Beyond the Pitch Deck: Crafting a Compelling Mobile App Business Plan for Your Startup

Mobile applications have become a part of anyone’s personal and professional life. The changing habits of millennials about shopping online and ordering services through mobile phones have pushed service and product industries to have mobile applications for their convenience. Statista, a research giant portal, quotes several statistics about mobile applications that can impress anyone to think of mobile app business in this digital era:

• Global mobile application downloads in 2023 reached 257 billion
• Average consumer spending on mobile apps in Q3 2023 reached USD 5.05
• In Q4 2023, the total value of global consumer spending on mobile apps touched a whopping figure of USD 70 billion worldwide
• The mobile applications are projected to cross USD 613 billion in revenues by 2025

These statistics are alluring enough to draw anyone’s eyeballs to have a mobile app for their business. So, now you need the answer to what to do if you have an app idea? Of course, based on your funding requirements, you need to think of the next step. If you have made up your mind to raise some funds, you need a foolproof business plan for startup app.

Let us delve deeper into it.

What is a mobile app business plan?

A business plan is a document that outlines the purpose and features of your mobile app. Also, it includes the targeted audience/user/customers and revenue model along with a strategic marketing plan for your app. A mobile app business plan for startups helps define the idea clearly and communicate it clearly with potential investors and partners.

It is an essential document for startup mobile app funding that can make a difference in helping entrepreneurs get the desired funds. The better planned and described the whole document is, the better the investors will receive it.

First thing first: for a perfect mobile app startup business plan, you should mind the following factors:

• A clear vision and goals for your app: What problems does your app solve? Who and where are your users? What are the benefits of using your mobile app? What are the measurement criteria for your app’s success?
• A well-researched and realistic business plan: How will you execute the mobile app development, and how will you launch and maintain your app? How much does mobile app development cost? What is your app monetization plan? What could be the risks and challenges of your mobile app business?
• Mistakes to avoid when creating a business plan: A business plan for your mobile app should not have unrealistic assumptions or projections. You should not ignore the competitors or the latest market trends. Also, do not overlook any legal, regulatory, or ethical issues. Lastly, you should test and validate the app idea with real users to avoid failures.

As an entrepreneur, you may go through our comprehensive mobile app development guide to get a fair idea of how a mobile app is built based on the requirements provided.

Why is a mobile app startup business plan essential?

While mobile app businesses can get you an easy flow of revenue, it is only when the product is successful. Despite the abundance of mobile phone users, more than 90% of mobile applications fail to achieve their revenue goals for one reason or another.

Let’s first look at the importance of a plan for a startup app:

• Guides Strategic Direction: A business plan outlines the vision, goals, and target market for the mobile app, providing a roadmap for success.
• Defines Revenue Model: It clarifies how the app will generate revenue, which is crucial for sustainability and growth.
• Shapes Marketing Strategy: A well-defined plan helps in crafting an effective marketing strategy to reach and engage the target audience.
• Establishes Competitive Advantage: Identifying strengths and unique selling points helps differentiate the app from competitors.
• Attracts Funding: A comprehensive business plan increases investor confidence and attracts diverse funding sources.
• Mitigates Risks: By outlining potential challenges and strategies to overcome them it minimizes the risk of failure.
• Builds Confidence: Having a solid plan instils confidence in investors, partners, and stakeholders, increasing the likelihood of success.

Having a business plan for mobile app startup proves to be an essential strategy for your startup success as it helps you define several vital aspects of your app:

• App vision
• App goal
• App target market,
• App revenue model
• App marketing strategy
• App competitive advantage

As entrepreneurs, it is always a better approach to have diversified funding sources for your startup and to present your idea to more than one potential investor or fund provider ; your mobile app business plan should be pitch-perfect.

If you know how to write a business plan for a mobile app, you will be able to attract multiple fund providers and target audience/customers who share the same vision as yours because, with such a plan, they would believe in your product. It is also essential to know about the top mobile app funding trends. Without a proper business plan for a mobile app, you might put your time, money, and resources at risk.

Core elements of a business plan for a mobile app

A business plan for a mobile app is a document that outlines the goals, strategies, and feasibility of developing and launching a new app in the market. It helps to communicate your app’s value proposition and competitive advantage to stakeholders and potential investors.

A business plan for a mobile app typically includes the following core elements:

• Executive summary
• Market Analysis
• Product Overview
• Company Overview
• Marketing Plan
• Financial Plan
• Risk Mitigation Strategies (RMS)

How to write a mobile app business plan?

Writing a business plan for a mobile app requires you to follow specific steps with logic and emotions. The purpose is to convince the reader (investors) and give them confidence in your app business.

Executive Summary

This is a brief overview that covers the main points of the mobile app startup business plan. It may include the concerns that the app can address, the targeted market, revenue model/funding requirements, and the unique features or benefits of the product.

An executive summary in a mobile app business plan is simply an outline or a glance at your business venture. The reader should get a glimpse just by reading the executive summary. The executive summary can be further divided into three categories: summary, UVP, and target or objectives.

• Summary: The summary is a concise and compelling text that showcases a startup business plan to grab the attention of readers and provoke them to read ahead.
• UVP: The UVP (Unique Value Proposition) is the core message of your app business plan. UVP makes the app different from the rest and mentions why target users should opt for this app over other alternatives.
• Targets/Objectives: The targets/objectives mention the specific and measurable results you want to achieve through the app business in a specific timeframe. Whatever you mention should align with the UVP and particular market needs.

Market Analysis

One of the critical aspects of crafting a compelling business plan for a startup app is to find out your targeted users and competitors with their unique value proposition. This helps you understand your potential customer’s needs and preferences.

Here are some steps that help you conduct market research and analysis for your app business with an example:

• Define the purpose: Identifying the problem or opportunity that your app business aims to solve or address will help you narrow down the scope and concentrate on a particular segment.
• Gather enough data: Researching to gather existing data and information about a specific industry and its market size to understand trends and customer behavior will overall help you understand competitors and their success.
• Ask the end-users: The best way to have a sure-shot startup business plan is to collect data and feedback right from the targeted customers or end users through tools and methods like surveys, interviews, focus groups, user testing, and polls.
• User segmentation: After gathering enough data, you should segment your target audience based on criteria such as demographics, psychographics, behavior, and geography.
• Market forecasts: The market forecast focuses on studying factors such as market size and demand as per the latest trends. The forecast shall also help you understand customer lifetime value (CLV).
• SWOT analysis: Conducting a SWOT analysis is one of the mandatory steps of a business plan for a mobile app. It evaluates the strengths, weaknesses, opportunities, and threats for your app business. Through SWOT, you identify competitive advantages and challenges as well as any external factors that might affect your business success.

Product Overview

You can mention the app’s functionality, design, and user interface, along with probable user experience and technical specifications. The product overview also explains how the application is different from the competitors in the market by mentioning the value it could add to the users.

A product description is a brief summary of your product’s (a mobile app’s) main features, benefits, and monetization strategy. The reader or the investor needs to understand the product to build trust in the business plan. The product overview should include:

• App’s core functionality and purpose: You should mention the app’s main functions and why the app is built (the primary cause).
• App’s benefits and value for your users: The App’s benefits include showing what users will get with the app. For instance, for a fitness app, the user must be made aware of how the app will benefit them, keeping their mental and physical status optimum.
• App’s monetization model as per app’s goals and market: To investors and you, business does matter. How the app business works, earns money and sustains the tough market should be reflected in this overview.

Company Overview

One of the most essential factors in a mobile app business plan is a summary of the company by mentioning its background, mission, and vision. The organization overview introduces the team members and their roles, along with technical/marketing skills and qualifications.

The brand identity matters, and therefore, it is essential to include a thorough detail of the firm, agency, organization, or company. Startups in mobile app businesses should clearly define their company’s details.

• Overview: Mention the company, its origin, whose brainchild it is and what its vision and mission are.
• Team and advisory board: You should mention the board of directors, MDs, CEO, and other authorities as a team and advisory board in detail.
• Timelines and milestones: Defining the startup app business plan in phases such as timelines and a breakdown of short-term goals and long-term goals, will give readers a fair idea about how the app business shall grow and achieve its target.

Marketing Plan

Another aspect of having a mobile app startup business plan is to include a comprehensive analysis of the market opportunity by showcasing research on customer segments, competitors, and the latest trends for the app.

The detailed plan for marketing ideally outlines the marketing strategy and tactics through various social media channels as per specific budget and metrics to promote and distribute the app to the targeted customers.

Companies need proper marketing to sustain the competition. Marketing helps companies reach the targeted customers and inform them about the products and services while convincing them to buy. Mobile app businesses also focus on engaging and retaining end users for success.

• Outline objectives, strategies, and tactics: Objectives are the goals you want to achieve with your app business, like an increase in downloads and user retention with enhanced revenue. Strategies include a plan to target a specific market segment and create a unique value proposition. Tactics refers to specific actions that are used to execute a strategy.
• Promotion of the app: You need to identify your targeted users and their needs, find them, and communicate the benefits and features of your app compellingly and engagingly.
• Marketing performance metrics: For your mobile app startup business plan, you need to define key performance indicators (KPIs such as number of downloads/installs) that go with your vision and check them regularly.

Financial Plan

A financial plan is the backbone of a business plan for a mobile app. It is a projection of the income statement and cash flow statement stated through a balance sheet and breakeven analysis. The plan preferably includes the assumptions along with sources and proper utilization of funds to develop and launch the application.

A financial plan is an essential part of a mobile app business plan because it helps you estimate your product’s revenue, expenses, and profitability. The plan enables you to evaluate the feasibility and viability of the app business idea; additionally, you pitch it to attract fund providers.

Here are some steps to create a financial plan for your app:

• Choose a revenue model: Choose from different methods to monetize your app. It could be an in-app purchase, subscription, advertisement, or freemium model.
• Project your app’s revenue: You should estimate how many users will download and use your app, how much they will spend or generate in revenue, and how long they will stay engaged with your app.
• Outline your app’s expenses and budget: In this, counting the costs of mobile app development, deployment, and maintenance of your app is considered. You may contact a mobile app development company for close-to-accurate estimation.
• Calculate your app’s profitability and breakeven point: Here, comparing your app’s revenue and expenses with market leaders to determine its profitability is mentioned. Also, it would be best if you represented how long it will take for your app business to reach the breakeven point.

Risk Mitigation Strategies

In a startup app business plan, RMS includes listing down the potential risks and challenges that may affect the success of the product and their remedies or precautions. The factors to include are possible technical glitches, legal issues, regulatory issues, market volatility, and operational issues.

Even if you have a well-thought-out startup business, many a times there is a chance that things might not work as properly as planned. For this reason, risk mitigation strategies for startup apps are considered to be a critical aspect of a business plan.

This is to ensure that even if the startup may face some challenges, the entrepreneur is already prepared and thought about a way out. Some potential risks of mobile app startup business are:

Low user retention

Many users download apps but seldom use them. They are likely to uninstall them quickly. This affects the app’s revenue and growth potential.

Solution: Work on UI/UX. Conduct thorough research on peers – what they do and what their apps look like for retention.

High competition

The mobile app market is saturated with hundreds of similar or alternative apps as yours. This can make it hard for your startup app business to stand out and attract users.

Solution: Intense market research of trends and user expectations is needed. Come up with unique features and functionalities in your product.

Security breaches

Mobile apps store and transmit crucial data like personal information and payment details, which exposes them to cyberattacks or data leaks that harm users and the app’s reputation.

Solution: Spend a special budget on building multi-tier security measures and unbreakable digital walls.

Legal issues

Mobile apps have to comply with various laws and regulations, such as privacy, intellectual property, or taxation. This can create legal liabilities or fines if the app violates any of them.

Solution: Find a legal advisor who knows in and out of local and international mobile apps or digital trading. Get certificates/licenses. Spend a special budget on compliance. For example: HIPAA for medical apps.

Tips to write a successful mobile app business plan

Let us glance at the entire process. Here is a quick look at what you need to do for the plan.

Section	Description
Problem and Solution	Clearly define the problem your app solves and how your unique features address it better than competitors.
Market and Competition	Research your target audience and analyze existing competitors to identify your app’s competitive advantage.
App Features and Functionality	Outline the core features and functionalities that deliver your solution, prioritizing based on user needs and development feasibility.
Business Model and Monetization	Choose a sustainable revenue model (in-app purchases, subscriptions, ads, etc.) and project income and expenses.
Development and Timeline	Outline the development process with milestones and deliverables and set realistic timelines for launch and updates.
Marketing and User Acquisition	Define your marketing channels and strategies to reach your target audience, estimate user acquisition costs, and project user growth.
Team and Expertise	Introduce your team, highlighting relevant skills and experience. If seeking funding, emphasize your expertise and ability to execute.
Financials and Projections	Summarize your financial projections, including revenue, expenses, and profitability, and create clear and convincing visuals for investors.
Executive Summary	Craft a compelling overview that grabs attention and summarizes key points (1-2 pages), highlighting the app’s potential for success.
Proofread and Polish	Ensure your plan is professional, well-formatted, and free of errors. Get feedback from others and revise accordingly.

Closing thoughts on mobile app business plan

The conclusion of a mobile app startup business plan should summarize the main points of the document and highlight the value proposition of the app. The gist should also include a CTA (call to action) for the reader or investor so that they are invited to take action.

Once you have aced the funding dilemma, you need to keep up the good work going by knowing how to scale a startup.

Ready to build a mobile app to lead the market?

You must be thorough with how to write a mobile app business plan by now. So, you have an app idea and also know how to pitch your deck to investors and users. It is suggested that while making the pitch-perfect business plan for your mobile app, you should have a tech partner by your side to help you make the business plan foolproof.

We are a renowned mobile app development company that can help you draft the technical aspects and get you an estimated budget for your dream product.

Contact us now, and together, we can make your dream come true.