How To Create An Effective App Business Plan

Nigel Tsopo
19 August 2022
12 min read

If there's one thing all successful founders we've worked with at the Startup Development House cannot deny, it's that one of the most important aspects of creating a successful app is having a detailed business plan.

So, you've found yourself thinking, "I need a mobile app for my business".

Planning is the natural next step.

A plan will outline your goals for the app, how you plan to reach those goals, and your estimated costs and revenue projections. All important stuff, right?

Without a business plan, it can be difficult to make smart decisions about your app’s future and determine whether or not it is worth investing in.

A business plan is a guide that turns your ideas into action.

If you're unsure where to start, Startup House can help you create a comprehensive and effective business plan for your app.

Once you have a solid plan in place, you'll be well on your way to developing and launching a successful app. Let's find out how to get this done.

Why You Need a Business Plan for Your Mobile App

Defining Your Strategy

Your app business plan can define your strategy by outlining your goals, how you plan to achieve them, and what resources you will need.

Your business plan should also identify your target market and how you will reach them.

Getting Investors On Board

An app business plan is important to get investors because it shows that you have a clear vision for your business and that you have put together a solid plan to make your vision a reality.

It also demonstrates that you understand the market for your app and that you have a realistic chance of success.

Finally, an app business plan can show potential investors that you are committed to your business and that you are willing to put in the hard work to make it a success.

App business Plans can show how much money you need to start your business and how you plan to repay any loans or investments.

Mitigate Risks

A well-crafted business plan can minimize the risks associated with starting a new business by helping you to anticipate potential challenges and weigh the pros and cons of different courses of action.

By laying out your goals and strategies in writing, you can also make it easier to secure funding and attract talented employees.

Overall, a business plan can help you to reduce the chances of your new venture failing.

5 Important Questions To Answer When Creating A Business Plan For Your App

Let's talk about your mobile app

What is the purpose of your app?

Your app’s purpose should be clearly defined in your business plan. Are you creating an app to make money, or do you have a different goal in mind?

Knowing your purpose will help you determine how to reach your target audience and what features to focus on.

This is also an important consideration when you finally assess the quality of your app from a value proposition perspective.

How will you market your app?

Marketing is essential for any app – you need to let people know it exists! There are many different ways to market an app, so find the ones that will work best for you.

Some common methods include online advertising, social media marketing, and PR campaigns.

What are your estimated costs?

Creating an app can be expensive – make sure you have a realistic idea of how much money you’ll need to spend.

Costs can vary depending on the type of app you create and the features you include. Be sure to factor in things like design costs, development fees, and marketing expenses.

What are your revenue projections?

How much money do you expect to make from your app? This number will depend on many factors, including the type of app, its popularity, and the amount of competition it faces.

It’s important to have realistic expectations and not over- or underestimate your potential earnings.

A well-thought-out business plan is essential for any app development project. By taking the time to create one, you’ll be able to make better decisions about your app and increase your chances of success.

What does a well-structured business plan for mobile apps look like?

Let's explore an app business plan template and what we suggest you should include in it.

App Business Plan Template

Executive Summary

An executive summary is a brief overview of a business plan. It highlights the key points of the plan and gives potential investors or creditors a summary of what the plan is about.

The executive summary should be concise and to-the-point, and it should explain the purpose of the business plan and how it will be profitable.

It should also provide an overview of the company's products or services, its target market, and its competitive advantage.

The executive summary is typically the first section of a business plan, and it is important to make a good impression with this section in order to convince potential investors or creditors to read the rest of the plan.

What problem do you want to solve?

A good business plan will highlight a problem that needs solving. This is important in outlining the necessity of your app. How is it making people's lives easier, and how will it be a game changer?

What is your solution?

When you make a business plan, you need to think of the solution your app provides to the problem you're solving. It's important to communicate this effectively.

This might be something like task management or easy hotel booking, among other things.

Whatever it is, make sure you focus on it in your plan.

What goal are you pursuing?

An app business plan without a goal is like a ship without a captain. It's important to have a goal to help you stay on track and achieve your app's objectives.

Make a Business Description of Your Company

Basic info about your organization, including its history

An organisation summary is an overview of a company or organisation that includes information such as the company's history, size, products and services, and key personnel.

It may also include financial information such as revenue and net income. Organisation summaries are often used by investors, analysts, and others who are interested in learning more about a company or organisation.

Team introduction

To be successful, a business must have a clear vision and mission, as well as a team that is passionate about its work and committed to the company's success.

Take a moment in your business plan to introduce key individuals and explain everyone's skillset. Try to make it as cool as our team page here at the Startup House. Get in touch, and we'll show you how.

Market analysis

A market analysis is important in a business plan because it lets you understand your target market and how to reach them.

It can also help you determine what products or services to offer, what pricing to use, and how much advertising to budget for.

How big is the market?

The market size is how much money people have to spend on your app. Or how many people need the service your app provides.

This can be done by determining how many people there are in a job, location, university course etc., and how much money they have to spend.

It can also be done by looking at how much money people spend on similar products or services.

How does the market change?

It is important to know why the market changes because if you can predict the market's movements, you can make more informed investment decisions.

For example, if you know that a particular target market is more willing to use your app during the winter months and not the summer, you might anticipate a slight user dip for a certain time of the year.

What is the customer persona?

Creating and using customer personas is important because it gives your business a better understanding of who your customers are, what they want, and how to appeal to them. Personas are based on real data collected from surveys, interviews, and other research, so they provide a more accurate representation of your customer base than generalized assumptions.

When you know who your target customers are, you can focus on creating products and marketing that appeal to them specifically.

This can lead to increased sales and a stronger connection with your customer base.

Marketing strategy

Identify the channels you can acquire customers from

There's no one-size-fits-all answer when choosing marketing channels. It will vary depending on your product, your target market, and your budget.

However, some common marketing channels include online advertising (such as Google AdWords or Facebook Ads), PR and media outreach, tradeshows and exhibitions, and email marketing.

To identify the best marketing channels for your business, start by thinking about your product and your target market.

What are the best ways to reach your target market?

Where do they spend their time online?

Which publications or websites do they read?

Once you've answered these questions, you can start to narrow down your options and test different marketing channels.

Having this information in your business plan is essential.

Consider participation in referral programs

There are many reasons why referral programs are important. First, they can help businesses acquire new customers quickly and efficiently.

Second, they incentivize customers to refer their friends and family members to a business, which can lead to more business for the company.

Finally, referral programs create a sense of community among customers and businesses, which can lead to long-term relationships and loyalty.

This could be a good strategy to consider in your marketing efforts and it can be outlined in your business plan.

Define Your Competitors

Choose a Monetization Strategy

It's important to define your competitors in your business plan because you need to be aware of what they are doing and what strategies they may be using that could impact your business.

If you're not aware of your competition, you could be blindsided by their actions and lose market share.

Knowing who your competitors are and what they're up to is a key part of developing a successful business plan.

Funding Plan

A funding plan is important in a business plan because it shows how the business will be funded and how it will generate revenue.

It also helps to attract potential investors and partners. The funding plan should be clear, concise, and easy to understand.

Some elements that should be included in a funding plan are:

  1. The total amount of money needed to start and operate the business

  2. How the money will be used

  3. How the business will generate revenue

  4. The return on investment (ROI) for investors

  5. The exit strategy for investors

The funding plan is a critical part of the business plan and should be carefully considered. It will determine how successful the business can be in the long term.

Final Consideration

Is there a difference between a mobile app business plan and other software?

There is a significant difference between a business plan for a mobile app and other software. A mobile app has the unique disadvantage of being designed for two different platforms (iOS and Android), while most other software only needs to be designed for one.

Additionally, a mobile app has to consider the smaller screen size, which can make design and functionality more challenging, especially when you're venturing into the territory of multi-functional apps like a social media app business plan or a service app business plan.

Every use case presents its own unique set of use cases to consider.

Finally, a mobile app also has to contend with the possibility of users deleting it if they don't like it, which is not an issue with most other software.

Overall, these factors make creating a successful business plan for a mobile app more difficult than for other types of software.


Creating a business plan for your app is an important step in the process of making your app a reality. If you're a mobile app development company, it's important to know how to properly create an app development business plan.

But what should you include in your business plan?

How do you make sure that it is effective and will help you achieve your goals?

A lot of companies have a solid mobile app concept, but they lose track of other important concepts like what developing a mobile application can do to your cash flow; or after development, they may not know what a reasonable customer acquisition cost is in order to recoup the money invested into the app.

A solid app business plan helps to manage all these key metrics - and more.

In this article, we’ve outlined the key components of an effective app business plan and how to go about creating each one. We hope that this information will help you create a well-rounded and successful business plan for your own app.

If you're unsure where to start, the Startup House can help you create a comprehensive and effective business plan for your app.

Once you have a solid plan in place, you'll be well on your way to developing and launching a successful app.


The most important component of your app startup business plan is your market analysis. This is where you determine who your target market is and what needs they have that your app can fulfill.

You should also identify your competition and what makes your app unique and better than the alternatives.

Your marketing strategy should be detailed and specific to your app. It should include how you plan to generate awareness for your app and get it in front of your target market.

You’ll also want to detail your plans for monetizing your app and making money from it.

Your business model should outline how you plan to make money from your app.

There are several different ways to do this, so you’ll need to choose the one that makes the most sense for your app and your target market.

Finally, your financials should include a detailed analysis of your expected costs and revenue. This will help you determine whether or not your app is feasible and how much money you’ll need to get started.

Creating a comprehensive and well-rounded app business plan is essential to the success of your app.

By taking the time to create a strong market analysis, marketing strategy, business model, and set of financials, you’ll be well on your way to making your app a reality.

Key elements that should be included in any business plan for a mobile app include an overview of the app, its features and functionality, target market and demographics, competitive analysis, projected sales and revenue, marketing and promotional plans, and detailed financial projections.

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