout.
• Develop detailed design mockups.
• Build an interactive prototype for user experience testing.

Step 5: The Development Process

This is the core phase where your app comes to life. Frontend and backend components are developed, integrated, and tested in this stage.

• Set up your development environment, including IDEs and code repositories.
• Develop the backend infrastructure, including databases and APIs.
• Code the frontend, focusing on user interface and experience.
• Integrate the frontend with the backend.

Step 6: Quality Assurance and Testing

Quality assurance is essential to ensure that your app is functional and reliable. Various tests should be run to spot any bugs or performance issues.

• Conduct unit tests for individual components.
• Perform integration tests to ensure all parts work together.
• Run user acceptance tests to confirm the app meets user expectations.
• Test the app under different levels of load to ensure performance standards.

Step 7: Launch Preparations and Deployment

Once the app has passed all tests, the next step is to prepare it for public launch. This involves optimizing its listing for app stores and submitting it for review.

• Optimize app store listing through App Store Optimization (ASO) techniques.
• Submit the app to platforms like Apple’s App Store and Google Play.
• Monitor initial user reviews and performance metrics.

Step 8: Post-Launch Activities

After launch, ongoing efforts are needed to keep the app updated, track its performance, and engage users.

• Regularly update the app to fix bugs and introduce new features.
• Use analytics tools to understand user behavior.
• Continue marketing to grow your user base.

Step 9: Scale and Evolve

As the app gains traction, user feedback can be used for future improvements and to scale the app for a larger audience.

• Establish a system for collecting and analyzing user feedback.
• Consider scaling the app to other platforms or introducing new features.
• Keep an eye on analytics for trends that could influence future updates.

App Development Trends in 2023!

As we discover the world of mobile app development in 2023, it’s clear that technology is evolving rapidly, leading to exciting new trends.

Here’s a look at some of the most influential trends in business app development this year:

Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML technologies are rapidly advancing in mobile app development, transforming the way users interact with apps.

These technologies are being utilized to:

• Personalize User Experiences: AI and ML algorithms analyze user behavior and preferences to deliver customized content, recommendations, and user interfaces.
• Improve Functionality: Mobile apps use AI to optimize performance, enhance search capabilities, and streamline user workflows.
• Automation: Tasks such as chatbots, customer support, and data processing are automated using AI, saving time and resources.
• Voice Recognition: Voice assistants like Siri and Google Assistant are integrated into mobile apps, enabling users to interact with apps through voice commands.
• Facial Recognition: Facial recognition technology is used for user authentication and security purposes in various mobile applications.
• Predictive Text: AI-powered predictive text suggestions improve user typing efficiency and accuracy.

Internet of Things (IoT)

The IoT is expanding rapidly, leading to the development of IoT-enabled apps that interact with connected devices.

These apps are used in:

• Innovative Services: IoT apps enable businesses to offer innovative services such as smart home automation, healthcare monitoring, and asset tracking.
• Operational Efficiency: Industries like manufacturing and logistics use IoT apps to monitor and optimize their operations, leading to cost savings and improved efficiency.

Augmented Reality (AR) and Virtual Reality (VR)

AR and VR technologies are enhancing the user experience in various sectors, including:

• Retail: AR is used for virtual try-on experiences, product visualization, and interactive shopping.
• Real Estate: VR allows users to virtually tour properties virtually, helping real estate professionals showcase listings more effectively.
• Gaming: VR and AR are transforming the gaming industry by providing immersive gameplay experiences.

5G Technology

The rollout of 5G technology is set to revolutionize mobile app development in several ways:

• Faster Data Transfer: 5G offers significantly faster data transfer speeds, enabling the development of data-intensive applications such as high-definition video streaming and real-time online gaming.
• Improved Performance: Lower latency and increased bandwidth allow smoother, more responsive app experiences.

Mobile Wallets

Mobile wallets are becoming increasingly popular, and apps are integrating these features for seamless transactions:

• Digital Payments: Mobile wallet apps like Apple Pay and Google Wallet facilitate secure and convenient digital transactions.
• In-App Payments: Apps incorporate mobile wallet functionality to enable in-app purchases and payments.

Cross-Platform Development

Cross-platform development is gaining prominence to address the diversity of mobile operating systems:

• React Native and Flutter: Technologies like React Native and Flutter simplify the development of apps that work seamlessly across iOS and Android platforms.
• Cost Efficiency: Cross-platform development reduces development costs and time-to-market by enabling code reuse.

Enhanced Mobile App Security

As cyber threats increase, mobile app developers are prioritizing security by:

• Advanced Security Features: Incorporating advanced security measures such as biometric authentication, secure data storage, and encryption to protect user data.
• Regular Updates: Ensuring that apps are regularly updated to patch vulnerabilities and stay ahead of emerging threats.
• Secure APIs: Ensuring that the APIs used in mobile apps are secured to prevent unauthorized access.

These trends highlight how mobile app development is a dynamic, ever-evolving field. Businesses aiming to stay competitive must keep abreast of these trends and adapt their mobile strategies accordingly.

By doing so, they can leverage emerging technologies to deliver superior user experiences and drive business growth.

Crafting a revolutionary business mobile app but feeling lost in the dynamic world of mobile app development trends ? Unlock the secrets to success with our guide – your essential companion to staying ahead in business app innovation.

Mistakes to Avoid When Developing an App

Navigating the intricate journey of mobile app development can be fraught with challenges. However, being aware of potential pitfalls can help streamline the process and increase the likelihood of success.

Here are some common mistakes to avoid:

• Not Conducting Market Research:   Before beginning the development process, you must understand your target audience, their preferences, and their needs. Skipping this step can lead to a product not resonating with its intended users.
• Overcomplicating the Design: A common mistake is overloading the app with features, resulting in a complex user interface. Remember, simplicity and ease of use are critical to a good user experience.
• Ignoring Platform Guidelines: Each platform, whether iOS or Android, has specific design and development guidelines. Ignoring these can lead to app rejections and poor user experience.
• Neglecting User Feedback: User feedback is crucial for continuous improvement. Ignoring it can hinder your app’s evolution and success.
• Inadequate Testing: Testing is vital to ensure the app functions as intended. Failing to test an app adequately can result in poor performance and user dissatisfaction.

Here are some tips for successful development and deployment:

• Focus on User Experience: An intuitive and engaging user experience should be at the forefront of your development strategy. 
• Prioritize Performance: An app that frequently crashes or loads slowly can lead to user frustration. Prioritize app performance to ensure a seamless user experience.
• Plan for Scalability: Your app should be able to handle an increasing number of users and functionality over time.

Mobile app testing and quality assurance for businesses are crucial elements of the development process. Comprehensive testing should cover multiple aspects, including functionality, compatibility, user interface, security, and performance. 

Embracing a thorough testing strategy can help identify and rectify any issues before the app reaches the end user, ensuring the delivery of a high-quality product. 

Choosing a Platform for Your App

Selecting the right platform for your mobile app is a critical decision that can influence its success. 

Here are some considerations when choosing an app development platform:

• Target Audience : Consider the platforms used by your target audience. A cross-platform development approach could be the most effective if your audience is spread across various platforms.
• App Features: The complexity and features of your app can influence the choice of platform. Native platforms are known for their high performance and access to device-specific features, but they require more resources.
• Budget and Resources: Cross-platform development can be more cost-effective and quicker, allowing you to write code once and deploy it across multiple platforms. However, if your budget allows, and you want a superior user experience and performance, you might opt for native development.
• Maintenance and Updates : Consider the ease of updating and maintaining your app on the chosen platform. Some platforms may offer more straightforward procedures for updates, which could influence your choice.

Choosing the right business app development platform can be a challenge. It requires balancing your business’s needs, your target audience’s expectations, and the resources available. 

Engaging with a reputable business mobile app development company that can provide professional advice and support in making this crucial decision is advisable.

They would typically have a deep understanding of the different platforms, be up to date with the latest trends, and be able to tailor their services to match your business objectives.

Powering Businesses through Mobile Applications

Business mobile app development has emerged as an instrumental tool for transforming businesses. Building a mobile app is no longer a choice but a necessity, considering consumers’ growing reliance on mobile applications for a wide array of services. 

The rise of business mobile app development companies specializing in designing, building, and maintaining mobile apps for various sectors and industries indicates this trend.

These companies offer an end-to-end mobile application development service, from conceptualizing the app idea to launching it in the market and maintaining it. 

The role of a mobile app development company goes beyond merely creating an application. It involves understanding the company’s business model, identifying the key areas where an app can add value, designing a user-friendly interface, building the app using the latest technology, and ensuring its smooth functioning. 

Utilizing No-Code Platforms for Business Mobile App Development 

In the fast-paced digital world, businesses must deploy apps quickly and efficiently. Traditional app development methods can be time-consuming and require specialized coding skills. This is where no-code platforms like Power Apps and Zoho Creator come into play. 

No-code platforms provide a simple, drag-and-drop interface for building apps, eliminating the need for coding knowledge. This enables non-technical users in a company to develop apps, democratizing the app development process.

1. Power Apps: A Microsoft-based service that allows users to create custom business apps that connect to your business data stored in the underlying Data Platform or in various online and on-premises sources.

2. Zoho Creator : It is an online application builder that allows businesses to create custom apps. It offers a drag-and-drop interface, pre-built templates, and various automation tools. 

The Need for a Well-Planned Strategy in Mobile App Development

The journey of mobile app development businesses must begin with a well-crafted business plan. This plan should define the app’s purpose, its target audience, the features it would include, and the platform on which it would be built.

It should also consider the resources required for the app’s development, maintenance, and marketing.

The business plan for mobile app development should also consider the following:

• User Plan: This should include user profiling, understanding user needs, and designing user journeys.
• Content Plan: This involves deciding the type of content that the app will host, how often it will be updated, and who will manage the content.
• Subscription and Pricing: The pricing strategy should be clearly defined if the app includes a subscription model.
• Support and Maintenance: The plan should detail the resources required for regular app updates, bug fixes, and user support.

The Role of Web Accessibility in Business Mobile App Development 

In an inclusive digital world, web accessibility is critical to app development. Businesses must ensure that their mobile apps are accessible to all users, including those with disabilities. 

Adherence to web accessibility standards can benefit businesses in several ways:

• Enhances Brand Image: An accessible app projects the company as socially responsible, enhancing its brand image.
• Wider Reach: The company can reach a broader audience, including disabled users.
• Legal Compliance: Many countries have laws requiring digital platforms to be accessible, so building accessible apps helps companies avoid potential legal issues.
• Improved SEO: Accessible sites perform better on search engine rankings as they provide a better user experience.

Businesses can use various tools and guidelines, such as the Web Content Accessibility Guidelines (WCAG) , to make their apps accessible. They can also seek the services of an app development company with expertise in building accessible apps.

Why Choose Core Devs for Your Business Mobile App Needs?

In the rapidly evolving landscape of technology and business, investing in a mobile app can be pivotal for any organization. At Core Devs, we understand the critical role that a well-crafted mobile app plays in today’s market. 

Let’s help you identify the key reasons why you should choose us as your trusted partner in developing business mobile apps –

Expertise in Diverse Industries

At Core Devs, our team of seasoned developers represents a rich tapestry of experience spanning an extensive spectrum of industries.

From the intricacies of healthcare to the complexities of finance and the ever-evolving world of retail to the logistical challenges of supply chains, we’ve been there and done that.

This diverse expertise isn’t just about checking boxes; it’s the cornerstone of our ability to craft mobile app solutions tailored to your unique business needs.

Innovative Solutions for Your Unique Challenges

At Core Devs, We’re not just developers; we’re innovators. We thrive on challenges, relishing the opportunity to think beyond the confines of the ordinary.

Whether you aim to enhance user engagement, streamline internal processes, or bolster your revenue streams, we’re your partners in this journey.

Our knack for conceptualizing and implementing innovative features and functionalities is our commitment to ensuring your app is a bespoke solution designed with your business model in mind.

User-Centric Design and Experience

In the world of mobile apps, success hinges on user experience. A visually stunning app is a good start, but it’s only part of the equation. We put the user at the center of our development process at Core Devs.

Our design team is not content with aesthetics alone; they are dedicated to crafting interfaces that are as intuitive as visually appealing. We understand that user-friendly design isn’t just a luxury; it’s a necessity.

The result? Higher user retention, increased satisfaction, and an app that stands out in a crowded market.

Cutting-Edge Technology Stack

Technology evolves at a breathtaking pace, and so do we. Core Devs prides itself on staying at the forefront of emerging technologies. Our commitment to innovation means that your mobile app won’t just keep up with the times; it will set the pace.

Whether it’s integrating AI to deliver personalized recommendations, harnessing the potential of IoT to connect devices and data, or optimizing for the blazing speeds of 5G networks, our technical prowess ensures that your app is current and future-ready.

Security and Data Protection

In an era where cyber threats are on the rise, the security of your mobile app is paramount. At Core Devs, we take this responsibility seriously.

Our security measures go beyond the standard checklist. We implement robust safeguards, including state-of-the-art data encryption, stringent authentication protocols, and regular vulnerability assessments.

Your users’ data and your business’s reputation are too valuable to be left to chance, and we’re committed to protecting both.

Continuous Support and Maintenance

Our commitment doesn’t conclude with the launch of your app. We believe in nurturing long-term relationships and providing unwavering support as your app continues its journey.

Our ongoing support and maintenance services ensure that your app remains up-to-date, secure, and responsive to the ever-evolving needs of your users.

Count on us for timely updates, rapid bug fixes, and continuously optimizing your app’s performance. Your success is our success, and we stand by your side every step of the way.

Cost-Efficiency and Timely Delivery

We understand that budgets and deadlines are the lifeblood of any project. Core Devs doesn’t just grasp their importance; we excel in delivering cost-effective and punctual results.

Our project management team is dedicated to ensuring your project stays on track, within budget, and meets its deadlines. We understand that the sooner your app is in the hands of your users, the sooner you can start reaping its benefits.

Our commitment is not just to quality but to your return on investment.

Core Devs will not just work as a mobile app development company; we will be your strategic partner in leveraging the power of technology to drive your business forward.

With our expertise, innovation, user-centric approach, and commitment to security and support, choosing us means choosing excellence in business mobile app development. Your success is our priority, and we’re here to make it happen.

Wrapping Up

Jumping into the business mobile app development world can be your ticket to climbing new heights of success in this digital era. It’s all about crafting an app that works like a charm, wows your users, and fits perfectly into your business puzzle. 

So, keep an eye on the latest trends, sidestep those sneaky pitfalls, and take the time to pick the right platform that feels like a glove for your business needs.

Remember, developing an app isn’t just about the techy side of things; it’s about creating a memorable experience for your users and helping your business grow. 

As we march on this digital journey, get ready to unlock exciting possibilities with business mobile app development. Let’s bring those app dreams to life!

Shahria Emon

Share This Article

Ready to create a more decentralized and connected future? 

Our technical experts offer a free consultation to help you plan your idea, requirements, and tokenomics before beginning development. 

Or Read to speak with business consultant expert?

Mahbub Shuvo

CEO at Core Devs ltd

Drop us a line:

• [email protected]
• +971 55 199 2234

Our Services

Our locations.

• United Arab Emirates

Al Sayora Street, Dubai Marina, Dubai, UAE

• United kingdom

71-75, Shelton Street, Covent Garden, London, WC2H 9JQ, UNITED KINGDOM

• Bangladesh HQ

House 1041, Avenue 09, Mirpur DOHS Mirpur-12, Dhaka-1216, Bangladesh

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.

How the Right Mobile App Enhances the Customer Journey

David J. Brin - Guest Contributor

What are the types of mobile application technologies?

Types of mobile apps for different industries, how to choose the right app type for your business, land on a mobile app format that will support your goals.

Deciding whether to support your business’s digital real estate by investing in the development and launch of a digital application takes extensive market research to determine which type of mobile app best suits your customers—and your company.

While a mobile app is generally designed to run primarily on laptops, smartphones, tablets, or any other mobile electronic device, they can be built very differently depending upon the goals of your company.

Whether you build your mobile app as a web app, a native app, or a hybrid mobile app depends on what goals you’re trying to achieve and how much of a balance you are looking to strike between accessibility and functionality. Follow along as we break down the advantages and disadvantages of each framework, and show how each is best leveraged in industries where mobile applications are frequently used to support customers’ digital journeys.

Customer-facing mobile applications are purpose-built tools focused around supporting a limited scope of activities. Depending on how accessible you want your application to be, you’ll have a choice of several different frameworks to pick from.

Web-based apps

Cross-platform mobile web applications are built using HTML, CSS, and some form of a framework based on JavaScript. They are different from apps using other frameworks in that web-based apps are websites designed to be accessed and used through a web browser on mobile devices. While the app might be accessed through an icon on the device home screen, that icon is actually directing the user to the experience through a URL like a website. The app is not downloaded to the device.

Examples of popular web-based applications include:

Microsoft Office Suite

Web-based apps provide some unique advantages over traditional mobile applications.

Lower development time and costs: Because they aren’t tied to a specific codebase and don’t require customized builds to work on different devices, web-based applications keep development times and costs low.

Highly adaptive : They are designed to naturally work within the user interface (UI) of the devices through which they are being accessed because they are web-based and benefit from being accessed through a web browser that has already been optimized to adapt to the device and operating system they are being used upon.

No downloads needed: Users aren’t required to download a resource-heavy mobile application in order to access the experience. As such, they also don’t need to constantly update the app, as web-based applications are updated and maintained outside of the user experience.

Disadvantages

As with any development process, there are disadvantages that must be considered when using this approach.

Internet access required: As a web-based experience, access to the internet is required for web-based mobile applications to properly function.

Quality could vary: User experience (UX) and UI could vary greatly depending on the browser being used. Indirectly, this also makes the experience tied to the device and operating system upon which it’s being used.

Native apps

Native mobile apps are usually what we think about when we think about mobile apps. They are developed to run on certain devices with a specific operating system in mind. In order to customize the mobile app to work within operating system (OS) environments, developers use platform-specific software development kits (SDKs) and programming languages.

While this gives them access to the full scope of features and functionality each operating system allows, it does limit each build of the app to that specific platform. Keeping in mind that large IPs will have invested in developing apps across multiple platforms, popular examples of native applications include:

The customization and benefits to the user experience made possible by native apps makes this framework easy for developers to embrace.

Device-specific features that enhance functionality : Optimized for the platforms they are built for, native apps can take advantage of their hardware to improve functionality.

Faster load time: Native apps operate faster and more consistently than apps built with other frameworks.

Superior, seamless UX/UI: Operating systems dictate how users navigate applications, so building an application natively allows your app to mimic the UX/UI for all of the other apps being used on the device, providing a seamless experience for the user.

The primary disadvantage of building native mobile apps is that in order to reach a wider audience, the development team will have to design, develop, and launch the app multiple times. They will need a version that works on iOS, Android, and any other platform their audience uses. This can drastically increase the cost of the app and impact future costs of maintenance and updates.

Hybrid apps

Hybrid mobile applications bridge the gap between web-based and native apps, often by taking advantage of app-embedded web browsers or other methods for gaining access to the web. Hybrid apps are built with web technologies, and then encapsulated in a framework that is OS specific.

The web technologies allow for cross-platform compatibility, while the surrounding framework ensures the app can be installed and run on a device like a native application. Popular examples of a hybrid development approach include:

The Amazon app store

X (formerly Twitter)

Google Gmail

Hybrid mobile apps bring in the best elements of web-based apps and native apps, allowing them a degree of flexibility in design and deployment.

Compatible with several types of devices : Encapsulating the web-based functionality within the native-compatible allows cross-device compatibility.

Limits the number of times the app has to be developed for different platforms : Cross-compatibility removes the need for multiple development cycles and reduces the overall cost of development.

Does not necessarily require internet: Useful for businesses operating in countries with slow or unstable internet connectivity.

As a mix of frameworks, hybrid applications also carry some of the drawbacks from each of the other frameworks. While they may behave like a native application, they don’t necessarily offer the same speed and performance as one. Another thing to consider is that while they are built as web applications that adapt to the operating system upon which they are installed, the user experience can vary greatly across devices and operating systems.

Mobile applications are characterized by the fact that they are built to address very specific user requirements or help users address a gap in their personal or professional lives.

Lifestyle apps

These apps are designed to enhance or support various aspects of users’ personal lives that define their day-to-day activities. The U.S. lifestyle mobile app market is anticipated to grow from $2.14 billion to $3.33 billion by 2027, an annual growth rate of roughly 10%. [ 1 ]

Lifestyle applications can help users with:

Music, movies, entertainment

Food and dining

Social media platforms

Productivity apps

Mobile applications focused on productivity help users to produce audio, text, and video content, as well as graphs, databases, documents, and presentations. Most often leveraged for business, productivity applications not only provide users with business solutions, but also provide businesses with monetization opportunities.

Productivity applications can be grouped into several general categories:

Communication and collaboration tools

Workflow and automation tools

Documentation tools

Time, task, and project tracking tools

Entertainment apps

Mobile applications in the entertainment market allow users to view video content, listen to audio content, and share their favorite content across other platforms. Data gathered through the application allows it to create lists of trending content and make recommendations to users based on their activity. Games and other media consumption applications also fall under this market segment.

Entertainment applications dominate the U.S. application market when we look at revenue generated in 2023, with Candy Crush Saga, as an example, generating $485 million. [ 2 ]

Financial apps

Financial applications are largely the purview of banking institutions providing mobile banking solutions to account holders. According to the American Bankers Association, 48% of banking customers use applications or web apps on their mobile devices to manage their bank account. [ 3 ]

In recent years, the scope of finance applications have expanded to allow users to perform a variety of financial tasks, such as stock trading, managing digital wallets, creating and managing budgets, engaging with insurance vendors, and making or receiving payments. Finance-focused mobile app installations and session lengths increased throughout 2023, showing users are becoming more comfortable managing their financial needs with digital tools. [ 4 ]

Financial applications, aside from those developed by major banking institutions, include:

Educational apps

Mobile applications focused on education facilitate learning in an accessible and meaningful way. Educational apps cross industry lines and aren’t only intended for students. They are also able to provide a powerful training platform for employers to educate their staff, and give professionals access to self-improvement and learning tools to improve their professional opportunities.

Some examples of learning applications include:

Khan Academy

Health and wellness apps

Health and wellness applications allow users to track personal information and their progress toward personal wellness or fitness goals. Goals can include nutrition, sleep health, fitness levels, and stress management. When built natively or as a hybrid, health and wellness apps can sync with biometric data gathered by mobile devices in order to provide users with actionable insights.

Driven by 379 million downloads and 311 million active users, health and wellness applications generated $3.43 billion in 2023. [ 5 ]

Business apps

While productivity apps land squarely within this category, business mobile apps also include any bespoke mobile app a business has custom-built to support a business process. Custom-built mobile apps provide employees with improved productivity tools, better collaboration and communication tools, and strategic planning platforms. Some of the most prevalent types of business-focused mobile applications not covered above include:

Messaging and communications apps allow teams to securely communicate and share business resources. They can also be designed to allow customers to directly contact your team in order to improve the customer service experience.

Customer relationship management (CRM) tools allow your team to track and document customer interactions in the field and seamlessly ensure the customer experience between departments, even if your teams are widely distributed geographically.

Consumers prefer the transparency and convenience of online payment processing, so it’s important to provide customers with access to an online payment processing application to allow them to make payments for goods and services.

eCommerce and retail shopping applications support launching of new products and services and provide a scalable platform for future growth.

No one mobile app development approach is best for any of the major industries as a whole, as each of the above types of apps are leveraged by companies across industries. 

Each of the mobile app types we’ve outlined at the top of the article come with their own benefits and limitations, so choosing what approach you should take in application development will be dependent upon what your priorities are and what goals you expect the app to help you achieve.

Web-based mobile applications are easy to develop, but provide limited functionality

Low-resource and maximum compatibility, web apps are a great way to provide content-focused experiences, as long as the user experience isn’t dependent upon mobile device features. This approach will provide a fast time to market and a low-cost solution that can be deployed across multiple platforms and devices. However, because they can’t be found or downloaded from the app store, you will need to ensure you’ve laid the groundwork for distribution ahead of launch.

Hybrid mobile apps strike a balance between cost and compatibility

Hybrid mobile applications have the benefit of feeling like a native app to users of multiple devices and platforms. This single codebase makes hybrid apps a viable and affordable way to improve your distribution options and provide users with an improved experience, but at a cost that doesn’t crush your budget.

Hybrid mobile applications have an additional benefit. Agencies and developers can leverage hybrid applications as a minimum viable product (MVP) to show functionality of an application before moving on to building a fully native option, if that is the goal.

Native applications take full advantage of mobile devices

Native mobile applications allow you to provide users with robust and dynamic experiences while taking full advantage of all of the benefits and features of specific mobile platforms. From push notifications to swiping gestures, native applications are able to fully access features and functionality and can be updated through the associated mobile app store easily. 

This approach ensures your product operates at a high level and is feature-rich and functional from launch, ensuring that your mobile app makes the best impression possible.

Mobile application software and services

Unless you’re operating an agency or already maintaining the staff and resources necessary to build a robust mobile app from start to finish, you likely will need assistance building out the mobile app you’ve chosen to support your brand. You can explore the Capterra mobile application development directories and discover a professional capable of supporting your efforts at bringing your plans for a mobile application from planning through to launch:

Mobile App Development Companies  

Application Development Software

Deciding which style of mobile application best suits the goals of your business is a complex undertaking that requires an understanding of the advantages and limitations of the technologies used to build the app. It also requires an understanding of how mobile applications are leveraged in different industries and what business processes are best folded into the mobile experience of users. 

Using Capterra’s directories to identify a skilled agency with which to partner can ensure your mobile application has the scope, reach, and functionality necessary to support not only your internal business goals, but also the journey your customers are looking for through the resulting mobile application. To learn more about this process and how to find the right partner, you can explore some of the resources provided by experts in mobile app development and entrepreneurship:

Learn How To Develop a Mobile App From a Startup Owner’s Journey

What Is a Native App?

Mobile App Development Company Hiring Guide

Lifestyle - United States | Statista Market Forecast , Statista

US App Market Statistics (2024) , Business of Apps

Consumer Survey Banking Methods 2023 , American Bankers Association

Finance app usage continues to grow in 2023 , Adjust

Health App Revenue and Usage Statistics (2024) , Business of Apps

Was this article helpful?

About the author.

David is the Managing Partner for the Code Ninjas franchise responsible for the Baton Rouge, LA market, where he facilitates the education of youth in programming, game design, and STEM education fundamentals. A lifelong learner, David combines a passion for strong business practices and solid marketing strategies honed throughout his 20-year career in the food and beverage industry with his desire to share those best practices with other business owners as a contracted writer for UpCity. When he's not helping his daughter build her digital art-focused social media brand, he's creating content focused on digital marketing trends, B2B best practices, and IT and cybersecurity managed services.

Related Reading

Signs that it's time to outsource bookkeeping services, capterra value report: a price comparison guide for fleet management software, capterra value report: a price comparison guide for inventory management software, 5 key performance management software features with top products that offer them, performance marketing: explore the benefits and strategies, companies wanting employees back in the office must overcome a new obstacle: inflation, is it time to outsource appointment setting services, 7 top-rated ai coaching tools, inbound vs. outbound call centers: choose the right strategy.

Mobile App Development Costs: Decoding and Understanding the Variables that Influence Costs

Mobile phones don’t exist without apps, just as the app is a cost-born product.

When you go to develop your first mobile app, your excitement has no limits: first project, high hopes, millions of future users, endless financial income, and new market opportunities. 

Yet, before contacting a mobile app development company and shaking hands, prepare to face the project's financial side. What are the main variables that influence app development cost, and how do you communicate with a developer’s company to agree on the project? 

This article aims to help you distinguish the main factors that influence the total cost of developing a mobile app. 

Let’s delve into the details together!

Mobile app development involves a series of steps: planning, design, development, testing, and deployment. Each step requires time, effort, and, yes, money. Knowing the process beforehand helps you plan your app and decide on the basic functionality and device platform.

Let’s break down the essential seven factors that influence the price of your next app project:

• App Size and Its Type
• Operating System: iOS and Android
• Design and Interface
• Security Costs
• Features and Functionality
• App-Development Team

Post-Launch Expenses and Maintenance

App size and type: a complex social media app or a lively ai messenger.

When it comes to app development costs, size does matter, along with the type of app you’re aiming to build. 

From simple utility apps to complex gaming applications, the scale and functionality of your app can impact your budget. The bigger the scope and complexity, the heftier the development costs.

The type of future app you choose depends solely on the company’s business goals. There are two main app development platforms: a Native app and a Cross-Platform app with a single code base. The main difference between the two options is that the Native app provides a higher UX experience with broad functionality, meaning the cost will be double.

Critical features of Native App against the price solution:

• Time-consuming
• Wide Functionality along with the Powerful Features
• High Performance
• Amazing UX Outcome

Key features of Cross Platform App :

• 30-40% Cheaper Than a Native App
• Single Code Based
• Limited Functionality
• But Faster Developed

How to choose a platform for your app? First, consider the app’s prime aim and scope: should it be multifunctional and integrate AI services and third-party applications? 

Operating System: iOS or Android?

Choosing between iOS and Android can significantly impact your development costs. Consider the differences in development requirements, market considerations, and user demographics to make an informed decision that aligns with your budget.

1. Market Share and Target Audience

Android has a larger market share globally, while iOS dominates in certain regions, such as North America and Western Europe. If your target audience is primarily located in areas where iOS is more prevalent, it may be worth investing in iOS app development. However, Android may be the more cost-effective choice if you aim to reach a broader audience.

2. Development Time and Complexity

The development time and complexity of an app can significantly impact the overall cost. iOS app development is often considered less time-consuming due to the limited number of devices and screen sizes. On the other hand, Android app development requires more time and effort due to the fragmentation of devices and operating system versions. If you have a tight timeline or a complex app idea, iOS development may be more cost-effective.

3. App Monetization Strategy

iOS users tend to spend more on in-app purchases and have higher app revenue potential. If your app relies heavily on in-app purchases or subscriptions, iOS may offer a better return on investment. 

Android has a larger user base and can generate revenue through advertising and in-app ads. Evaluate your app's revenue model and choose the platform that aligns with your monetization strategy.

Consider your budget constraints and choose the platform that best balances cost and potential return on investment.

Application Design and Interface 

Design isn’t just about making your app look good; it also plays a significant role in user experience and functionality. Do you want your future app users to explode with “Wow!” and “How Convenient!” or have a more basic experience?

Importance of User Interface (UI) and User Experience (UX)

A user-friendly interface and a smooth user experience can turn casual users into loyal fans. Investing in top-notch UI/UX design isn't just a luxury–it's a necessity if you want your app to stand out in a sea of competitors.

UI design focuses on the visual elements of the app, including layout, colors, typography, and icons. Custom-designed UI elements and animations require more time and effort compared to using pre-designed templates. Additionally, designing for multiple platforms, such as iOS and Android, may require additional design considerations and increase the overall cost. 

Meanwhile, UX design focuses on creating a seamless and intuitive user experience within the app. This involves understanding user behavior, conducting user research, and designing user flows and interactions.

Customization and Branding Considerations

Customizing your app's design and branding elements can make it memorable and engaging. 

The cost of a logo design depends on factors such as the complexity of the design, the number of revisions required, and the expertise of the designer. In addition to the logo, establishing a consistent visual identity, including color schemes, typography, and graphic elements, contributes to the overall branding design cost.

The app icon is the first visual element users see when browsing app stores. A well-designed app icon can attract users and differentiate your app from competitors. The cost of app icon design depends on factors such as the complexity of the design, the level of detail required, and the designer's expertise.

💡 Tips before the developing stage of a mobile app:

• Consider how design choices can influence your app development expenses while ensuring a visually appealing and user-friendly end product.
• To what extent do you want an app to reflect the brand's personality and vibe?

Security Costs: Don’t Spare on It

According to industry statistics, app security breaches remain a significant concern. In 2020, there was a 20% increase in mobile app security incidents compared to the previous year. Examples of bad app security practices include data breaches resulting from weak authentication mechanisms, insecure data storage, and a lack of regular security updates.

App security cost variables include:

1. Security Testing and Auditing

Conducting thorough security testing and auditing is crucial to identify vulnerabilities and weaknesses in your app's security infrastructure. This includes penetration testing, code reviews, and vulnerability assessments.

2. Secure Authentication and Authorization

This may involve implementing multi-factor authentication, encryption, and secure password storage. The complexity and level of security required for authentication and authorization can impact the development cost.

3. Secure Data Storage and Transmission

The secure data storage and transmission protects user data from unauthorized access. It includes implementing encryption protocols, secure data storage practices, and secure communication channels.

4. Regular Updates and Patches

Allocating a budget for regular security updates and patches ensures your app remains protected against the latest security risks. Failure to update and patch your app can leave it vulnerable to attacks and compromise user data.

Features and Functionality: How the App Runs 

Functionality is the heart of your mobile app.

The more complex and feature-packed your app, the higher the development costs.

Core Features vs. Advanced Functionality

Every app needs its main features to function effectively. These features are the foundation of your app and should be prioritized during development. It is important to identify the must-have features and allocate resources accordingly.

Additional features enhance the user experience and provide new value to your app. These features can include social media integration, in-app messaging, payment gateways , and more. The inclusion of additional features also increases the development time and cost.

Adding fancy built-in assistants or virtual reality integration can quickly escalate your development costs. Decide what’s essential and what’s helpful for a user. For instance, AI assistants, such as chatbots or voice recognition systems, can provide personalized user experiences and streamline interactions within your app.  AI solutions development companies can provide a good solution in both app development and first-class AI integration. 

Integration of Third-Party Services and APIs

Integrating third-party services and APIs can add prominent functionalities to your app. However, incorporating such services may require additional development efforts and incur licensing or usage fees. It is important to consider the cost implications of third-party integrations and choose services that align with your app's requirements and budget.

App Development Team

Apart from all the above factors, the type of app development team hired influences the total price tag even more than you think. What does it mean?

First and foremost, teams differ by their qualifications, quantity/quality of realized projects (developed apps), and quantity of people included in the process. There is no “the same” app development team you can keep hiring. Every app, depending on its scope and complexity, requires different specialists ranking by:

👨 Occupation and specialization (Project Managers, Graphic Designers, Web Designers, Programmers, Testers, Analysts, and more);

👨 Programming Language for the app (Java, Kotlin, Swift, or React);

👨 The Working Experience Level (Senior, Middle, and Junior).

A team of seniors and highly qualified specialists who work with top-ranking brands would cost you a good deal.

The second factor that influences the cost is the team location and accessibility: onshore or offshore. 

Onshore Outsourcing

An onshore development team comprises developers who work in the same country as the client. This type of team offers several advantages, including better communication, cultural alignment, and easier collaboration due to the shared time zone. Onshore developers are often preferred for complex projects that require close cooperation and frequent communication with the client. Knowing its advantages, onshore development teams tend to issue higher prices due to higher labor costs.

Offshore Outsourcing

An offshore development team consists of developers who work in a country different than the client's. Offshore teams are known for their cost-effectiveness, as they often operate in countries with lower labor costs. However, communication challenges, cultural differences, and potential language barriers may arise when working with an offshore team. That’s the point to consider before signing a contract.

According to a 2023 research report from Simtech Development , hiring an app developer costs from $20 (Asia counties) to $200 per hour (US and Canada). 

💡Tip: Before choosing the Right Team for Your App , consider the following: Does your project require constant collaboration and communication? How much can you allocate to app development? Can the offshore team adapt to different cultures and markets with proper guidance?

The cost of app development doesn't end with the launch.

After launching your app, think of any bugs or technical issues that users may encounter. Allocating a budget for bug fixes ensures your app remains functional and user-friendly. This includes regular updates to fix bugs, compatibility issues, and security vulnerabilities.

Mobile operating systems like iOS and Android release regular updates with new features and security enhancements. These updates may require adjustments to your app to ensure compatibility and optimal performance. Allocating a budget for adapting your app to the latest operating system versions is essential to provide a seamless user experience and maintain app functionality.

To stay competitive and meet user expectations, it is important to continuously enhance your app's features and iterate based on user feedback. This may involve adding new functionalities, improving user interface, or optimizing performance.