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HowtoWriteaBusinessPlanforaMobileAppStartup_-MindStudios.pdf
11/24/22, 7:23 AM How to Write a Business Plan for a Mobile App Startup? - Mind Studios
https://themindstudios.com/blog/business-plan-for-mobile-app/ 1/30
Mind Studios Blog Mobile Apps
How to Write a Business Plan for a Mobile App Startup?
UPDATED SEP 12, 2022 14 MIN READ
CONTENTS
Nikita Shumov
Anton Baryshevskiy Head of Business Development, Co-Founder
1. A business plan is a guide that turns your ideas into action
2. Is there a di�erence between a business plan for a mobile app and other software?
3. What does a business plan for a mobile app look like?
4. Market analysis
5. Marketing strategy
6. Financials
7. Business plan example for a mobile app startup
8. Conclusion
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11/24/22, 7:23 AM How to Write a Business Plan for a Mobile App Startup? - Mind Studios
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If you’re on the threshold of launching your mobile app startup, there are numerous
things you need to be concerned with: workload, core concept, budget, product
implementation area, employees… You need to rightly put all key elements of this
puzzle together to provide a clear roadmap for your project — that is, to compile an app
business plan.
We at Mind Studios know how to make a business plan for an app. Here, you'll �nd a
complete guide to creating a business plan. Also, we’ve added our template to help all
stakeholders and investors have a clear and most importantly, equal understanding of
your startup idea.
Read also:
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11/24/22, 7:23 AM How to Write a Business Plan for a Mobile App Startup? - Mind Studios
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What to Do If You Have an App Idea
A business plan is a guide that turns your ideas into action
As a rule, you should start with visualizing the project and formulating its key ideas.
They will later become the basis of your business plan.
Another vital component of developing your project is writing a product requirements
document (PRD) for your app. It consists of three sections: business requirements,
user requirements, and system requirements. The business plan is, actually, a
component of the PRD, namely the business requirements part.
Learn more: Formulating a mobile app PRD
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11/24/22, 7:23 AM How to Write a Business Plan for a Mobile App Startup? - Mind Studios
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All the preceding processes, such as developing a project vision, core ideas, and
concepts, creating a business plan, and drafting a PRD, allow all stakeholders to be on
the same page as the startup's founder.
In this post, we’ll go through how to write a business plan for an app startup.
Some statistics
Still not sure if your startup needs a business plan? Numerous studies back up the value
of having a well-thought-out business plan for companies on different stages of their
business journeys.
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According to one study that involved 3,000 company owners from diverse �elds, those
with business plans were almost twice as likely to succeed as those who didn’t.
Furthermore, such strategic-planning companies were more effective in attracting
investment or securing loans.
You can �nd more detailed information in the diagram below:
If your way is developing a mobile application
As of 2021, people have made 230 billion downloads of mobile applications, up by 63%
than in 2016. Everyone appears to require mobile solutions these days, so your startup
has a lot of room for imagination. You can choose from a wide range of mobile app
types. To name a few, it could be a travel, event planner (here's an event app
development guide), money management, social networking, or �tness app.
Read more: 16+ ideas for mobile applications in 2022
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No matter which one you decide to create, a pre-written business plan can help you
seamlessly go through the mobile app development process with its four fundamental
stages: discovery, idea validation, design, and actually, development.
A goal without a plan is just a wish
There is a plethora of mobile applications these days. It means, though, that there are
hundreds of almost identical apps in each category. Attracting users becomes a task of
utmost importance.
Chad Mureta, an app tycoon, says that a developer’s pro�t directly depends on their
knowledge of what’s interesting to the user; that is, to create a successful and pro�table
application, a developer should think like a user.
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Creating a business plan based on thorough user analysis will help you explain your
business idea to stakeholders. Also, you’ll see a path to a product-market �t. To make
that happen, you should determine what your target audience wants, needs,
likes/dislikes in competitors’ apps, and tends to expect from using your app.
Therefore, identifying your target audience preferences should be your priority, as it is
one of the main drivers of your startup.
Understanding the market is the key to success
The author of the bestseller 4 Steps to Enlightenment. Strategies for creating successful
startups, Steve Blank, suggests that very few people understand where their market
is. The writer believes it is almost impossible to launch a thriving startup without
analyzing the market it’s going to enter.
Before you start writing a business plan, it’s crucial to �gure out not only the degree of
public interest in your product but also the level of competition in the market you’re
going to enter.
Thanks to the preparatory analysis of your rivals and potential app users, you’ll be able
to �awlessly identify your product’s objectives, advantages, and unique value
proposition (UVP). This will also help you form the basis of a proper business plan.
Review your business plan annually
Steve Blank claims that a business plan is static in contrast to a business model, which
is dynamic. A business plan appears to be stable by de�nition: that’s a document
created once and rarely revised after adoption.
But in our quick-to-change world, do you believe there’s anything that could remain
static? Especially in terms of business? Investopedia, for example, shares an opposite to
Steve Blank’s statement: A business plan should evolve in tandem with a company’s
growth.
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We at Mind Studios adhere to the last approach and recommend you go through your
business plan for an app at least once every year. It will allow you to respond to
changes in your users’ demands and assess what goals you have achieved and which
ones you still need to accomplish.
Moreover, refreshing a business plan will enable you to keep your �nger on the pulse of
your startup’s current and upcoming �nancial needs and, therefore, help you develop
ef�cient strategies to attract investments. Consider it a dynamic document that adapts
to your startup’s development path.
Why should you make a business plan for apps?
In addition to helping you get your startup off the ground, a viable business plan acts as
an indicator for investors to consider it as a potential asset.
Read also: How to Get Investors for Mobile App Idea
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11/24/22, 7:23 AM How to Write a Business Plan for a Mobile App Startup? - Mind Studios
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Let’s summarize the main reasons why your mobile app startup needs a business plan:
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Both startups and established businesses need business plans, the content of which will
depend on the company’s primary goal.
To attract partners, startup owners tend to use a business model canvas — a more
�exible model of the traditional business plan. It can seamlessly adapt to the iterative
nature of tech startup development, yet providing core information about a project.
However, the business model canvas does not guarantee 100% success; it can only be
one of the components that will help your project attract investment. A comprehensive
business plan with a detailed description of your company and mobile app, justi�cation
of funds use, and coverage of all legal concerns is what can instill trust in all
stakeholders of your project.
Read also: Uber for X: business model canvas explanation and issues
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Is there a di�erence between a business plan for a mobile app and other software?
There are obvious distinctions between mobile applications, websites, and other
software solutions. They signi�cantly contrast in marketing approach, monetization
strategy, and feature sets. As a result, business plans for these solutions will differ as
well.
A traditional software development business plan might be structured similarly to a
business strategy for a mobile app company. However, any document that presents the
�rm and its product will be distinctive in content. It is reasonable since each project is
unique, with its own goals and target audience.
What does a business plan for a mobile app look like?
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Your mission is to create a reliable and stable mobile application for either enterprises,
individuals, or non-pro�t organizations. In this case, a business plan will help you pave
the road to make your project pro�table.
Therefore, when writing a mobile app business plan for startups, you’ll need to
estimate the cost of development and commissioning as well as the timing of the return
on investment in your project. Only by doing this, will you get a clear picture of your
app’s viability.
One of the essential factors in writing a good startup business plan for a mobile app
is delivering maximum transparency at each part. Let’s highlight what you should
include in your mobile app business plan to make it serve your business in the most
effective way possible.
Executive summary
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Let’s start with the executive summary. It is the �rst and most signi�cant part of
your mobile app business plan because it’s the �rst thing an investor will read. The
executive summary should be clear and concise, with no detailed information about
how your product works. Address the situation in the market, who your target customer
is, and what unique problem your application can solve.
Make your proposal unique to distinguish your company from others. In other words,
create a unique value proposition (UVP). Use your imagination: consider your
executive summary as a movie teaser and your investor as a spectator. Would they like
to see your movie?
Specify your goals. These objectives should rely on your business analysis. Investors
will examine your aims to see if they satisfy their needs. You also have to determine the
ultimate goal of your exit plan. Furthermore, you should establish a list of funding
requirements and the proceeds that will be used to boost the attractiveness of your
company. One of the essential factors in the startup business plan for your mobile
app success is ensuring maximum transparency at each stage.
Make your document convincing. To do this, ensure your product’s concept and goals
are crystal clear and do not vary throughout the paper. Provide the reader with accurate
data and realistic expectations about your project. Of course, don’t forget to make sure
that the name of the person who created the business plan and executive summary and
the names of your team members are consistent throughout the documentation.
Business description
Introduce your company in this part, beginning with corporate information and ending
with your mobile app concept. This part of your startup business plan will show
investors the corporate values of your company, your mission, product vision, and the
fundamental factors for your startup success.
This information is vitally important for investors. For example, a technology startup
accelerator Y Combinator considers getting money as by far the easiest part whereas
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11/24/22, 7:23 AM How to Write a Business Plan for a Mobile App Startup? - Mind Studios
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working on ideas — the most signi�cant part for any startup in achieving success. In
most cases, Y-Combinator-like organizations make compiling a thorough business plan
a prerequisite before introducing newly-formed projects to investors.
Read also: The difference between an accelerator and incubator
Company overview
Here you should describe your company’s:This website uses cookies to ensure you get best experience
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This section should give the reader of your business plan detailed information about
your startup: the of�cial name of your company, the location of the headquarters, and
its structure, namely the business entity type (LLC, corporation, etc.). Make sure to
provide further details about your team, such as the number of workers, their names,
job titles, and so forth.
Describe the purpose of your company and the fundamental principles that guide your
business in the mission statement. After establishing your mission, outline the primary
challenges and solutions your startup can offer.
Company history
Before making any business proposal, describe the history of your company, how your
team formed, and how you came up with your idea. In addition, you can talk about the
main stages of your company’s development and the experience that precedes the
product launch.
Your team
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It is often the most signi�cant part of the executive summary because your app
development team is the main engine of your project implementation. You should
specify each person’s name, position, work experience, and responsibilities in the
company. In addition, you can involve an advisory group that will help you make
essential decisions. Consultants on your advisory team should have experience in the
industry.
Market analysis
Information about the state of the market should be the main factor in your app idea
realization. You should be aware of the present situation in your industry, have up-to-
date information, and be able to generate a short-term forecast.
To conduct market analysis, you should take several steps:
1. Examining existing business environment
2. De�ning your market research criteria
3. Determining your total available market (TAM), service available market (SAM), and
service obtainable market (SOM)
4. Identifying your direct competitors
5. Analyzing your target audience and �guring out the cost per acquisition (CPA) for
your niche
No market research in the mobile app industry can be conducted without analyzing
Google Play Store and Apple App Store with their ranks for top paid, top free, and top-
grossing apps as well as user reviews.
Market forecasts
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Forecasting is an integral component of writing a business plan for an app development
startup realization.
Forecasts from reputable research �rms such as Nielsen and Forrester are of interest
when creating any business plan, be it a business plan for an app development, a
website, or a traditional software startup business plan. To provide reliable market
forecasts, you can:
Include data on the growth of companies with solutions similar to your mobile app
Add information on the amount of money poured into similar startups (platforms
like Crunchbase or Y Combinator can help with this)
Enrich your business plan with some forecasts on your target customer behavior
Your goal is to assess whether there’s a real market for your product, whether there are
enough customers in the market, and, accordingly, whether those customers are willing
to pay money for using your product.
Read also: How to �nd a mobile app development company
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SWOT analysis
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A SWOT analysis is a strategic planning method that allows you to present a
structured description of your business situation. It can be a great way to evaluate your
app startup concept from four perspectives. Namely, its:
Strengths
Weaknesses
Opportunities
Threats
It’s natural when a business has weaknesses: knowing about them will serve as a
powerful driver for �nding solutions and will reduce any risks your company may need
to face.
Marketing strategy
An app marketing strategy is a bridge that allows your product to fall into the hands of
your customers. You have to convince investors that you have such a bridge.
When drawing up a business plan, you have to de�ne the marketing strategies you
intend to use in application promotion. Here are a few examples, along with
descriptions of how they work:
Create a landing page
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Creating a landing page for your mobile app will help you reach a wider audience by
informing users about new features and updates. Make sure your page contains the
name of the application, a description of its functionality, promotional videos, and so
on.
Launch a website and blog
Launching a website is a great way to promote your application. There, you may, for
example, provide more information about your company, its goals and values, and an
overview of your future mobile solution.
A website blog is also a helpful thing with your app advertising. You can share news on
your upcoming product and publish SEO-optimized articles for better promotion.
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Social media marketing
Consider social media marketing while developing a business strategy to promote your
app. Describe how you intend to use this form of advertising at various phases of your
mobile solution development: before launch while attracting your audience and
retaining users.
Estimate your marketing budget
You may estimate the cost of marketing services based on the market analysis you
outlined in the preceding section of your business plan. Understanding the marketing
budget is essential to all parties: you, the app owner, investors, and other stakeholders.
Product growth
Depending on the type of app startup, growing the user base approach differs, as does
the business plan for entering different markets. For example, a massive advertising
attack tends to make sense in markets where consumers understand your product or
service and its usefulness.
Take, for instance, Uber, which has successfully launched extensive marketing
campaigns. The company’s ads have spread globally with Uber localizing advertising for
each region.
So, if you’re still working on a business strategy, think about how you’ll expand your
user base in advance. This will tremendously assist you in future product growth.
Choose your product launch type
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Be sure to indicate the product launch type in your business plan. There are two such
types: hard and soft launch. The �rst one means delivering a �nished product to your
entire target audience. A soft launch is when you release an MVP or full version of your
app, but for a limited audience.
Financials
To rightly set out this part of your business plan, you should clearly understand what
kind of �nancing you need to move forward. Moreover, you need to express it as clearly
as possible to be sure a potential investor will also understand what funding you need.
The �nancial model includes, as a rule, a three- to �ve-year forecast of all the main
forecasted indicators, including pro�t and loss, cash �ow, balance sheets, start tables,
unit economics calculation as well as your app’s projected revenues and costs. Your
�nancial document has to contain the following components to determine the actual
cost and distribution of investments in the best way, with a clear explanation of each.
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Startup costs/funding required
Inform your investors about estimated costs. We recommend placing reasonable
estimates and leaving room for extra expenses since these numbers might �uctuate.
Designate all types of costs:
One-time costs (e.g. relocation costs, costs for buying an of�ce space, equipment,
servers, software, licenses)
Fixed costs: they remain unchanged regardless of whether you produce something or
not (e.g. rent, insurance, lease payments, �xed salaries)
Variable costs: costs that change according to the production volume (e.g. wages)
Monetization strategy
It is another section you need to add to your business plan. By illustrating your
monetization model, you’ll demonstrate to your investors and other stakeholders that
your project will be pro�table and provide a return on investment with positive unit
economics. It will also help you be sure that your startup will reach its break-even
point.
The most common ways to monetize an application are:
Advertising
Charging for the application (if your business model describes a paid application, you
need to convince the consumer why they have to pay and what they’re paying for)
In-app purchases (this is a widespread mobile app business model in iOS and
Android applications)
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Subscriptions (this model of monetization is quite popular and works until the user
decides to cancel the subscription; in most cases, subscription apps have a free trial
period)
One of our prominent projects in which we’ve helped set up a monetization strategy is
Fitr. Training, a remote �tness coaching application. Our team analyzed the platform’s
performance and discovered we could enhance the conversion rate.
We established a monetization model based on the collected data and customer
feedback. Namely, our team launched an ef�cient subscription option. The results were
remarkable: one out of every four coaches now uses the paid membership.
Mind Studios can also assist you in elaborating a potent monetization strategy.
Business plan example for a mobile app startup
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We’d like to offer you a business plan template for a startup updated to 2022. Keep in
mind that, although this mobile app business plan itself is structured according to all
the rules, the calculations are entirely �ctional.
Download the free PDF business plan template for a mobile app here.
Conclusion
Writing a business plan for a mobile app startup isn’t easy. As a rule, the most
challenging part of developing a business plan for a mobile app idea is writing the �rst
page. Many people in this situation rush to �nd and download a free copy of another
company’s business plan. They mistakenly believe that someone else’s business
strategy will help them achieve their goals. But it absolutely won’t!
A business plan cannot be a cloned document. It must be one-of-a-kind re�ecting
your passion and enthusiasm in bringing your idea into life. A successful business
plan should demonstrate that your company is viable and �nancially attractive. The
higher the viability, the higher the investment opportunity.
If you need to compile a well-thought-out business plan to attract investments and
successfully launch your app, our expert team at Mind Studios is here to help.
Have more questions? Drop us a line to get more insights and �nd
out how our tech team can help!
Contact Us
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Nikita Shumov
Tech Researcher
Anton Baryshevskiy Head of Business Development, Co-Founder
Business Development Consultant
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11/24/22, 7:23 AM How to Write a Business Plan for a Mobile App Startup? - Mind Studios
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