Nearly sixty percent of Americans have a smartphone today, a phenomenon that has created new business opportunities and even new markets. One of those emerging markets is the mobile app space. Everyone from solo, home-based developers to multinational corporations have gotten into the mobile app market. As a result, the app space is flooded with a wide variety of games, productivity tools, and utilities, making it difficult for developers to generate some buzz for their app given the vast sea of competition.
That’s why any mobile app design firm should have a business plan. By creating a compelling and comprehensive business plan, you’ll have a better chance at receiving funding. Additionally, writing a business plan gives you the ability to strategize the development and marketing of your apps more effectively, and decide on an appropriate lifecycle for your apps as well as a product mix for your business.
Here are a few considerations that need to be made prior to launching your mobile app business.
App development can be expensive so you might need to seek funding from outside sources like venture capitalist firms, angel investors, or lenders. In such cases, a skilled business plan writer will be able to craft an industry standard document that is geared towards financiers, giving you a better shot at securing funding. They’ll have professionals on staff who are experts in all relevant fields. For instance, a marketing specialist will work on the market research portion of your business plan, while a financial expert will generate a 3- or 5-year forecast, giving your proposal a better chance at approval.
Developing and testing
App development and testing can be costly, time consuming, and requires a number of resources and a level of expertise. Will you hire a developer or do it yourself? Do you have a testing environment? How will you ensure that users’ personal and banking data is protected? These are all factors that need to be considered carefully and laid out in your business plan.
Mobile apps generate direct income using one or a combination of the methods listed below. Which approach is best for your app?
Paid app – Some apps cost money to download and prices can range significantly. One app may cost $0.99 while another may cost $49.99. However, with so many apps being available to download for free, those that come with a price tag need to have significantly better features in order to justify the cost among consumers.
In-app purchases – Some apps are free to download but offer premium features to be purchased within the app. This way, it’s easier to bring users into your app. The challenge lies in convincing users that premium features are worth their price.
In-app advertisement – Some businesses simply sell ad space in their app as a way to generate income. Finding the right balance of size, positioning, and frequency of ads that pleases advertisers and doesn’t overwhelm users can be difficult.
Getting the word out about your app can be challenging, especially when considering the vast number of apps available already. In fact, the Apple App Store recently surpassed the 1 million app mark. However, more than 60 billion apps have been downloaded and over $13 billion have been paid out to developers – figures that can entice any app developing business.
But if you want your app to reach users, developing a marketing strategy is imperative. By working with a business plan writing company, you’ll have access to market research specialists and other marketing expertise that will help you pinpoint the right strategy for your app’s marketing and find your value-add.
Lifecycle and Product Mix
Finally, identifying the lifecycle of your app and your business’s product mix are other important tasks. Many apps’ popularity peaks and fizzles out in a very short time span. How long will you expect your app to remain relevant? If your aim is to generate consistent income from your app for many years, how will you retool and update it to stay fresh? And do you plan on developing one app or several? If you choose to develop a number of apps, deciding on how they’ll align, and how (if at all) their timelines will overlap is another important consideration.