A mobile app idea can be implemented successfully with a business plan that will facilitate putting the various aspects of the business together. The key elements to be included in a business plan are problem statement and solution, market and customer details, financials, competitors’ analysis, marketing strategy, operational aspects, and company overview.
A great business idea is fundamental to a mobile start-up. But an idea is not enough to create a successful business venture. Various other elements have to be considered to embark on the path to success in the mobile app business –
- Procure investments and manage finances
- Implement marketing strategies
- Manage risks
- Get a deeper understanding of competitors and customers
- Product development
It is quite a challenge to manage multiple aspects of the business. Developing a business plan will set up a path to successfully implement the mobile app idea. The key elements of a business plan are –
The executive summary should mention the main customer need or problem and how the app addresses it. Present the app’s unique selling proposition here. The reader should get an idea of the target customers, product goals, funding, and future plans from the summary.
Problem Statement and Solution
Describe the problem that customers face or a gap or an inefficiency in the market. You might have an idea for an app fore-commerce businesses. Describe how your mobile app will provide an efficient solution. Explain how the mobile app can solve current needs or solve the pain points of customers. Describe the potential of the app to create a new market, disrupt the existing market, or be a solution for potential problems. For example, the iPod was not the first portable music player. But it was marketed with the slogan – ‘1000 songs in your pocket’. Its sleek design and this feature made it an instant hit. Explain how your app is different, why it will attract customers, and how it will gain market share.
Market and Customer Analysis
Identify your target customer base. Define the target market and potential market size using market research methods. Gather quantitative and qualitative data on the various parameters –
Target Market – Determine the type of customers that would be interested in the mobile app. It can be based on demographics, geography, customer behaviour, and psychographics.
Size of the market – Determine the number of users who would be interested in the product. Use websites likeiOS app Stats and app analytics tools to determine market size.
It is important for you as the entrepreneur and the investors to know the expected demand. Provide reliable statistics (in form of visual representations) from well-researched data and well-known sources.
This is crucial information for investors. A financial model with estimated costs, current financial status, and financing required has to be included in the business plan . Provide the following information for the next three to five years –
- Profit and Loss statements
- Balance Sheet
- Cash Flow statements
- Monetization strategies and expected revenue
The business plan should address questions like
- When is funding required?
- Will there be more funding requirements in the future?
- How much funding is required?
- How will the funds be used?
- How much equity return can investors expect and details on the same?
Competitor analysis will guide business decisions based on the presence of competitors and their impact. This section should detail out direct competitors, indirect competitors, their products, services, and market share. It would be great to have a SWOT analysis of the main competitors.
The marketing strategy can be defined using data about the target market, size of the market, competition, and product details. Describe the key promotional strategies and pricing strategies here. Principal elements to be planned here include –
- Online promotional campaigns such as emails, SEO optimization, and online advertisements
- Tactics to increase app ratings
- Offline advertising strategies
- Decisions on platforms and devices on which your app will be used
- Pricing and sales strategies such as pay-per-download, freemium options, premium options, subscriptions, in-app purchasing, and in-app advertising.
An optimum marketing mix will help you to position your app in the market successfully
App development is highly competitive. Companies that optimize operations will have a better chance of achieving their goals. In this section, give an overview of the product implementation plan. Showcase the release plan in terms of product milestones. It should provide details on future releases too. It should have information on the various teams and their capabilities. The plan can detail out on different paths that the start-up can take, an analysis of each path, and expected profitability on each of them –
- Selling the app
- Getting into a partnership
- Own the app and continue to build on it
The business plan must have an overview of the company, its vision, and its goals. It should mention details of the key members, the management team, and their relevant experience and skills. This section aims to build confidence in the minds of investors and customers.
Every business faces impediments. A meticulous business plan will be instrumental in guiding the entrepreneur in piecing together various aspects of the business. An in-depth business plan will showcase the determination and passion of the entrepreneurs that will hook the investors.