How to Write a Business Plan for your App Startup

• Statement of purpose

  This means you need to full proof the plan about your app which you are going to develop. Statement of purpose will define the purpose of the app which will include the working and problem-solving task of the app. You can’t include the flow chart of the working of the app to define its purpose. The purpose here will be defined by the thoroughly explaining the working of the app.

  When you write about all these, it will also help you to get more clarity about the purpose of your startup and you will be more determined to achieve it. Your USP must be defined in this point which makes you get better from your competitors. While defining about USP you can’t only say that you are better at your competitor.

  You need to define in detail that how you are better than your competitors. Which make you stand alone in the crowd of already available apps solving the same purpose?

• Understand the Problem

  First, of the other entire task, you must understand the problem which customers are facing currently. This will help you in solving it in a better way. You need to understand the problem not only from a developer or entrepreneur viewpoint rather you need to understand the perspective of a customer. Understanding the problem from consumer’s perspective will help you in solving it in a better way and what drawbacks they are facing with the presently available options.

• The goal of your startup

  Goal is the main point which fetches the investor’s as well as co-founders interest in your product. You, yourself must be clear about the goal of your startup. This can be you want to scale it up for lifelong, acquisition, some fix an amount of revenue or number of customers, etc. are the points in which you need to frame your goal. The goal should be defined along with time frame. For instance, how much revenue you want to generate within a particular timeframe. The time frame defining your goal must be 1 to 3 years.

• Market Analysis

  After defining three of the above points; you need to analyze the market. Your product will only scale and be successful if you analyze the market well. Here you need to understand the metrics of your audience. These metrics include the size of the market, market projections, and competitors.

  1. Size of the market: - means you need to study about the demand of your product in the market. There can be two scenarios, one could be that product is already in the market and you just imitate it and providing sometimes better to the customer. In this case, you need to understand the volume of the already demanding customers as well as pitching new who can use it in near future. Another scenario could be that you are the one who is launching the product of its own kind, very first time in the market and you have no idea to get the data about market size. Here you could make use of Facebook or Instagram.

  2. Market projections: - This means you need to project the market using its statistical data. This data could be local or global market-based.

  3. Competitors: - Understanding your competitors and their business is far important to sustain yourself in the market. Competitors are already in the market and serving the number of customers, overtaking their current customers will be tough to do.

• Solution to the problem

  Now when you are your hands in the gloves of your consumer and have deep knowledge about their problem. Concluding a solution to that problem will be easier for you. Must keep in mind that solution can be available to them in the local market but you need to create such app which even eases them get a solution in just a few clicks? This is the best way for customer acquisition.

• Channel

  You need to decide the channel for marketing your product. Developing an app does not restrain you from doing offline marketing. Offline market is still effective to pitch the initial consumers.

• Revenue

  I know this is the secondary point for you. You just need to scale and sustain your startup idea. But revenue is the part which fetches the interest of founders as well as investors to your product. Defining about revenue in the business plan is a win-win situation for you. This will not only fetch their interest but yours too. As a human nature, there will be greed in your interest to if you seamlessly define this part and scale it in that way as you think.

• Cost Structure

  You must define the cost involved in developing the app, marketing the app and for sustaining it for some time. Yes! You read it right, investors, as well as founders, would like to know the fixed estimated cost as well as the variable or contingent cost involved. As this will only decide the pivot point.

• Key Metrics

  You are a startup and you need to consider many numbers of times while making any new step in your business. Due to the shortage of funds, time and energy, you need to define your key metrics. The metrics which are more important to you than others. These are those metrics without which you can’t sustain your startup.

Application Roadmap

Try to consider all these points step by step in the business plan even in the lifespan of your startup. You will get success in your goal of developing, sustaining and acquisition of your app, in an exact same way, you have defined in your business plan. Do you have any questions? Please ask us; we would love to hear from you.