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Mobile App Business Plan

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

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

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

Key Takeaways

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

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

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

1. executive summary.

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

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

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

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

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

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

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

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

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

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2. Company Overview

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

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

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

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

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

3. Industry Analysis

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

Here are certain questions to ask while performing industry analysis:

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

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

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

4. Competitive Analysis

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

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

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

Here are some questions to ask for competitive analysis:

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

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

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

Competitors

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

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

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

Competitive Advantages of PrivyConnect

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

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

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

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

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

5. Market Analysis

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

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

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

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

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

6. Sales and Marketing Plan

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

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

Pre-launch phase

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

Launch phase

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

Post-launch phase

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

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

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

7. Management Team

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

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

Here is an example of the management team:

Management team of PrivyConnect

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

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

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

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

8. Operations Plan

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

Everyday goals

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

Long-term goals

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

9. Financial Plan

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

Income statement

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

Balance sheet

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

Uses of Funds

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

Cash flow statement

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

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

Why Do You Need a Business Plan for Your Mobile App

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

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

Finances are important

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

Acquiring and retaining customers

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

Knowing Your Market

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

Related Mobile App Resources

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

Download a Mobile App business plan template

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

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

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

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

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

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

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Frequently Asked Questions

Do i need to include information about competitors in the business plan.

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

How often should I update my mobile app business plan?

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

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

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

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

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

About the Author

Vinay Kevadiya

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

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Mobile App Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Start Your Mobile App Plan Here

Mobile App Business Plan

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

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

Sample Business Plan for a Mobile App Development Company

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

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

Next Section: Executive Summary >

Mobile App Business Plan FAQs

What is a mobile app business plan.

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

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

What Are the Main Types of Mobile App Development Companies?

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

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

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

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

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

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

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

What are the Steps To Start a Mobile App Business?

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

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

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

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

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

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

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

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

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

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

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

Where Can I Get a Mobile App Business Plan PDF?

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

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

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

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

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

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

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

Please, find comprehensive answers to all these questions below.

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

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

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

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

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

Formulating a comprehensive business plan will allow to:

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

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

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

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

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

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

1. Market Opportunity

The introductory section has been named "Market Opportunity".

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

We continuously update all the data there.

2. Project Presentation

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

Remember to introduce yourself at the end of this section.

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

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

3. Market Research

Next up is the "Market Research" section.

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

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

4. Strategy

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

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

5. Finances

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Business model ≠ Business plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How to draft a SWOT analysis for an app?

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

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

The strengths for a mobile app development project

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

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

The weaknesses for a mobile app development project

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

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

The opportunities for a mobile app development project

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

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

The threats for a mobile app development project

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

How to craft a marketing strategy for an app?

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

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

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

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

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

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

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

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

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

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

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

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

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How to Write a Mobile App Business Plan + Free Template

Anthony St. Clair

11 min. read

Updated July 29, 2024

Free Download:   Sample Mobile App Development Business Plan Template

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

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

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

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

• How to write a business plan for a mobile app

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

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

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

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

1. Determine what kind of app you will develop

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

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

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

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

2. Conduct market research and identify competitors

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

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

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

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

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

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

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

3. Positioning and promotional strategies

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

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

Develop and refine your elevator pitch

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

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

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

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

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

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

Free Mobile App Business Plan Template

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4. Startup costs, financials, and pricing

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

Platform development

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

Internal employees or outside contractors? 

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

The resources you have and the resources you need

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

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

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

5. Development milestones

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

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

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

• Mobile app development tips for startup growth

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

Native, hybrid, or web?

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

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

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

Security and privacy

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

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

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

Offline vs online

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

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

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

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

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

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

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

Test properly before launch

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

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

• Download your free mobile app development business plan template

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

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

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

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How to Write a Business Plan For Mobile App Startup in 6 Steps

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Table of content

• An app development business plan is structured into six key steps: executive summary, business description, market analysis, marketing strategy, monetization strategy, and startup costs & funding. Each section addresses specific questions that provide a clear vision of the project to stakeholders.
• Detailed financial planning, including startup costs, funding, and a well-defined monetization strategy, is essential. Understanding the market, competition, and customer persona helps in crafting effective marketing strategies.
• Writing a comprehensive mobile app business plan is crucial for the success of a mobile app startup. It helps clarify goals, allocate resources effectively, attract investors, and reduce risks.

The number of unique, useful apps increases daily.

According to Statista , the number of applications available on the App Store was close to 5 million in 2023. The forecast says the mobile industry will generate almost $520 million in revenue in 2024.

These statistics prove two important statements:

• Running a mobile application is a great business idea with a large monetization potential
• The competition in this industry is intense, and there’s little chance you will start monetizing your app without a proper understanding of the industry, your direct and indirect competitors, and your strategy to outplay them.

If you would like to join this beneficial industry with your great app idea, it is time to take the next step toward your goals and create a great mobile app business plan.

Reasons to prepare an app business plan

When you get a new idea for an app, you feel super excited! You want to start working on it right away because you believe it's going to be a big hit. You're so pumped up that you don't even want to spend time researching the market or making a detailed plan. You just want to jump in and get started on making your idea a reality!

By failing to prepare, you are preparing to fail.

Benjamin Franklin

As you know, Benjamin Franklin wasn’t involved in software development, but these words highlight the significance of the business plan for an app. Writing a plan enhances your knowledge about the market you are going to enter. It helps clarify your goals, set priorities, and build more accurate forecasts.

When you find out about all the benefits of a business plan for an app, you will get excited about the preparation stage, just as you are about the implementation. So this is why you have to plan your venture from A to Z:

Attracting great minds and great investments

Depending on your situation, you may need a technical co-founder or a development team. However, it is not easy to convince experienced professionals to start working on a product that hasn’t achieved anything yet and exists only in the mind of the initial founder. A detailed business plan may help you change their minds and attract ambitious engineers, designers, and managers.

The same works for investors. You won’t attract a significant sum from angel investors if you can’t prove to them that their money will be in good hands. But by presenting them with your business plan, you can prove your intentions to build a successful company and multiply their initial investments.

A correctly done app development business plan makes you a trustworthy employer and a trustworthy investee.

Allocating resources properly

When starting your app business, your resources are limited. Usually, you wish you could invest more time, money, and effort into your business than you actually can. Does this mean you have to postpone the start and wait until you have more time and money? Definitely not. You have to learn how to profit most from the resources you already have.

Creating an app development business plan allows you to analyze all your needs and decide on effective resource allocation. Taking intuitive steps can cause you to waste more of your resources without even realizing it.

Reducing the risks

Writing a business plan for app development is a way to get closer to your goals and ambitions.

When developing a business plan, you identify multiple risks that could impact your business. Being aware of these helps you either change direction to avoid pitfalls or prepare for potential negative outcomes.

Risk mitigation in software development is the strategy that increases the chances of success for your mobile app business.

Managing and delegating effectively

A business plan provides the vision of the critical tasks and helps delegate each of them to the particularly responsible person.

Yes, at first, it seems that you can manage every aspect of the mobile app startup creation on your own. However, if you want to scale and achieve outstanding results, prepare to hire new people and share the responsibility.

With the business plan, you make sure that every team member knows exactly where you head and can choose the most effective strategies within their responsibility to get the company there.

In short, a business plan helps you get the idea out of your head, digitize it, and build a detailed roadmap for startup to achieve the goal.

Yes, some businesses manage to achieve success without any plan. However, they don’t know which of the dozens of chaotic actions actually brought the desired results. And therefore, they are unable to scale this success.

If your goal is to start a mobile app business and achieve predictable and scalable results, prepare a pen and paper and get ready to draft your app business plan.

Is an app business plan different from a business plan for other software projects?

Here, we have to state that all cases are different. There’s no business plan template you can copy for your project. You have to approach the process wisely and define your goals.

What do you expect to achieve with a business plan document?

• Convincing investors to fund the development process?
• Attracting the best talents to build your startup?
• Creating a roadmap to bring your product to the market?

Depending on your goal, the focus of the business plan may shift.

Investors care more about the numbers. They want to see that you’ve done your homework, analyzing the target audience and proving that you will spend the money you attract in the most effective way.

Your potential co-founders and employees want to see the professional challenges and perspectives of their careers at your company.

This way, the business plan may differ according to your needs and goals. But the type of software you are going to build doesn’t influence the process. You still need to answer the same blocks of questions, whether you are building a simple mobile app, launching a SaaS product on the web, or integrating AI into existing processes of your own business .

So, no matter what type of app you are about to build, prepare to work on your business plan.

How to write a business plan for an app?

A business plan is a document that requires a clear structure. You will aim for high readability and intuitive navigation, which is usually achieved through clear formatting.

Writing a business plan is not about telling a chaotic story of how your app will change the world.

To give your target audience a clear vision of the project, you will have to answer many specific questions. We divide these questions into six blocks:

• Executive summary
• Business description
• Market analysis
• Marketing strategy
• Monetization strategy
• Startup costs and funding.

A business plan for an app usually consists of 20 to 40 pages.

Some of the questions in these blocks may require additional research, and some others may be too obvious, but we encourage you to write down everything that relates to your future app business. You will be glad you put these thoughts on paper. Let’s start with the first block.

Block 1. Executive Summary

This is the introduction to your business plan and the very first thing your potential investor or partner will see when getting acquainted with your idea.

An executive summary may become a standalone document for presenting your future app business, so make sure you provide the most important information on the first two to three pages of your business plan. Make it clear and remarkable, and answer these questions in your summary:

What problem do you want to solve?

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

What is your solution?

First, make sure your application can address the problem. Then, introduce your idea but do not dive into details: it is not the right moment to introduce the functionality to investors. It is time to highlight what your app will do to make the app users happy.

For whom do you create your solution?

Identify your target audience in the executive summary. Provide basic information on your buyer persona, but keep in mind that you will have to describe it in more detail later in the Market analysis section.

What are the competitors' solutions?

Summarize the current market situation to give your stakeholders an overview of your competitors. Present this information to prove that there’s demand for similar solutions and convince them that there is space for your product on the market.

What goal do you pursue?

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

The executive summary should include your unique value proposition (UVP) - the distinctive benefits and features of the app that set it apart from competitors and resonate with the target audience.

The next blocks after the summary will require more details.

Block 2. Company description

When you know what product you want to release, you have to go one step further. What company is capable of building such a product?

Present your current team, as well as the vision of a team in a few years. Pay specific attention to the following:

Mission, vision, and values of the company

In a world of dozens of similar software products, your mission, vision, and values set you apart from other companies in your industry. Consider your organization’s impact on the community; this will help you attract people with similar values.

Basic info about your organization

Your potential partners should know whether your company is an LLC or another entity. The company’s structure defines how the processes will be organized in the future.

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

If you decide to delegate some of your operations, such as app development, describe how you choose a software outsourcing company . For example, in one of our articles, we have gathered reasons to hire Ukrainian developers. You can use these to convince your stakeholders that software development outsourcing is a financially rewarding decision.

Team introduction

The mobile app business plan should include details about your team so you can get even closer to the reader. By adding a few words about the company’s founders and employees, you turn a boring description into a real introductory meeting.

Tell the potential investor about your managers and the engineering team. You can specify names, positions, experiences, and even hobbies to make the readers feel like they know the people you talk about.

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

And as we mentioned the market, it’s time to describe it to your potential stakeholders as well.

Block 3. Market analysis

To launch an app startup, it’s essential to conduct market research for a startup . By knowing its past and present, you can impact its future. This stage is a transition from a hypothesis to real statistical data.

How big is the market?

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

• Total Available Market, or market demand for your app,
• Serviceable Available Market, or the number of users you are able to reach out to,
• Serviceable Obtainable Market, or the segment of very first users.

How does the market change?

Analyze the market size five years ago and now. What has changed? How many influencers have broken into the market? How many of them failed? The amount of money spent in the industry will help you see your own potential income clearly.

Who are your direct competitors?

You are most likely entering an established market with players who have a significant impact there. What is their market share, and how did it change over time? How do they obtain new customers and retain existing ones? What services do they provide, and how did their offer change over the last years? Understanding your competitors’ paths will help you plan yours.

What is the customer persona?

The only way to develop a legendary app is to look at it with your customers’ eyes. This is why you need to understand the target audience and create a portrait of a customer. A customer persona is a detailed description of who the user of your app is. Define gender, age, occupation, education, hobbies, and daily challenges he or she faces. It is the portrait of a real person your app will serve.

In this section, you prove you understand the market. But you also have to demonstrate your plan to conquer it. The next block is dedicated to this.

Block 4. Marketing strategy

A solid mobile app business plan should describe the way your app will get to the potential user’s smartphone. Let’s have a glance at how to build a successful marketing strategy:

Decide on metrics

In the beginning, your success will be measured by the number of installations or conversion rates, not by financial revenue. So, decide what metrics will be useful for evaluating your project.

Outline your product launch plan

How do you plan to kickstart your app story? Once the mobile application is ready for release, you have to start implementing your product launch plan . Share your ideas to convince the stakeholders you know how to attract users to your app.

Identify the channels you can acquire customers from

Nowadays, social media marketing is an effective way to promote a product. But will it be enough for your app? Go back to the research phase and find out how many potential users you can meet on Facebook, Instagram, or Twitter. Analyze other possible strategies and provide the stakeholders with the information about which channel may be the most profitable.

Think about collaboration with existing businesses

Referral programs and other types of collaborations may become your growth fuel. Decide on the companies to partner with and explain why you expect this cooperation to be fruitful.

Define the desired marketing budget

Unfortunately, you won’t acquire your users for free. And even if you decide not to use paid promotion methods, you still need to pay your marketing team to grow your brand awareness. How much do you need to spend, to acquire the necessary number of users? Calculate it in advance.

Block 5. Monetization Strategy

At the finish line of your mobile app business plan building, we will discuss the financial part. How do you plan to monetize your app? This question is extremely important, unless you plan to start a non-profit project. If your goal is to turn your app idea into a profitable business, tell the stakeholders how you plan to achieve this. You may choose one monetization strategy or a combination of them, such as:

Charge a subscription

Subscription-based apps are usually affordable and solve a specific need of the target audience. If you believe your service will be useful for your users, you can start with a free plan and charge a subscription for advanced functionality. Investors like the business models that rely on recurring payments as their revenue is more or less predictable. On the other hand, you have to work hard to provide top-notch service, otherwise your users can terminate the subscription and turn to your competitors.

Charge a fee for installation

There are so many free apps on the web. And there are two ways for you to convince them to buy your app:

• to deliver exceptional functionality none of the competitor apps offers
• to build a strong brand and make sure users don’t want any alternatives

Both ways require thorough planning and you have to convince potential product stakeholders that you know how to achieve these results.

Use advertising

You can simply advertise other products within your mobile app. It is a fast and easy way to monetize it; however, you should have an impressive number of active users to implement this strategy.

You can find out about other options to earn money from your digital product from our article on mobile app monetization .

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

Block 6. Startup Costs & Funding

Did you know one of the key reasons why do startups fail is financial issues? According to CB Insights , 29% of companies simply run out of cash; 18% of companies have different types of cost issues.

Now when you are as close to your first technology startup business plan as never, consider the importance of costs and funding for your business.

Why is the financial component of planning so important?

• It is vital for you to understand what type of funding you need to get your app up and running;
• It is necessary for your potential partners to know how much money you plan to spend.

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

What are the one-time costs?

If you have an offline office, include the setup costs. Estimate your initial recruitment budget to get the core team on board.

If you decide to outsource app development, you can count it as a one-time expense as well. An experienced software development partner can precisely estimate the cost to build an app MVP according to your requirements. Add the figure to your mobile app business plan.

What are the recurring costs?

Here, you will have to estimate the costs to maintain the office space and your equipment.

Also, you will need to calculate the salaries of your full-time employees, or the ones you hire according to the staff augmentation model.

Usually, outsourcing all startup development stages is a better choice as it is more predictable and requires less project management activities from your side. This means, you as a startup founder can focus on strategic tasks.

Think how you can reduce the costs

Creating a software product is never cheap. However, in your mobile app business plan, it’s important to demonstrate to your potential investors that you can allocate financial resources wisely. There are various ways to reduce the overall development costs without compromising quality in any way:

Leverage outsourcing

Outsourcing can significantly cut costs. Instead of hiring in-house specialists to complete certain tasks within your project, you can partner with a reliable vendor and

tap into the expertise you need. In this case, you will pay only for the work outlined in the contract, not for the working hours of your employees. Just ensure you choose a partner with proven experience to maintain quality while reducing expenses.

Opt for remote work

If feasible, consider a remote work model. By eliminating the need for physical office space, you can save on rent, utilities, and office supplies. Remote work also allows finding skilled professionals at lower rates than local hires.

Use open-source solutions

Incorporate open-source software and tools wherever possible. Many high-quality open-source solutions are available for development, project management, and marketing. Utilizing these tools can reduce software licensing fees and other related costs.

Start with MVP

Building an MVP means focusing on developing core features first to test your concept. This approach not only reduces initial development costs but also allows you to gather user feedback and iterate efficiently. Avoid adding unnecessary features in the early stages that can increase both time and expense.

Being proactive about financial management helps you identify potential overspending areas and address them promptly. By thinking strategically about cost reduction from the outset, you can ensure that your resources are used efficiently, giving your mobile app startup a stronger chance of success. Remember, the goal is to maximize value while keeping expenses under control.

Review your mobile app business plan

Reviewing and updating your business plan for an app is essential to ensure it remains relevant and effective. Here’s how you can approach this process:

• Set regular review periods

How long does it take to develop an app ? It’s difficult to answer this question. You may get all that is necessary right away, or you may need some time for it. Regular intervals, such as quarterly or bi-annually, allows you to assess your progress, make adjustments, and stay aligned with your goals. Regular reviews help you stay agile and responsive to changes in the market and your business environment.

• Update market analysis

The market is evolving constantly. Your initial market analysis might become outdated at some point. Revise the latest industry trends, competitor activities, and customer preferences. Staying informed can help you ensure that your strategies remain competitive and relevant.

• Reevaluate finances

Your financial projections are based on assumptions that may change over time. Reevaluate your revenue forecasts, cost estimates, and funding needs to ensure they reflect your current situation.

• Assess your marketing strategy

Are you reaching your target audience? Are your acquisition channels performing as expected? Use data metrics and analytics to measure the success of your campaigns and refine your marketing strategy accordingly.

• Reflect on achievements and setbacks

Take time to reflect on what you have achieved and the challenges you have faced. Identify the strategies that worked well and the areas that need improvement. Learning from your experiences helps you refine your approach and avoid repeating past mistakes.

• Engage your team

Involve your team in the review process. Their insights and feedback can provide valuable perspectives and help identify areas for improvement. Collaborative reviews also encourage a sense of ownership and alignment within the team, helping you in achieving your business goals.

• Adjust your goals

Based on your review, adjust your goals and objectives if necessary. Setting realistic and achievable targets ensures your mobile app business plan remains not a theoretical but practical tool for guiding your startup.

• Document changes

Keep a record of the changes made during a review. Documenting updates ensures transparency and provides a clear history of your business plan’s evolution. This can be particularly useful when communicating with stakeholders and tracking your progress over time.

If you are planning to put your application into the list of top fast-growing startups , regularly reviewing your business plan for an app is essential to ensure your strategies remain aligned with your vision. By staying proactive and adaptable, you can navigate the dynamic landscape of the industry.

In conclusion

Unless you have started bringing your plans to life, a well-structured business plan is your main tool for archiving success. It not only provides a clear roadmap for your startup but also helps attract investors, allocate resources efficiently, mitigate risks, and manage your team effectively. By thoroughly addressing each of the blocks we have mentioned - executive summary, business description, market analysis, marketing strategy, monetization strategy, and startup costs & funding - you can present a comprehensive and compelling vision of your app’s potential.

Want to know more about the project cost?

Mobile App Business Plan Template

Written by Dave Lavinsky

Mobile App Business Plan

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

Download our Ultimate Mobile App Business Plan Template here >

What is a Mobile App Business Plan?

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

Why You Need a Business Plan for an App Company

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

Source of Funding for Mobile App Companies

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

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

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

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

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

Executive Summary

• Company Overview

Industry Analysis

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

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

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

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

Company Analysis

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

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

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

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

Include answers to questions such as:

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

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

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

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

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

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

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

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

Direct competitors are other app businesses in your niche.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Free Business Plan Template for a Mobile App Business

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

Mobile App Business Plan Summary

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

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

Additional Resources for a Mobile App Startup

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