6 Steps to Create a Business Plan for Mobile App Startup

Starting a mobile app startup can be exciting, but if you don’t have a good business plan for mobile app startup, it could prove to be extremely difficult to get anywhere with your startup. 

A business plan is like a roadmap− it helps you chart out specific goals, why they are attainable and most importantly how those clearly defined objectives will eventually be reached. It also helps you secure investors and navigate through potential pitfalls.

Let’s break down in 6 easy steps on how to create a mobile app business plan for your startup dream. 

Whether you need a business plan for mobile app startup or guidance on mobile app financial projections, this article covers it all.

Business Plan for Mobile App Startup: Key Steps

Here are the key phases for a business plan for mobile app startup —

Step 1: Define Your App Idea and Business Goals

The very first step in developing an app is to have an idea of the app. What’s your app idea? Does it solve any specific problem? Who is going to be the target audience for your app? How do you plan to make profits from the app?

Key Points to Consider:

• Identify the core problem: The best apps solve real problems. Define the pain points your app addresses.
• Understand your audience: Tech savvy professionals, students or businesses? Knowing this helps shape the user experience.
• Set measurable goals: Make sure your goals are specific; for instance to reach 10,000 downloads in six months or generate $50,000 revenue in the first year.

Use a startup business plan template to organise your thoughts. And it’s a good way to get funding support.

Step 2: Do a Thorough Analysis of the Mobile App Market

Having a great idea is not enough, you need to make sure there’s a market for your app. And that’s where mobile app market analysis comes into play.

How to do Market Research:

• Analyse competitors – Find similar apps in your niche and look at the features, user reviews, and pricing model.
• Define your Unique Value Proposition (UVP): What makes your app different? It could be better features, superior UI, or unique services. 
• Understand market trends: Look at industry reports, surveys and app development business plan trends to gauge the market potential.

Use Tools like Google Trends and Sensor Tower for market insight.

Step 3: Outline Your Mobile App Revenue Model

Making money from your app isn’t as simple as launching it and waiting for revenue to roll in. You need a well-thought-out mobile app revenue model to ensure profitability.

Common App Monetization Strategies:

• Freemium Model: Users are given a free version having basic features and they pay for using the premium features. (e.g., Spotify, Duolingo)
• Subscription Model: Monthly or yearly subscriptions for continued access. (e.g., Netflix, Calm)
• In-App Purchases: Selling virtual goods, upgrades, or premium content. (e.g., gaming apps)
• Advertising Model: You display ads in your app and get paid for it. (e.g., YouTube, news apps)
• Affiliate Marketing: You partner with other businesses to promote their product/services.

The mobile app revenue model you choose to go with should ultimately depend on your app type, target audience and the industry’s recent trends.

Step 4: Estimate the App Development Cost

This is one of the most important aspects in your app development business plan – you need to make sure that you have an accurate estimate of your expenses so there are no financial surprises along the way.

Factors Affecting App Development Cost:

• App Complexity: Simple apps with basic features will cost less, whereas feature-rich apps (AI-driven, blockchain-based) will cost more.
• Platform Choice: Will you be building for iOS, Android, or both? Cross-platform apps might have higher up-front costs but cheaper long-term costs.
• UI/UX Design: A well-designed app increases user satisfaction, which means it takes a team of skilled designers.
• Backend Infrastructure: More will be the cost if your app requires databases, APIs, and cloud storage.

How to Create an App Budget:

• List all costs – this includes development, testing, marketing and support/maintenance.
• Take a mobile app financial projections template and modify it for your own needs to forecast revenues and expenses going forward.
• Consider hidden costs such as app store fees, security updates, and user support. A realistic funding goal starts with a detailed app development cost estimate.

Step 5: Make a Mobile App Marketing Plan

You could have the best app ever to help people, but if they don’t know about it they won’t download it. So you need a mobile app marketing plan.

Pre-Launch Marketing Strategies:

• Market Research: Understand who you’re talking to and what messages will resonate.
• Landing Page & Email List: Create a basic website with an email sign-up form for early adopters.
• Social Media & Content Marketing: Post app updates, teaser videos and behind the scenes content on Instagram, LinkedIn and Twitter.
• Beta Testing & Early Access: Let some privileged users use it and tell you about it, before a release.

Post-Launch Marketing Strategies:

• App Store Optimization (ASO): Optimize your app’s title, description, keywords, and visuals for higher ranking in app stores.
• Paid Advertising: Utilize Google Ads, Facebook Ads, and influencer marketing for targeted reach.
• Referral Programs: Incentivize users to invite their friends. 
• Push Notifications & Engagement Strategies: Use personalised push notifications, in-app events, and incentives to keep people coming back.

Retention should be as big a part of your mobile app marketing plan as acquisition. It’s cheaper to keep a user engaged than it is to acquire one.

Step 6: Develop Financial Projections for Your App Startup

It doesn’t matter if you are seeking funding or not, investors require financial projections in your app business plan before they will take you seriously.

What to Include in Your Financial Plan:

• Revenue Projections: How much money do you think you can make from subscriptions, ads, or in-app purchases?
• Break-Even Analysis: When will your app make back all the money invested into building and marketing it?
• Funding Requirements: If seeking investors, how much capital do you need and where is it going?

Example: If you spend $50,000 on app development and charge a subscription of $5/month per user, how many users do you need to cover costs? This helps investors know if your business makes sense.

Conclusion

A well-structured business plan for mobile app startup is the backbone of your mobile startup. Let’s go through the key takeaways again – 

• Clearly define your app idea and business goals.
• Conduct mobile app market analysis to understand demand and competition.
• Choose the right mobile app revenue model for monetization.
• Accurately estimate app development costs to plan your budget.
• Develop a strong mobile app marketing plan for user acquisition and engagement.
• Create realistic mobile app financial projections to attract investors.

Building an app is just the beginning, it will only survive in a competitive market with a solid business plan and you have to get started!