Mobile app business plan
Sometimes you get thoughts how to make things better, either in real life or on mobile gadgets. Learn how to develop your idea into a mobile app business plan and start a promising and successful project of development and sales of this app, virtual or real goods. Applications can be used both to simplify the interaction between a customer and a vendor in real business (food delivery, business directories, classifieds, mobile marketing, taxi) and to sell virtual goods (games, social networks, dating services).
No need to hurry
If you got an idea, you must understand the fact that the same idea has recently been generated by another person. Successful ideas are scarce and you must not start developing the mobile app without preliminary analysis (this mistake is often made by programmers starting new projects). The development should be prefaced by planning, which consists of two stages.
1. Business analysis, that is, the analysis of the target audience demands, specification of requirements to the mobile app, statement of the project goals. This stage should give you an answer to the question
“Do the people NEED my product”?
2. Business plan, that is, the estimation of the development, deployment and operation costs, determination of the monetization strategy, and estimation of the return of investments (ROI). This stage should give you an answer to the question
“Is my product PROFITABLE?”
What is included in the business analysis?
Study of competitors
Gather the information about your competitors and similar products. The mobile app market is very mature and saturated. For instance, in 2014, the amount of iOS apps exceeded 1.2M, and the amount of Android apps is even more (1.4M). You are not required to analyze all similar apps, it is enough to select 3-4 leading apps for the competitor analysis.
After you collect the information about market leaders, you must answer the question:
Why my product is better?
Write down what are the strong sides of your product, how it can overcome the market leaders, which is its target audience. Note that you are inspired by your idea and may be too optimistic in your estimations. Ask other people to review your document and be attentive to their criticism.
Which are the app functions?
To choose the functions and features of the app, follow a simple rule:
Excellent implementation of one task is better than satisfactory implementation of multiple tasks.
Write down all features related to your app and sort them by usage frequency. Compare these functions with the features of market leaders, and determine whether they are “must-have” functions. Exclude from your list as much features as possible.
Which is the goal of your project?
The goal of the mobile app is not only the implementation of several functions. Remember that people do not buy drills, they buy a possibility to make holes. Try to predict the emotions of your users, because all mobile games and the most of mobile apps are intended solely to entertain users.
The statement of project goals is important to direct your employees and contractors as they must know where are they going. Remember that a builder can “lay bricks” or “build a palace”, which goal would you consider better?
How the mobile app business plan looks like?
Business plan includes business analysis as its part. Also, it should have the following sections:
- Estimation of terms and costs of the first version (so-called beta version) including the development of software requirement specifications to the mobile app, back-end, and, if required, custom Android firmware;
- Estimation of the terms and costs of the stable version implementation. Note that contractors usually mean beta version when they tell you the project costs, because neither they nor you do not know how the stable version should look like. Therefore you can multiply your estimation by a factor or two or even three;
- Marketing plan, that is, how will you promote your app in stores. Are you orienting to the “organic” traffic only, or are you planning to invest into the advertising?
- Finance plan and estimation of the ROI. This is the most important part of your plan, as it is the base for the decision on the project startup. Do not allow your optimism to affect the estimations included in this section. Remember that if you surrender the project at early stages, you can save your financial resources.
Who can help to make a business plan?
Nobody would be better author of your project’s business plan than you. However, to avoid mistakes, it is recommended to hire mobile app development and promotion experts while writing a business plan. Our employees are experienced and talented Android and iOS app developers and marketers, therefore we can act as reviewers of your documentation.
We can help you with the statement of your project’s goals. Therefore if you order the mobile app development in our company, the developers will clearly understand which product they should build. At the end of the development, you get a qualitative and successful mobile application which excites your users and give you the revenue.
Please contact us to start working on the mobile app business plan.