How To Build A Business Plan For Your Mobile App?
Questions and more questions. If you are new to the app development world, you probably have an endless amount of questions. This is good! Having a bunch of questions means you are wanting to produce a top-quality app by doing it right the first time and you are wanting to be a part of the development process. One subject you probably have questions about is building a business plan for your mobile app.
Building a business plan for your app is a necessary and important part of app development. In your line of work, you may have already developed business plans for different aspects of your business. However, whether you are already comfortable or unsure about business plan development, you probably still have questions about an app’s business plan.
Let’s get you started by delving into 4 questions that will help you build a business plan for your mobile app.
Why do you want to develop a mobile app?
Behind every action you take, you have a motivation or reason. Therefore, you need to ask yourself why you are wanting to develop an app. Is it a completely profit-based reason? Are your customers expressing the need for an app? You need to decide why you are developing this app and why people will download it. Once you know your motivation for building the app and the motivation behind users downloading the app, you are ready to proceed to the next step in building a business plan for your mobile app.
How will you prove the need for your app?
Justifying the app is a big part of your app’s business plan. Think about it: If you are going to spend thousands of dollars on an app, you will want to make sure it is the type of app that will be successful in your target audience. You won’t want all your hard work and money to go down the drain! So, here are a few ways you can research and prove there is a need for your app:
Ads and Trends: Within the Google “universe,” there are elements that will help you before you even start developing your app. A great place to start is playing around with Google ads to see how much of a response you get from potential users. Then, check out the Google trends feature by typing in keywords that are related to your app. For example, type in “sports scores app” in the Google search bar to get an idea of how many apps are out there that will be in competition with yours.
Evaluate Competition: Continuing from the previous step, find and review any apps that can be considered competition for your app. Find out what makes that app successful, it’s rank (stars) in overall performance, what people are saying they like and don’t like about the app, and so on. Once you have full evaluations on your competitors, you can move forward, armed with valuable market knowledge.
Surveys: At this point, you are probably still unsure about what your target audience will respond well to. Most of, if not all, your doubts can be put to rest by sending out questionnaires or surveys to potential users. Find out what elements they would like to see in your app and what they don’t want to see. Cast a broad net, meaning survey a diverse group of people from different geographical locations, cultural backgrounds, etc. This will ensure receiving the most variety and “real” data.
Now that you have utilized different methods to evaluate the market and the need for your app, you are ready to move forward in building your app’s business plan!
What about your app’s marketing plan?
In the previous section, we discussed ways to justify the need for your app. All of those ways involved marketplaces in some way or another. Therefore, this section just builds on the previous. Here are a few elements to incorporate into your marketing plan:
USP: Your USP (unique selling proposition) needs to be relevant, current, and appealing to potential users. Make your app’s proposition creative and highlight what makes your app better than all the others on the market. Don’t be afraid to toot your own horn! After all, you have a great app and you want users to know it!
Marketing Channels: Social media, search engines, and digital advertising become your best friends when marketing your app (pre-launch and post-launch). Getting your app out into the digital universe will not only reach the greatest amount of users all around the world but will also create your best line of profit! Use any method you possibly can to showcase your online presence and promote your app.
Marketing is considered a “fun” element of app development because you get to put your creativity to the test. If you aren’t the creative type, hire a marketing team that specializes in app marketing and let them show off their proven tricks of the trade!
What about your app’s financial plan?
Every business plan would not be complete without a financial plan. As mentioned earlier, app development isn’t a cheap venture. Therefore, you need to evaluate certain elements to make sure your app will be successful and turn a profit.
CAC: Customer acquisition cost (CAC) refers to the monetary cost of each user’s download of your app. Research other app’s CAC and find a middle ground. Work that average CAC into your financial plan.
CLV: Customer lifetime value (CLV) refers to the amount of money a customer spends in your app over his or her lifetime. Data monitoring software will give you the best picture of what your CLV is after your app has launched. Until then, look at established apps that are the most similar to yours. Find out what their CLV is and use that as a starting point for developing your financial plan.
Monetization: It isn’t a secret that apps offered on the marketplace for free are the ones most downloaded. So, how do these apps make a profit if they are free to download? There are a few ways, but the most common are subscriptions, in-app advertising, and in-app purchases.
Here’s the list:
- Subscriptions are apps that require a paid subscription to unlock elements in the app. For example, CBS has a free app where you can stream this week’s shows. However, if you want to view episodes from a show’s previous season, you will need the “All Access” pass (a monthly subscription program).
- In-App Advertising is what you see when you are using a free app and an ad pops up on the screen or scrolls across the top or bottom of the screen. Teaming up with other businesses by displaying their ads in your app for a price is a quick and easy way to get started with your income flow.
- In-App Purchases is exactly what it sounds like. Your profits will come from users buying products directly through your app. Having an easy in-app purchase system will encourage repeat purchases and build loyalty among users.
Finances are a big part of any business. Your app’s business plan isn’t complete without a financial plan. Take your time when developing your financial plan. Be thorough and seek outside help and support when you need it.
Building your app’s business plan is a necessary process, but that doesn’t mean it has to be boring or cumbersome. It is safe to say that motivation and enthusiasm are requirements in app development. At Gomeeki, each and every person is both motivated and enthusiastic! We are excited to meet you and work with you while developing, marketing, launching, and monitoring your mobile app. We offer tailored business plans based on our clients’ needs and goals.
“Smartphones and tablets are transforming how and where we consume news and information. The ABC must meet the challenge of delivering content to the audience at a time they want and on the device and format they prefer.” The Broncos evaluated numerous Fan Engagement solutions over recent years and Gomeeki's passionate & experienced team, combined with their innovative FanTribe platform was the only solution that we believe will deliver a winning mobile experience for our fans. “Health Partners selected Gomeeki on the basis that the services provided are far more than just an app development house. The relationship to date has delivered Health Partners the benefit of a much deeper insight into digital strategy, the power of Gomeeki’s Ubiquity platform and a disciplined, structured development process. As a customer, we have been delighted with the quality and outcomes to date.
“Smartphones and tablets are transforming how and where we consume news and information. The ABC must meet the challenge of delivering content to the audience at a time they want and on the device and format they prefer.”Mark ScottManaging Director, ABC
The Broncos evaluated numerous Fan Engagement solutions over recent years and Gomeeki's passionate & experienced team, combined with their innovative FanTribe platform was the only solution that we believe will deliver a winning mobile experience for our fans.Terry ReaderChief Commercial Officer, Brisbane Broncos NRL
“Health Partners selected Gomeeki on the basis that the services provided are far more than just an app development house. The relationship to date has delivered Health Partners the benefit of a much deeper insight into digital strategy, the power of Gomeeki’s Ubiquity platform and a disciplined, structured development process. As a customer, we have been delighted with the quality and outcomes to date.Colin LangmeadCIO- Health Partners
Contact us today and let’s begin this incredible journey together!