see I agree… sort of.
A great executive summary DOES summarize all the important details of your business into just a couple of pages, but furthermore, it should also be a persuasive and informative sales pitch. What are you selling, you ask? You are selling your worthiness for their attention. The payoff for an executive summary is rarely an investment into your app business, but instead, it is an attention magnet to make readers curious for more.
Put all of your best details into the executive summary. Avoid any fluff. Think of the executive summary like the back of a novel. Does it leave you anxious to dive in and read the rest of the book? Use this section to explain your mobile app concept and introduce your business. The point of this section is not only to describe your business, but to explain what your business has accomplished and what they plan to accomplish in the future.
Stick to the facts, but make sure the facts are worthy enough to put on the paper. In an app startup business plan though, stick to the things that make your app different or better suited to the market. Describe the problem that your consumers face and make sure that you implicitly show how your app will solve this problem.
This research section is where you provide the background for your story. In this section, the mobile app business plan shifts from what you believe your app business is, to the hard data that proves your business is viable and that there is actually a need and demand for your solution. Analyze your market through secondary research, industry surveys, market reports, and most importantly — first hand primary research.
Use your research to estimate how large your market is by revenue or number of consumers, for example , and try to discover how the industry is performing, trending and transitioning. Typically in a mobile app business plan, we stick to the following process: Using this information, you now must decide how you will reach potential users, introduce them to your app, and persuade them to download and use it.
Investors want to know that there is a clarified growth strategy in place for getting your app to the market. The better you can explain this plan with clear steps, backed with accurate data, the more likely you are to persuade an investor to help fund your the development of your app. There are many marketing strategies and techniques available from PPC to social media, and beyond. Choosing which one is right for your business can be difficult. Start small, test your ideas. Furthermore, look at your competitors and identify how they are successfully reaching consumers.
The more you know about what has and has not worked for your competitors, the easier it will be to avoid the obstacles that they may have faced previously. No matter how innovative your app is, there ARE competitors. Maybe no other app offers exactly what you offer, but there is some other app, process, product or service that consumers are currently using to solve their problem.
Knowing who your competitors are is important, but knowing their position and operation within the market is a vital key to building a successful business. Investors will want to know that you have detailed knowledge of your competitors and that you have identified valid methods to exploit their weaknesses through your product strengths; creating a path to position yourself ahead of them. To be effective, it is vital to consider how your app business will operate on a day-to-day basis and how you will build and maintain customer relations.
This section will contain information related to how customer service will be handled, how quality assurance will be maintained, how your app will be developed, who will manage the business, and more. In addition, this section will highlight the user process — how the user will behave from the moment they learn about your app until they spend their first dollar.
One of the largest components of this section is the personnel plan, which outlines when and how employees will be hired; how their salaries will be expensed; and how their positions will help progress the business.
In this section of the business plan, these members can be showcased, and their skills be highlighted to prove that the team has what it takes to propel the startup to success. In addition to co-founders and board members, this section will allow you to explain different advisor relationships you have secured; valuable relationships with non-executive members who are successful in related fields who have agreed to consult and advise the founders as they launch and grow their business.
Once all of this information has been compiled excluding the executive summary , the financial model can be prepared. App entrepreneurs often find preparing their financial model to be difficult and beyond their comprehension.
However, if you have prepared all of the previous information correctly, you should know exactly what you will need to fund in order to push the plan forward. The financial model should include a 3 to 5-year projection of all the essential forecast models, including: That finishes the easy stuff.
The advent of mobile apps has indeed contributed immensely to the revenue generation in the ICT world. Latest posts by Logan Merrick see all. A problem is a difficulty a consumer has that either has no current solution or the available solution has shortcomings. The point of this section is not only to describe your business, but to explain what your business has accomplished and what they plan to accomplish in the future. We have conducted our market research and survey and we will ensure that all our mobile apps are well accepted in the market place.
Many entrepreneurs mistakenly think that a mobile app startup business plan is just about plopping down some words on a page. They rush off to download a free business plan program, answer a few questions or fill in a few blanks, and believe that they now have a business plan that will help them reach their goals. What your business plan says, is important; but how you deliver the message may be the determining factor to whether you win or lose at securing funding for your app. In this section, you need to address the following points: What is the pain point that your customer segment s is experiencing?
How does your app solve that problem and make their life easier? How is the problem currently being solved? This will usually manifest itself in one of two ways: Solution So now that we know who our ideal customer is and the problem they have that we can fill, we need to tailor the solution.
So how do you write this section? You need to get inside their heads to understand: How they want the solution to work What is their natural thought process? What will make sense to them? Unique Selling Proposition Your USP is a short statement sentences that tells customers why your app is so special. If there is a strong differentiator, however, the venture has a good chance of being successful.
Here are some tips to get you started: Focus on the benefits, not the solutions.
How does it uniquely address the problem your segment is experiencing? Why should a customer do business with you instead of anyone else? What can you guarantee me that no one else can guarantee? Because no one will know your app exists! Then, focus on building a presence in those channels. Paid in-app advertising Recommended reading: Revenue Streams How will your app make money? Pricing structure is a tough thing for startups to address early in the development process. Make no mistake, they were definitely thinking about money when they launched! Free, but with in-app advertising Eg: Facebook, Youtube This monetisation model aims to accumulate a large user base and gather data on the users interacting with your app.
Pros Everyone loves getting something for free — quickly acquire plenty of new users. Puts your app in a great position to collect data such as in-app behavior of your users. Cons People can get annoyed with advertisements leading to user drop off. User experience can be greatly compromised.
Ads in these apps make the user experience feel unnatural and intrusive. Freemium — Eg: Spotify, LinkedIn, Evernote Freemium describes products that are free to use, but contain locked features customers can pay for if they want. On the other hand, if you offer too many features for free, no one will want to upgrade. Sponsorship Incentivised advertising — Eg: Runkeeper, Menulog Sponsorship is one of the newest entrants into the mobile app marketplace. This model allows brands and agencies to be part of an incentive system. Your app earns money by taking a share of the revenue from the redeemed rewards.
Users get the benefit of free promos. Advertisers get more ad space. This monetisation strategy will be better received by your users. This strategy can be adopted on many different levels. Mobile marketers need to be cautious about what actions they incentivise in their app. Candy Crush, Tinder, Snapchat This app monetisation strategy involves selling virtual or physical goods through your app. Purchases made through your app can include products like clothing and movies etc.
In-app purchases can also be virtual goods such as in-game currency. Pros Works well with e-commerce brands. Buying virtual goods leads can lead to greater user engagement Can help app developers make a comfortable profit with minimal risk. Cons This model has received some bad publicity.
This is due to children unknowingly making in-app purchases using their parents accounts.
The app stores will take a percentage cut of the profits for virtual goods. Users may be less inclined to download your app if they see that it includes in-app downloads. Subscriptions — Eg: Whatsapp, Apple Music, Netflix A subscription provides a guarantee of repeat transactions. As the seller, you make up for the discount by guaranteeing future transactions.
Subscriptions allow an app user to view a certain amount of content for free. Pros Leads to loyal and engaged app users. The subscription model encourages writers to constantly deliver valuable content. More suited towards service apps. It can be hard to determine just how much content to provide for free and where to start charging.
The big 5 metric types include: Acquisition metrics Retention Metrics Behavioural metrics Engagement metrics Quality metrics For more detail on how to use these metrics, head over to this infographic. For example: Unfair Advantage This will be the hardest section to fill out, because it may be too early to nail down what will make your app have staying power.
Intellectual Property is dead, and the app market is more competitive than it has ever been. How is your app going to compete in its industry, and how will its advantage be sustainable? Branding particularly is one of the most powerful assets a product can have. Print it out, grab a glass of wine and power out the handwriting.