mobile application business plan sample

Mobile App Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Mobile App Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Mobile App Plan Here

Mobile App Business Plan

You’ve come to the right place to create your mobile app business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their mobile app businesses.

Sample Business Plan for a Mobile App Development Company

Below are links to an example of each of the key elements of a mobile app business plan template:

• Executive Summary – In the Executive Summary, you will provide a general overview of your comprehensive business plan including your target market, business model, and how you plan to make your business successful.
• Company Overview – The Company Overview section will provide an overview of your app idea, business description, company history, mission statement, monetization strategy and milestones achieved.
• Industry Analysis – In the Industry Analysis section, you will use information from your market research to discuss the market demand for your mobile application or business idea, trends, and issues facing your industry.
• Customer Analysis – The Customer Analysis section will describe your target market. This includes information on demographics, psychographics, and behaviors.
• Competitive Analysis – The Competitive Analysis includes an overview of your direct and indirect competitors, their market share, your competitive advantage, and how you plan to compete against them.
• Marketing Plan – The Marketing Plan section will describe your marketing strategy. This includes information on your platform placements (Apple App Store, Google Play, etc.), pricing strategy, and marketing strategies for engaging your target audience.
• Operations Plan – The Operations Plan section of your mobile app business plan will describe your business operations including app development, customer acquisition strategy, and other key aspects of your app company.
• Management Team – The Management Team section will provide information on the management members of your advisory team. This includes their experience, education, and skills.
• Financial Plan – In the Financial Plan section, you will provide the financial model and financial statements for your business. This includes your income statement, balance sheet, and cash flow statement.

Next Section: Executive Summary >

Mobile App Business Plan FAQs

What is a mobile app business plan.

A mobile app business plan is a plan to start and/or grow your mobile app business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your mobile app business plan using our Mobile App Business Plan Template here .

What Are the Main Types of Mobile App Development Companies?

There are many types of mobile app companies across a variety of categories. There are mobile app businesses that focus solely on mobile games. Others are exercise or wellness focused. Some mobile apps provide guidance on specific topics, some offer music streaming, and other apps provide help or assistance on a variety of topics. Many companies have developed company-specific mobile apps to allow users to become more connected with their products or offerings. For instance, most major brands, restaurants and financial services companies have company-specific mobile applications.

What Are the Main Sources of Revenue and Expenses for a Mobile App Business?

The primary source of revenue for mobile app businesses are subscription paid by the users on an annual or monthly basis. Advertising (selling ad space to other companies on their app) is another significant revenue sources.

The key expenses for mobile app businesses are the costs to advertise and generate users. These expenses are often in the form of targeted social media advertising or online targeted marketing. Some major mobile app businesses pay to have their mobile apps advertised on television commercials or music streaming platforms. Another major expense for app companies are office space, employee salaries and technology licensing fees.

How Do You Get Funding for Your Mobile App Business Plan?

A mobile app startup is most likely to receive funding from angel investors and friends and family. Personal savings and credit cards are also often used. Venture capitalists will fund a business plan for an app once it achieves enough traction (e.g., enough users, in-app purchases, or generating enough revenue).

A well crafted mobile app business plan is essential for attracting any type of potential investor.  Most app startups require funding to get off the ground and cover at least their startup costs.

What are the Steps To Start a Mobile App Business?

Starting a mobile app development company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Mobile App Business Plan - The first step in starting a business is to create a detailed business plan for an app that outlines all aspects of the venture. This should include market research on the mobile app industry and potential market size, information on the mobile app concept, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your mobile app business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your mobile app business is in compliance with local laws.

3. Register Your Mobile App Business - Once you have chosen a legal structure, the next step is to register your mobile app business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your mobile app business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Mobile App Equipment & Supplies - In order to start your mobile app business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your mobile app business.  A mobile app marketing plan includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful mobile app business:

• How to Start a Mobile App Business
• How to Start a Mobile App Development Business

Where Can I Get a Mobile App Business Plan PDF?

You can download our free mobile app business plan template PDF here . This is a sample mobile app business plan template you can use in PDF format.

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How to write a business plan for your mobile app development project.

Starting a mobile app development project is a great idea because it allows businesses to reach a larger audience with their product or service, and it gives users the convenience of being able to access the app from anywhere on their mobile devices.

But, first thing first, you need to write a business plan.

A business plan is essential for any project, especially for mobile app development. It outlines the goals, objectives and strategies needed to successfully launch the app. It also helps to identify potential risks and provides a roadmap for the project's success.

In short, a good business plan will help ensure the profitability of your mobile app development project .

What are the essential parts of a business plan for a mobile app development project? What is the recommended format? Which important financial measures should be there? What's the best way to create a business plan quickly and effectively?

Please, find comprehensive answers to all these questions below.

Also, please note that starting your business plan from scratch is not mandatory.

You can download our editable business plan for a mobile app development project and adapt it to your project.

How to prepare a business plan for a mobile app development project

Is it worthwhile to invest time in a business plan for your mobile app development project.

Yes, you should invest time in a business plan for your mobile app development project to ensure the success of your project.

Formulating a comprehensive business plan will allow to:

• get familiar with the mobile app development market
• stay on top of the industry's emerging trends
• identify what makes a mobile app development project solid and successful
• understand the target audience's requirements and preferences for mobile applications
• come up with a unique value proposition for your app
• analyze competitor target markets
• identify solid competitive advantages for your mobile app development project
• find a business model that will generate positive cash flows
• implement a well-structured and calculated action plan
• evaluate risks associated with a mobile app development project, including technical challenges, user privacy, and market competition

Our team has created a business plan for a mobile app development project that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a mobile app development project?

A business plan is filled with facts, figures, and indicators. It must be presented in a structured format, to make easy to read and digest.

When we built our business plan for a mobile app , we took care to arrange it appropriately.

The content is arranged in 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The introductory section has been named "Market Opportunity".

This section presents a comprehensive report on the mobile app development project, including key data and metrics to guide your decision-making.

We continuously update all the data there.

2. Project Presentation

The second part is dedicated to the "Project" of your mobile app development project. Here, you can outline the purpose and functionality of your app, target user demographics, user interface and experience design, development timeline, app store submission plans, and the unique value proposition that solves a specific problem or provides a unique solution for users.

Remember to introduce yourself at the end of this section.

Discuss your expertise in mobile app development, your range of services, and how you plan to provide innovative and user-friendly app solutions to clients. Highlight your track record of successful projects, your skilled team of developers, and your dedication to delivering seamless and engaging mobile experiences that meet the needs and expectations of users through your mobile app development project.

You'll find wording already provided in our business plan. Tailor it to fit your concept exactly.

3. Market Research

Next up is the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your mobile app development project.

It includes a presentation of other mobile app development companies in the industry that will be competing with you. Your project's unique app features and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

In the "Strategy" section, you will find a detailed growth plan for your mobile app development project, outlining all the necessary steps and initiatives to ensure its high profitability.

Furthermore, there is a marketing strategy, a risk management strategy, and a Business Model Canvas that has been filled in, all included in this section.

5. Finances

Ultimately, the "Finances" section provides a comprehensive view of the financial aspects and metrics of your project.

How to write an Executive Summary for a mobile app development project?

The Executive Summary is like an introduction to the business plan for your mobile app development project.

Keep it brief, not exceeding 2 pages. Stick to the crucial points.

When you show your business plan to an investor, this is what they will read first. It needs to get their attention and make them want to read the rest of the plan.

In the Executive Summary of your mobile app development project, answer these questions: what is your mobile app development project about? who is your target audience? are there any similar projects in the market? what makes your project unique? how much funding do you require?

How to do the market analysis for a mobile app development project?

The market study of your mobile app development project helps you understand external factors such as customer demands for mobile applications, competition within the app development industry, and emerging trends in mobile technology.

By conducting an extensive market study, a mobile app development project can understand user needs, offer innovative and user-friendly mobile app solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to increased user adoption, app downloads, and a prominent position in the mobile app industry.

This is what we've outlined in the "Market Research" section of our business plan for a mobile app :

• interesting data points and market insights about mobile app development, including app usage trends, app market revenue, and the growth of app-based services
• a list of potential customer segments for a mobile app development project
• the competitive research
• the competitive advantages for a mobile app development project

The key points of the business plan for a mobile app development project

What's the business model of a mobile app development project, business model of a mobile app development project.

A mobile app development project's business model revolves around creating and monetizing mobile applications for specific platforms such as iOS or Android. Revenue can be generated through app purchases, in-app advertising, in-app purchases, or subscription models.

The business model focuses on identifying market needs or gaps, designing user-friendly and engaging apps, developing robust and scalable code, testing and optimizing app performance, and implementing effective monetization strategies.

Success depends on market research, delivering high-quality user experiences, effective app marketing, regular updates and improvements, and staying responsive to user feedback and evolving industry trends.

Business model ≠ Business plan

Please don't mix up the terms "business plan" and "business model."

A business model outlines the way a company creates value, generates revenue, and operates.

In a business plan, you demonstrate your business model using a structure called the Business Model Canvas.

Rest assured, we provide a Business Model Canvas in our business plan for a mobile app .

How do you identify the market segments of a mobile app development project?

Market segmentation for your mobile app development project involves dividing your potential clients into different groups based on their app development needs, industries, and target audience.

These categories may include factors such as iOS app development, Android app development, gaming apps, or clients from specific industries (e.g., healthcare, finance, education).

By segmenting your market, you can offer specialized app development services and solutions that cater to each segment's specific requirements. For example, you might provide iOS app development services and design user-friendly and intuitive interfaces for Apple device users, offer Android app development services and optimize apps for a wide range of Android devices and versions, specialize in gaming app development and create immersive and engaging gaming experiences, or develop industry-specific apps tailored to the needs of clients in sectors such as healthcare, finance, or education.

Market segmentation allows you to effectively target your marketing efforts, showcase your app development expertise, and deliver high-quality and customized mobile app solutions that meet the unique needs of each client segment.

In the business plan for a mobile app , you will get a detailed market segmentation, helping you understand your target audiences and their needs.

How to conduct a competitor analysis for a mobile app development project?

Without surprise, you won't be the only mobile app development project in the market. There will be other developers working on innovative and user-friendly mobile applications.

Your business plan should encompass an extensive market study that examines your competitors' characteristics, strengths, and weaknesses.

Address their weaknesses (such as inefficient app development processes, lack of user testing, or poor app performance).

Why should you focus on these elements? Well, these weaknesses can hinder the success of mobile app development projects. By addressing these aspects, you can offer innovative and user-friendly app designs, provide efficient and reliable app development and testing processes, and deliver excellent customer support, positioning your mobile app development project as a trusted and preferred choice for businesses and individuals seeking high-quality and functional mobile applications.

It's what we call competitive advantages—building them is key to standing out in the market.

Here are some examples of competitive advantages for an app: user-friendly interface, innovative features, regular updates and improvements.

How to draft a SWOT analysis for an app?

A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that can inform the development of a successful mobile app.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a mobile app

The strengths for a mobile app development project

When we talk about the "S" in SWOT, we mean Strengths, which are the project's positive attributes or advantages.

For a mobile app development project, possible strengths could include a user-friendly interface, comprehensive testing, scalability, and a secure back-end system.

The weaknesses for a mobile app development project

The "W" stands for Weaknesses, referring to the areas or aspects of the project that need to be addressed.

In the case of a mobile app development project, potential weaknesses could include an inexperienced development team, lack of proper project management, and poor quality assurance processes.

The opportunities for a mobile app development project

O represents Opportunities in SWOT, referring to the external factors or conditions that can create opportunities for the project's advancement.

In the case of a mobile app development project, potential opportunities include creating a social media app, a productivity app, a gaming app, and a shopping app.

The threats for a mobile app development project

When we mention the "T" in SWOT, we're referring to Threats, which are the external risks or negative factors that can impact the project's performance.

How to craft a marketing strategy for an app?

A marketing strategy plays a pivotal role in a business plan as it defines how a business will entice customers and generate sales.

An app can attract users by implementing a well-crafted marketing strategy that showcases its unique features, user-friendly interface, and how it solves a specific problem or meets a particular need.

Users won't choose your app without effective marketing; highlighting its features, usability, and benefits is necessary.

Have you explored marketing approaches to attract customers to your app? Consider optimizing your app store presence, running targeted advertising campaigns to reach your target audience, and utilizing social media platforms to engage with users and receive feedback.

No worries if you don't know anything about marketing and communication.

How to build a 3-year financial plan for an app?

A solid business plan must include detailed financial information such as projected income, expenses, cash flow, and balance sheets.

When creating your business plan, you must include anticipated revenue figures for your mobile app development project.

To earn the trust and confidence of potential investors, it's crucial to have revenue projections in your business plan that are based on believable and well-founded assumptions.

Our financial plan for a mobile app is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

It goes without saying that you'll have to develop a provisional budget for your mobile app development project. Pay attention to every expense and don't leave any out (our financial plan includes a complete list for your convenience).

The break-even analysis is central in the financial plan as it will tell you whether your mobile app development project will generate profits or not.

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• Sample Business Plans
• Mobile Apps & Software

Mobile App Business Plan

A business has three pillars: the idea, the plan, and the execution. Congratulations! You have the app idea already, now you have to step forward with a plan.

But, somewhere with all the workload, the concept of the app, hiring the right people, budget, and development of the app, entrepreneurs overlook the need for planning.

Worry not, we are here to lighten your burden with our step-by-step guide for mobile app business plan writing.

Key Takeaways

• A mobile application business plan helps you define your marketing strategy, customer acquisition strategy, retention strategy, and strategies to achieve your business goals.
• Craft an impactful executive summary that outlines the type of your app business, marketing approach, financial outlook, and team expertise to attract potential investors and partners.
• Conduct thorough market research to understand market trends, consumer preferences, and the needs of your target market.
• To ensure efficient daily operations, provide in-depth operational plans that incorporate staffing, additional services, and customer service.
• Create realistic financial projections for sales revenue, expenses, and profit forecasts while considering contingencies & emergencies.

Let’s get started with our guide, without any further ado:

How to Create a Mobile App Business Plan: A Complete Guide

1. executive summary.

An executive summary is a quick overview of the whole business plan. From mission & vision to financial projections, it includes everything in between.

Generally, entrepreneurs write this section at the end after having the full knowledge of the entire business plan.

Begin your executive summary with a brief introduction of your business, and include other elements like:

• Market Opportunity
• Vision & mission statement
• Target market
• Unique value proposition
• Details of your services
• Management team
• Financial Outlook
• Call to action

For instance, here is an example of an app business USP’s section:

USP for PrivyConnect – Social Media App: “Connect with Total Privacy”

Our social media app is dedicated to ensuring your online interactions remain private and secure. Unlike many other platforms, we don’t share your data or personal information with third parties.

We use robust encryption to protect your messages and content, and you have full control over who can see your posts. With us, you can truly connect with your friends and family in a safe and trusted environment. Your privacy is our priority.

Note: your readers might not read the whole business plan, but they will go through the executive summary. Therefore, make sure you write it engagingly to grab their interest.

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2. Company Overview

In this section, present your business in detail. It should provide the details of your business & app name, the location of your office, the structure of your business, and other such information.

Now it is time you introduce what type of business you own, for example, your app type will be one from below:

• Social media app
• Messaging app
• E-commerce app
• Entertainment app
• Health and fitness app
• News or magazine app
• Navigation app
• Finance app

After that, mention the company history if you have any. Add the name and other qualifications & achievements of business owners. Mention the vision & mission statement of your app business along with your future goals.

In short, this section should provide an in-depth understanding of your business and business owners.

3. Industry Analysis

In the industry analysis section of your mobile app business plan, you have to provide the details about the mobile app industry. It will help you understand the market and gain a better insight into your business positioning.

Here are certain questions to ask while performing industry analysis:

• What is the current size of the app industry in terms of both revenue and users?
• What are the current trends of mobile app businesses?
• Which apps are leading the industry?
• Which mobile app concept is famous in public?

Conduction this industry analysis will educate you about the market and help you prepare marketing strategies according to the market trends.

In short, industry analysis will help to know a clear picture of the market, helping you in making informed decisions.

4. Competitive Analysis

Competitive analysis will help you identify the unique selling propositions (USP). Also, this way you will get to know your competitors.

Start by specifying who are your competitors – then compare it with both direct and indirect customers.

Now, let’s focus on your direct competitors, those similar to your mobile app. Provide an overview of each competitor, including their size and where they’re based.

Here are some questions to ask for competitive analysis:

• Who are your primary competitors?
• Who do they serve?
• What are their USPs?
• What is their pricing strategy?
• What do they need to work on according to their customers?

A more effective way to this analysis is to conduct it from the customers’ viewpoint. You might even ask your competitors’ customers what they like and dislike about their apps to better understand customers’ perspectives.

Here is an example of competitors and competitive advantage of the app:

Competitors

SocialShield: SocialShield is a notable competitor in the privacy-focused social media segment. It emphasizes strong user data protection and secure communications. Their user base has been steadily growing, particularly among privacy-conscious users.

GuardChat: GuardChat offers encrypted messaging and content sharing. It has a user-friendly interface and strong encryption features. While their user base is smaller compared to established platforms, they have garnered a dedicated following.

PriviNet: PriviNet has made a name for itself by offering comprehensive privacy controls and anonymous user interactions. They have built a niche community of users who value privacy and user-controlled sharing settings.

Competitive Advantages of PrivyConnect

PrivyConnect’s comprehensive privacy controls and encryption set it apart as a top contender.

The app’s transparent communication and commitment to environmental responsibility contribute to its appeal.

PrivyConnect’s active community-building efforts and user engagement foster loyalty.

The app’s plans to expand into secure content sharing and social community growth align with industry trends.

This way you can get to know the USP of a mobile app development company. Once you get the USP, flaunt it in the entire business plan.

5. Market Analysis

In the market analysis section, do the market research and dive right into the market where you will be providing your app services. Begin the section by providing the details of your target customers.

Your target customers will depend on the type of app you own and the services you provide.

After a thorough discussion of the target market, discuss the market trends. Mention what your target customers prefer and what new are they looking for. For example, people might be looking for:

• Integration of AR/VR
• Sustainable and eco-friendly apps
• Privacy and data protection
• Personalization

At the end of the market analysis, do mention the regulatory environment mobile apps need to follow in the particular location.

6. Sales and Marketing Plan

Writing the sales and marketing section means jotting down the marketing strategy you will use to acquire new users and retain the existing ones.

Now it is time to mention the marketing strategies for your app, there are three phases of the launch:

Pre-launch phase

• App-store optimization: Before launching the app, search for the keywords to include in your title, description, and other content.
• Build a landing page: You can create a website or build a landing page to make your brand presence prominent on the web too.
• Pre-launch promotion: Launch a teaser for your app before the release date itself. Give some special offers to the ones who will sign up even before the launch.

Launch phase

• Deploy it on major app stores: Launch your app on all the major app stores to reach a wider audience. Make sure it is working smoothly and is free of bugs.
• Social media marketing: There were going to be 147.2 billion annual app downloads in 2023 itself. Imagine the competition, so be sure to make your visibility strong through social media platforms.
• Content marketing: Create blog posts, videos, or infographics related to your app’s niche. Share valuable content on your website and social media to engage users.

Post-launch phase

• User reviews and feedback: Encourage users to leave positive reviews and ratings on app stores. Actively respond to user feedback and address issues (if any) ASAP.
• User engagement strategies: You can enable push notifications or in-app notifications to interact with your users. You can also ask them to invite friends in exchange for a referral bonus.
• Collaboration or influencer marketing: You can collaborate with some other mobile app companies and do cross-marketing. Influencer marketing is also a great choice.

Once you have noted down how you will acquire customers, then mention below things too:

• Customer acquisition cost
• Your monthly paid advertisement budget
• Number of followers you have on social media
• If there are any in-app purchases

7. Management Team

Knowing who is behind your app business will increase the appeal of your business plan.

The management team tells you about the people in charge of the app business. It should explain each manager’s experience, what they’re good at, and what their jobs are.

Here is an example of the management team:

Management team of PrivyConnect

Founder and CEO – Sarah Anderson Sarah is the visionary leader behind PrivyConnect. With a background in cybersecurity and a passion for online privacy, she founded the company to provide users with a secure and private social media experience. Sarah is responsible for setting the company’s strategic direction and ensuring its commitment to user privacy and data protection.

CTO – David Ramirez David brings a wealth of technical expertise to PrivyConnect. He has a strong background in mobile app development and security protocols. David oversees the technical development of the app, ensuring that it employs state-of-the-art encryption and privacy measures.

CMO – Emily Davis Emily is the marketing guru behind PrivyConnect’s success. With a knack for digital marketing and user engagement, she is responsible for building the app’s user base and promoting its unique selling propositions. Emily focuses on user-centric marketing strategies and community engagement.

COO – Michael Chen Michael is the operations expert at PrivyConnect. With years of experience in streamlining business operations, he ensures the app runs smoothly and efficiently. He also oversees partnerships and collaborations to enhance the app’s offerings.

8. Operations Plan

As earlier sections mentioned everything about your company goals, here it is time to mention how you will reach them. These goals are differentiated into two sections:

Everyday goals

They’re the heart and soul of your mobile app’s daily life, from coding and upgrades to the nitty-gritty of customer support. These are the everyday heroes that keep your app running smoothly.

Long-term goals

It’s all about milestones: the moments that make you pop the champagne. Picture celebrating your 10,000th app install, hitting that milestone sales figure you’ve dreamt of, or expanding your team.

9. Financial Plan

Your financial plan needs to have a 5-year financial forecast. For the first year, break it down into monthly or quarterly details, and then summarize it annually. This forecast should cover your income statement, balance sheet, Use of Funds, and cash flow.

Income statement

An income statement, often known as a Profit and Loss statement or P&L, displays your earnings and then deducts your expenses to know the profitability of your business. Make practical assumptions based on your competition.

Balance sheet

Balance sheets display your assets and liabilities. Although they can contain a lot of details, like equity, goodwill, other intangible assets, etc.

Uses of Funds

When you are seeking funding, this statement becomes necessary to show where you will use the funds. Here is an example of the Uses of Funds chart with the help of Upmetrics:

Cash flow statement

Your cash flow statement helps you see how much money you need to start or grow your business and avoid running out of money.

Surprisingly, you can make a profit but still face financial problems that could lead to bankruptcy. Therefore, you will need proper cash flow planning to avoid such circumstances.

Why Do You Need a Business Plan for Your Mobile App

For entrepreneurs who jump into business directly without writing a business plan is like delaying their success. Here are some reasons why you need a mobile app business plan:

Writing a business plan helps you work out and make clear your business strategy. Do you want customers to pay upfront? Or there are in-app purchases? Writing this down from the start helps your team understand where you’re headed.

Finances are important

Sometimes, it takes months or even a year to cover customer acquisition costs. So, you need a plan with a solid financial forecast. A good plan lets you play with different situations, so you know how much money you need for both the long and short term.

Acquiring and retaining customers

Acquiring and retaining customers is one of the sole purposes of a business. In the business plan, you have to mention in detail about your strategies to have a clear roadmap.

Knowing Your Market

A business plan lets you identify your ideal customer profile. Knowing your customers is crucial, and having a deep understanding of your customers helps you make the correct updates to your product in the future.

Related Mobile App Resources

• How Much Does it Cost to Start an App
• How to Start an Mobile App Business

Download a Mobile App business plan template

Ready to kick-start your business plan writing process? And not sure where to start? Here you go, download our free mobile app business plan pdf , and start writing.

This intuitive, modern, and investment-ready template is designed specifically for mobile app businesses. It includes step-by-step instructions & examples to help in creating your own mobile app business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Finally! You know how to write a mobile app business plan. Thus, you are one step closer to starting or expanding your business.

No doubt, writing a business plan is a challenging task, but it is a lot smoother with a top business planning tool . Therefore, take a deep breath and get started with your plan. All the best!

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Business Plan Presentation Tips

Frequently asked questions, do i need to include information about competitors in the business plan.

Yes, in the section of competitive analysis: you need to mention your competitors and their USPs. This will help you to understand the market and know your strong points.

How often should I update my mobile app business plan?

An app business plan is a living document, you can change or update it whenever you want. Ideally, go through your plan and make changes according to the current situations atleast once a month.

Can I use a mobile app business plan to secure funding for my app project?

One of the main purposes of writing a business plan is to secure funding or get a loan. So, of course, you can present a solid mobile app business plan in front of lenders to secure funding.

How much does it cost to create a mobile app business plan?

Writing a mobile app business plan might cost from a few hundred to thousands of dollars depending on the complexity of the app, the number of integrations, UI/UX, etc.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Mobile App Business Plan Template

Written by Dave Lavinsky

Mobile App Business Plan

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their mobile app development company. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a mobile app business plan template step-by-step so you can create your plan today.

Download our Ultimate Mobile App Business Plan Template here >

What is a Mobile App Business Plan?

A business plan provides a snapshot of your mobile app as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an App Company

If you’re looking to launch a mobile app or grow your existing mobile app you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your mobile app in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Mobile App Companies

With regards to funding, the main sources of funding for a mobile app are personal savings, credit cards, bank loans, angel investors and venture capitalists. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a mobile app is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Venture capitalists will also fund a mobile app and will take equity in return for their funding, VC funding generally comes after you’ve received initial proof of the mobile app concept or traction with your app.

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How to write a business plan for a mobile app development company.

A comprehensive business plan for an app company should include the 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of app business you are operating and the status; for example, are you a startup, do you have a mobile app that you would like to grow, or do you already have several successful app businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the mobile app industry. Discuss the type of mobile app you are operating. Detail your direct competitors. Give an overview of your target audience. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company overview, you will provide a detailed description of your mobile app business.

For example, you might operate one of the following types:

• Business app : this type of mobile app generally helps increase productivity and/or decrease costs.
• Entertainment app : this type of mobile app includes news, social networking, music, video, etc.
• Lifestyle app : this type of mobile app includes things like fitness, shopping, dating, etc.
• Education app : this type of app must have the primary objective of advancing a user’s knowledge and overall breadth in a particular subject.
• Utility app : this type of app includes things like scanners, trackers, health-related apps, cell service providers, etc.
• Travel app : this type of app aids in planning and booking trips.
• Other app : there are a limitless number of areas in which a successful app could be created

In addition to the business description, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What is your company history?
• What is your mission statement?
• What is your business idea or app idea?
• What is your business model or monetization strategy (i.e., freemium, subscription, in-app purchases, affiliate marketing, crowdfunding, paid apps, sponsored content, etc.)?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry analysis, you need to provide an overview of your app development business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the mobile app industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards quiz apps, it would be helpful to ensure your plan incorporates gamification into your app.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the app industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your mobile app? You can calculate this figure by multiplying the size of your target customer market by the amount they might spend per year on your app.

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: business operations managers, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of mobile app you operate. Clearly, baby boomers would want different pricing and product options, and would respond to different user engagement strategies than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the business types (if B2B), ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other app businesses in your niche.

Indirect competitors are other options that customers have to achieve similar results to what your app offers.

With regards to direct competition, you want to detail the other app development companies with which you compete. Most likely, your direct competitors will be mobile app businesses offering the same type of service or activity that yours does.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior features?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an app business, your marketing plan should include the following:

Product : in the product section, you should reiterate the type of mobile app that you documented in your Company Analysis. Then, detail the specific features of your app.

Price : Document how you will price your app and if there will be different pricing levels (e.g., free, entry, premium) and what those levels will be.

Place : Place refers to your distribution method. Document how customers can download your app (e.g., from your website, the Apple App Store, Google Play, etc.).

Promotions : the final part of your mobile app marketing plan is the promotions section. Here you will document how you will drive customers to your app(s). The following are some promotional methods you might consider:

• Social media marketing strategy
• Advertising in magazines, newspapers and/or trade journals
• Reaching out to local bloggers and websites
• Pay per click advertising

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your mobile app such as writing code, building upgrades, fixing bugs, providing customer service, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect your 10,000th app install, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

To demonstrate your mobile app’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in app development business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory team. An advisory team would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in mobile apps and/or successfully running small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you have 100 downloads per week or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your mobile application, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in an app startup or growing mobile app company:

• Cost of equipment like computers, data warehousing, etc.
• Payroll or salaries paid to staff and independent contractors
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Free Business Plan Template for a Mobile App Business

You can download our mobile app business plan PDF template . Our sample mobile app business plan would also be a helpful resource for writing your own business plan.

Mobile App Business Plan Summary

Putting together a business plan for a mobile app will improve your company’s chances of success. The process of developing your plan will help you better understand your target audience, your competition, and your business strategy. You will also develop the marketing strategies needed to better attract and serve your target market, an operations plan to focus your efforts, and financial projections that give you business goals to strive for and keep your company focused.

Growthink’s Ultimate Mobile App Business Plan Template allows you to quickly and easily complete your Mobile App Business Plan.  

Additional Resources for a Mobile App Startup

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business planning advisors can create your business plan for you.

Other Helpful Business Plan Articles & Templates

How To Write a Winning Mobile App Development Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for mobile app development businesses looking to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every mobile app development business owner should include in their business plan.

Download the Ultimate Mobile App Business Plan Template

What is a Mobile App Development Business Plan?

A mobile app development business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Mobile App Development Business Plan?

A mobile app development business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Mobile App Development Business Plan

There are a few key components of a successful mobile app development business plan.

Executive Summary

The executive summary of a mobile app development business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your mobile app development company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your mobile app development business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your mobile app development firm, mention this.

You will also include information about your chosen mobile app development business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a mobile app development business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the mobile app development industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a mobile app development business’ customers may include small businesses that need an app to increase their customer base and reach new markets.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or mobile app development services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your mobile app development business via word-of-mouth or by exhibiting at trade shows.

Operations Plan

This part of your mobile app development business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

You also need to include your company’s business policies in the operations plan. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a mobile app development business include reaching $X in sales. Other examples include developing new products or services, launching a new website, hiring new employees, and so on.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific mobile app development industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you ar e missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Mobile App Development Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Mobile App Development Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup mobile app development business.

Sample Cash Flow Statement for a Startup Mobile App Development Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your mobile app development company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is essential for any mobile app development company. It can attract investors, provide clarity and direction, and keep you organized and on track as you grow your business.

Finish Your Mobile App Business Plan in 1 Day!

Wish there was a faster, easier way to finish your mobile app business plan?

With our Ultimate Mobile App Business Plan Template you can finish your plan in just 8 hours or less!

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Mobile App Business Plan Template

Written by Dave Lavinsky

Writing a Successful Business Plan For Your Mobile App Business + Template

If you’re looking to start or grow a mobile app business, you need a business plan. Your plan will outline your business goals and strategies, and how you plan on achieving them. It will also detail the amount of funding you need, and if needed, present a case to investors and lenders regarding why they should invest in your business.

In this article, we’ll explain why you should invest the time and energy into creating a mobile app business plan, and provide you with a mobile app business plan template and  business plan sample  that includes an overview of what should be included in each section. Download the Ultimate Mobile App Business Plan Template here >

Why Write a Business Plan For a Mobile App Business?

There are many reasons to write a business plan for a mobile app company, even if you’re not looking for funding. A business plan can help you see potential pitfalls in your business strategy, as well as identify opportunities you may not have considered. It can also help you track your progress and adjust your plans as needed.

That said, if you are looking for funding, a business plan is essential. Investors and lenders want to see that you have a solid understanding of your industry, your customers, and your competition. They also want to know that you have a realistic view of your financial situation and how much money you’ll need to get started.

How To Write a Business Plan For a Mobile App Business

While every business plan is different, there are 10 essential components that all mobile app business plans should include:

Executive Summary

Company description, industry analysis, customer analysis, competitor analysis, marketing plan, operations plan, management team, financial plan.

Keep in mind that you’ll need to tailor this information to your specific type of mobile app business, but these 10 components should be included in every plan.

The executive summary is the first section of your business plan, but it’s often written last. This is because it provides an overview of the entire document.

In the executive summary, briefly explain what your business does, your business goals, and how you plan on achieving them. You should also include a brief overview of your financial situation, including how much money you’ll need to get started.

For organizational purposes, you could create headings for each main section of your business plan to highlight the key takeaways.

For example, your mobile app executive summary might look something like this:

Company Overview

[Insert Company Introduction / Short Summary]

Business Goals

[Insert Business Goals & How You Plan To Achieve Them]

Industry Overview

[Insert Industry Statistics on the Size of Your Market]

Competition

[Insert Overview of Competitors & Your Competitive Advantage]

[Insert Information About The Marketing Strategies You Will Use To Attract Clients/Customers]

Financial Overview

You can add and/or remove sections as needed, but these are the basics that should be included in every executive summary.

The next section of your mobile app business plan is the company description, where you’ll provide an overview of your business.

Include information about your:

• Company History & Accomplishments To Date

Mission Statement and/or Company Values

With regards to the company overview, here you will document the type of mobile app company you operate. For example, there are several types of mobile app companies such as:

• Developers (those who design and build apps)
• Publishers (those who market and sell apps)
• Enablers (those who develop the technology or platform that powers apps)

For example, a mobile app company description might look something like this:

We are an X type of mobile app company.

Company History

If an existing company: Since launching, our team has served X customers and generated $Y in revenue.

If startup: I conceived [company name] on this date. Since that time, we have developed the company logo, found potential space, etc. 

This is just an example, but your company description should give potential investors a clear idea of who you are, what you do, and why you’re the best at what you do.

The next section of your business plan is the industry analysis. In this section, you’ll need to provide an overview of the industry you’re in, as well as any trends or changes that might impact your business.

Questions you will want to answer include:

• What is the overall size of the mobile app industry?
• How is the industry growing or changing?
• What are the major trends affecting the mobile app industry?
• Who are the major players in the mobile app industry?

For example, your industry analysis might look something like this:

The size of the mobile app industry is expected to reach $XX billion by 20XX.

It is currently growing at an annual rate of XX% and is predicted to continue this growth in the future.

Major trends affecting the industry are:

– The continued growth of global smartphone usage

– The ever-changing landscape of the app store algorithms

– The rise of in-app purchase models

– The popularity of subscription-based models

How We Fit Into The Industry

This is just an example, but your industry analysis should give potential investors a clear idea of the overall industry, and how your company fits into that industry.

The next section of your mobile app business plan is the customer analysis. In this section, you’ll need to provide an overview of who your target customers are and what their needs are.

• Who are your target customers?
• What are their needs?
• How do they interact with your industry?
• How do they make purchasing decisions?

You want a thorough understanding of your target customers to provide them with the best possible products and/or services. Oftentimes, you will want to include the specific demographics of your target market, such as age, gender, income, etc., but you’ll also want to highlight the psychographics, such as their interests, lifestyles, and values.

This information will help you better understand your target market and how to reach them.

For example, your customer analysis might look something like this:

Target Market & Demographics

The demographic (age, gender, location, income, etc.) profile of our target mobile app customer is as follows: 

– Age: 18-24

– Gender: Male

– Location: Urban

– Income: $50,000-$100,000

Psychographics

Our core customer interests are as follows: 

– Technology: Mobile apps, smartphones, new technology adapters

– Music: Listening to music and going to concerts

– Lifestyle: Progressive and open-minded

– Values: Innovation, creativity and self-expression

– Gaming: Mobile and online gaming

In summary, your customer analysis should give potential investors a clear idea of who your target market is and how you reach them.

The next section of your business plan is the competitor analysis. In this section, you’ll need to provide an overview of who your major competitors are and their strengths and weaknesses.

• Who are your major competitors?
• What are their strengths and weaknesses?
• How do they compare to you?

You want to make sure that you have a clear understanding of your competition so that you can position yourself in the market. Creating a SWOT Analysis (strengths, weaknesses, opportunities, threats) for each of your major competitors helps you do this. 

For example, your competitor analysis might look something like this:

Major Competitors

XYZ Company is our major competitor. Its offerings include this, this and this. Its strengths include XYZ, and its weaknesses include XYZ.

Competitive Advantage

Your competitor analysis should give potential lenders and investors a clear idea of who your major competitors are and how you compare to them.

The next section of your business plan is the marketing plan. In this section, you’ll need to provide an overview of your marketing strategy and how you plan on executing it.

Specifically, you will document your “4 Ps” as follows:

• Products/Services : Here is where you’ll document your product/service offerings.
• Price : Detail your pricing strategy here.
• Place : Document where customers will find you and whether you will use distribution channels (e.g., partnerships) to reach them.
• Promotion : Here you will document how you will reach your target customers. For instance, mobile app businesses often reach new customers via promotional tactics including online ads (e.g., Google AdWords), PR, social media marketing, etc.

For example, your marketing plan might look something like this:

Products/Services

We offer the following products/services: 

We will use a premium pricing strategy to establish ourselves as the highest quality brand.

We will serve customers directly and through a partnership with XYZ company.

As you can see, your marketing plan should give potential investors a clear idea of your marketing objectives, strategies, and tactics.

The next section of your business plan is the operations plan. In this section, you’ll need to provide an overview of your company’s day-to-day operations and how they will be structured.

• What are your company’s daily operations?
• How are your company’s operations structured?
• Who is responsible for each task?

Your operations plan should be detailed and concise. You want to make sure that potential investors have a clear understanding of your company’s day-to-day operations and how they are structured.

You will also include information regarding your long-term goals for your operations and how you plan on achieving them.

For example, your operations plan might look something like this:

Daily Operations

Our company’s daily operations include XYZ.

Operational Structure

Our company is structured as follows:

• Department 1
• Department 2
• Department 3

Each department is responsible for XYZ tasks.

Long-Term Goals

Our long-term goals for our operations are to achieve the following over the next five years.

Date 1: Goal 1

Date 2: Goal 2

Date 3: Goal 3

Date 4: Goal 4

Your operations plan should give readers a clear idea of your company’s day-to-day operations, how they are structured, and your long-term goals for the company.

The next section of your business plan is the management team. In this section, you’ll need to provide an overview of your management team and their experience.

• Who is on your management team?
• What are their qualifications?
• What is their experience?

Your management team ideally includes individuals who are experts in their respective fields. You want to make sure that lenders and investors have a clear understanding of your management team’s qualifications and experience, and feel they can execute on your plan.

For example, your management team might look something like this:

Our management team is comprised of the following X individuals with the following experience.

Team Member 1: 

Team member 1’s qualifications and experience include XYZ.

Team Member 2: 

Your management team should give potential lenders and investors a clear idea of who is on your team and how their qualifications and experience will help your company succeed.

The final core section of your business plan is the financial plan. In this section, you’ll need to provide an overview of your company’s financials.

• What are your company’s projected revenues?
• What are your company’s projected expenses?
• What is your company’s projected growth rate?
• How much funding do you need and for what purposes? For example, most startup mobile app businesses need outside funding for things like initial app development costs, marketing, and operations.

Your financial plan should give potential investors a clear understanding of your company’s financials. While you may include a summary of this information in this section, you will include full financial statements in the appendix of your business plan.

For example, your financial plan might look something like this:

Our company’s projected revenues over the next five years are $XYZ.

Expenses & Net Income

Our company’s projected expenses and net income over the next five years are $XYZ.

Uses of Funding

This is just an example, but your financial plan should give potential investors a clear idea of your company’s financial projections.

The final section of your business plan is the appendix. In this section, you’ll need to provide any additional information that was not included in the previous sections.

This may include items such as:

• Full financial statements
• Resumes of key management team members
• Letters of reference
• Articles or press releases
• Marketing materials
• Product information
• Any other relevant information

By including this information in the appendix, you are allowing potential investors and lenders to learn more about your company.

In summary, writing a mobile app business plan is a vital step in the process of starting and/or growing your own business.

A business plan will give you a roadmap to follow. It can also help you attract investors and partners.

By following the tips outlined in this article, you can be sure that your business plan will be effective and help you achieve your goals.  

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Why create a business plan for a mobile app?

A business plan is the backbone of any enterprise. Many people like to describe it as a map that assists you in getting from point A (idea) to point B (success) without accidentally venturing into point C (financial failure). You can also think of it as a set of guidelines used to devise app development strategies and manage the budget in a responsible and effective way.

A business plan helps steer the enterprise in the right direction

With a comprehensive mobile app business plan, you’ll be able to use facts and exact calculations to determine the overall direction of the business :

• Gain useful insights into the competition and the current state of the market
• Make informed decisions regarding marketing and communication
• Outline a comprehensive financial strategy
• Evaluate performance and decide on the best allocation of resources

It will also help you to better manage your team :

• Keep everyone in sync and focused on the same target
• Establish clear goals and KPIs, as well as set priorities

And finally, having a business plan is crucial if you want to win over investors and stakeholders.

This is not just our opinion — research confirms the value of writing a business plan. Recently, Palo Alto Software surveyed 2,900 entrepreneurs and discovered that those who create business plans are almost twice as likely to succeed as those who don’t. To measure “success”, Palo Alto used three metrics: business growth, secured investment capital, and secured loans. Find out more information about the study.

This study clearly shows that a business plan isn’t just a formality

What does a mobile app business plan look like?

A typical mobile app business plan is comprised of 8 sections:

• Executive summary
• Products & services
• Company overview
• Market analysis
• Competitive analysis
• Marketing strategy
• Financial strategy

The whole document usually runs 20 to 40 pages including appendices, but this number largely depends on the scale of your project and your goals. A mobile app business plan for a massive product with international presence may well run into hundreds of pages, while an average startup is unlikely to go over 50 pages. 

When writing a mobile app business plan, you should always consider the target audience . Keep everything informative but concise — otherwise, you run the risk of losing the reader’s attention. This is especially important if you’re writing a business plan to raise funds: investors don’t want to have their time wasted. However, it’s crucial not to sacrifice any important information for the sake of hitting a hypothetical 40-page goal.

Things to keep in mind when creating a business plan

Before we dive straight into writing a mobile app business plan, let us give you some tips that will help you along the way.

Before getting started on that Google Doc, ask yourself one question: what are you trying to achieve? The answer to that question defines your priorities. For example, if you’re going to use your mobile app business plan to raise some funds, you’ll want to focus on the reasons you need that money and exactly how you’re going to spend it.

Readability is highly important. This means that the information you present may be complex, but navigating it should be as simple to do as possible. The document should have a coherent structure, with one part logically flowing into another, and clear formatting with headings, subheadings, and enough white space. You can also supplement the numbers you provide with graphs to highlight the most important takeaways .

Pay attention not only to what the document says, but also to what it looks like: with headings, subheadings, and diagrams you create a better document structure

Fact-based estimates

All financial forecasts in your mobile app business plan should be realistic — too much optimism will likely damage your image and lead to lack of trust, not to mention that inflated expectations can ruin the enterprise itself. With that said, all the reports should clearly indicate that there are good prospects for the business and what investors stand to gain if they support the project. If the reports paint a bleak picture, maybe it would be a good idea to test another concept.

External review

Creating a 30-page formal document is a daunting task, and there’s not a single reason why you should face it in solitude. In fact, it’ll be much better if you don’t! As you go, ask other people (preferably experienced) to review it from time to time — this way, you’ll be sure that your plan is logical and makes sense.

How to create a business plan for an app

OK, so we’ve established that a typical startup business plan consists of 8 sections, each equally important. But what exactly do you put in these sections? Let’s find out.

Write an executive summary 

An executive summary is a rundown of the whole document. It describes the current situation in the market, establishes the target audience, as well as puts forward the product’s concept, business goals, and financial projections. Put simply, it answers three big questions:

A well-written executive summary can act as a standalone document. In fact, many investors make their initial decisions after reading this part only, so getting it right is crucial if you want to win over important stakeholders.

The secret is to keep everything clear and concise: you want to convey the message that your app idea has huge potential without overwhelming the reader with 5-page long sheets and abstract ideas. Ideally, the executive summary shouldn’t run longer than 2–3 pages.

The four key components of an executive summary

Prepare the company overview 

In this section of your mobile app business plan, you tell the reader more about your company . Include the following information:

• Mission. It’s a brief explanation why a company exists (take Google, for example: “Our mission is to organize the world’s information and make it universally accessible and useful”)
• Vision. It’s a declaration of the company’s potential impact on the world.
• Corporate values
• History and past achievements (if any)
• Competitive advantages

You should also provide detailed information about the team : the number of people you employ, as well as their qualifications and previous experiences.

We recommend dedicating a separate subsection to your top management and key team members to tell about their background and achievements. This will help convince investors that apart from a great app idea , you also have great people behind it.

Make sure to cover the issue of ownership . Does each partner own an equal portion of the business? If not, how exactly is ownership divided?

Potential investors will definitely want to know this information.

Describe your products & services

This is where you really get into detail about your business idea. First, provide some information about the problem you want to solve. To do this, answer 3 fundamental questions:

You need to convince stakeholders that your product solves an important problem. Answering these 3 questions will help

You need to convince the reader that this issue is of importance. You can cite some research or statistics, but try not to oversaturate this section with numbers.

Then, you move on to the actual solution and tell how exactly you plan to tackle the problem. This is where you describe your product or service. Give a brief description of the processes involved, but again, avoid flooding the section with too many technical details.

Finally, give a brief examination of your competitors and highlight how exactly your product is going to surpass the already existing options.

Conduct an audience analysis

In the audience analysis part, you evaluate the current state of play and give justified reasons why you believe your product has a place in the competitive environment. This section includes queries into the target market , customer behavior, current trends , and several important metrics: cost per acquisition (CPA), total available market (TAM), service available market (SAM), and service obtainable market (SOM).

Try to be as specific as possible when talking about the target audience. Consider building customer personas — generalized representations of the people who are going to be interested in your product. To create a persona, conduct several in-depth interviews and organize the obtained information into the following blocks:

• Demographic information — age, gender, income, place of living
• Psychographic information — goals, challenges, motivation, personality type
• Professional activities — qualifications, current job, past job experiences
• Interests and personal tastes
• Needs — why would they need your product?

This is an example of what a customer persona sheet may look like

Carry out a competitive analysis

We’ve already touched on the subject of competition in the executive summary and the products & services section. This time, however, you dive in much deeper and provide a detailed analysis of your direct and indirect competitors, answering the following questions: What are their strengths & weaknesses? What marketing strategies do they use? What is their pricing?

Once you’ve described the competitive landscape, it’s time to show why your product is going to be superior. One way to do this is by conducting a SWOT analysis.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It actually doesn’t need to be any more complicated than this: the section names speak for themselves.

In Strengths , you state the advantages that separate you from the competition.

In Weaknesses , you focus on the things your product lacks and resource limitations.

In Opportunities , you describe the prospects for your business, as well as the external factors that can have a positive influence on the enterprise (rising demand, changing attitudes, etc.).

And finally, in Threats , you cite any external factors that can have a negative influence on the enterprise (bad media coverage, changing regulations, and so on).

Conducting a SWOT analysis is important for proper positioning

Outline your marketing strategy

This is where you describe three important things. First, you need to cover the channels you’re going to use to reach your target segments — for example, social media, target ads, or physical ads. Then, you specify the amount of money you plan to spend on marketing activities, and finally, the KPIs you’re going to use to evaluate efficiency.

Describe your financial strategy

We’ve reached the core of any mobile app business plan. A startup needs a financial strategy much like a ship needs an engine or a mast, and this section is where all the crucial number crunching is happening — akin to an engine room. Let’s look at what you need to include in this part of the plan:

• A revenue model, also known as a monetization strategy
• A monthly sales and revenue forecast for the first 12 months and annual projections for the next 3–5 years
• An income statement, which outlines annual net profits or losses
• A cash flow statement, which shows how much money the company operates with in total
• A balance sheet, which lists assets, liabilities, and equity in your company
• Funds needed (how much money you need to gain in investments)
• Use of funds (how exactly you’re going to use gained investments)

Exit strategy

You need an exit strategy if you plan to sell your company some time in the future. Having this subsection is crucial if you want to draw the attention of venture capitalists and angel investors. The most common exit strategies are acquisition, initial public offering (IPO), and management buyout.

Make sure you understand all these terms correctly and can confidently use them when pitching — investors are more likely to trust an entrepreneur who knows their numbers .

A typical balance sheet lists a hefty number of assets, liabilities, and stockholders’ equity. Complicated, but important!

Compile an appendix

This isn’t a mandatory section — you can omit it altogether, if you want. However, it might be a good place for charts, tables, legal notes, licenses, permits, detailed studies, illustrations of your product, and all other miscellaneous pieces of information that can seem a little out of place if you include them in any of the primary sections of your mobile app business plan.

How to fund your app startup

We’ve compared the main sources of funding in the table below.

And now a bit more about every source of funding.

Bootstrapping

Bootstrapping is just a fancy word for using your own money. Unsurprisingly, this is the best way to fund a startup: there are no loans, no interest rates, no bonds, and no contractual obligations. If the idea fails, you’ve got no one to answer to (well, apart from your wallet) — and if it takes off, you get to keep more of the returns. 

Personal networks

The second most desirable source of funding. A personal network is your friends and family — or, in other words, people you have a close emotional connection with. Persuading them to fund your mobile app development project will be much easier than pitching the idea to complete strangers. And in case the startup fails, they will likely give you enough time to recuperate and pay them back. 

Crowdfunding

Crowdfunding means turning directly to end-users to get funding for the project, usually via the Internet. This method is very popular among smaller, niche-specific enterprises, but it doesn’t mean that large-scale ventures have nothing to gain from it — some businesses (including app development companies) manage to raise millions of dollars on Kickstarter and other crowdfunding platforms. Pros: you get to build a customer base super early. Cons: failure to deliver the promised product usually leads to court, unless you have exceptionally good PR.   

Angel investors

Angel investors are wealthy individuals who use their own money to support business ideas they find promising. They usually invest in budding projects in the seed stage, when the risks are at their all-time high — hence the name. But here’s the catch: in return, they get a share in the business, or at least a convertible bond. This means that if the idea takes off, they’ll gain a certain level of control over your company and become entitled to a share of your income. 

Startup contests at IT events

The tech industry is packed with conferences that can define the future of your app startup. Many of these events host startup contests with formidable prize funds reaching millions of dollars. Winning a contest like this is a quick way to get a solid influx of money early on — but, of course, there are no guarantees, and the competition is fierce.

Bank loans are your last resort. We recommend using this option only if every other one has failed. Why? Tons of paperwork, strict deadlines, and unfavorable interest rates make it poorly suited for fledgling startups — and don’t forget that failure to return the money on time may lead to severe consequences. It’s much safer to take a loan once you have an established company, but definitely not when you’re just starting out.

Monetization strategies

Deciding how your product is going to make money is one of the most important steps to take when developing a mobile app . There are multiple monetization strategies available, each of them suitable for specific types of businesses. Let’s look at some of the most popular ones.

One-time purchase

This strategy is based on the “pay once, use forever” principle. With this business model , you make your app available only after the customer purchases it, either before or after the download. This model can generate substantial revenue, but only if you offer unique features that are highly valuable to the user — otherwise they will most probably turn to free alternatives. Very common among productivity apps and games.

In-app purchases

The app and its basic functionality are free to use, but users can pay to access more advanced features or nice-to-have bonuses. The most famous examples of this model are probably games like Clash of Clans or Fortnite — you can play all you want for free, but if you want to progress faster or get in-game benefits , you can buy skins and in-game currency. Very lucrative if applied properly, but is mainly limited to the entertainment segment.

Subscriptions

Users can download the app for free, but to enjoy the full range of its features they’ll have to buy a subscription. Usually, this business model includes multiple options : for example, you can subscribe for a month, 6 months, or a year. To increase conversion, developers often offer trial periods that allow customers to fully experience all the advantages of the product before choosing to commit.

This strategy is also known as the freemium business model

Talentum , an app we developed a couple years ago, used a subscription-based revenue model. Users could order food from their favorite chefs without any paywalls, but there was always an option to upgrade their accounts and unlock the full range of features.

Talentum, the app that connects customers with top-notch freelance chefs

A fitness app we developed uses a similar system, but on the vendor side: coaches can buy higher-level subscriptions to take on more customers.

The subscription model is also used in dating applications such as Tinder, Bumble, and Hinge. Users that subscribe receive profile boosts, unlimited likes, advanced filters, and other benefits. Check out our article if you want to know more about dating app monetization strategies .

The most popular business model , which is also easy to combine with others. In this model, you use the app to run ads to generate revenue. There are several formats you can choose from, with some of them being more intrusive (like interstitial ads), and some less (like native or banner ads).

Many developers use this strategy together with a subscription-based model: the free version of the app is monetized using ads, while buying a subscription removes this annoyance and grants other benefits.

Keep in mind that the more intrusive the ad, the less users are going to like it

Commissions

Very handy for marketplaces of all sorts: if a vendor uses your app to sell their goods, you charge a commission for every sale they make at a fixed percentage. Alternatively, you can opt for charging fixed flat fees, but the first option is more widespread. The more vendors you attract to the platform, the heftier your revenue will be.

What is a business plan for a mobile app?

A mobile app business plan is a set of guidelines used to devise comprehensive app development strategies and manage the budget in a responsible and effective way.

How long does it take to create a business plan for an app?

Creating a mobile app business plan may take anywhere from a couple of weeks to a month.

Is it possible to create an application without a business plan?

Yes, it’s entirely possible, but in this case you’ll need a reliable partner to help with refining the concept and turning it into a cool product on the go. If you have an idea for a mobile app, reach out to us — we’ll help bring it to life with low development costs.

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Mobile App Business Plan

Are you ready to revolutionize the mobile app industry? On this page, you will discover the essential steps to launch your own successful mobile app startup . 

In the digital era we live in, mobile apps have become an integral part of our lives, offering convenience, entertainment, and endless possibilities. If you’re ready to turn your brilliant mobile app idea into a thriving startup, this comprehensive guide is your roadmap to success. We’ll explore crucial topics like creating a mobile app development plan, selecting the optimal app for business planning, understanding the mobile app business model, launching a business app, establishing an app development company, effective marketing strategies for your mobile app, and crafting a compelling business plan for your tech startup. Let’s dive in!

Developing a Mobile App Business Plan

Before diving into the mobile app development process, it is crucial to have a well-defined plan. Start by identifying your target audience, understanding their needs and pain points. Conduct market research to analyze the competition and identify opportunities. Outline your app’s features and functionalities, and create a development timeline with clear milestones. Define the technology stack, choose the appropriate platforms (iOS, Android, or both), and establish a budget for development and ongoing maintenance.

Choosing the Best Mobile App for Business Planning

When it comes to business planning, having the right tools is essential. Look for mobile apps that cater specifically to business planning needs. These apps typically offer features such as financial projections , budgeting tools, goal tracking, and collaboration capabilities. Research and compare different options to find the one that aligns with your specific requirements and integrates seamlessly with your business processes.

Understanding the Mobile App Business Model

To build a successful mobile app startup, you need to understand the various business models available. Common mobile app business models include: 

Freemium: Offering a basic version of the app for free and charging for premium features or upgrades.

In-App Purchases: Providing additional content, virtual goods, or services within the app that users can purchase.

Subscription: Charging users a recurring fee to access the app or its premium features on a monthly or annual basis.

Advertising: Generating revenue through in-app advertising or partnerships with advertisers.

Sponsorship: Collaborating with brands or businesses to promote their products or services within the app.

Choose a business model that aligns with your app’s value proposition, target audience, and revenue goals.

Creating a Business App

Creating a business app involves understanding unique needs, providing solutions, and streamlining processes. Prioritize user-friendly interfaces, seamless integration, and regular updates based on feedback. Develop a mobile app to enhance engagement, streamline operations, and drive growth. Identify audience needs, design a user-friendly app, integrate with existing systems, and iterate for success.

Starting a Mobile App Company

If you aspire to start an app development company, consider the following steps:

Define your niche: Identify a specific industry or market segment to specialize in. This will help differentiate your company and target a specific audience.

Build a talented team: Assemble a team of skilled professionals, including app developers, designers, project managers, and marketers.

Establish partnerships: Collaborate with other businesses, agencies, or freelancers to leverage their expertise or fill skill gaps.

Create a portfolio: Develop a portfolio of successful apps or prototypes to showcase your skills and attract clients.

Market your company: Utilize digital marketing strategies, attend industry events, and network with potential clients to generate awareness and build a reputation.

Marketing Strategies for a Mobile App

Marketing plays a crucial role in the success of your mobile app startup. Some effective marketing strategies for mobile apps include:

App Store Optimization (ASO): Optimize your app’s name, description, keywords, and visuals to improve its visibility in app store search results.

Social Media Marketing: Leverage popular social media platforms to create engaging content, interact with your target audience, and build a community around your app.

Influencer Marketing: Collaborate with influencers or industry experts who can promote your app to their followers and provide credibility.

Content Marketing: Create informative and engaging content related to your app’s niche to attract and educate your target audience.

App Install Campaigns: Run targeted advertising campaigns to drive app installs, leveraging platforms such as Google Ads, Facebook Ads, or mobile ad networks.

User Referral Programs: Incentivize your existing users to refer your app to their friends and family, offering rewards or discounts for successful referrals.

Crafting a Business Plan for a Tech Startup

A well-crafted business plan is essential for attracting investors, securing funding, and guiding your mobile app startup. Your business plan should include:

Executive Summary: Provide a concise overview of your mobile app startup, its value proposition, target market, and revenue potential.

Market Analysis: Research and analyze the target market , industry trends, competitive landscape, and potential opportunities or challenges.

Product Description: Describe your mobile app, its unique features, functionalities, and how it addresses user needs.

Marketing and Sales Strategies: Outline your marketing and sales strategies , including user acquisition, monetization, and retention plans.

Financial Projections: Present detailed financial projections , including revenue forecasts, expenses, and anticipated profitability.

Team and Management: Introduce the key members of your team, highlighting their skills, experience, and roles within the company.

Funding Requirements: Specify the funding you require to develop and launch your mobile app startup, along with potential sources of investment .

As technology continues to advance, more individuals and entrepreneurs are recognizing the potential of starting their own mobile app businesses. This surge in interest reflects the growing importance of mobile apps in various industries and the desire to capitalize on their benefits. 

Our team of mobile app business plan writers have developed a sample business plan specifically tailored for the mobile app industry in New York City, New York . This comprehensive business plan takes into account the unique characteristics and opportunities of the local market. We believe this mobile app business plan sample will be an invaluable resource for your mobile app business startup. 

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Executive Summary

“Lizzy App” (herein also referred to as “the company”), led by Founder Ava Liz, is in the strategic planning phase of developing Lizzy (herein also referred to as “the platform”), an exclusive mobile dating app designed specifically for American-born South Asians. The platform’s mission is to create a meaningful space for users to find love and companionship with like-minded people.

The online dating industry is currently undergoing a significant transformation, becoming more inclusive and adaptable to the diverse needs of various ethnic and cultural groups. However, amidst this progress, there is a unique blend of cultures that often remains overlooked—American-born South Asians. These individuals, born in the US to parents who emigrated from South Asian nations, navigate between the traditional cultures of their parents and the diverse norms of the US. As a result, they require a dating app that understands and respects their unique cultural nuances.

Lizzy aims to fill this gap by providing a platform specifically tailored to the needs of American-born South Asians, offering a unique value proposition centered around exclusivity and assured through a meticulous user vetting process. By understanding and integrating the specific requirements of this demographic into the platform, Lizzy goes beyond mere surface-level compatibility and facilitates genuine connections based on shared cultural experiences and values.

To bring this vision to life, the company is seeking a bank loan of $150,000. T he funds will be allocated toward app development, marketing initiatives, operational expenses, and other startup costs. The loan will be repaid by implementing a cash capture mechanism, primarily through tiered membership fees. Additionally, the company expects to generate additional revenue through various in-app purchases, creating a sustainable revenue stream to support the growth and sustainability of the platform. 

With a robust business strategy, a steadfast focus on customer satisfaction, and backed by a visionary Founder with a strong commitment to bridging cultural divides, Lizzy is positioned to emerge as the ultimate platform for North American-born South Asians, revolutionizing the dating experience for this unique community.

Business Overview

Lizzy App is an emerging company poised to revolutionize the dating scene for American-born South Asians through the development of the limited-access dating app, Lizzy. The key differentiating factor of the platform lies in exclusivity, as all users are required to submit an application and pass a meticulous screening process based on undisclosed criteria before being accepted into the platform. This careful vetting process ensures that users have a higher chance of connecting with like-minded individuals who share similar cultural backgrounds and values.

Lizzy’s revenue model is built upon two primary streams: membership fees and in-app purchases. The platform offers tier-based membership options that grant users access to a range of benefits and features, each available at different price points. To foster long-term commitments and establish a stable revenue stream, Lizzy implements a cash capture mechanism and offers discounts for extended membership durations. Moreover, in-app purchases provide additional avenues for revenue while enhancing the user experience with premium features and options.

Leveraging the Founder’s extensive network, Lizzy will initiate a beta launch in NYC Metro in April 2024. This beta launch will serve as a crucial phase to gather early user feedback and insights, allowing the company to make any necessary refinements before launching to the rest of the American market in June 2024. Once established in the American market, Lizzy has ambitious plans to expand its operations to the United States, reaching a larger audience of North American-born South Asians and solidifying its position as a go-to platform for meaningful connections and relationships.

Mission Statement

Our mission is to create a respectful, and exclusive digital space which enables North American-born South Asians to find meaningful connections which respect their unique blend of cultural identities.

Vision Statement 

Our vision is to create harmony within the South-Asian community; ensuring North American-born South Asians can safely and privately connect and explore one another.

Core Values

Lizzy’s culture is built upon a foundation of core values that shape the way the company interacts with customers, partners, and employees. These values are fundamental to all business activities and decisions and are deeply ingrained in the company’s ethos.

Community-Centered Approach.

The company believes in creating a platform that resonates deeply with the North American-born South Asian community. By fostering a sense of belonging and prioritizing the unique cultural values and aspirations of this demographic, Lizzy delivers a genuinely inclusive and personalized user experience.

User Safety and Secur ity.

Lizzy places the safety and security of its users at the forefront of its priorities. The company maintains stringent security measures and thorough vetting processes to ensure a safe and respectful online environment.

Excellence and Quality.

Lizzy is committed to delivering an unmatched user experience. By continually refining the platform to enhance ease of use, d esign aesthetics, and overall user satisfaction, the company strives to exceed user expectations at every touchpoint.

Collaboration and Openness.

Lizzy promotes a collaborative environment where ideas, feedback, and innovations are openly shared and valued. By actively encouraging collaboration between team members, users, and partners, Lizzy ensures a collective effort toward the betterment of the platform and overall user experience.

Uncompromising Integrity.

Upholding the highest ethical standards, Lizzy fosters a culture of trust, honesty, and transparency with team members, partners, and customers. The company treats all stakeholders fairly, ensuring transparent communication in all business activities.

Goals and Objectives

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Market analysis.

As the online dating industry evolves, understanding market trends, government regulations, and the competitive landscape is essential for positioning Lizzy for success.  This market analysis will provide a comprehensive review of these key factors, providing valuable insights into the industry that will help the company develop a winning strategy.

Global Dating App Industry

The dating application industry refers to a sector of the digital market that provides platforms or services for individuals to meet potential romantic partners. Dating applications, or dating apps, are a modern form of matchmaking, primarily accessed via smartphones and tablets. They allow users to create personal profiles, list their preferences, and search for other users who meet their desired criteria. These apps typically utilize algorithms to match users based on various factors, such as shared interests, age, geographic location, and more. Some apps also leverage advanced technologies, such as machine learning and artificial intelligence, to create more sophisticated matching mechanisms.

The global dating app industry has experienced significant growth in recent years, driven by the increasing popularity of online dating applications among young individuals, particularly millennials. The market size of the global online dating application industry was valued at $7,939.2 Million in 2022, with a projected CAGR of 7.6% from 2023 to 2030. One of the key factors contributing to the growth of online dating applications is the rise in usage among the LGBTQ+ community, who have found these platforms to be a safe and inclusive way to connect with potential partners. Moreover, the convenience and accessibility offered by smartphones and high-speed internet have fueled the adoption of dating apps worldwide.

In terms of revenue generation, the subscription segment led the market in 2022, accounting for more than 62% of the overall revenue. This dominance is attributable to the additional features offered by paid subscriptions, such as an ad-free experience, unlimited likes, and read receipts, among others. The subscription segment is anticipated to grow at a CAGR of 7.7% during the same forecast period.

Regionally, North America held the highest share, approximately 36% in the global market, largely due to the presence of major players such as Tinder and Bumble. The United States alone accounted for about 58% of the market share in this region in 2022. However, the US is anticipated to exhibit the fastest growth rate, with a projected CAGR of 7.3% during the forecast period. The Asia Pacific region, led by China and India, is also expected to witness rapid growth.

American Online Dating Industry

The American online dating industry has been experiencing steady growth, with revenue reaching $56.64 Million in 2022. This trend is set to continue with a CAGR of 2.53% in the next five years, pushing the market volume to an anticipated $66.21 Million by 2027. This growth can be attributed to the increasing number of Americans turning to online platforms to seek romantic relationships and companionship.

American Online Dating Industry Historical and Projected Revenue, 2017 to 2027 

Moreover, the number of users in the online dating market is expected to increase, with projections estimating approximately 3.05 Million users by 2027, representing a growth of 0.23 Million users compared to the figures in 2022. This upward trajectory will also be reflected in the penetration rate, which is expected to rise from 7.4% in 2023 to 7.6% by 2027. This gradual increase indicates a broader acceptance and adoption of online dating applications among the population.

In addition to the growing user base, the average revenue per user is expected to show positive growth. In 2022, the average revenue per user amounted to $63.10, and by 2027, it is projected to reach $66.56. This indicates that the industry is not only expanding in terms of user numbers but also generating higher revenue per individual user.

Market Trends 

This section provides an overview of the latest trends in the online dating industry, helping Lizzy stay ahead of the competition and identify new opportunities for growth. By examining key market drivers, consumer behavior, and industry challenges, the company can refine and innovate Lizzy’s business model to meet the evolving needs of users.

Inclusivity for Exclusivity

The online dating industry has experienced a significant shift in user preferences, with a notable focus on value-driven, niche dating platforms. Instead of engaging in mindless swiping through countless profiles, users now prioritize the search for a sense of belonging and meaningful connections within specific communities. This emerging trend is exemplified by the success of platforms like Grindr, which caters exclusively to the needs of gay, bisexual, and bi-curious men. Additionally, a diverse range of other niche dating apps has emerged, catering to users’ unique preferences, hobbies, or interests. These specialized platforms have capitalized on the demand for inclusivity by narrowing their focus to specific segments of the population, effectively transforming exclusivity into a unique selling point.

As a dating platform exclusively catering to North American-born South Asians, Lizzy is well-positioned to tap into the demand for a specialized and inclusive dating experience within this specific community. By providing a platform that understands the cultural nuances, values, and aspirations of this demographic, Lizzy will be able to create a sense of belonging and connection that is often lacking i n mainstream dating apps. With a focus on inclusivity, cultural resonance, and tailored connections, Lizzy has the potential to become the go-to dating app for individuals seeking meaningful relationships within their own cultural context, setting it apart from other generic dating platforms.

Gamification

Gamification is an emerging trend that adds an element of fun and interactivity to the online dating experience. By incorporating gaming elements into dating apps, platforms have found innovative ways to engage users and encourage interaction. Bumble’s “Ice-breaking Questions” and Tinder’s mystery game “Swipe Night” are prime examples of successful gamification strategies. These unique features created a buzz among users and even attracted new users to these apps. To introduce gaming elements, some app publishers have revamped the dating app profile by incorporating users’ interests or character types, allowing users to find potential dates based on compatibility and shared personalities. Ur My Type (UMT) stands as a notable example of this enhancement, as the app matches users based on their Myers-Briggs personality types.

In line with these trends, Lizzy will incorporate elements of gamification into the platform. This will involve Daily Login Rewards. In order to encourage users to engage with the platform on a daily basis, Lizzy will offer rewards for consecutive log-ins. These rewards will include free swipes, cumulative points that can be exchanged for in-app purchases, or other additional features and benefits. This strategy aims to maintain user engagement, foster a daily habit of using the app, and provide users with incentives to continue their interaction with Lizzy.

User Safety

Alongside the rapid rise of online dating, concerns over user safety have also escalated. In the past, dating apps have been subject to criticism for insufficient protective measures against harassment, catfishing scams, and other forms of online abuse. A survey by the Pew Research Center revealed that 10% of dating app users had endured threats of violence, 35% received unsolicited sexually explicit messages or images, 28% faced offensive language, and 9% were threatened with physical harm. In response to these concerns, the industry has started to place greater emphasis on implementing effective safety measures. Enhanced privacy settings, advanced user verification methods, and features designed to report and block abusive users are now standard requirements for dating apps.

To address user concerns over safety, Lizzy is committed to implementing robust security measures in addition to standard protocols such as data encryption and privacy protection. As part of the company’s safety strategy, Lizzy will establish a comprehensive vetting process for all users, ensuring the verification of identities and profiles to create a safer and more trustworthy platform. Additionally, Lizzy will introduce a report and block function which will allow users to report any suspicious activities and promptly block individuals who engage in inappropriate behavior. To further enhance user support, Lizzy will expand the customer support team to efficiently handle disputes, address complaints, and provide timely assistance as the user base continues to grow.

Dating App Burnout

The trend of dating app burnout is on the rise, with a majority of users experiencing stress and disappointment due to unsuccessful dates and mismatched intentions, according to recent research by Badoo. The study found that, on average, singles go on six failed dates per year and spend approximately $350 on these unsatisfactory experiences. Approximately 31% of respondents admitted they find it challenging to express their intentions out of fear of judgment, and 82% expressed a desire to be more honest about their intentions to benefit future relationships. Misunderstandings also stem from assumptions made based on people’s profiles and gender, adding to the existing frustrations.

Lizzy aims to address this issue by implementing an efficient vetting process to ensure a high-quality user pool, thus increasing the chances of successful, compatible matches. The platform will also encourage users to be open about their intentions from the outset, alleviating concerns about judgment and promoting honest communication. Additionally, Lizzy’s focus on North American-born South Asians reduces the breadth of assumptions made based on profiles, as users share a common cultural background. By recognizing and addressing the common causes of dating app burnout, Lizzy will be able to offer an enhanced, satisfying dating experience to all its users.

Government Regulations

This section outlines the various government regulations and guidelines that directly affect Lizzy’s operations in the US. Upon expansion to new territories, the company will diligently review the relevant laws and regulations in each jurisdiction with the guidance of legal consultants. This proactive approach will enable the company to mitigate potential risks of non-compliance and maintain a high level of trust and credibility with stakeholders.

USA’s Anti-Spam Legislation 

Enacted in 2014, USA’s Anti-Spam Legislation seeks to promote ethical practices in electronic messaging and to combat spam and related cyber threats. Such threats encompass identity theft, phishing, and the distribution of harmful software, including viruses, worms, and trojans, collectively known as malware.

Under the regulations of USA ASL, companies are encouraged to adopt a more disciplined approach to managing their electronic marketing programs. This entails obtaining consent before sending commercial electronic messages. Requesting consent is a crucial gesture that demonstrates businesses’ respect for consumer privacy. Moreover, it ensures that businesses engage with individuals who have a genuine interest in their products or services, leading to improved open and click-through rates.

As a company operating a digital platform, specifically an online dating app, Lizzy will be engaged in constant electronic communication with users. To ensure compliance with the CASL, Lizzy will:

• Obtain Consent: Lizzy will only send commercial electronic messages to users who have expressly given their consent. Consent will be sought during the application process, and users will have the option to revoke their consent at any time.
• Provide Identification Information: All electronic messages sent by the company will clearly identify Lizzy as the sender and provide contact information, including a physical mailing address and either a telephone number, email address, or website URL.
• Provide an Unsubscribe Mechanism: All commercial electronic messages will include a clear and simple mechanism for recipients to unsubscribe. Upon receiving an unsubscribe request, Lizzy will promptly remove the user’s contact information from the mailing list.

Competition Act 

The Competition Act is the main federal statute in the US that prescribes rules against false or misleading advertising and deceptive marketing practices. The Act prohibits making public representations that are materially false or misleading. Such representations can be reviewed under civil provisions and are prohibited under the Act’s criminal provisions. The criminal and civil provisions are identical, but the criminal offense necessitates a “knowing” or “reckless” mental state.

The Competition Bureau, the regulatory body responsible for enforcing the Act, can choose to pursue either the criminal or civil track when enforcing compliance with misleading advertising laws. Typically, the Bureau reserves the criminal track for particularly severe cases. The Act also includes specific prohibitions that apply to certain types of advertising issues, such as pricing claims, performance claims, promotional contests, testimonials, bait-and-switch selling, and sale above an advertised price. Furthermore, the Act mandates that all statements, warranties, and guarantees be backed by “adequate and proper” testing. This provision places the burden on the advertiser to substantiate any claim before it is made public.

In alignment with the provisions of the Competition Act, Lizzy commits to transparent, honest, and accurate advertising. This includes clearly representing its services, pricing, and promotional offers, and ensuring that all claims, whether related to the functionality of the app or success rates, are supported by proper evidence or testing. This practice is not only intended to maintain regulatory compliance but also to build a solid reputation for integrity and trustworthiness, which is fundamental to gaining and retaining user trust.

State Regulations

Personal Information Protection Act of New York

Since the initial user base of Lizzy will originate from the Founder’s personal network in New York, it is important to acknowledge that the state has its own private-sector privacy law, which is substantially similar to the federal PIPEDA. Generally, establishments subject to a similar provincial privacy law, such as New York’s Personal Information Protection Act, are exempt from PIPEDA with regard to the collection, use, or disclosure of personal information that occurs within the state.

PIPA is a privacy act that governs the private sector in New York, outlining how all private sector organizations must manage the personal information of employees and the public (including customers). The act establishes common-sense rules for collecting, using, and disclosing personal information, striving to balance an individual’s right to protect their personal information and an organization’s need to collect, use, or disclose personal information for reasonable purposes.

The act also grants individuals the right to access the personal information an organization holds about them and request corrections if they believe the information is incorrect or incomplete. Personal information, as defined by PIPA, includes information that can identify an individual (e.g., name, home address, home phone number, or ID number) and information about an identifiable individual (e.g., physical description, educational qualifications, or blood type). However, it does not include business contact information or work product information.

Under PIPA, personal information can be collected, used, or disclosed for practical purposes only. In the context of the act, “reasonable” refers to what a reasonable person would deem appropriate in a given situation. Factors such as the type or amount of personal information collected, the intended use of that information, and the potential recipients of that information will determine what is considered reasonable.

Competitive Analysis

The global online dating market is characterized by high competition, with dominant players influencing the industry landscape. These market leaders have successfully implemented sustainable growth strategies and are actively pursuing various methods of expansion, such as mergers, acquisitions, collaborations, and agreements. To better understand Lizzy’s position in this market, a competitive analysis has been conducted to identify the primary competitors and their respective strengths and weaknesses.

Competitor A is positioned as a dating app for South Asians to connect and engage in serious, long-term relationships, thus leaving a gap for apps which offer a space for casual connections.

Competitor B’s traditional approach to matchmaking may not resonate with modern, urban, professional South Asians looking for a more contemporary and dynamic platform like Lizzy.

Competitor C is a less tailored choice for American-born South Asians. Competitor C does not account for the cultural nuances and shared experiences that Lizzy integrates into the platform.

Products and Services

Lizzy’s primary source of revenue comes from membership fees, which are provided in various tiers tailored to the diverse needs and preferences of vetted members. Each membership tier offers different benefits, with higher tiers providing users with a greater number of daily swipes and likes, as well as unlocking exclusive features.  As part of Lizzy’s cash capture mechanism, membership fees are priced based on the duration, with discounted rates offered for longer commitments. This strategy not only encourages users to commit to a longer membership but secures a more predictable revenue for Lizzy.

To stimulate user activity and maintain consistent engagement, the number of swipes and likes is replenished after a 24-hour period. This daily renewal system keeps the platform dynamic and encourages users to interact with the platform regularly. Understanding the value of flexibility, Lizzy offers both auto-renewal and manual renewal options, allowing users to control their membership status according to their convenience.

These in-app purchases not only offer users more flexibility and control over users’ experiences but also allow Lizzy to generate additional revenue, providing a win-win for both parties.  Moreover, these additional features fulfill the desire of users to optimize their matching chances, maximize their reach, and enrich their overall dating experience. By offering these options, Lizzy enhances user satisfaction and engagement, which in turn will lead to long-term loyalty and revenue growth.

Competitive Advantages  

The following competitive advantages differentiate Lizzy from other online dating platforms:

Highly Vetted User Base: While many dating platforms struggle with fake profiles and fraudulent activity, Lizzy ensures user authenticity by meticulously vetting all users. Through referrals, social media checks, and committee reviews, Lizzy creates a secure and trustworthy environment for its users, enhancing the quality of interactions on the platform.

Niche Market Focus: Lizzy caters specifically to North American-born South Asians, a niche often overlooked by broader dating platforms. This targeted approach eliminates the need for users to navigate through a multitude of unsuitable profiles, offering a more efficient and culturally compatible dating experience.

Limited Swiping : Unlike other platforms that bombard users with endless profiles to swipe through, Lizzy carefully curated matches for users. This approach mitigates decision fatigue and enhances the overall user experience by presenting only the most relevant matches, making each connection more meaningful.

Exclusivity: Lizzy introduces an element of exclusivity through its selective application process, distinguishing it from other dating apps. Prospective users or “applicants,” will undergo screening based on undisclosed criteria, resulting in a curated user base. This approach enhances overall user quality, attracts individuals seeking an exclusive dating experience, and fosters a safer and more genuine community.

Competitive Pricing : Lizzy offers an affordable alternative to platforms like Dil Mil, providing excellent value for money. This is achieved by combining user-focused features with a more accessible pricing model, making Lizzy a cost-effective choice for users seeking quality connections.

Ad-free Experience: Unlike many dating apps that disrupt the user experience with ads, Lizzy offers an ad-free platform. This allows users to focus on their connections and conversations without interruptions, providing a more comfortable and immersive experience.

Key Success Factors

Lizzy’s success will be driven by the following key factors:

Strategic Marketing and Branding

Effective marketing and branding strategies will play a crucial role in raising awareness and driving user adoption. Showcasing Lizzy’s unique selling points and creating a strong brand identity will be vital for attracting users, especially in the early stages of operations.

Scalability

Lizzy’s ability to scale efficiently and effectively will be key to its long-term success. The platform must be prepared to handle increased user volume and expansion into new geographical areas while maintaining its high level of service and performance.

Healthy Churn Rate

User turnover is inevitable for dating platforms, as a percentage of individuals join with the goal of finding a long-term relationship and eventually leaving the platform. Therefore, Lizzy will focus on implementing user retention strategies while also attracting new users to keep the community lively and dynamic.

Sustainable Monetization

Lizzy will strive to strike a balance between generating re venue and offering value to its users. The company will implement monetization strategies that are fair and transparent, ensuring that the prices charged align with the true value provided to users.

Continuous Innovation

The digital landscape, especially the dating app market, is continually evolving. To stay competitive, Lizzy will continuously innovate, introducing new features and improving user experience based on market trends and user feedback.

Customer Service Excellence

Providing exceptional customer service will enhance user satisfaction and loyalty. Lizzy will strive to offer responsive, empathetic, and effective customer support, resolving user issues promptly and professionally.

Sales and Marketing Plan

The sales and marketing plan lays out the company’s strategy for expanding Lizzy’s user base and growing the community. This section examines the key channels the company will use to promote its services, as well as the metrics that will be used to gauge success. Additionally, the plan will identify the strengths and weaknesses of the company, opportunities for growth and expansion, and potential threats that could impact business operations.

Target Customers

Lizzy will primarily cater to American-born South Asians, also referred to as “second-generation South Asians.” According to the American Government’s Classification of Generation Status, the term “second-generation” refers to individuals who were born in the US and have at least one parent born outside of the country. This classification essentially represents the children of immigrants.

The platform will initially launch in NYC Metro, a vibrant region with a robust South Asian community. In this area alone, there are approximately 40,640 American-born South Asians within the 20 to 54 age group, providing an excellent launchpad for Lizzy. The initial focus on a geographically confined area will allow the company to build a strong local presence and gather valuable feedback for refining the platform.

Following three months of intensive beta testing and platform refinement, Lizzy intends to roll out the platform to the rest of the American market. Nationally, there are roughly 230,000 American-born South Asians aged between 20 and 54. This population is expected to increase at a CAGR of 10.17% to reach approximately 550,000 by the year 2030. These statistics indicate a promising future for Lizzy in the American market, presenting ample opportunities for growth and success.

Furthermore, Lizzy has long-term plans to expand to the United States, a move that will provide access to an even larger pool of potential users. This planned expansion is another strategic step in positioning Lizzy as the premier dating platform for American-born South Asians, extending its reach beyond the American market.

American-Born South Asians

American-born South Asians represent a unique segment of the USA’s diverse population. Born in the US to parents who emigrated from South Asian nations such as India, Pakistan, Bangladesh, Sri Lanka, and others, these individuals straddle two worlds—the traditional South Asian cultures of their parents and the diverse, multicultural norms of the US. This group, while inherently familiar with American societal norms, maintains a deep connection with their South Asian roots through family customs, food, language, and more. Being born and growing up in the US, they often face unique challenges when it comes to dating and finding a suitable partner. The cultural nuances, expectations, and traditions of their heritage can sometimes clash with Western norms, making it difficult for them to find someone who understands and appreciates both aspects of their identity.

American-born South Asians trace their roots to a variety of regions across the South Asian subcontinent. Notably, individuals of Indian descent represent the largest segment within this demographic, constituting over half of the population. Other significant sub-groups include those of Punjabi, Pakistani, Sri Lankan, Tamil, Bangladeshi, Gujarati, Jatt, and Bengali descent, as well as those who identify more generally as South Asian without specifying a particular country or region.

Key Channels

Lizzy’s marketing plan hinges on a multi-tiered approach to connect with American-born South Asians who form the core of its user base. The Founder’s personal network will serve as a launchpad for the initial phase, while Instagram, TikTok, Facebook,  and Youtube will be key platforms for outreach given their popularity among the target demographic. The marketing approach will be designed around the marketing funnel, concentrating on various stages including awareness, consideration, conversion, loyalty, and advocacy.

At this stage, the company’s objective is to make the target demographic aware of Lizzy and its unique value proposition. This involves highlighting the features and benefits of Lizzy, building a strong brand presence, and generating excitement within the community to capture the interest of potential users. As this is the first point of contact between Lizzy and potential users, efforts will be focused on creating a positive and compelling impression.

Founder’s Personal Network: The founder possesses a strong network of individuals who have a significant number of followers. By leveraging these connections, Lizzy can tap into a sizable pool of potential users. It is anticipated that each of the 30 contracts will bring in approximately 10 users, leading to an estimated initial user base of 300 individuals.

Paid Social Media Ads : Lizzy will run targeted paid advertising campaigns on popular platforms such as Instagram, Facebook, TikTok, and YouTube. Leveraging advanced targeting options, these ads will reach individuals interested in dating apps or related content. By utilizing these platforms, Lizzy aims to enhance visibility, connect with a larger, more specific audience, and effectively communicate its unique value proposition through culturally relevant and engaging advertisements.

Influencer Collaborations: Lizzy plans to collaborate with influencers who have a significant following within the American South Asian community. These influencers will play a vital role in introducing Lizzy to their followers, creating a buzz around the brand. Collaborators will be carefully selected based on their credibility and alignment with Lizzy’s brand values.

Public Relations: Lizzy will also engage in public relations activities, such as issuing press releases, to local media outlets and South Asian-centric publications. This will help increase brand visibility, build credibility, and reach potential users who may not be active on the aforementioned social media platforms.

Website: To attract organic traffic to the website and position Lizzy as a trusted authority in the niche dating market, the company will invest in creating high-quality website content optimized for search engine optimization (SEO). This will include informative articles, blog posts, and guides related to dating, relationships, and South Asian cultural topics.

Consideration

In the consideration stage, the objective is to engage the interest of potential users and nurture them into becoming Lizzy users. This stage involves a detailed showcasing of the platform, its unique features, and the benefits users can experience from it. Here, the focus is on strengthening the connection between Lizzy and potential users, persuading them to consider Lizzy as their preferred dating app.

Organic Social Media Engagement: To build a stronger connection with potential users, Lizzy will engage in organic social media activities. These activities will be tailored to each platform:

• Instagram: Lizzy will regularly post visually appealing images and videos showing the app in use, user testimonials, and content that resonates with the cultural nuances of the target demographic. Instagram Stories will also be used for limited-time content and to engage followers with interactive elements like polls and questions.
• Facebook: While also sharing similar content as on Instagram, Facebook will be used to foster a community around the Lizzy brand. This includes creating a Facebook Group for users and potential users to interact, ask quest ions, and share their experiences.
• TikTok: Lizzy will create and share engaging, short-form video content on TikTok. This includes tutorials on using the app, highlighting unique features, and other culturally relevant content.
• YouTube: Long-form video content will be created for YouTube. This includes detailed walkthroughs of the app, interviews with successful matches, and content about love and dating within the South Asian community in the US.

Lead Capturing Landing Pages: Lizzy will create targeted landing pages designed to capture the contact details of potential users. These landing pages will include a prominent call to action, encouraging visitors to provide their email addresses in exchange for updates, exclusive information, or possible early access to the platform.

Email Marketing: Once the contact details of potential users have been captured, an email marketing campaign will be implemented. The campaign will aim to build interest and anticipation for the platform during the initial stages. In the later stages, regular newsletters will be sent out to provide more in-depth information about Lizzy, showcase success stories, and provide updates on new features.

The conversion stage is the turning point in the marketing funnel, where interested individuals take definitive action to become users of Lizzy. Given that Lizzy is an exclusive platform, this step involves completing an application process and undergoing a screening before being accepted. Both the application and screening process can be completed either via the Lizzy app or on the website, making it accessible to a wide range of users. During this stage, strategies will be centered around persuasive tactics aimed at encouraging sign-ups, membership purchases, and various in-app transactions.

User-Friendly Application Process:  Lizzy will ensure a streamlined and user-friendly application process to encourage conversions. Clear instructions and expectations will be provided from the beginning to minimize potential drop-offs and create a smooth and efficient experience for applicants.

Onboarding Program : Once a user is accepted, a comprehensive in-app onboarding program will take place to ensure they understand the platform’s various features and benefits. This not only helps in conversion but also ensures users utilize the platform to its fullest extent.

Trial Memberships: Lizzy will offer trial memberships to new users, providing them with an opportunity to explore the benefits of a full membership. These trials serve as a powerful incentive for users to convert into paying members.

Discounted Rates: To encourage long-term commitment, Lizzy will offer discounted rates on longer membership plans. This approach not only helps in securing revenue through a cash-capture mechanism but also enhances user retention by incentivizing users to choose longer subscription periods.

In-app Pop-ups: Lizzy will utilize in-app pop-ups to promote additional in-app purchases, including options such as extra likes, swipes, search options, and unlock additional features. This strategic approach aims to drive revenue while enhancing user engagement within the platform.

At this stage in the funnel, the focus is to encourage users to continue their relationship with Lizzy and consistently use the platform. Loyalty is cultivated through a positive user experience, excellent customer service, fostering a sense of community, and creating a safe and enjoyable environment where users can find meaningful connections.

Personalized User Experience: Lizzy will leverage its data-driven approach to provide a personalized experience for each user. This will involve tailored match suggestions, personalized messages, and other customized content that make users feel valued and understood.

Robust Customer Support: A critical aspect of user loyalty is the assurance of support when needed. Lizzy will provide comprehensive customer support, handling queries, concerns, and complaints promptly and professionally.

Promoting User Safety: Lizzy will promote safety features, such as the ability to report and block users, through various communication channels. By doing so, Lizzy reassures users that their safety and comfort are a top priority, thereby fostering a sense of trust and loyalty.

Regular Updates: Lizzy will maintain an ongoing commitment to improving the platform based on user feedback. This will be executed by regularly updating the platform and introducing new and exciting features.

Daily Login Rewards: In order to encourage users to engage with the platform on a daily basis, Lizzy will offer rewards for consecutive log-ins. These rewards will include free swipes, cumulative points that can be exchanged for in-app purchases, or other additional features and benefits. This strategy aims to maintain user engagement, foster a daily habit of using the app, and provide users with incentives to continue their interaction with Lizzy.

Community Engagement: Lizzy will actively engage with its user community on social media platforms. This will be done through regular posts, discussions, and interactive content. By creating a lively and interactive social media presence, Lizzy can cultivate a sense of community and belonging among its users, contributing to increased loyalty.

At this point in the marketing funnel, the objective is to turn loyal users into brand advocates. Advocacy occurs when users are so satisfied with their experience on Lizzy that they actively recommend it to others in their network. This not only provides a powerful testament to the value and quality of Lizzy but also helps attract new users to the platform through word-of-mouth. Here, the strategies will be focused on encouraging users to share their positive experiences, refer their friends, and actively promote Lizzy within their social circles.

Referral Program: A referral program will be put into place where existing users can invite their friends to join Lizzy. For each successful referral that results in a new user, the referrer will receive certain benefits such as premium features, extended memberships, or other in-app incentives. This gives existing users a compelling reason to spread the word about Lizzy.

Community-Building Events: Lizzy will host community-building events, both virtually and in person, as a means to further establish a sense of community among its users. These events can also act as a platform for users to share their positive experiences with Lizzy, reinforcing their role as advocates for the brand.

User Testimonials: Real-life success stories or testimonials from users can be a powerful form of advocacy. Lizzy will encourage users to share their experiences and stories, which can then be featured on Lizzy’s social media platforms and website. This not only promotes the brand but also adds a level of authenticity and trustworthiness to the platform.

Engagement with User-Generated Content : Encouraging users to share their Lizzy experiences on their personal social media accounts can create a viral effect. Lizzy will engage with such content by liking, sharing, or commenting on user posts, which can further boost visibility and reach.

Brand Ambassadors: Lizzy will identify power users or influencers within the Lizzy community and extend invitations to them to become brand ambassadors. These individuals will play a crucial role in promoting Lizzy within their network, generating buzz around the platform, and serving as relatable faces for the Lizzy brand. Their endorsement and engagement will contribute to increased awareness, trust, and loyalty among the target audience.

Key Performance Indicators

To effectively track Lizzy’s progress and ensure continued success, the company has identified the following KPIs:

• User Acquisition
• Number of new user applications
• Application acceptance rate
• Member referral rate
• Monthly user growth rate
• User Engagement
• Daily active users (DAU) and monthly active users (MAU)
• Average time spent per session
• Number of connections made between users
• Number of in-app activity
• Membership Retention
• Retention rate of active members
• Average duration of membership
• User churn rate
• Monetization
• Average revenue per user (ARPU)
• Revenue generated per membership tier
• Revenue generated from in-app purchases
• App Performance
• App Store and Play Store rating and reviews
• Number of reported crashes and technical issues
• Cost per lead and user acquisition cost 
• 4:1 return on ad spend 
• 5% monthly website traffic increase
• 2% monthly follower growth rate on all social media platforms
• Gross margin 
• Net profit margin 
• Positive cash flow

SWOT Analysis

• Exclusive platform that caters to the unique cultural context of American-born South Asians
• Founder’s expertise and deep understanding of the unique needs of the target demographic
• Founder’s extensive network within the South Asian community in NYC Metro
• Thorough user vetting process that ensures a high-quality user base
• Diversified revenue streams through membership fees and in-app purchases
• Limited user base due to the exclusive focus on North American-born South Asians
• New entrant with limited brand recognition compared to established dating apps
• Potential for a slower user growth rate compared to broader demographic dating apps
• Revenue heavily reliant on membership fees and in-app purchases
• Limited resources for aggressive marketing and user acquisition

Opportunities

• Increasing demand for niche dating platforms
• Growing consumer spending on online dating services
• Expansion into the American market to tap into the population of American-born South Asians
• Potential collaboration with influencers or celebrities to increase the platform’s visibility
• Integration of gamification features to attract and retain users
• Intense competition from both mainstream and other niche dating platforms
• Regulatory changes impacting user data privacy and app operations
• Economic downturns affecting users’ capacity to pay for premium services
• Rapidly evolving user preferences and expectations in the online dating industry
• Negative experiences or incidents that can damage the platform’s reputation

Operational Plan

The operational plan serves as the backbone that outlines the fundamental actions required to ensure Lizzy’s operations run efficiently and effectively. This section provides a comprehensive overview of the company’s day-to-day activities, covering critical areas such as hours of operation, location, app development, project timeline, platform mechanics, compliance with laws and regulations, and risk management. 

Hours of Operations

The operating hours for the different departments of the company will vary depending on their respective responsibilities.

Management Team

To ensure optimal productivity and efficiency, Lizzy’s management team will operate during standard working hours. This will enable the team to work collaboratively and be available for communication with contractors and stakeholders during regular business hours.

Additionally, this operating schedule promotes a healthy work-life balance for employees, which is crucial for maintaining high morale and productivity. Having weekends off allows employees to recharge, ensuring they are motivated and ready to provide exceptional service during the workweek.

App Operations

The App Operations team, consisting of the Customer Service Department and the Account Review Department, operates on a 24/7 schedule. Team members will be working in shifts to provide round-the-clock support for the platform, seven days a week. Each team member will follow a standard 40-hour workweek, ensuring that customer queries are promptly addressed and user profiles are efficiently reviewed. This schedule enables the team to deliver excellent customer service, enhance user satisfaction, and maintain active engagement on the platform.

Office Location

During the initial phase, the Lizzy team will adopt a fully remote work model, leveraging modern technological tools for communication, collaboration, and project management. This approach allows the company to save on infrastructure costs, ensuring that more resources are available for critical areas such as platform development and user acquisition. The remote work model also provides the advantage of recruiting talent without being limited by geographical boundaries, thereby opening up a wider pool of potential employees.

Once the company achieves a lucrative financial standing, the plan is to establish a physical headquarters in New York City, New York, a city renowned for its thriving tech industry and vibrant startup ecosystem. This office will house senior management, administration, human resources, and other corporate functions, fostering a collaborative and centralized work environment.

App Development

The development of Lizzy will be entrusted to Simply Designs, a renowned application development firm in New York City, New York. Led by Scott Jackson, Simply Designs has built a strong reputation in the industry, specializing in custom software and app development across multiple platforms. Their expertise lies not just in coding, but extends to wireframing, graphic design, project management, testing, and facilitating app store approvals, making them an ideal partner for this project.

Simply Designs’ team of skilled mobile app developers will manage the process from concept to deployment. This includes creating a user-friendly interface, ensuring smooth functionality, and optimizing the app for both iOS and Android. In addition to the mobile app, the contractor will also be responsible for creating Lizzy’s website, ensuring a consistent brand image and user experience across all digital touchpoints.

The decision to outsource the app and website development to Simply Designs not only guarantees high-quality output but also provides financial advantages for Lizzy. Outsourcing will save the company the associated costs and time involved in hiring, recruitment, and managing an in-house development team. Furthermore, this approach ensures that the technical aspects of the project are entrusted to capable hands, allowing Lizzy to concentrate on other core areas such as market research, user acquisition strategies, and delivering superior customer service.

Project Timeline

The following illustration represents the projected timeline for Lizzy, detailing the key milestones and development stages that the company intends to accomplish. This timeline offers an informative roadmap of the company’s strategic goals, showcasing the planned trajectory from the acquisition of funds to the anticipated platform launch.

Platform Mechanics

The following diagram illustrates the key functionalities, steps, and interactions that a typical user will encounter from the application process to engaging with other users on Lizzy. This visual representation showcases the platform’s unique features, intuitive design, and user-friendly interface, providing a clear understanding of how Lizzy strives to deliver a seamless dating experience to its users.

Lizzy will adhere to the federal and provincial laws discussed in Section 3.2 Government Regulations , as well as other pertinent regulations, bylaws, and standards. The company will take all necessary steps to ensure that it obtains the required government permits to conduct its business operations legally and ethically.

Labor and Employment

The company will strictly adhere to the legal standards for payment, compensation, and working conditions as mandated by the New York Employment Standards Act. The management team will ensure open communication channels with employees to promote a positive work-life balance that enhances welfare. Moreover, the company will continuously monitor its adherence to labor laws and periodically review compensation packages to ensure they meet the legally mandated minimum wage requirements.

Risk Analysis

Slow Adoption Rate 

As a relatively new platform, Lizzy faces the inherent risk of slow user adoption which could significantly impact the company’s growth, market position, and long-term sustainability. 

Apart from leveraging the Founder’s personal network, Lizzy will implement a robust marketing strategy to boost awareness and attract users. Incentives will also be provided to early adopters, encouraging user referrals and positive word-of-mouth.

User Data Breach

A breach in user data could result in unauthorized access to user profiles and personal information, eroding user trust and potentially exposing the company to legal consequences.

Lizzy will adopt rigorous security measures, including encryption, regular security audits, and secure access management. In the event of a breach, Lizzy will promptly inform affected users and take immediate corrective action

Negative User Behavior

Users engaging in harassment, catfishing, or other inappropriate behaviors could damage the platform’s atmosphere and deter potential users.

Lizzy will implement a stringent user vetting process and enforce strict community guidelines to keep the community safe.  Users will also be encouraged to actively report any suspicious or inappropriate behaviors.

Regulatory Changes

New regulations or amended regulations on online services could have an impact on the operations of Lizzy, potentially resulting in additional costs or requiring modifications to the business model.

To ensure ongoing compliance, Lizzy will stay updated with all regulatory changes in the industry and work closely with legal consultants. The company will allocate the necessary resources to accommodate any adjustments required as a result of regulatory changes.

Economic Downturn

Changes in the economy can influence user spending behavior. In an economic downturn, users may be less willing to pay for premium features.

Lizzy will monitor economic indicators and adjust its pricing strategy as needed. The company will also strive to offer a range of features and price points to cater to users with different spending capacities.

Technological Malfunction

Any disruptions to the operation of the platform, such as crashes, bugs, glitches, or performance issues, can have a negative impact on user experience, potentially resulting in the loss of account.

To ensure the seamless functioning of the app, Lizzy will invest in high-quality technology infrastructure and conduct regular testing and maintenance. Additionally, prompt technical support will be provided to address any issues that may arise.

Market Competition

The online dating industry is highly competitive, with numerous platforms vying for user attention. An increase in competition could lead to a loss of market share for Lizzy and impact its growth.

To set the platform apart from competitors, Lizzy will focus on a differentiation strategy. This will involve continuously innovating and improving its service offerings to align with the specific needs and expectations of North American-born South Asians.

Organizational Plan

The organizational plan outlines the company’s approach to managing human capital, including the organizational structure, management team, personnel plan, and recruitment plan. This plan will be regularly reviewed and updated to ensure the company remains adaptable and responsive to emerging opportunities and challenges.

Founder and Owner

Ms. Ava Liz is a results-oriented professional with over 20 years of extensive experience in the social service sector. Ms. Liz’s expertise, characterized by a deep understanding of mental health and a proven ability to establish and maintain productive relationships with team members and clients, has led to a career filled with impactful social initiatives. Leveraging these skills, Ms. Liz has transitioned into tech entrepreneurship as the Founder and Owner of Lizzy, a venture that carries the same level of social commitment and determination.

A respected member of the South Asian community, Ms. Liz holds a Bachelor of Arts in Sociology and a Bachelor in Social Work, alongside an active registration with the New York College of Social Workers, highlighting academic proficiency and commitment to professional development. Moreover, Ms. Liz’s past success in fundraising, notably raising over $20,000 for the ALS Society within the South Asian Community, demonstrates tenacity, resourcefulness, and commitment to effecting positive social change. These attributes, along with Ms. Liz’s keen understanding of the target demographic’s unique needs and experiences, will play a crucial role in leading Lizzy to unprecedented heights in the dating app industry.

Key Personnel

This personnel plan provides an overview of the duties and responsibilities of each employee and contractor within the company, offering clarity on individual duties and fostering a culture of accountability and effective management. By clearly defining the scope and mandates of each team member, Lizzy aims to cultivate a cohesive and efficient team capable of working collaboratively toward achieving the company’s goals. 

Account Reviewer

Full-time Contractor

• Review and evaluate user applications based on predetermined criteria
• Make decisions on whether to approve, deny, or place applications on a waitlist
• Ensure the application process is fair, consistent, and aligned with Lizzy’s policies
• Communicate decisions to applicants and provides feedback when necessary
• Uphold the integrity and standards of Lizzy’s user community

Customer Support

Offshore Contractor

• Provide email support to assist users with inquiries, issues, and technical problems
• Respond promptly and professionally to user queries and concerns
• Resolve user issues and escalate complex problems to the appropriate team
• Offer guidance and assistance in navigating the platform and its features
• Deliver excellent customer service at all times and ensure user satisfaction

Industry Advisor

• Offer industry-specific knowledge and insights to guide Lizzy’s strategic decisions
• Provide expertise on trends, market dynamics, and best practices within the dating app industry
• Assist in identifying opportunities for growth, innovation, and differentiation
• Offer advice and guidance on industry regulations, compliance, and emerging technologies
• Helps shape the overall industry positioning and competitive strategy of Lizzy

Market Advisor

• Conduct market research and analysis to identify market trends
• Assist in defining and refining Lizzy’s target market and value proposition
• Provide insights on competitor analysis and market positioning
• Collaborate with the marketing team to develop effective marketing and promotional strategies
• Guide market entry and expansion strategies based on market dynamics and opportunities

Growth Advisor

• Drive the development and execution of growth strategies for Lizzy
• Identify opportunities to increase user acquisition, retention, and engagement
• Analyze user data and performance metrics to identify areas for improvement
• Collaborate with cross-functional teams to implement growth initiatives and experiments
• Monitor and evaluate the effectiveness of growth strategies and make adjustments as needed

Chartered Professional Accountant

• Manage financial records and bookkeeping with accuracy
• Ensure compliance with accounting standards
• Prepare financial statements, handle tax filings, and provide financial analysis and reporting
• Assist in budgeting, forecasting, and financial planning
• Provide guidance on financial strategies and helps ensure proper financial management

Financial Plan

The following financial projections have been carefully crafted by the management team of Serenity Farm Co. All projections are forward-looking and are dependent on securing the required financing.

Pro Forma Income Statement

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How to Write a Business Plan For Mobile App Startup in 6 Steps

Tech Editor and Content Team Lead

Tech Researcher and Writer

Table of content

• An app development business plan is structured into six key steps: executive summary, business description, market analysis, marketing strategy, monetization strategy, and startup costs & funding. Each section addresses specific questions that provide a clear vision of the project to stakeholders.
• Detailed financial planning, including startup costs, funding, and a well-defined monetization strategy, is essential. Understanding the market, competition, and customer persona helps in crafting effective marketing strategies.
• Writing a comprehensive mobile app business plan is crucial for the success of a mobile app startup. It helps clarify goals, allocate resources effectively, attract investors, and reduce risks.

The number of unique, useful apps increases daily.

According to Statista , the number of applications available on the App Store was close to 5 million in 2023. The forecast says the mobile industry will generate almost $520 million in revenue in 2024.

These statistics prove two important statements:

• Running a mobile application is a great business idea with a large monetization potential
• The competition in this industry is intense, and there’s little chance you will start monetizing your app without a proper understanding of the industry, your direct and indirect competitors, and your strategy to outplay them.

If you would like to join this beneficial industry with your great app idea, it is time to take the next step toward your goals and create a great mobile app business plan.

Reasons to prepare an app business plan

When you get a new idea for an app, you feel super excited! You want to start working on it right away because you believe it's going to be a big hit. You're so pumped up that you don't even want to spend time researching the market or making a detailed plan. You just want to jump in and get started on making your idea a reality!

By failing to prepare, you are preparing to fail.

Benjamin Franklin

As you know, Benjamin Franklin wasn’t involved in software development, but these words highlight the significance of the business plan for an app. Writing a plan enhances your knowledge about the market you are going to enter. It helps clarify your goals, set priorities, and build more accurate forecasts.

When you find out about all the benefits of a business plan for an app, you will get excited about the preparation stage, just as you are about the implementation. So this is why you have to plan your venture from A to Z:

Attracting great minds and great investments

Depending on your situation, you may need a technical co-founder or a development team. However, it is not easy to convince experienced professionals to start working on a product that hasn’t achieved anything yet and exists only in the mind of the initial founder. A detailed business plan may help you change their minds and attract ambitious engineers, designers, and managers.

The same works for investors. You won’t attract a significant sum from angel investors if you can’t prove to them that their money will be in good hands. But by presenting them with your business plan, you can prove your intentions to build a successful company and multiply their initial investments.

A correctly done app development business plan makes you a trustworthy employer and a trustworthy investee.

Allocating resources properly

When starting your app business, your resources are limited. Usually, you wish you could invest more time, money, and effort into your business than you actually can. Does this mean you have to postpone the start and wait until you have more time and money? Definitely not. You have to learn how to profit most from the resources you already have.

Creating an app development business plan allows you to analyze all your needs and decide on effective resource allocation. Taking intuitive steps can cause you to waste more of your resources without even realizing it.

Reducing the risks

Writing a business plan for app development is a way to get closer to your goals and ambitions.

When developing a business plan, you identify multiple risks that could impact your business. Being aware of these helps you either change direction to avoid pitfalls or prepare for potential negative outcomes.

Risk mitigation in software development is the strategy that increases the chances of success for your mobile app business.

Managing and delegating effectively

A business plan provides the vision of the critical tasks and helps delegate each of them to the particularly responsible person.

Yes, at first, it seems that you can manage every aspect of the mobile app startup creation on your own. However, if you want to scale and achieve outstanding results, prepare to hire new people and share the responsibility.

With the business plan, you make sure that every team member knows exactly where you head and can choose the most effective strategies within their responsibility to get the company there.

In short, a business plan helps you get the idea out of your head, digitize it, and build a detailed roadmap for startup to achieve the goal.

Yes, some businesses manage to achieve success without any plan. However, they don’t know which of the dozens of chaotic actions actually brought the desired results. And therefore, they are unable to scale this success.

If your goal is to start a mobile app business and achieve predictable and scalable results, prepare a pen and paper and get ready to draft your app business plan.

Is an app business plan different from a business plan for other software projects?

Here, we have to state that all cases are different. There’s no business plan template you can copy for your project. You have to approach the process wisely and define your goals.

What do you expect to achieve with a business plan document?

• Convincing investors to fund the development process?
• Attracting the best talents to build your startup?
• Creating a roadmap to bring your product to the market?

Depending on your goal, the focus of the business plan may shift.

Investors care more about the numbers. They want to see that you’ve done your homework, analyzing the target audience and proving that you will spend the money you attract in the most effective way.

Your potential co-founders and employees want to see the professional challenges and perspectives of their careers at your company.

This way, the business plan may differ according to your needs and goals. But the type of software you are going to build doesn’t influence the process. You still need to answer the same blocks of questions, whether you are building a simple mobile app, launching a SaaS product on the web, or integrating AI into existing processes of your own business .

So, no matter what type of app you are about to build, prepare to work on your business plan.

How to write a business plan for an app?

A business plan is a document that requires a clear structure. You will aim for high readability and intuitive navigation, which is usually achieved through clear formatting.

Writing a business plan is not about telling a chaotic story of how your app will change the world.

To give your target audience a clear vision of the project, you will have to answer many specific questions. We divide these questions into six blocks:

• Executive summary
• Business description
• Market analysis
• Marketing strategy
• Monetization strategy
• Startup costs and funding.

A business plan for an app usually consists of 20 to 40 pages.

Some of the questions in these blocks may require additional research, and some others may be too obvious, but we encourage you to write down everything that relates to your future app business. You will be glad you put these thoughts on paper. Let’s start with the first block.

Block 1. Executive Summary

This is the introduction to your business plan and the very first thing your potential investor or partner will see when getting acquainted with your idea.

An executive summary may become a standalone document for presenting your future app business, so make sure you provide the most important information on the first two to three pages of your business plan. Make it clear and remarkable, and answer these questions in your summary:

What problem do you want to solve?

Even though the market is full of different solutions, consumers always face obstacles and complications. You need to find these problems and identify the ones you can solve. Analyze what your target audience needs at the moment, why the existing solutions do not satisfy those needs, and what you can offer to solve this problem.

What is your solution?

First, make sure your application can address the problem. Then, introduce your idea but do not dive into details: it is not the right moment to introduce the functionality to investors. It is time to highlight what your app will do to make the app users happy.

For whom do you create your solution?

Identify your target audience in the executive summary. Provide basic information on your buyer persona, but keep in mind that you will have to describe it in more detail later in the Market analysis section.

What are the competitors' solutions?

Summarize the current market situation to give your stakeholders an overview of your competitors. Present this information to prove that there’s demand for similar solutions and convince them that there is space for your product on the market.

What goal do you pursue?

The primary goal of any business is financial return. In this section, tell what your goal looks like. Provide your vision of the app’s future; say how many users you expect to download your app and what profit it will bring. Visualize your short-term plans and enhance your answer with metrics.

The executive summary should include your unique value proposition (UVP) - the distinctive benefits and features of the app that set it apart from competitors and resonate with the target audience.

The next blocks after the summary will require more details.

Block 2. Company description

When you know what product you want to release, you have to go one step further. What company is capable of building such a product?

Present your current team, as well as the vision of a team in a few years. Pay specific attention to the following:

Mission, vision, and values of the company

In a world of dozens of similar software products, your mission, vision, and values set you apart from other companies in your industry. Consider your organization’s impact on the community; this will help you attract people with similar values.

Basic info about your organization

Your potential partners should know whether your company is an LLC or another entity. The company’s structure defines how the processes will be organized in the future.

Location is essential. If your team works remotely, mention it, too. And don’t forget to emphasize the reasons why you have decided on this location or opt for remote collaboration.

If you decide to delegate some of your operations, such as app development, describe how you choose a software outsourcing company . For example, in one of our articles, we have gathered reasons to hire Ukrainian developers. You can use these to convince your stakeholders that software development outsourcing is a financially rewarding decision.

Team introduction

The mobile app business plan should include details about your team so you can get even closer to the reader. By adding a few words about the company’s founders and employees, you turn a boring description into a real introductory meeting.

Tell the potential investor about your managers and the engineering team. You can specify names, positions, experiences, and even hobbies to make the readers feel like they know the people you talk about.

One more actionable tip is to provide the details about your advisory team. Those experts help you with decision-making, and their names make a difference in the market.

And as we mentioned the market, it’s time to describe it to your potential stakeholders as well.

Block 3. Market analysis

To launch an app startup, it’s essential to conduct market research for a startup . By knowing its past and present, you can impact its future. This stage is a transition from a hypothesis to real statistical data.

How big is the market?

To answer this question, you must analyze the following factors:

• Total Available Market, or market demand for your app,
• Serviceable Available Market, or the number of users you are able to reach out to,
• Serviceable Obtainable Market, or the segment of very first users.

How does the market change?

Analyze the market size five years ago and now. What has changed? How many influencers have broken into the market? How many of them failed? The amount of money spent in the industry will help you see your own potential income clearly.

Who are your direct competitors?

You are most likely entering an established market with players who have a significant impact there. What is their market share, and how did it change over time? How do they obtain new customers and retain existing ones? What services do they provide, and how did their offer change over the last years? Understanding your competitors’ paths will help you plan yours.

What is the customer persona?

The only way to develop a legendary app is to look at it with your customers’ eyes. This is why you need to understand the target audience and create a portrait of a customer. A customer persona is a detailed description of who the user of your app is. Define gender, age, occupation, education, hobbies, and daily challenges he or she faces. It is the portrait of a real person your app will serve.

In this section, you prove you understand the market. But you also have to demonstrate your plan to conquer it. The next block is dedicated to this.

Block 4. Marketing strategy

A solid mobile app business plan should describe the way your app will get to the potential user’s smartphone. Let’s have a glance at how to build a successful marketing strategy:

Decide on metrics

In the beginning, your success will be measured by the number of installations or conversion rates, not by financial revenue. So, decide what metrics will be useful for evaluating your project.

Outline your product launch plan

How do you plan to kickstart your app story? Once the mobile application is ready for release, you have to start implementing your product launch plan . Share your ideas to convince the stakeholders you know how to attract users to your app.

Identify the channels you can acquire customers from

Nowadays, social media marketing is an effective way to promote a product. But will it be enough for your app? Go back to the research phase and find out how many potential users you can meet on Facebook, Instagram, or Twitter. Analyze other possible strategies and provide the stakeholders with the information about which channel may be the most profitable.

Think about collaboration with existing businesses

Referral programs and other types of collaborations may become your growth fuel. Decide on the companies to partner with and explain why you expect this cooperation to be fruitful.

Define the desired marketing budget

Unfortunately, you won’t acquire your users for free. And even if you decide not to use paid promotion methods, you still need to pay your marketing team to grow your brand awareness. How much do you need to spend, to acquire the necessary number of users? Calculate it in advance.

Block 5. Monetization Strategy

At the finish line of your mobile app business plan building, we will discuss the financial part. How do you plan to monetize your app? This question is extremely important, unless you plan to start a non-profit project. If your goal is to turn your app idea into a profitable business, tell the stakeholders how you plan to achieve this. You may choose one monetization strategy or a combination of them, such as:

Charge a subscription

Subscription-based apps are usually affordable and solve a specific need of the target audience. If you believe your service will be useful for your users, you can start with a free plan and charge a subscription for advanced functionality. Investors like the business models that rely on recurring payments as their revenue is more or less predictable. On the other hand, you have to work hard to provide top-notch service, otherwise your users can terminate the subscription and turn to your competitors.

Charge a fee for installation

There are so many free apps on the web. And there are two ways for you to convince them to buy your app:

• to deliver exceptional functionality none of the competitor apps offers
• to build a strong brand and make sure users don’t want any alternatives

Both ways require thorough planning and you have to convince potential product stakeholders that you know how to achieve these results.

Use advertising

You can simply advertise other products within your mobile app. It is a fast and easy way to monetize it; however, you should have an impressive number of active users to implement this strategy.

You can find out about other options to earn money from your digital product from our article on mobile app monetization .

Potential partners and investors will not support your idea unless the monetization strategy is well-defined and clear. So be ready to answer the questions about what financial profit you expect to make of this app.

Block 6. Startup Costs & Funding

Did you know one of the key reasons why do startups fail is financial issues? According to CB Insights , 29% of companies simply run out of cash; 18% of companies have different types of cost issues.

Now when you are as close to your first technology startup business plan as never, consider the importance of costs and funding for your business.

Why is the financial component of planning so important?

• It is vital for you to understand what type of funding you need to get your app up and running;
• It is necessary for your potential partners to know how much money you plan to spend.

The startup’s financial model should reflect the forecast for the next 3-5 years. Add the following data to your plan:

What are the one-time costs?

If you have an offline office, include the setup costs. Estimate your initial recruitment budget to get the core team on board.

If you decide to outsource app development, you can count it as a one-time expense as well. An experienced software development partner can precisely estimate the cost to build an app MVP according to your requirements. Add the figure to your mobile app business plan.

What are the recurring costs?

Here, you will have to estimate the costs to maintain the office space and your equipment.

Also, you will need to calculate the salaries of your full-time employees, or the ones you hire according to the staff augmentation model.

Usually, outsourcing all startup development stages is a better choice as it is more predictable and requires less project management activities from your side. This means, you as a startup founder can focus on strategic tasks.

Think how you can reduce the costs

Creating a software product is never cheap. However, in your mobile app business plan, it’s important to demonstrate to your potential investors that you can allocate financial resources wisely. There are various ways to reduce the overall development costs without compromising quality in any way:

Leverage outsourcing

Outsourcing can significantly cut costs. Instead of hiring in-house specialists to complete certain tasks within your project, you can partner with a reliable vendor and

tap into the expertise you need. In this case, you will pay only for the work outlined in the contract, not for the working hours of your employees. Just ensure you choose a partner with proven experience to maintain quality while reducing expenses.

Opt for remote work

If feasible, consider a remote work model. By eliminating the need for physical office space, you can save on rent, utilities, and office supplies. Remote work also allows finding skilled professionals at lower rates than local hires.

Use open-source solutions

Incorporate open-source software and tools wherever possible. Many high-quality open-source solutions are available for development, project management, and marketing. Utilizing these tools can reduce software licensing fees and other related costs.

Start with MVP

Building an MVP means focusing on developing core features first to test your concept. This approach not only reduces initial development costs but also allows you to gather user feedback and iterate efficiently. Avoid adding unnecessary features in the early stages that can increase both time and expense.

Being proactive about financial management helps you identify potential overspending areas and address them promptly. By thinking strategically about cost reduction from the outset, you can ensure that your resources are used efficiently, giving your mobile app startup a stronger chance of success. Remember, the goal is to maximize value while keeping expenses under control.

Review your mobile app business plan

Reviewing and updating your business plan for an app is essential to ensure it remains relevant and effective. Here’s how you can approach this process:

• Set regular review periods

How long does it take to develop an app ? It’s difficult to answer this question. You may get all that is necessary right away, or you may need some time for it. Regular intervals, such as quarterly or bi-annually, allows you to assess your progress, make adjustments, and stay aligned with your goals. Regular reviews help you stay agile and responsive to changes in the market and your business environment.

• Update market analysis

The market is evolving constantly. Your initial market analysis might become outdated at some point. Revise the latest industry trends, competitor activities, and customer preferences. Staying informed can help you ensure that your strategies remain competitive and relevant.

• Reevaluate finances

Your financial projections are based on assumptions that may change over time. Reevaluate your revenue forecasts, cost estimates, and funding needs to ensure they reflect your current situation.

• Assess your marketing strategy

Are you reaching your target audience? Are your acquisition channels performing as expected? Use data metrics and analytics to measure the success of your campaigns and refine your marketing strategy accordingly.

• Reflect on achievements and setbacks

Take time to reflect on what you have achieved and the challenges you have faced. Identify the strategies that worked well and the areas that need improvement. Learning from your experiences helps you refine your approach and avoid repeating past mistakes.

• Engage your team

Involve your team in the review process. Their insights and feedback can provide valuable perspectives and help identify areas for improvement. Collaborative reviews also encourage a sense of ownership and alignment within the team, helping you in achieving your business goals.

• Adjust your goals

Based on your review, adjust your goals and objectives if necessary. Setting realistic and achievable targets ensures your mobile app business plan remains not a theoretical but practical tool for guiding your startup.

• Document changes

Keep a record of the changes made during a review. Documenting updates ensures transparency and provides a clear history of your business plan’s evolution. This can be particularly useful when communicating with stakeholders and tracking your progress over time.

If you are planning to put your application into the list of top fast-growing startups , regularly reviewing your business plan for an app is essential to ensure your strategies remain aligned with your vision. By staying proactive and adaptable, you can navigate the dynamic landscape of the industry.

In conclusion

Unless you have started bringing your plans to life, a well-structured business plan is your main tool for archiving success. It not only provides a clear roadmap for your startup but also helps attract investors, allocate resources efficiently, mitigate risks, and manage your team effectively. By thoroughly addressing each of the blocks we have mentioned - executive summary, business description, market analysis, marketing strategy, monetization strategy, and startup costs & funding - you can present a comprehensive and compelling vision of your app’s potential.

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Mobile App Development Business Plan

Start your own mobile app development business plan

Value Proposition

AppHero provides cutting-edge, tailor-made app development solutions to businesses, helping them expand their reach and boost customer engagement through seamless, user-friendly mobile applications.

The Problem

Businesses seeking to enhance their digital presence struggle to find reliable, affordable, and high-quality app development services that can deliver customized mobile applications that meet their specific needs.

The Solution

AppHero offers comprehensive app development services, including consultation, design, development, testing, and maintenance, to deliver fully customized, high-quality mobile applications that cater to each client’s unique business requirements and target audience.

Target Market

The primary market for AppHero is small and medium-sized businesses looking to establish or improve their mobile presence. The secondary target market includes startups in need of app development services to launch their innovative ideas into the market.

Small and medium-sized businesses are the primary target market:

• They require affordable yet high-quality app development solutions.
• They want a reliable partner to guide them through the app development process.
• They need customized mobile applications that cater to their unique business needs and audience preferences.

Competitors & Differentiation

Current alternatives.

• Freelance app developers
• Other app development agencies
• In-house app development teams

AppHero stands out from the competition by offering fully customized app development solutions, a dedicated team of experienced professionals, and a commitment to delivering exceptional customer service. Our transparent pricing model, coupled with our efficient project management approach, ensures that clients receive high-quality mobile applications within their budget and timeline.

Funding Needs

AppHero requires $100,000 in initial funding to cover operating expenses, marketing efforts, software and hardware purchases, and other startup costs.

Sales Channels

• Official AppHero website
• Social media platforms
• Networking events
• Referrals from existing clients

Marketing Activities

• Content marketing through blog posts and articles
• Social media campaigns
• Google Ads and targeted advertising
• Partnerships with industry influencers

Financial Projections

• 2023: $250,000
• 2024: $375,000
• 2025: $525,000

Expenses/Costs:

• 2023: $175,000
• 2024: $225,000
• 2025: $300,000
• 2023: $75,000
• 2024: $150,000
• 2025: $225,000
• Secure initial funding – June 1, 2023
• Launch official AppHero website – July 15, 2023
• Acquire first 10 clients – September 30, 2023
• Complete 20 app development projects – December 31, 2023
• Expand team with additional developers – March 1, 2024
• Reach $500,000 in annual revenue – December 31, 2025

Team and Key Roles

Ceo & lead developer:.

Oversees overall business operations, client management, and leads the app development team.

Project Manager:

Coordinates app development projects, ensuring timely delivery, and efficient resource allocation.

UI/UX Designer:

Creates visually appealing, user-friendly app interfaces that meet client requirements.

Marketing Manager:

Develops and executes marketing strategies to attract new clients and enhance brand visibility.

Partnerships & Resources

The purpose of these partnerships and resources is to enhance AppHero’s capabilities, reputation, and reach in the app development industry. Collaborating with these organizations and leveraging their expertise will allow us to deliver more comprehensive solutions to our clients, stay updated on the latest industry trends and technologies, and contribute to the growth of our brand.

• Technology Partners: Aligning with leading technology companies such as Apple, Google, and Microsoft will allow AppHero to access the latest developer tools, resources, and training programs. These partnerships will enable us to stay up-to-date with the latest platform updates, ensuring our apps remain compatible and optimized for various devices and operating systems.
• Design Agencies: Partnering with design agencies will help us provide an exceptional user interface (UI) and user experience (UX) designs for our clients’ apps. These collaborations will ensure that our apps not only function flawlessly but also deliver visually appealing and user-friendly experiences.
• Digital Marketing Firms: Collaborating with digital marketing firms will enable AppHero to offer our clients end-to-end solutions, including app promotion, user acquisition, and engagement strategies. These partnerships will help our clients maximize the potential of their apps, driving downloads and user engagement.
• Industry Associations: Joining app development industry associations such as the Application Developers Alliance or the International Game Developers Association will provide AppHero with networking opportunities, access to industry events, and valuable resources. These memberships will also increase our credibility and showcase our commitment to delivering high-quality app development services.
• Educational Institutions: Partnering with local colleges and universities can help AppHero recruit talented graduates and interns, ensuring a steady pipeline of skilled app developers. These partnerships may also present opportunities for collaborating on research projects or offering guest lectures, further strengthening our ties to the local tech community.
• Mentorship & Incubator Programs: Participating in mentorship programs and joining startup incubators can provide AppHero with valuable guidance, resources, and networking opportunities. These initiatives can help us refine our business strategy, connect with potential clients or investors, and gain insights into industry best practices.

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Mobile and Web App Business Plan Template

Introducing our free mobile app business template! Streamline your app development process with this easy-to-use template designed for entrepreneurs and startups. From market research to revenue projections, our template includes all the essential components for crafting a successful mobile app business plan. Download it now and get started on the path to app development success!

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The world is in the midst of a mobile revolution, and mobile apps have become an integral part of our daily lives. With the growing popularity of mobile devices, developing a mobile app has become a lucrative business opportunity for entrepreneurs and startups. However, building a mobile app from scratch can be a daunting task. That's why we're excited to offer our free mobile app business template, designed to make the app development process simpler and more efficient.

Features of the App Business Plan Template

Our mobile app business template includes all the essential components for crafting a successful mobile app business plan. Here are some of its key features:

• Market Research - Before developing an app, it's important to conduct market research to identify the needs of your target audience, understand your competitors, and assess the demand for your app. Our template includes a comprehensive market research section to help you conduct a thorough analysis of the app market.
• Business Model - Choosing the right business model is crucial to the success of your mobile app. Our template offers a variety of business models to choose from, including freemium, subscription, and in-app purchases. We'll guide you through each option and help you decide which one is best for your app.
• Revenue Projections - Estimating the revenue potential of your app is a key step in the planning process. Our template includes a revenue projections section that helps you forecast your revenue streams and expenses, so you can make informed decisions about your app development strategy.
• Marketing Plan - Once your app is developed, you need to get the word out and attract users. Our template includes a detailed marketing plan section to help you create a comprehensive strategy that covers all the essential marketing channels, such as social media, email marketing, and search engine optimization.

Benefits of Using Our Template

Using our mobile app business template provides a range of benefits, including:

• Saves Time and Money - Developing a mobile app is a time-consuming and costly process. With our template, you can save time and money by streamlining the planning process and creating a more efficient development strategy.
• Provides Clarity and Focus - Our template provides a clear roadmap for app development, helping you focus on the essential components and avoid unnecessary distractions. This helps you stay on track and achieve your goals more effectively.
• Increases Your Chances of Success - A well-planned and executed mobile app has a greater chance of success in the market. Our template provides you with the tools and resources you need to develop a successful mobile app business plan and increase your chances of success.

Our free mobile app business template is an essential resource for entrepreneurs and startups looking to develop a successful mobile app. With its comprehensive market research, business models, revenue projections, and marketing plan sections, you can create a detailed plan that sets your app up for success. Download our template now and start your journey to app development success!

Mobile App Business Plan Frequently Asked Questions

Q: why do i need a mobile app business plan.

A: A mobile app business plan is essential to the success of your app because it helps you identify your target audience, understand the market, and develop a clear strategy for success. Without a plan, you risk wasting time and resources on an app that may not meet your goals or resonate with your target audience.

Q: What are the essential components of a mobile app business plan?

A: A mobile app business plan should include market research, a business model, financial projections, and a marketing plan. These components provide a comprehensive roadmap for app development, including identifying your target audience, assessing the demand for your app, estimating your revenue potential, and creating a strategy for attracting and retaining users.

Q: How can a mobile app business plan help me secure funding for my app?

A: Investors and lenders are more likely to fund your app if you have a well-crafted mobile app business plan. A comprehensive plan demonstrates that you have a clear understanding of the market, a viable business model, and a strategy for generating revenue. By showing your plan to potential investors, you can demonstrate that you have a solid plan for success and increase your chances of securing funding. Having strong financial projections are key to securing funding. Use a mobile app financial projection template can make this process easy.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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How To Write The Best Investor-Ready Mobile App Business Plan

When it comes to launching an app startup, having a strong mobile app  business plan  is important. In the beginning, an app startup business plan helps you plot out your ideas and view your business across several perspectives. During the funding stage, having a business plan becomes a key piece in showcasing the details of your app startup to investors. Writing a business plan can seem difficult – there are many factors to consider and it isn’t easy turning it all into one cohesive strategy. A Google search on business plans pulls up a million different opinions, and 5,000 different templates. Selecting which is the “right” template to use can prove to be tricky, and taking the wrong advice can prove harmful to your funding efforts.

Here at ThinkLions, we’ve written hundreds of mobile app business plans and have worked with entrepreneurs across the world to develop strategies that have raised millions of dollars in seed funding. If it’s one thing we know, it’s business plans for apps – and we want to teach you everything there is to know! While it would take us years to write up everything we have learned over our many years of business, in this post, we’ll give you some really awesome tips to help you draft the perfect mobile app business plan.

Do I Need A Mobile App Business Plan?

While opinions vary on whether app startups need business plans, in our experience, it’s  always  useful. In essence, a business plan will effectively present your app idea and tie together multiple operational elements to create the story of how your business will grow from an idea to success. Business plans come in handy across many situations when trying to present your app idea to another person. Here are a few examples of previous clients who were definitely happy that they went through the mobile app business planning process:

• James was a solo entrepreneur when he asked us to write his app idea business plan. When he hired us for business planning services, his goal was to submit his business plan to a local  startup incubator  that would help grow his business. The incubator rejected him because they only accepted teams with two or more founders. James was later introduced to an interested tech-entrepreneur who already had two mobile applications launched in the market. Chris, the entrepreneur, was interested in James’ idea and asked him for his business plan so he could understand it better. Luckily for him, James already had one handy. James never made it to the incubator; instead, Chris partnered with him 50/50 and funded the launch of his app idea!
• An app startup team approached us last year with the idea of launching an app in the financial space. Initially, they wanted a financial app business plan so that they could understand their business and market better. After the plan was completed, they submitted it to gain entry into a Pitch Competition. With some consultation, they landed first place in the competition and earned $10,000 towards developing their app. Furthermore, an investor in the audience was so impressed with their pitch and  pitch deck , that they offered a  seed funding  of $75,000 in exchange for early ownership in the business.
• Kelly had launched a bare-bones app for pet owners, along with 6 of her friends. While they all had invested money, they had no idea what to do going forward. Members of the team were spending money irresponsibly on any trendy marketing technique, and they had no cohesive strategy to move forward. After working with ThinkLions, Kelly was able to clearly identify a niche market and come up with a plan to reach this market with her app. With a plan, the team was quickly able to stay on track and increased registrations to their app by over 100% in less than 60 days. After updating their document with new achievements, Kelly’s team was able to secure a seed funding investment of $25,000 from a local investor.

A business plan ensures that you know specific things about your business, before seeking funds or going into the development stages. Writing the best business plan early on can save you the headache of rushing to write one when an interested investor says, “Sounds good, let me see your plan!”

The Main Components

Sometimes, specific business plan layouts are required when seeking funding from investors, incubators, and banks. Some require different information to be present and may require  different formats . Generally, however, there are several particular sections that will be included in some form, no matter what the layout. Even with our international clients, we have found that these informational categories are still pertinent.

You won’t be hard-pressed to find a business plan template online. Instead of simply giving you the structure of an app startup business plan, I thought it would be more informative to use my experience and summarize the thought process  of each of these sections. Knowing how to approach this information will help you feel more confident when you begin writing out the details for your own business plan.

Executive Summary

Although written last, most plans begin with an executive summary. By most definitions, an executive summary would be a short version of each section of your business plan. I agree… sort of. A great executive summary DOES summarize all the important details of your business into just a couple of pages, but furthermore, it should also be a persuasive and informative  sales pitch . What are you selling, you ask?  You are selling your worthiness for their attention .

Your executive summary should say, “This is a great app business. It’s bound to grow, it’s fun, it’s exciting, and it’s everything that you want to be a part of.” It should do this by the way, without exceeding two pages. The payoff for an executive summary is rarely an investment into your app business, but instead, it is an attention magnet to make readers curious for more.

Put all of your best details into the executive summary. Avoid any fluff. Make sure to highlight the business’ current achievements. Think of the executive summary like the back of a novel. Does it leave you anxious to dive in and read the rest of the book?

Business Description & Information

Use this section to explain your mobile app concept and introduce your business. This section includes information related to corporate values, objectives & goals, product description, and key success factors. The point of this section is not only to describe your business but to explain what your business has accomplished and what they plan to accomplish in the future.

Stick to the facts, but make sure the facts are worthy enough to put on the paper. It’s easy to go on and on about your idea and to explain 20 different functions that your app will have. In an app startup business plan though, stick to the things that make your app different or better suited to the market. Describe the problem that your consumers face and make sure that you implicitly show how your app will solve this problem.

Think of this section as the “What?” Every following section will be “How?”. Tell them what your app idea is in this section, and in the following sections, we’ll tell them how you’ll get that idea to the market, and eventually, to success.

Market, Customer Analysis

This research section is where you provide the background for your story. In this section, the mobile app business plan shifts from what you believe your app business is, to the hard data that proves your business is viable and that there is actually a need and demand for your solution.

Analyze your market through secondary research, industry surveys, market reports, and most importantly, first-hand primary research. Use your research to estimate how large your market is (by revenue or number of consumers, for example), and try to discover how the industry is performing, trending, and transitioning. During this process, we typically take the following steps:

• Customer Profile:  First, we plot out who our target consumers are. We don’t just explain them, we give them a face and a name. We imagine who they are, what their life is like, what they do for a living, how much money they make, and the challenges they face. We also analyze how our solution can be used to help that specific customer – how they would find the app, why they would use it, how they would use it, etc. This allows readers to easily visualize what type of consumer we serve and how the app would fit into their life.
• Research:  Now that we know what customers we serve, we move into the research phase. We take any pre-existing knowledge we have of the market and combine it with industry research to form a profile of the total market. We seek to identify how many people face the problem that we are trying to solve, where they seek information, how they currently solve their issue, and how much money they spend each year. With this information, we perform a TAM-SAM-SOM analysis to help us identify not only how many people are in our market, but how many of them we can realistically reach with the mobile app solution.
• Insights:  Finally, we consider how all this research pertains to our app idea. Is there a real market? Are there enough people in the market, spending enough money? Would people pay to have their challenge solved? The entire point of the research section is to prove that a need exists for your particular app – have you proven it?

Marketing Strategy

At this point in your plan, you’ve detailed your awesome mobile app concept, identified a niche market, and proved a sufficient need within that market. Using this information, you now must decide how you will reach potential users, introduce them to your app, and persuade them to download and use it.

Investors want to know that there is a clarified  growth strategy  in place for getting your app to the market. The better you can explain this plan with clear steps, backed with accurate data, the more likely you are to persuade an investor to help fund the development of your app.

There are many marketing strategies and techniques available from PPC to social media, and beyond. Choosing which one is right for your business can be difficult. Start small,  perform a SWOT analysis , introduce new solutions, and test your ideas. Over time, as you identify techniques that are working on a small level, scale them upwards and eliminate the strategies that aren’t showing potential.

Furthermore, look at your competitors and identify how they are successfully reaching consumers. The more you know about what has and has not worked for your competitors, the easier it will be to avoid the obstacles that they may have faced previously.

Competitive Analysis

If you haven’t heard this before, let me stress a very important point:  No matter how innovative your app is, there ARE competitors.  Maybe no other app offers exactly what you offer, but there is some other app, process, product, or service that consumers are currently using to solve their problem.

Knowing who your competitors are is important, but knowing their position and operation within the market is a vital key to building a successful business. Investors will want to know that you have detailed knowledge of your competitors and that you have identified valid methods to exploit their weaknesses through your product strengths; creating a path to position yourself ahead of them.

Operational Strategy

To be effective, it is vital to consider how your startup company will operate on a day-to-day basis and how you will build and maintain customer relations. This section will contain information related to how customer service will be handled, how quality assurance will be maintained, how your app will be developed, who will manage the business, and more.

In addition, this section will highlight the user process – how the user will behave from the moment they learn about your app until they spend their first dollar. One of the largest components of this section is the personnel plan, which outlines when and how employees will be hired; how their salaries will be expensed; and how their positions will help progress the business.

Management & Advisor Bios

As mentioned previously, investors heavily consider the abilities of the “team” behind the app startups that they fund. In this section of the mobile app business plan, these team members can be showcased, and their skills can be highlighted to prove that the team has what it takes to propel the startup to success. In addition to co-founders and board members, this section will allow you to explain different advisor relationships you have secured; valuable relationships with non-executive members who are successful in related fields who have agreed to consult and advise the founders as they launch and grow their business.

Financial Model

Once all of this information has been compiled (excluding the executive summary), the financial model can be prepared.  App entrepreneurs  often find preparing their financial model to be difficult and beyond their comprehension. However, if you have prepared all of the previous information correctly, you should know exactly what you will need to fund in order to push the plan forward.

With this model, you will be able to forecast revenues, costs, growth, and other important financial factors. The financial model should include a 3-5 year projection of all the essential forecast models, including Profit & Loss, Cash Flow, Balance Sheet, Startup Table, and Valuation.

Winning Business Plans Aren’t Just Words And Numbers

That finishes the easy stuff. Many entrepreneurs mistakenly think that a mobile app startup business plan is just about plopping down some words on a page. They rush off to download a free business plan program, answer a few questions, or fill in a few blanks, and believe that they now have a business plan that will help them reach their goals.

What your business plan says, is important; but how you deliver the message may be the determining factor to whether you win or lose at  securing funding for your app . These three elements are what we refer to as the ‘secret sauce’ of business plans.

• Passion : I must admit, I’ve been suckered into more late-night infomercial products than I care to admit. On another occasion, I allowed this great door-to-door salesman to convince me to buy a huge box of steaks that were tougher than leather and tasted like Alpo Dog Food. Passion and enthusiasm sell… in a business plan too. It’s not just the words on a page, it’s the passion that is felt behind those words. Passion and enthusiasm are contagious traits, and your enthusiasm alone may be enough to make someone else passionate about what you are doing. Don’t write your plan to simply fill in paragraphs in a “template”, make every word count and make every thought express your tremendous passion for your business, brand, and app idea.
• The Story : Innovative apps are cool, but an app startup with a story… well, that’s captivating! What situation happened that led the founders to come up with the app idea? What problem did it solve for them specifically, that they know it will also solve for others? It’s not just about having a story, it’s about having a story that is relatable to the reader (or investor) – one that aligns with their experience or differs you from your competitors. Consider a company that is building a GPS device for dogs, where owners can use their mobile devices to track exactly where their dog is at any moment, in case they get lost. Maybe the founder lost the dog that she had for 10 years and looked at as her own child. Maybe she invented the device and app to ensure that no other pet owner would ever have to go through the heartbreak that she did after never recovering her companion. An investor who has gone through a similar situation would be able to relate instantly and would be more prone to have an interest in the idea than they would if the story was never told.
• Viability:  Is the plan you present truly viable? Could you actually reach the goals that you have set forth? It’s more than just having a “dreamer’s vision” here, it is about truly showcasing that your idea has legs to stand on. The single most important factor for most investors is whether they will make money. They don’t want your dreams, they want evidence, and the more your plan showcases this viability, the more potential you have to strike an investment deal.

Getting Started With Your Strategy

The hardest part of writing a mobile app business plan is writing the first page. Many people quit their business plan before they even get started on it. Writing a business plan for apps isn’t easy; there is a lot that needs to be known about your business, a lot of research that needs to be accomplished, and a lot of specialized knowledge needed to properly transform your thoughts into a successful document.

Check out our infographic below for more tips on creating an awesome mobile app business plan.

If you’re finding it tough to write your own app startup business plan, we have an expert team ready to help you get on track! Check out this app business plan example to see how our business plan writers put these insights into real plans each and every day. 

Do you have any other awesome tips on how to write an app business plan or a phone app business plan example that you’d like to share? Tell us about it in the comments below!

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How to Create a Convincing Business Plan for Your Mobile Apps?

Steps To Create a Business Plan For Your Mobile App

1. detailed summary, 2. company introduction, 3.  all about the industry, 4.  marketing strategy, 5.  operational strategy, 6.  financial plan, why make a mobile app business plan, magnetizing investments, reducing the risks, helps you keep everything in perspective, wrapping up.

Having an app idea is simple. But planning the business needs is quite tedious and crucial!

If you choose to develop an application without doing the research, then while characterizing the audience, and planning use cases and features that will interest that audience, you risk developing a product you assume individuals will need, but in reality they don’t.

Therefore, having a business plan for a mobile app is crucial. A business plan not only helps in the initial planning and discovery phase of a project, but also acts as a reminder of all the critical aspects that should be taken care of during the mobile app development. 

So without further ado, lets move on to our main discussion “How to build Business Plan for a Mobile App Startup” or “How to Write Business Plan for Mobile Application Idea?”

You have to start somewhere! Thus, a short overview of your detailed mobile app business plan is something you must pay special attention to, since this is going to be the first thing that the potential investors will encounter. 

Things that make this section ideal are – convey more while writing less , refrain from mentioning the working of the product, and so on . Instead, focus more on market scenario, targeted users, and make sure you implement the below mentioned steps –

Focus on problems addressed

‘Problems’ are something that always prevails. Meaning, there is always room for improvement and innovation. What you are supposed to do here is analyze the problems users are facing with the existing solutions and find out –

• The needs and demands of the users at the moment 
• Problems users are facing with the products similar to yours
• why these solutions fail to satisfy – what are they lacking that you can provide in a better and different way.

State your proposed solution

Try not to divert from the path of the problem while explaining its solution, i.e., do not go into the functioning and features of your app, rather stay focused on the problem and the ways in which your app addresses them.

Unique Value Proposition

This is where you can boast of the things that differentiate you from other organizations and solution providers, something about your app that is unique in itself. Not just better but definitely different. For example, the USP for Domino’s Pizza is “You get fresh, hot pizza delivered to your door in 30 minutes or less or else it’s free.”

End objective of your app

After everything’s said and done, it all comes down to this – The goals you plan to achieve with your app. 

You MUST state the vision of your app’s future, i.e., how many downloads you are initially expecting on your application, how much profit you are expecting, and much more. It is best to visualize your short-term plans and then improve your answer through metrics.

The next step while making a detailed and convincing business plan is to prepare your company’s information. Since the future is unpredictable, the things you have mentioned in the above section may not be as appealing to the investors as you may conjecture. 

Firms like Y Combinator, TechStars, to name a few, are known to select startups for funding based on the team and the founders. So, you see how crucial this section just became for you. Moreover, it would add as a plus point if you could provide information about the MVP or a prototype you have developed.

The things you should cover here are –

Provide an overview

There are some questions that you need to address in this section to help investors understand your organization and develop trust in it.

• Type of entity – Are you an LLC or privately owned organization? 
• Location – Where is it housed?
• Duration – When was the organization established?
• What is the team size of your company?
• Do you operate off-shore as well or not?
• What are the problems your company is currently going through?
• What is the ultimate goal of the company?
• What is your vision?

Take it from the top

Like a novel, you must tell the story of your organization while briefly touching on all the preliminary motivations, business app ideas, problems, etc. that you encountered at the time of its inception.

List everything about the history of your company that is worth knowing, since it could be a lot damaging if any crucial information is withheld from the investors and is revealed later. It can include the locations you have operated in, early hires, major pivots, product launches, and such.

Management team

Remember each and every person in your company is an important cog in your organization’s machinery. This is why you are required to mention the names of all the members of management with all the relevant information related to them, i.e., qualification, professional experience, expertise, KRAs while mentioning the organizational hierarchy.

Advisory panel

Almost every mobile app development company is backed by an advisory team. The panel consists of industry experts with years of experience under the belt. More often than not, they are the makers of some successful apps. Creating a list of such advisors can immensely improve your brand image and credibility, boosting the chances of getting funds.

Essentially, your end product is going to target a particular industry. Hence, it is obvious for you as an entrepreneur to know every grain of major information, from market history to current trends related to your targeted industry.

Market size

The most basic thing that you must know and also showcase in your app startup business plan is the size of the market. This includes – total available market (market demand for the app), serviceable available market (number of users you can target say in 3 to 5 years), and serviceable obtainable market (the segment of your initial users in 6 to 12 months).

If you are wondering how to do so then, you can always refer to the credible data provided by some trusted third-party platforms, namely, Sensor Tower , App Annie , and Statista .

Keep updated with market projections

You need to understand the market’s past and present to gain insight into future predictions. The best thing to do here is to compare and analyze the market size of the past 5 years, mention the number of new entrants in the industry, the number of total fundings, and so on.

Competitors analysis

Competitive analysis is an indispensable element of any business on this planet. Regardless of the organization type, industry, size, etc. – all religiously perform this step. 

Various models around this have been devised to gain the attention of angel investors. Out of the many, the one we recommend is the 2 x 2 matrix model, in which variables portray these four aspects: challengers, leaders, niche players, and visionaries. In order to highlight the execution and vision of the app as it progresses, these four elements are displayed via an x-y axis scale.

Self-assessment through SWOT

SWOT analysis representing four components – Strengths, Weakness, Opportunities, and Threats is used for self-assessment by all organizations. It enables you to give a structured description of your company’s situation in an efficient way in your business plan for app development .

Acting as a bridge between your app and the end-users, a solid mobile app marketing strategy wields the most power. Your role is to devise such a marketing strategy that acts as a ‘deal-sealer’ between your firm and the investors. This will show the investors that you have the medium to make your app reach the users’ smartphones from an app store.

These are some points that you can include in your marketing strategy- 

Describe the user persona first

Creating user personas is very beneficial . This is something you would be able to identify while you are doing your research on the market. In case there is more than one user personas, you must mention them in your app development business plan . The more in-depth it is, the more promising your business plan seems to the angel investors.

The said information is to be included in the user personas – Age, Gender, Occupation, Location, Income group, and Marital status. Other information that is classified as psychographic data includes attitudes towards money (price-sensitivity or value shoppers), the context of app usage, personal/professional aims, hobbies, preferred sites and apps, tech-savviness, and so on.

Customer acquisition strategy

Once you have identified the user personas of your app, you can determine your customer acquisition strategy. One thing you have to be absolutely sure about is your CAC (customer acquisition cost). You will be able to estimate the right cost once you have established which channels and campaigns you will employ in marketing your mobile app business strategy highlighting your app’s USP (unique selling proposition). 

Here are some channels that you can try to achieve great results –

• Incentivized user downloads
• Search engine marketing
• Organic installs
• Social media (Facebook/Twitter/Instagram) ads
• Partnerships
• App store optimization
• Content marketing
• Push and in-app notifications
• Retargeting campaigns
• Mobile site redirection
• Mobile app wall ads
• Email marketing
• Event marketing

Product driven growth

Change in product driven growth is one of the most common elements of pivoting a startup . If your business model needs a large mainstream user base, then it is of utmost prominence for you to build a referral program in your mobile app business model to leverage network effects. A well-known and effective mobile app business plan example is Uber. For instance, Uber offers a coupon on the users’ next ride as a reward for referring to others and the referred person also enjoys coupons on the first ride.

Make a landing page

A landing page can really help you in numerous ways. One of which is that it can help you expand your horizons in terms of target users. It keeps the readers informed and updated about innovations and further updates of your app. One thing to keep in mind whilst doing this is to make sure it contains the name of your app, its description, promotional videos, etc.

Define your key metrics

There are several metrics on the basis of which you can measure your business growth and popularity of your mobile app. This is something that you must include in the web or mobile app business plan . You have to be careful while picking the right metrics suitable for your business model. An example – if your app is a social media application, then your ideal key metrics should be the daily active users instead of the number of downloads.

Stating the strategy regarding your daily operation imparts an impression of awareness and readiness on your part to the investors, something which always works in the favor. This also includes your strategy for customer relations.

You must describe and map out how you are going to handle customer services and maintain quality assurance. It also includes how you are going to perform the app development process and manage it. Other things to cover in this section are-

Users Process

You can mention information such as how your users are going to behave from the start to the end, i.e., when they first hear of your app and start using it. 

Personnel plan

This outlines all the data related to the employees. It concerns how and when you will hire the employees, how salaries will be expensed, how will you set the hierarchy in the organization and so much more. 

It is the stage where you could literally say “Let’s talk numbers”. What the investors would want to see in this section are the answers to the questions – how will you make money? What will be the cost to run the business? What will be the financial plan for mobile application? And how much funds do you need?

Devise an app monetization strategy

Just like for marketing, you need to have an efficacious mobile app monetization strategy ,  something that we have also covered in detail in our article named “ How to choose the right pricing strategy for your mobile app project ”. 

Startup costs

According to CB insights , 19% of the startups fail because they get out-competed.  In the graph below, you would find that 29% of the startups get shut down as they run out of cash.

You can avoid this fate by analyzing the costs you may need. Similarly, it is crucial for you to mention to the investors all the details related to the costs and expenses you would be needing and for what.

Since the devil is in the details, here is what you should include – one time costs, recurring costs (rent, inventory, etc.), fixed costs (rent, utilities, etc.) variable costs (i.e, the salary of employees) and a lot more.

Funding needed

It is here at this stage that you are going to ask for the fundings and reveal all the information related to it. Address these questions in this section –

• How much money do you require?
• What percentage of equity are you proposing to give in return?
• Is this going to be a convertible note or a preferred stock?
• For what duration this money will suffice before you need to propose for another funding round?

Now that we have discussed in detail about the steps to create a business plan, it is now time to sit down and ponder on the “why” of creating a business plan for your mobile application. 

According to Statistics, in 2023, mobile apps are projected to generate more than 935 billion U.S. dollars in revenues through paid downloads and in-app advertising.

Another report by Statista states that by 2023, it is estimated that the annual number of app downloads worldwide will amount to 299 billion .

Now you can see the importance of mobile apps and the importance of making a business plan for your mobile app.

The most obvious reason to create a mobile app startup , as you might have surmised as well, is to bring in more and more investments. This is to attract investors and even start-up co-founders – the choice is yours to make, and sometimes you need to have the support of both. 

An efficacious business plan will help your vision be represented in a crystal-clear way while displaying the scope of your mobile app concept and business app ideas as well.

Un-planned actions pertain to risks, and risks in business are synonymous to cost-inefficiency and loss.  

When you devise a business plan, you actually map out the whole journey of your business, something that can provide you great insights into the many unanticipated and probable risks. 

When making big decisions, it is common to forget and leave out certain important aspects that can make or break the foundation of your business at a much later stage. However, when you have a blueprint including a set of points acting as a reminder of those crucial aspects, it becomes easy for you to remember them. Mobile app development business plan is that blueprint. 

Regardless of what category your mobile application belongs to, the business plan for each one is essentially similar, for the most part. A business plan is static in contrast to a business proposal for an app , which is dynamic. This is because it is a document created only once and is not rewritten after the purpose is fulfilled.

We hope that this article has provided you with detailed and good insights on business plan for your mobile app. If you need any assistance on mobile app development services, then you can opt for Appinventiv, a top mobile app development company in USA for quality results.

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Minimum Viable Product’s Benefits and Goals: An MVP Development Process Guide

Stanislav Bilenkyi

Tech Researcher

Kateryna Pysmenna

Anton Baryshevskiy

Head of Business Development, Co-Founder

Head of Business Development

Get your project estimation!

Building MVP is no simple task. Startup founders face great disappointment when, after months of exhausting work and large sums of money spent, their company fails to withstand the fierce market competition.

Here’s what the US Bureau of Labor Statistics tells us about the survival rate of private sector establishments:

• 20% of new businesses fail in the first year.
• 34% of businesses close within the first two years.
• More than 50% of businesses remaining after the second year close by the fifth year.
• Only 30% of businesses cross the 10 year threshold.

Startup founders face great disappointment when, after months of exhausting work and large sums of money spent, their company fails to withstand the fierce market competition.

However, there’s a simple way to assess the viability of a business idea.

Financial and technical concerns along with the risk of failure led entrepreneurs to develop the concept of a minimum viable product (MVP) . An MVP is a simplified version of a fully functional product. An MVP is the cheapest and quickest way to receive initial feedback from users so you can improve your product.

Though Mind Studios is more comfortable working with MLPs due to their advantages, we are experienced in developing and delivering MVPs. Contact our experts if you have a solid concept and want to see it carried out to completion.

In this article, we’ll highlight the top reasons for a minimum viable product development and the benefits of an MVP. We’ll also outline how to build an MVP and clarify what level of “minimum” it should be, discuss common mistakes while building MVP for startups to help your idea survive despite today’s cutthroat business climate, and introduce you to some inspiring examples of successful MVPs.

The need for an MVP: Its benefits and goals

Building an MVP for your product achieves three goals:

Prove the viability of your idea.

“Success is not delivering a feature; success is learning how to solve the customer’s problem.” Eric Ries, The Lean Startup

To be successful, a product should first of all engage users by solving one priority problem. A minimum viable product allows you to find a balance between what you’re offering and what your users want. This allows you to prove the viability of your hypothesis before creating a full-fledged website. Launching an MVP allows you to figure out how strong users’ desires are to find, install, and use your product — and to share positive reviews about it.

Cut development time and costs. While building an MVP, you focus on a short list of features, a simple design for your app , and solving a problem your target audience has. This approach enables startups to launch with less money, time, and effort and quickly find initial customers. The purpose of building an MVP is to present your idea even with a lean budget.

Get initial customers and feedback. An MVP complies with the main principles of the lean startup methodology: build, measure, learn. Learning from initial customers is easier with an MVP than without. You can use your MVP to check metrics:

• Number of people who have visited your website
• Cost to attract one visitor to your web app
• How many users make purchases over one day/week/month
• How often users visit your website or mobile app
• Average time between registering and making the first purchase

You can use this data to improve your MVP by iterating the web development process to eliminate bugs, and increase users’ commitment to your web product.

MVP benefits

Building an MVP before your full product has undeniable benefits:

• Focus on core values. A minimum viable product contains minimum functionality. Pick out your web project's core value — one really worthwhile functionality that will no doubt solve users’ needs — and build an MVP around it
• Easily start a big project. With massive projects, when you doubt success, it’s best to focus on a small piece of functionality and make it as good as possible. It’s much easier to build an MVP and test an idea’s viability than it is to develop a feature-rich application from scratch and see it fail.
• Define your target audience. Users who engage with a simplified version of your product are exceptionally valuable, as they show interest in the product’s core value and thus can offer important feedback. It’s crucial to do everything possible to get your first customers and get genuine feedback on your idea. Besides, with an MVP, you’ll be able to figure out more about your target audience , including their pains, interests, preferences, and buying behavior.
• Prove your product’s competitiveness. An MVP allows a product owner to examine whether their product is unique on the market. In an MVP, you highlight the best features of your product and demonstrate a way to solve users’ problems. This approach can make users loyal to your brand and, as a result, reveal the benefits of your product compared to competitors’ products.
• Save time on product development. Building an MVP takes less time than making a full app. The faster you build an MVP, the faster you’ll get user feedback. An MVP allows you to define the perfect version of your product quickly.
• Save money. As an MVP requires you to build only a very few features, you don’t need to spend an enormous amount at once without proof that your website or mobile app will find success. If it does prove successful, you can use the resources you’ve saved for further development and feature implementation. But if your MVP fails, you’ll have only spent money on MVP development, not creating a whole web project.
• Attract investors. Starting business with a well-performing minimum valuable product can be crucial for attracting investors. If your MVP is well-received, it will prove the viability of your business idea. Thus, it will be much easier for you to find investment for further development .

How to build an MVP?

Building an MVP allows you to focus on the most crucial features of your product so you can save time. As Eric Ries says:

“The lesson of an MVP is that any additional work beyond what was required to start learning is a waste, no matter how important it might have seemed at the time”.

This quote perfectly illustrates the importance of MVP app development. Next, we’ll list the essential stages of the MVP development process.

Stage 1 — Research the market

Over 70% of startups fail within the first five years , according to a survey by Failory. The inability to secure capital , low customer demand, or incorrect market targeting are common causes of startup failure. Inadequate research, idea validation, or lack of market fit can all contribute to this. Another reason a firm might not succeed is because its founders failed to target their audience properly or establish their specialty. Thus, our first recommendation is to double-check your answers to these two questions:

• What does your target audience need?
• Does your product fulfill these needs in the way users expect it to?

To answer the first question, you’ll need to deeply investigate who your customers are, what habits they have, what challenges occur in their lives, and how you can help to overcome them. There are many web platforms like SwagBucks , OnePoll , and Toluna that will help you create a detailed portrait of your target customer.

To answer the second question, you can use a business model canvas to describe your product vision. This useful tool demonstrates the value of your web project, how it works, its target audience, and your estimated budget. You can use a business model canvas to view the entire structure of your business model and see how parameter changes into one key category will impact on other categories. A business model canvas will clearly show you what problems your target audience has and how your product will solve them . Only after confirming the usefulness of your business idea should you move to the next stage.

Stage 2 — Keep an eye on rivals

The web app market is constantly growing, with thousands of new mobile apps and websites appearing every day. A strong belief in the uniqueness of your product isn’t enough to launch an MVP immediately without competitor analysis. To convert website visitors into loyal customers, your product must be better than others in the same niche. It’s quite easy to say your product is better, but how can you measure it? Web tools like App Annie, SimilarWeb , App Radar , Quantcast , Sensor Tower , and MOZ give you valuable insights into how competitors’ web businesses work. You can use these tools to get data about:

• How many people use competitors’ products (e.g. monthly traffic)
• Which sources bring more users to competitors’ apps (traffic sources)
• Where your competitors’ apps are the most popular (geographic locations of your target audience)
• The rank of your competitors’ products (in your country or globally)

In addition, you can analyze feedback from your rivals’ customers . When starting to build your MVP, you can address shortcomings of competing apps. To build a successful MVP for startups, it would be useful to adopt the best from competitors’ solutions and avoid competitors’ mistakes.

Stage 3 — Define the user flow

Once you’ve passed the first two preparatory stages of creating an MVP, it’s time to outline the user flow or what steps your customers will take in your app when they need to accomplish a task. If we imagine your product as a city, then the user flow is the roads that lead users to the desired destination. To outline the user flow, you need to build a user flow diagram , which will help you to:

define potential problems with your app and what can be improved

see the whole picture of the user flow: what attracts customers to your app, what they do while using it, and what they do after leaving

compare what customers need and search for with what your app offers

guide users through your app and encourage them to take an action

figure out where you can most effectively put your lead magnet or call to action

There are several tools you can use to create a user flow diagram, including XMind , MURAL , and UXPin .

Stage 4 — Highlight your MVP features

The next stage is sketching out all features for every basic piece of functionality your customers are likely to need when using your mobile app or website. You can do this by writing down every feature while keeping in mind what users want. Further, you need to divide all these features — for example, using the MoSCoW technique : must-haves, should-haves, could-haves, and wish-to-haves or will-not-haves at the moment. After prioritizing features , you’ll arrive at a list of crucial features for your MVP .

Stage 5 — Design and develop your MVP

Once you’ve approved the main concept of your app and defined the basic functionality and user flow, you’ll need about two or three months to go through the MVP design and development stage. You can start with wireframing the main screens and navigation methods for web, iOS, and Android. To save time and money, you can try one platform for your MVP and add other platforms later. Another way to create your MVP cheaper and faster is to choose cross-platform development.

The design of your MVP screens must be simple and clear for users, not overloaded by complex, time-consuming, and expensive UI elements and animations. You can also work with a outsourcing company that has a team of skilled specialists who can help you come up with an optimal design and development methodology.

Stage 6 — Get feedback, learn, and iterate

The last stage of MVP development consists of collecting feedback from initial customers. You should meticulously analyze this feedback to understand where you should go with your product development. After getting feedback, you’ll know what your product did well and what it lacks, and you’ll know what you need to change or improve.

Your MVP might go through several iterations of the build–measure–learn cycle before you have a high-fidelity competitive MVP that can be a base for launching your project.

How to build an MVP quickly

Let’s assume you’ve decided to use a lean pre-launch tool for your app and have begun to develop an MVP with core features. You’ve also started a build-measure-learn cycle to create a basic app that isn’t overloaded. But how “minimum” should your MVP be? Some first-time entrepreneurs focus only on the “M,” forgetting about the “V.” There’s a very fine line between a maxed-out and half-baked MVP. We’ve prepared tips to help you strike the right balance.

• Time box your MVP development. In pursuit of an ideal MPV, it’s easy to get bogged down cutting, iterating, and improving the final results. But if you do this, MVP development could last for years. To avoid falling into this trap, determine the terms of MVP development. It should take you only about two or three months to launch your first minimum valuable product. Set clear deadlines. This shouldn’t be a long-term job.
• Appeal to a small group of users. Your main target at the MVP stage is to start getting initial customers: a few, tens, or a hundreds. No matter how many, just get them. Choose a limited location for testing your MVP. Appealing to a small target audience is cheaper and faster than coping with numerous users’ feedback.
• Focus only on must-have functionality. Funnel all your attention into solving a single problem for your users. Extract only a few features that will prove your idea is unique and worthwhile. Remove features until you can create your MVP within your deadlines.
• Create a useful, understandable, and attractive app. On the other hand, a basic MVP must be attractive. It should have a comfortable interface, high-quality photos, expert content, understandable calls to action, and simple contact and payment forms . As we’ve mentioned above, one of goals of an MVP is to draw users’ attention to your genius product and make them loyal to your new brand.
• Don’t expect your MVP to look perfect. Your first app prototype won’t be perfect, but it doesn’t have to be. You don’t need to fall in love with your MVP. These are MVP features: they don’t have complete functionality and they don’t suit all your requirements for a full product yet.

Prioritization of MVP features

When building an MVP, it may be challenging to find the right balance of features that are sufficient to attract and retain early users while keeping the product lean enough to allow for quick adjustments based on feedback. The goal is to include just enough functionality to solve a core problem for your target audience, demonstrating value without overcomplicating the initial offering.

To make sure your aim is true, you need to conduct a deep analysis of your potential consumers, their pain points, and the existing solutions they use. Let’s consider which tools can help you identify target users and analyze competitors before building an MVP.

Identify target users

When you have an offline business or website, it means you have a current customer base . When building a mobile app, you can take your existing customers as a sample of your potential app users and get insights using Google Analytics , for example.

But what if you’re creating a mobile app from scratch and have no customers at all? In this case, you can apply a lot of tools, both offline and online, to get insights into your intended audience. These tools include both qualitative and quantitative research. Qualitative research means focusing on the feelings, emotions, and opinions of a target user, while quantitative research focuses on statistics, hard facts, and analytics.

Common tools for features prioritization include:

• Interviews;
• Focus groups;
• Search queries;
• Social media analytics.

All these methods are aimed at gathering extensive information about your potential users and segmenting them according to the following characteristics:

This isn’t a short list, of course. You can add or remove characteristics and change or increase the list of criteria according to your business specifics.

Based on research into your target users, you can move to the next step on the way to defining MVP features for your mobile app — creating a fictional portrait of your ideal user called a user persona.

Draw up user personas

User personas visualize your most common and valuable types of users. You can see some examples of user persona designs on Dribbble .

In brief, a user persona includes four key blocks :

Demographic profile

Give your user persona a name, pick a photo, and add a summary of the key reasons the persona is interested in your app. This is what the header should include. In the demographic profile , you should write down the persona’s personal and professional background, preferences, experiences, and psychographic data that you’ve received from primary research. The end goals block needs to tell what the persona wants or needs to accomplish using your app. You can focus on users’ goals, wants, needs, and fears. In the last section — the scenario — you need to describe a story of how the user persona would interact with your app in a particular situation to fulfill their goals.

Let’s summarize some tips to make your user persona great:

Be easygoing about the design and focus on the content.

Don’t add irrelevant or made-up information. Add only information that has a bearing on the development of your project.

Don’t revolve around demography; give priority to users’ needs, pain points, wants, and goals.

Tell a story to make your user persona tangible and real.

List solutions your persona falls back on and mention the frequency of use.

Mark the most important insights to make your user persona understandable for your app development team.

Analyze your direct and indirect competitors

After identifying your target users, it’s time to inspect the mobile apps they use to meet their needs. These apps could represent both your direct and indirect competitors. Direct competitors offer a solution similar to yours to your target audience. For example, if you want to create an ebook app, Kindle will be your direct competitor. Companies that offer different products and/or services to your target users will be your indirect competitors . If you come up with an idea to create a healthy food delivery app , Nike Training Club will be your indirect competitor.

To get a better grasp of what MVP features for app your intended users value, you need to analyze both your direct and indirect competitors by taking the following five steps:

Step 1. Find your current competitors. Conduct general search on the Google Play Store and Apple App Store using keywords relevant to your app.

Step 2. Review category rankings. App store rankings inform you about the big players and the newcomers. Focus on your biggest competitors. Narrow down to five competitors to analyze.

Step 3. Conduct SWOT analysis. Discover the strengths, weaknesses, opportunities, and threats of your competitors. To do this, check their app descriptions, app screenshots, and user reviews.

Step 4. Complete a feature comparison matrix. Make a list of mvp features for apps and competitors, then match which features those competitors offer. As an example, see the feature comparison matrix on EdrawSoft.

Step 5. Carry out RACE analysis. Figure out how your competitors:

• Reach users (efficient acquisition channels, traditional and/or digital marketing strategies)
• Encourage users to Act (effective ways of motivating users to make in-app purchases, share social media content, leave a review, invite a friend, etc.)
• Convert leads (tools to persuade users to buy like free trials, free shipping, discounts, abandoned cart campaigns, and more)
• Engage users to become brand advocates (retention strategies to gain loyal users including push notifications, loyalty programs, and gamification)

Form Your Unique Value Proposition with MVP Prioritization Matrix

“See where your competitors are focusing — and then make different choices.” Larry Keely

After detailed market research, it’s time to shift your focus to the solution you’re going to deliver to your users and sidestep your rivals with. You should explain three things to your users:

Applicability. What product or service will your app provide? How will your app serve users’ needs?

Quantitative value. What specific benefits will your app possess? What is the end benefit of using your mobile app?

Differentiation. What makes your app unique? Why should users use your app and not a competitor’s?

Answering these questions will help you form your unique value proposition (UVP) . It will be a cornerstone of your minimum viable product and your guideway through MVP feature prioritization.

List all your wants and needs

Prioritizing features in a mobile app MVP is impossible without creating an exhaustive list of features you plan to provide. You should include features that:

users need and want according to your target audience analysis

receive positive reviews and adopt the strengths of your competitors

make your app stand out from competitors and make users leap to your app

form the core of your viable product (your app couldn’t exist without these basic features)

could be “boosters” for your UVP and increase user engagement

include trends , innovations, and high-tech solutions in your niche

This list will give you a rough idea of all the MVP features your app is supposed to deliver. Now you’re ready to define what features should be woven into your minimal viable product.

What to do after creating an MVP: Key performance indicators

After you deliver an MVP, the question arises: "What's next?" Taking a cue from the snowball effect, MVP development begins with a small goal and then, as the project progresses, incorporates user feedback to inspire much more detailed roadmaps. It is crucial to prioritize and backlog further features for development after the MVP, in line with the appealing properties of the Kano model theory, to prevent extending the development stage.

Once you launch your MVP, there won’t be time to rest. You need to track by what channel your MVP enters the software market (AppStore, Google Play, etc.), what impact it has on target users, and how it fits your business requirements for future web project development. There are different types of key performance indicators, and which you should choose depends on what kind of project you’re building. The following are common key performance indicators that can help you define the success of your app at launch.

• Activation rate. This KPI shows how good of an impression your minimum viable product leaves after the first use. If your app makes users open it, register, read content, and fill in a contact form — in short, do any activities that could lead to repeat visits — it means you’ve dealt with a real problem and have prepared a real solution.
• The retention rate is the percentage of repeat visitors. Let’s say your goal is for XX% of users to open your app three or more times in the first 30 days. Your retention rate demonstrates the uniqueness of your idea. In other words, it shows if your MVP has something useful that no competitors offer such that users will come back to your app again and again.

After finishing the MVP, gathering user feedback and integrating their suggestions into subsequent tasks becomes essential. This process is known as beta-testing. Outbound marketing tactics are also a part of the MVP launch, testing, and repairing. Here are some additional metrics that will help you validate your MVP:

The net promoter score (NPS) is a feasible way to measure an MVP’s success and highlight users’ impressions of your product. You can ask users to rate your MVP from 0 to 10 after using it. After receiving feedback, you can divide users into two groups: promoters with ratings of 9 and 10 and detractors with ratings from 0 to 6. Using these numbers, you can calculate your NPS:

NPS = Percentage of promoters - Percentage of detractors

Monthly average revenue per user (ARPU) shows how much revenue you receive on average from one customer during one month.

ARPU = Total revenue per month / Total number of users per month

ARPU will help you calculate the approximate monthly revenue one customer brings you so you can estimate your financial flows.

Lifetime value (LTV) reflects the amount of money a customer will spend on your product while using your app. This metric can be measured with the following formula:

LTV = ARPU (average monthly recurring revenue per user) * Customer lifetime

The customer acquisition cost (CAC) shows how much it costs to get a paying customer. You can calculate it using the following formula:

CAC = Money paid for getting traffic / Number of customers gained from this traffic

By measuring your CAC, you can estimate the budget needed to get enough customers when developing a full web product.

Churn rate. Naturally, there will be users who stop using your app or just uninstall it. That’s okay, but you need to keep your finger on the pulse and know the churn rate:

Churn rate = Number of uninstallations per week or month / Number of users at the beginning of the week or month

Check your churn rate to make sure your MVP doesn’t have obvious bugs and consistently gains new users.

Furthermore, data analysis is crucial for post-MVP development, emphasizing user engagement, session duration, and retention rate KPIs. Equally important is user feedback , whether it be in an app store or any other platform.

To make lucrative improvements, the DIBB method lays out a cycle of data-driven predictions: data, insight, bet , and belief . The significance of empathy in responding to customer complaints is highlighted when negative evaluations are seen as chances to enhance.

If you want to take your MVP to the next level and become an MLP (Minimum Lovable Product), you need to listen to your users throughout the app’s life cycle, analyze their data, and upgrade your technology accordingly. Making items more marketable isn't the end goal; what matters more is demonstrating to consumers that their opinions matter during development.

Development mistakes to avoid while building an MVP

As you can see, building a balanced MVP is an art. In this part of our article, we’ve prepared a list of the most common mistakes made by entrepreneurs when transforming their brilliant business ideas into sustainable and successful apps. For each of these four MVP mistakes, we also suggest ways to overcome them.

Mistake 1 — Wrong product strategy

Your product strategy is the engine of your business. You can use it to transform your financial and timing investments into palpable results — and you can’t go far if your engine isn’t running.

Here are the indicators of a wrong product strategy:

“What if we found ourselves building something that nobody wanted? In that case what did it matter if we did it on time and on budget?”

• Your marketing and sales plans are uncertain. What is your target audience? How much will it cost to attract the first 100 users? Where will users come from? If you have no answers, you have a poor product strategy.
• You can’t define your core differentiator. What’s the level of competition? Are you going into a niche that hasn’t been mastered yet? Or are you diving into a pool full of business sharks? Whichever it is, you must know what can make your web product reach the top.

What can help:

• Communicate with your target audience. Communicating with users who face problems daily can awaken a fantastic idea for your product that will provide for your users a reliable solution.
• Plan your sales activities and marketing campaign. If you don’t have a professional in-house marketer, you can hire a remote specialist or outsource your marketing to a third-party company.
• Clearly define your vision. No matter what kind of web app you’re creating, you won’t succeed without a deep understanding of the product’s main purpose, core values, and trump cards. You can use the Radical Product Framework together with the Lean Startup and Agile approaches to succeed in developing an MVP.

Mistake 2 — The two extremes of MVP development: Overloaded or scarce

Sometimes, implementing a web product seems like climbing up a mountain. Just as there are many climbers with useful equipment and many trails that lead to the top, you can use manifold approaches to achieve your business goals. But there’s one principle of climbing: if you take too much with you at the foot of the mountain, it will be harder to reach the peak. And if you take too little, it doubles your chances of turning back less than halfway up.

How can you know that your MVP isn’t overloaded or too minimal?

• It takes you more than three months to create your MVP. An MVP is all about fast development. If you include too many features, it can take years.
• You hesitate while choosing what features should be included in your MVP. Many holders of genius ideas want to see a full-functioning app at the MVP stage. However, adding more and more features is a waste of time and funds because additional features are most likely not so important for target users but will delay the MVP release.
• You postpone bug fixes after building your MVP. This often happens when the app owner hurries too much to develop at least the most minimal MVP with a poor design and primal features to launch and test it.
• Follow an Agile methodology. Divide complex requirements into several simple features. Then set time frames for delivering every feature and stick to your deadlines.
• Start with the MVP prototype. Building an MVP straightaway and skipping prototype development is like building a house without a blueprint. A prototype helps you define vital features of a high-fidelity MVP and visualize them so you can build the user experience.

“The ideal prototype should be of Goldilocks quality. If the quality is too low, people won’t believe the prototype is a real product. If the quality is too high, you’ll be working all night and you won’t finish. You need Goldilocks quality. Not too high, not too low, but just right.”

Of course, this approach isn’t completely precise, but you can use it to set your MVP load limit.

Mistake 3 — Unprofessional development team

If your product strategy is the engine of your startup, then your development team is its fuel. Whatever technologies you use and whatever is outlined on paper, if you don’t have highly experienced specialists, a successful launch is unlikely.

Let’s see how the level of your web developers’ experience influences the implementation of your business project:

• You’re behind the deadlines. Often. A low level of skills leads members of your web development team to work slowly, make mistakes, and ignore the backlog.
• You need to hire additional specialists. When your development team is unable to deal with workload, you need to hire more skilled web developers, UI/UX designers, QA testers, or project managers. But in doing so, you’re likely to go over your budget.
• You fail to improve your MVP after receiving initial feedback. When you get your first feedback from initial users, they can point out some bugs of your MVP. Inexperienced development team is unlikely to deal with these bugs, so it will be impossible to improve your MVP.

What you can do to avoid this:

• Delegate. If you face constant delays for urgent tasks, designate a responsible person who will directly ensure developers are on schedule.
• Conduct product discovery workshops. Every two to three sprints, you can hold a product discovery workshop to refine your requirements. This way, you can measure the workload for your team members and define what recruitment solutions you'll have to make.
• Find a skilled partner. You can look for skilled specialists for your in-house team, outstaff individual freelancers, or outsource your development to a web development company that has experience implementing apps in your niche.

Mistake 4 — Feedback errors

The goal of building an MVP is to receive feedback. You’ll get your first feedback from early adopters when you develop a prototype version of your MVP. Next, after you release your MVP, you’ll collect feedback from initial users. You can use all of this feedback to understand your users better and, as a result, make your MVP shine. However, despite the necessity of feedback, sometimes it can give you the wrong direction for development.

Feedback may be misleading when:

• It comes from non-target users. If your family and friends don’t belong to your target audience, they aren’t potential users of your web product and can’t give you proper feedback. Consider whether users have experience to be able to give you meaningful feedback about your product.
• There’s too much of it. The general opinion is that a lot of feedback is a blessing. But getting too much feedback can make you rapidly pivot while building your MVP. However, making massive changes to the basic version of your website can provoke constant delays and even wreck your chance to realize your idea.
• You don’t integrate quantitative and qualitative feedback. Quantitative feedback gives you answers about how many and how much, while qualitative feedback answers the why questions. If you leave out either of these views, the picture of how users feel about your web application will be incomplete.

Possible solutions:

• Accept that not everyone is a potential user. Try to differentiate users who suit your ideal profile. They can give you expert opinions and meaningful ratings. Build your MVP based only on their feedback.
• Divide feedback according to the key categories. Take a glance at the most important feedback you want to learn from. You can divide clients’ feedback according to its value, source, or type of bug, for example.
• Look at the whole picture. Consider both quantitative and qualitative feedback while analyzing what’s missing and what’s superfluous.

Real examples of MVPs

Our next job is to stop scaring you about the difficulties of creating an MVP and inspire you to believe in the success of your business idea. The founders of many popular worldwide web services have had to take the first steps to build an MVP without any guarantee of success.

We want to introduce you to several ways of implementing an MVP. To confirm their viability, we’ll show you real examples of successfully launched MVPs.

• Buffer: landing page MVP. In 2010, Joel Gascoigne came up with a great idea came to Joel Gascoigne to make a scheduling feature for Twitter users and apps. As an entrepreneur, Joel knew how necessary it was to be on time and remember all important events in your life. He decided to check how many people shared his idea by creating a simple landing page. The information about his new product resulted in many people registering to get more information. It took Gascoigne seven weeks to build and design the initial version of the Buffer app that allowed access only to Twitter. The first user came in four days, the first hundred users came after a few weeks, and Buffer reached one million users after three years.
• Spotify: one-feature MVP. The music streaming app Spotify was born when many media piracy sites shut down and music listeners suffered from a lack of online music sources. For the first MVP version, Spotify was a closed, invite-only app that streamed legal music for free in six countries. After a while, Spotify added a community both for musicians and music listeners and actively cooperated with media outlets. In July 2011, Spotify launched in the US and became a showcase partner for Facebook, which increased their user acquisition. At that time, Spotify began to use the Chromium Embedded Framework (CEF) to simplify the process of revising different parts of their platform. In 2015, the music streaming tool was updated, adding music video and clips to Spotify. By Q4 2023, Spotify had about 576 million monthly active users .
• Uber: a concierge MVP. Often, a great business idea is born when something doesn’t fit someone’s expectations. So it happened with the co-founders of Uber, Garrett Camp and Travis Kalanick. They were frustrated by the high cost of San Francisco taxis. The MVP UberCab performed one basic function: it connected iPhone owners with drivers and enabled credit card payments. After successfully implementing UberCab, the founders added a food delivery service called Uber Eats and a courier service called Uber Rush. This innovative approach allowed Uber to expand into 90 countries as of early 2023, generating $3.1 billion in revenue by the end of the year.
• Groupon: a piecemeal MVP. A piecemeal minimum viable product uses other platforms, web services, and apps and joins them together in one platform. Groupon is an app that provides users with coupons and discount vouchers. At the very beginning, the Groupon MVP looked like a single-page website with discounts. If users wanted to print coupons, they subscribed and received a list of coupons in a PDF file to their email. This was a simple path to the biggest initial public offering after Google in 2011 .
• Snapchat: an MVP with disappearing content. Snapchat was founded in 2011 by several students at Stanford University. The idea was to develop a social media platform that allowed users to post content for just a few moments before it disappeared. The new product was a hit with younger users. The Snapchat MVP (called Picaboo) only allowed users to post photos. After a successful year, the Snapchat co-founders added 10-second videos. In 2013, two more options appeared on the social media platform called Stories and Chat. Then Snapchat added other useful features like geofilters, Snapcash, and Our story. Today, Snapchat’s audience amounts to 750 million monthly active users who generate over three billion “snaps” (videos and photos) per day.

Cost of developing an MVP: Mind Studios experience

How much does it cost to build an MVP? It’s difficult to calculate the precise MVP development cost, as it depends on many factors: the complexity of product development, the number of specialists involved, the number of working hours, hourly rates, and the need to add more features.

Based on our experience, we’ve prepared information on how much standard MVP projects cost in different business niches:

• One of the latest MVPs we developed is for a video calling mobile app . Implementing both an iOS and Android MVP for a video calling app costs between $55,000 and $75,000.
• Another MVP we’ve built is for an online ebook store . The cost to develop an MVP of this type can start about $62,000.
• A food delivery app development costs between $46,000 and $54,000 for an iOS and between $45,000 and $53,000 for Android.
• To develop a job board website , you’ll first want to start with an MVP that will cost about $48,000 .
• The cost of building a minimum viable product for a real estate website is about $45,000 .
• The price of building an MVP for a trendy up-to-date medical website will be close to $48,000 .

The owner of Virgin Airlines, Richard Branson, once said:

“Listen. Take the best. Leave the rest.”

One of the largest airlines in the world, Virgin Airlines, started with one plane flying one route between Newark and Gatwick . How’s that for a minimum viable product? If you have a brilliant idea to make our lives better, hopefully building a minimum viable product will help you find your unique way to succeed.

Final thoughts

In the challenging landscape of startup ventures, where success is far from guaranteed, creating an MVP emerges as a pivotal strategy. As a beacon of focus and efficiency, an MVP serves as a compass for entrepreneurs navigating the turbulent seas of market competition. By distilling the essence of a product into its fundamental features , startups can efficiently prove their concept , garner initial user feedback , and showcase competitiveness . The journey from idea inception to a competitive MVP involves meticulous market research , strategic competitor analysis , and thoughtful user flow definition .

At Mind Studios, we strongly believe that however complex and large a project is, it can be accomplished with a couple of well-done MVP iterations. In addition to developing minimum viable products for startups, implementing websites, and creating mobile apps for iOS and Android, we also provide consulting services. If you need to bring your idea to the software market, consult with developers, or calculate the development cost, just contact us , and we’ll get back to you.

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How To Create A Test Plan (Steps, Examples, & Template)

• by Hannah Son
• August 21st, 2023

In software development, a test plan defines your testing team’s test strategy, goals, and scope, which ultimately work together to ensure that all your software components are tested sufficiently before a release. 

Follow these six steps to create an efficient test plan:

• Define the release scope
• Schedule timelines 
• Define test objectives
• Determine test deliverables
• Design the test strategy
• Plan test environment and test data

How to create a test plan

1. define the release scope.

Before any test activity occurs, it’s important to define the scope of testing for your release. This means defining the features or functions that need to be included in the release, considering any constraints and dependencies that can affect the release, and determining what type of release it is.

Examples of questions to ask when defining the release scope include: 

• Are there new features being released in this version? 
• What are the risk areas?
• Are there any particularly sticky areas where you’ve seen regressions in the past?
• What type of release is it? Is this a maintenance release that includes bug fixes? Is this a minor feature release? Is this a major feature release?
• What does being “done” actually look like for your team?

For example, what information would you require if your organization has just launched a new e-commerce site and wants to test it before it launches?

Whether it’s talking with the developers to understand the scope of the project, or working with a product manager to walkthrough new functionalities and user flow, defining the scope ensures that accurate information is being shared and that there is a common understanding of the product’s goals, expectations, and features.

2. Schedule timelines 

Specify release deadlines to help you decide your testing time and routine. Here are some pointers for determining timelines:

• Consult your project manager to understand the current release timeline.
• Look at past release times and schedules.
• Consider extraneous elements: Does the release need to coincide with outside variables, such as conferences or events? Factor those into your release date prediction.
• Consider the timeframes for development: Your development team might have a set schedule for finishing development work. Make sure you comprehend that timeframe so you can adjust the testing schedule.
• Add some extra wiggle room: It’s common to encounter unexpected delays. Including extra time for unforeseen events can help you stick to your plan.
• Review and update the schedule frequently to ensure the test timetable is attainable.

3. Define test objectives

A test objective is a reason or purpose for designing and executing a test. These objectives ultimately help guide and define the scope of testing activities.

Examples of general test objectives include:

• Identifying and reporting defects
• Testing new features
• A certain level of test coverage

Examples of objectives for specific types of testing include:

• Functional testing objectives: Ensure the software works as it should. Examples of goals for this objective include: Validating user workflows, data processing, and verifying input/output parameters.
• Performance testing objectives: Ensure the software is efficient and can handle various loads. Examples of goals for this objective include: Verifying software reaction time, throughput, and scalability.
• Security testing objectives: Uncover program security flaws. Examples of goals for this objective include: Verifying authentication and authorization features and identifying potential threats.
• Usability testing objectives: Concentrate on ease of use and user experience. Examples of goals for this objective include: Validating software accessibility, verifying user flow, and identifying user-related issues.

Measure testing with the right metrics

Metrics assess the overall quality of a release , the progress of your testing, and the effectiveness of your testing (for a particular test cycle or the entirety of your testing). 

They provide visibility into your testing process and overall product quality, ultimately helping your team decide if your release is ready to ship. Here are some metric formulas you might consider:

Defect Density

• Defect Density = Defect count/size of the release (lines of code)

Example: If your software has 150 defects and 15,000 lines of code, its defect density is 0.01 defects per line of code.

Test Coverage

• Test Coverage = (Total number of requirements mapped to test cases / Total number of requirements) x 100.

Defect Detection Efficiency (DDE)

• DDE = The percentage of defects detected during a phase / Total number of defects

Time to Market

• TTM = The time it takes for your company to go from idea to product launch

4. Determine test deliverables

Test deliverables are the products of testing that help track testing progress. Deliverables should meet your project’s and client’s needs, be identified early enough to be included in the test plan, and be scheduled accordingly. There are different test deliverables at every phase of the software development lifecycle. Here are important deliverables to focus on before, during, and after testing: 

Before testing

• Test plan document: The scope, objectives, and approach of the testing endeavor are all outlined in the test plan.
• Test suite: Test cases illustrate how to run a test, including input data, expected output, and pass/fail criteria.
• Test design and environment specifications: The test environment outlines the hardware and software configurations used for testing.

During testing

• Test log: The test log records each test case’s results, including issues and resolutions.
• Defect report: A defect report lists testing issues by severity, priority, and reproducibility.
• Test data: According to the International Software Testing Qualifications Board ( ISTQB ), test data is data created or selected to satisfy the execution preconditions and input content required to execute one or more test cases.
• Test summary report: The test summary report lists the number of tests run, passed, and failed, as well as open defects.

After testing

• Test completion report: Covers the testing scope, product quality, and lessons discovered.
• User acceptance test (UAT) report: Points to any issues found and fixed.
• Release notes: List information about what the release includes. Examples include any new features for development, advancements, or fixes. 

A test plan’s content and structure differ depending on its context. Although there isn’t one cookie-cutter way to write a test plan, following best practices for test plan development can help companies deliver high-quality software. 

TestRail is test plan software designed to make it easy to follow best practices for test plan development. In TestRail, you can enter test cases with preconditions, test instructions, expected results, priorities, and effort estimates. 

Image : Organize and structure reusable test cases in folders, create agile test plans, and track test execution progress in TestRail.

This level of flexibility and visibility into your testing process makes TestRail an easy fit into any organization’s test plan — Try TestRail for free to see how it can help with your test planning. Or, learn more about how to build and optimize your testing processes—from test design to test planning and execution with this free TestRail Academy course, Fundamentals of Testing with TestRail.

5. Design the test strategy

Test strategy helps determine test cost, test effort, and which features will be in-scope (planned to be tested) versus out-of-scope (not planned to be tested).

Identify testing types

It is critical to identify when to perform what type of testing, what should be tested manually vs. automated , the scope of automated tests, how much work will be required to create new test cases, and who will be doing that work. 

Depending on several factors, there may be various types of testing to include in your test plan. 

Examples of factors to consider when choosing the right testing type to perform include:

• Test objectives
• Your project’s feature requirements
• The complexity of your product
• Your team’s experience levels
• Regulatory requirements
• Time and budget

Here are commonly used types of testing to consider including in your test plan:

Document risks and issues

It’s essential to document risks that may occur during testing and the effect of these risks. Risks can include: 

• Strict deadlines
• Insufficient or inaccurate budget estimates
• Poor management
• Problems with the code
• Changes in the business environment
• Limited resources for testing
• Unexpected delays during testing

Document test logistics

Test logistics should answer the “Who, what, where, when, and how.” Documenting test logistics ensures that all human and system-related testing resources are available. For example, it may be important that your team identifies who is available to do testing and who will support them if needed during testing. Moreover, when resource planning, it can be helpful to identify alternative resources or build slack into your plan to ensure your project gets completed.

Establish test criteria

Test Criteria is a standard that regulates all activities within a testing project. The two main types of test criteria include suspension and exit criteria. 

• Suspension Criteria: Establishes the conditions for suspending all tests.
• Exit Criteria: Exit criteria are established items or goals to complete that define the end of a test phase. The exit criteria of a test are the predetermined results that must be achieved to move on to the next testing phase. For example, 92% of all critical test cases must pass before a feature can be deemed suitable for release to your customers.

6. Plan the test environment and test data

Planning a test environment guarantees precise and robust testing. The test environment includes hardware, software, and network configurations for software testing. Follow these procedures to set up the test environment:

• Determine your hardware and program requirements: Select test environment devices and software, including operating systems, browsers, databases, and testing tools.
• Install the required software: Once prerequisites are established, install the necessary tools on the test environment. This may require setting up a separate server to host the application and installing a database management system or other tools.
• Configure the network: Make sure that firewall protocols, IP addresses, and DNS settings, among other network configurations, are identical between the test and production environments.
• Create the test data: Prepare the test material for the application’s testing. Test data can be created manually with data from the production environment, retrieved from an existing production environment and database, or, created via automated Data Generation Tools.
• Access the builds: Ensure that the builds that the testers will be testing are accessible. One example is setting up a file-sharing or version control system to allow testers access to the most current builds.
• Verify the test environment: After setting it up, check that your test environment fulfills the requirements.

One-page test plan template

If your test plan doesn’t fit onto one page, don’t worry. The intention is to minimize extraneous information and capture the necessary information that your stakeholders and testers need to execute the plan.

Test planning in a test management tool

Test management tools can help your team with their test planning efforts. Whether your goal is to be more agile or accelerate test planning, there are tactical approaches to making a comprehensive and agile test plan with a test management tool like TestRail.

In TestRail, milestones are containers for aggregating test artifacts and tracking different testing activities related to the same outcome. For example, if you create a milestone in TestRail to keep track of a release and connect all of the related test runs and test plans, then you can see all of the different activities you will do for that release in one location.

Image: Manage all your milestones and ongoing test projects in TestRail.

Within TestRail’s milestones, the description field provides a great place to build a one-page test plan. By having all of your test plan information connected to the milestone from the beginning, you can constantly refer back to it as you are planning and ask yourself questions such as, “What was in scope?” “What was out of scope?” “What are we testing or not testing?” and “Are we going to do automated testing in this milestone?” 

Milestones give you an efficient way to quickly refer back to your test plan information from within your actual test management tool.

• Test case priority and type

Test cases define what you will test beforehand; essentially, they outline what you will do before you do it. In TestRail, you can organize test cases based on many hierarchies. This is a key way to start building your test plan.

For example, if you’re developing an advanced messaging app, the highest risk area to your app is that it has to be able to be installed and run. In this example, you might start with that as your smoke test and then do more in-depth functional or exploratory testing.

By capturing test case priority and what type of testing approach you plan to take with a particular test case ahead of time, you are starting to think about planning that test case in practice. 

Image : Organize your TestRail test case repository based on priority.

• Test Reports

Using a test management tool like TestRail for your test execution is beneficial because you can use real-time reports. For example, if you built your plan out in TestRail and you’re executing around that plan, a report like TestRail’s milestone summary report is going to show you your initial test objectives, your initial one-page test plan, all the test runs and plans added within that milestone, the priority you assigned to them, and more. You can also download reports to share with your team or other stakeholders. 

Image: The Milestone (Summary) report allows users to attach project criteria and quickly visualize a clean, shareable interpretation of milestone activity.

 As projects become more complex, using spreadsheets as test plan templates can become unwieldy, and a more sophisticated approach is needed. Use a test management tool like TestRail to make your test plans as flexible as possible.

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Advanced Strategies for Manual Software Testing

• Your Project
• MoSCoW Method

What is the MoSCoW Method?

The MoSCoW Method is a prioritization tool that helps professionals in managing their time and effort .

To do so, it proposes to classify the importance of the different characteristics of a product (or a Project) according to their importance .

Its name is an acronym of the 4 Prioritization Categories proposed (adding two “o”):

• M ust Have .
• S hould Have .
• C ould Have .
• W on’t Have .

Four Prioritization Categories

Must Have : Essential Requirements that the product or project must have.

• Critical Features without replacement.

Should Have : Important desired Requirements for the product or project.

• They can be substituted if necessary.

Could Have : Improvements to the product or project.

• There are different alternatives.

Won’t have : Characteristics agreed not to be adopted .

• No one will waste time implementing them.

Let’s see the first example:

MoSCoW Method example

Imagine that you have been hired to create a Website for a Law firm.

They want a professional Site where people can Register and, once inside, track their court cases .

Since you want to deliver the best possible Site on time, you decide to follow the MoSCoW method .

How does it look like?

Must Have :

• Solid programming without any bugs.
• A Solid Register System.
• A Safe and Reliable personal directory.

Should Have :

• A Fast Site.
• An outstanding Design.
• Notifications sent by e-mail.

Could Have :

• Custom menus.
• Suggestions.
• A Blog section with latest news.

Won’t Have :

• Paid content.
• A Public Members section.

As we usually say, this Method may seem obvious.

Then… Why is it important?

Why is the MoSCoW Method important?

Many of professionals end up wasting time , effort and resources on useless task s that are ultimately not essential at all.

Surely you have experienced this situation working in a Team:

• Everyone spends hours modifying a minor feature and, ultimately, the important thing is missing .

That is why this Method is so important:

• Because it concentrates your efforts and forces you to think about what is really important .

As you can imagine, this Tool can be employed in practically all kinds of situations.

But when do we especially recommend it?

When should you use the MoSCoW Method?

We highly recommend to use the MoSCoW Method:

• To put order and prioritization.
• To avoid wasting time with non-essential touch-ups.
• In order to meet the Essential Requirements.
• When the product can have very different characteristics.

Now, let’s see more examples:

MoSCoW Method examples

We have chosen different real examples where the MoSCoW Method can be of great help for the development of certain products.

Let’s begin:

A Wallet - MoSCoW Method example

Let’s imagine that you are developing a wallet .

As you know, wallets are very modular products.

They can have:

• Several or few departments for cards.
• Coin purse… or not.
• 1 or 2 bill slots.

There is not a canonical wallet (one that is the benchmark for all the others).

• That is why you decided to use the MoSCoW Method to develop it.

After some thoughts, you decide that your wallet:

• 2 bill slots.
• 8 compartments for credit cards.
• High resistance materials and sewing.
• Leather as its main material.
• A translucid Credit card compartment.
• A transverse horizontal compartment.
• A striking color on the inside of the bill slots.
• Completely black exterior color.
• One translucid compartment for small photos.
• A Coin purse.
• A Passport compartment.

Making a Cake - MoSCoW Method example

In this example, we’ll imagine that you are preparing a wedding Cake .

• You have a very rigid deadline (the wedding day, of course).

In addition, as you also know, Cakes can have lots of variations.

• We could say they are very modular .

That is why you decide to use the MoSCoW Method.

How does it look?

Well, your Cake:

• White coating.
• Two sugar figurines on top.
• 6 layers of sponge cake inside.
• Belgian chocolate between the layers.
• Decorations on the edges
• Sugar flowers.
• Chocolate balls.
• Scattered sugar pearls.
• Multicolor layers.
• An excessive amount of decoration.
• Fruit flavor.

Designing a Poster - MoSCoW Method example

You are now an artist hired to Design a poster for a Rock concert.

Obviously, this is a Design job with infinite variations possible.

• Also, you have a close deadline to finish it.

No need to mention that you will use the MoSCoW Method.

Finally, the Poster:

• The name of the Main rock band, very prominent.
• Images and colors that best suit their style.
• A typeface that best suits the musical style.
• An illustration related to Rock in the middle.
• The name of the rest of the bands that will play.
• Where and when it will take place.
• Where you can buy the tickets.
• Nearby metro and bus stations.
• The name of the city.
• The maximum capacity of the stadium
• At what time each band will play.

Summarizing

The MoSCoW Method is a prioritization tool that helps professionals in managing their time and effort.

It proposes to classify the importance of the different characteristics of a product in 4 Categories :

• M ust Have.
• S hould Have.
• C ould Have.
• W on’t Have.

Although this Method can be used in all kinds of situations, we highly recommend to use it:

• When working in a team .
• In Design tasks .
• When there is a close deadline .
• With modular products or projects .
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• Product Management

MoSCoW Method: How to Make the Best of Prioritization

Prioritization played a significant role in the success of most feature-rich apps, such as Slack and GitLab . Initially, they offered a limited set of functionalities that were essential for their users. With time, this set was supplemented with other features. Railsware is going to share its own style of prioritizing and show you how we use the MoSCoW method to get long lists of tasks done.

Why do you need prioritization?

As a rule, the daily routine includes a bunch of tasks. Ideally, you’ll have enough time and energy to cover all of them – but it just might happen that the number of tasks is immense and the resources available are not in abundance. That’s where prioritization comes in.

This term denotes a process to filter what you have to do in order of importance or relevance. For example, if you’re building a house, you are not likely to begin with the roof or walls until your foundation is done. Of course, things are much more complicated in the web development industry, and this example cannot reveal the full-scope value of setting priorities.

Complex projects and numerous startups make use of advanced prioritization techniques. These usually consist of frameworks known for specific requirements or rules that improve decision-making. Success in prioritization often determines the success of the company itself. Getting caught up in pending and undone tasks is a straight road to failure. That’s why businesses pay particular attention to which prioritization methods to use. There are quite a few of them, but they all have some common characteristics, such as orientation towards input (internal or external) and quantitative or qualitative tools.

By the way, we are hiring. Check out our job openings.

External orientation means that you need to involve stakeholders outside the development team to set priorities, while the internally-oriented methods can be executed purely in-house. Quantitative methods entail a deeper focus on numeric metrics in prioritization, and the qualitative one rests on expert opinions, votings, classifications to a greater extent. In view of this, they are traditionally divided into the following categories:

You can read about different Agile prioritization techniques in detail here . If you need, we’ve also gone more in depth on what Agile product development is in a separate article.

Railsware prefers a technique developed by Dai Clegg way back in 1994. Initially, it was named MSCW, but two o’s were added to improve pronounceability. This also made it sound like the capital city of Russia. Let’s see how it works.

What is MoSCoW?

To understand the gist of the MoSCoW method, we need to look at its origin – the dynamic systems development method (DSDM). It is a framework for Agile project management tailored by practitioners with the aim of improving quality in rapid app development (RAD) processes. A hallmark of DSDM projects is strictly determined quality, costs, and time at an early stage. In view of this, all the project tasks have to be allocated by importance. The need for managing priorities triggered the invention of a specialized prioritization mechanism.

This mechanism was implemented via MoSCoW – a simple yet powerful solution to set priorities both with and without timeboxes. However, it shows better efficiency if you have a certain deadline for a task, feature, subfeature, functionality, etc. The framework is applicable to all levels of project prioritization from top to bottom, as well as to all functions and focus areas.

The MoSCoW abbreviation (except for the o’s) is carved with first letters of the priority categories it works with. These are Must-haves, Should-haves, Could-haves and Won’t-haves. And that’s how you can define which task falls into which category.

Prioritization rules

These rules or requirements estimate the importance of any task/process/feature/etc. Each company or work team uses its own approach to setting requirements, but, in general, they do not differentiate much and look as follows.

These are top-priority requirements, which shape the foundation of the major pipeline. Avoiding them means blocking the entire project or further activities. As a rule, product ideation depends entirely on defining must-haves using such pointers as ‘required for launch’, ‘required for safety’, ‘required for validation’, ‘required to deliver a viable solution’, etc.

• Can we move forward with the project if this task is undone? – if NO , it’s MUST .

Should-haves

This type of requirement is of secondary priority. Should-haves do not affect the launch and, traditionally, are considered important but not crucial. They differ from must-haves by the availability of a workaround. Therefore, the failure of a should-have task is unlikely to cause the failure of the entire project. If you’re building a product, it will still be usable even if these requirements aren’t met.

• Will we move forward with the project if this task is done a bit later? – if YES , it SHOULD .

Could-haves

The next requirement is less important than the two previous ones but still wanted. If we compare could-haves with should-haves, the former is defined by a lower degree of adverse effect if omitted. Traditionally, the third-level priority requirements in the Agile framework MoSCoW are realized if a project is not highly constrained in time. Within the product development, we can call them low-cost tweaks.

• Can we sacrifice this task till the deadline? – if YES , it’s COULD .

Won’t-haves

You can also encounter this type of requirement under the name of would-have or wish-to-have, but these variants are not recognized by the Wiki . However, regardless of the chosen name, these requirements define the lowest priority for tasks that are unviable to implement with a particular budget and deadline. Won’t-have does not mean a complete rejection of something. It envisions reintroduction under favorable conditions in the future.

• Can we get back to it when things are going better? – if YES , it’s WON’T .

In search of the perfect tools and techniques, our team often modifies some well-known approaches and tailors them to our needs. This constant search and improvement led us to brand new product ideation and decision-making framework: BRIDGeS . BRIDGeS is a flexible approach for multi-context analysis suitable for building effective product strategies, solving operational and strategic problems, making day-to-day decisions , and more. Find out how to use BRIDGeS and what advantages BRIDGeS can bring to your team .  

MoSCoW is another tool that we modified to make it even more flexible and versatile. Below, we share our findings to help your team nail prioritization in a more efficient way.

How the Railsware team modified MoSCoW

The main difference between the classical MoSCoW and our version of this technique is that we added another level of prioritization within such groups as Must, Should, and Could. Each of these groups of requirements got another 4 complexity categories :

• 3 – most heavy and unclear requirements
• 2 – heavy complexity
• 1 – normal complexity
• 0 – easiest and the most urgent tasks within the group

This way, when a requirement gets, let’s say, the priority Must, we can also add a numeric matter to the letter M. For instance, our sprint can include several M2 tasks, one M1 task, and three S1 tasks.

When the task is marked with the priority “3” (M3/S3/C3), it most likely means that its scope is too large and complex to be fulfilled fast. You need to decompose it into smaller, manageable chunks and prioritize them as well. This way, from one M3 requirement, you can get a bunch of M2, S1, and C1 tasks, for example.

Sometimes, M, S, C, and W letters are not enough and we may also need an Urgent Must (UM) mark. UMs are the most critical things, such as hotfixes, bug fixes, and patches, which block the work of the whole team. From our experience, we recommend you to fix these tasks ASAP, as they hinder the team’s productive work. So if you set any task as UM, you should ignore all other tasks until the UM task is fixed. In normal situations, your bug tracking system shouldn’t have UMs.

Why do Urgent Must tasks appear? Often, UMs are the Must-haves that your team ignored before the deployment phase or missed during the QA phase. Pay attention to these tricky cases, and try to solve them before they become an obstacle.

Advantages of the modified MoSCoW approach

When we got an additional level of priorities within the MoSCoW system, we felt the following improvements:

• No need to run several rounds of task prioritization . When you have six Must-have requirements, you can’t understand which of them are the most critical or complex and run another round of prioritization. Our approach allows us to set priorities and clearly understand the importance and complexity of each task from the first round.
• Saved time . The ability to set all priorities at once saves time for all the team members who take part in the prioritization process.
• More balanced sprints. A sprint that consists only of Must-have tasks has little chance of being fulfilled. Must-haves are usually more complex requirements that guarantee the viability of a product, meaning their implementation takes more time and concentration from a developer. To dilute high-importance work with some low-hanging tasks, you can add some S0, C0, or S1 tasks to the sprint so that users get a bit more full-featured functionality of the main Must-have flows.
• More pleasant products for end users . While M3 and M2 tasks are usually crucial things necessary for the product viability, Could- and Should-haves may represent more pleasant things (changing a theme, additional filters, notifications, etc.) 

How to use MoSCoW

Everything looks simple in theory, but is it in practice? Let’s check out how a traditional MoSCoW analysis of functionality prioritizing works through the example of a regular web application. As a sample, we’re going to use basic functions taken from one of the Railsware products .

List all tasks

Prioritize cards.

Based on particular requirements for budget and time, we can single out the most fundamental features to be implemented in the minimum viable product . After the priority analysis, we’ve got the following:

• A user MUST sign up.
• A user MUST log in.
• A user MUST reset password.
• A user MUST open a time-tracking page.

The top-priority tasks are followed by important, though not vital,functionalities for the app. These are:

• A user SHOULD choose the billing system.
• A user SHOULD delete an account.
• A user SHOULD choose time-tracking options.

The evolution of the app does foresee its availability on mobile devices. However, this task is only nice-to-have at this point.

• A user COULD install a mobile app version.

And now the least-priority feature. It aims at enhancing the user experience once the app is on track. Theme selectability is definitely not what we’re going to make now, so this feature is saved for later.

• A user WON’T choose the app’s visual theme THIS TIME.

Restructure cards according to their priority

This step allows you to see the quantitative ratio of high and low priority tasks.

The most difficult thing about prioritization is to be icily intelligent and focus on the essential tasks to be done. Otherwise, you can get into the EVERYTHING-IS-MUST trap , according to which any feature like the billing system option or mobile app availability turns into the must-have.

And that’s why the MoSCoW Agile method is cool. It allows you to define a basic feature set, which has top priority and emphasizes that you do not need to abandon anything. The healthy balance of must-haves + should-haves is 50% of the entire scope. All (or almost all) of the tasks will be implemented later but in the order of their importance to your goal. The goal of this example is to build an MVP , and the categorization above shows the expected progress of the app’s functionality.

How to use modified MoSCoW

We took the same example with all the tasks listed above to showcase how we apply our version of this prioritization technique.

Set priorities using the extended MoSCoW model

The main priority (Must, Should, Could, and Won’t) are still the same, however, we dived deeper to make a more precise priority estimation of each task. Here’s what we came up with:

• “A user can sign up” got an M2 mark. It is a complex task, but it’s not critically urgent.
• “A user can log in” got an M1 mark. The task is important but not that complex.
• “A user can reset password” got an M1 mark. 
• “A user can choose the billing system” got an S3 mark. It’s an important feature, but its scope is large and should be split.
• “A user can delete the account” got an S2 mark. 
• “A user can open a time-tracking page” got an M2 mark. 
• “A user can choose time-tracking options” got an S1 mark. This is a low-hanging feature that can be taken to a sprint to balance the workload.  
• “A user can install a mobile app version” got a C3 mark. This epic is too large to be implemented in one sprint. Its scope should be split into smaller tasks and prioritized as well.
• “A user can choose the app’s visual theme” got the same priority mark – Won’t, which we do not decompose.

Our modified approach provides a better understanding of the task’s priority and complexity and shows the parts that need to be reconsidered. This way, it’s easier to plan a balanced sprint, taking only tasks that can be implemented (all cards with the priority “3” should be split into smaller tasks) and some small tasks that allow your team to reduce the workload. 

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MoSCoW pros and cons

The framework is quite popular among Agile projects with fixed timeboxes since it allows for managing the requirements for a specific release of a product. This prioritization method has proved its efficiency and reliability within our company as well, and we do recommend it to our clients. However, it is not perfect of course, and an unbiased look can reveal some flaws associated with MoSCoW technique. Let’s take a look at its strengths and weaknesses.

MoSCoW prioritization at Railsware

Let’s take a look at how we set priorities within the company.

Product development: we rest upon a roadmap where the product features and the order of their implementation are specified. As a rule, we leverage MoSCoW to define which feature goes first, which comes second, and so on, taking into account their importance and the interdependence of features. Must-haves and Should-haves are meant for the product release. Could-haves and Won’t-haves are postponed for the future.

HR and recruitment: prioritization rests upon such requirements as the demand for particular expertise, budget availability, timebox (how urgently we need this expertise), and so on. We leverage the similar patterns of setting priorities in other focus areas including on-boarding, branding, marketing, etc.

The biggest challenge of the methodology is that all stakeholders must be familiar with enough context to estimate features correctly. Besides, stakeholders that represent different functions like sales, development, marketing have their own vision of setting priorities, which not always works towards correct prioritization. Investors usually treat all features as Must-haves from their broad-based perspective and need them done without any respect of their implementation order.

Railsware has a Holacratic organizational structure . We take advantage of collective leadership based on the RASCI model and make decisions on different things including prioritization through voting. Team members can choose from several options like really want, want and don’t want. Each option implies a particular point. The option with the biggest point total has the highest priority. For small contexts, a responsible role (team leader, project manager, etc.) can be in charge of setting priorities on his/her own.

MoSCoW alternatives you may find useful for your project

Railsware uses Agile framework MoSCoW heavily and is pleased with it. However, it does not mean that we are closed to other solutions. Besides, a good product manager must consider the key product metrics and build the prioritization according to them. So here are some other worthwhile techniques that you may benefit from.

With this framework, you can define how happy the users are with product features. The Kano Model rests on a questionnaire, which is used to learn users’ attitude to a particular feature (like, expect, dislike, neutral, etc.). Visually, the model can be expressed via a two-dimensional diagram where the vertical axis is responsible for the level of user satisfaction (from totally frustrated to incredibly happy) and the horizontal one shows either how much was invested in the feature (Investment), how well was it implemented (Implementation), or how much users benefit from it (Functionality).

Categorization of requirements includes four types that are prioritized in the following order: must-be, performance, attractive, and indifferent. Must-bes are some basic things that users generally expect. Performance (also known as One-Dimensional) requirements are the golden mean and allow you to increase the satisfaction level. Attractive requirements are those that improve user experience. These are nice-to-haves or could-haves according to MoSCoW. Indifferent ones are less prioritized and sometimes even entirely omitted.

Value vs. Complexity

This prioritization technique is one of the simplest. You can encounter it under the names of Value vs. Cost or Value vs. Effort as well. The method feels intuitive and is aimed at maximizing value delivery. Estimation of features’ importance rests upon how much effort is invested to implement them and how much value they will bring. Here is how it looks visually:

Wrapping up

The art of setting priorities shows the efficiency of your workflow. Railsware’s choice is the MoSCoW project management framework, which has made a good showing in versatile functionalities and products. However, it might be less useful for immense projects with multiple teams involved in the pipeline. We advise you to find an effective prioritization solution that fits your unique needs, and to always avoid getting caught up in countless pending tasks.