Today’s smartphone users rely on apps for everything from saving money at the grocery store to buying clothes to accepting payments for their small business.
Regardless of your app’s purpose and audience, you will need to have a well-thought-out business plan before launching your app startup. We’re here with all the steps you need to take before you can get to the fun part—building your app!
5 Stages of Planning Your Mobile App Startup
Every business requires a business plan that serves as a roadmap for your company. It can help you mitigate risks and be helpful when you are ready to get funding for your app. Follow these five steps to develop your mobile app business plan.
Stage 1: Figure out how to make it profitable
If your app isn’t going to make money, you aren’t going to attract investors. Investors need to know that you have a plan that will give them a solid return on their investment.
Will you charge for your app, or will your app include in-app purchases? Will you rely on ad revenue? If so, how will you get it?
It’s not enough just to monetize your app—you will need to do some due diligence here to make sure that your idea really is profitable.
Stage 2: Analyze the market
You might believe you have an excellent idea for an app, but is there a market for it? You’ll need to thoroughly research the market to see if you have an audience for your app. Identify competitors and keep up with the industry to see what new trends emerge.
Even more importantly, you’ll need to know how much your audience is willing to pay for your app. What’s the price of convenience for them, and is it enough to make your app profitable?
Stage 3: SWOT analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Identify these for your application, knowing that weaknesses and threats always exist. Use the information here to find solutions for potential problems now, before they emerge.
Knowing what threats are on the horizon can help you stay ahead of the game and alert in the future as your app moves forward.
Stage 4: Develop a marketing strategy
There are thousands of apps on the market today, which means you will need to work hard to make yours stand out.
The first step is to build an app that is intuitive to use and attractive to look at. From there, you can market your app through the app store using proven techniques. Include at least three screenshots that highlight your app’s best features. Use keywords and descriptions your target audience will be searching for. See what your competitors are doing, then find a way to do it better.
Stage 5: Figure out financials
Once you have gotten through steps 1 – 4, you should have a concrete idea of your funding needs for building and marketing your app, plus running your company. Include everything, such as emergency costs, recurring expenses, maintenance fees, and utility charges.
Investors will want to know when they can expect to see profits, so give them a reasonable timeline that accounts for all the above financial information.