Business Plan Guide for Mobile App Business
Thinking of developing a mobile app? Done properly, app development requires a significant investment of time, money and resources. And therefore some careful consideration before you proceed. Writing a business plan for a mobile app business in advance of any development can really help to clarify your vision as well as identify the steps you need to take to maximise the return on your investment.What to consider when writing a mobile app business planMobile apps are continuing to grow in popularity year on year – in fact, mobile apps are projected to hit $188.9 billion in revenue by 2020 – up from just $88billion in 2016 (Statista).It doesn’t seem entirely unreasonable to wonder what the future holds for mobile apps – and whether the market is already saturated.And yet technology is constantly changing (think about the rise of voice-based apps such as Google Home, Amazon’s Alexa and Apple’s Siri for instance) along with consumer habits and expectations. So there is no doubt that the demand is still there for apps that can genuinely be shown to be more innovative and more engaging than their competitors.Whatever your business, writing a business plan takes time. But it’s an iterative process can and one that can be hugely helpful in clarifying exactly what you want to achieve in the development of your own app.So what are some of the key points you might want to consider when putting together a business plan for your mobile app?Be clear about what kind of app do you want to developIt is tempting to rush into the development of an app simply because other businesses similar to yours already have one.But it’s worth giving some genuine thought to the ‘problem’ that you aim to solve with the creation of an app.Businesses build apps for all sorts of reasons, such as branding, improving customer engagement, direct marketing etc. But as online publishing platform Medium says “Ultimately an effective mobile strategy involves more than just a mobile friendly website.”Research your marketOnce you have identified why the marketplace needs you to develop the app, it is vital to understand what your competitors are already doing – and how your app will improve on this.When conducting market research, you should look at both primary and secondary data and consider key information such as include the size of your market as well as a thorough understanding of pricing. A SWOT analysis can be useful for understanding your business’ Strengths, Weaknesses, Opportunities and Threats. LivePlan explains “Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.“Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.”Building on this, there is also a value in conducting a PEST analysis to look at macro economic factors that may influence your business. These are opportunities and threats due to Political, Economic, Social, and Technological forces. Pestle Analysis explains these four areas in more detail: Political Here government regulations and legal factors are assessed in terms of their ability to affect the business environment and trade markets. The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws.Economic Through this factor, businesses examine the economic issues that are bound to have an impact on the company. This would include factors like inflation, interest rates, economic growth, the unemployment rate and policies, and the business cycle followed in the country.Social With the social factor, a business can analyze the socio-economic environment…
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