Business Plans for Smartphone Apps
Posted by JessePresley at September 3rd, 2012
Here at Biz Plan Company we have written plenty of mobile business plans, and many of our recent plan requests have come from entrepreneurs involved in the marketing of apps for the iOS, Android and Windows Phone platforms.
There is no single business plan concept for mobile apps; some entrepreneurs would like to be their own in-house developers while others seek to be third-party developers for hire. Some already have their apps approved and listed on the iTunes App Store or Google Play and are looking for marketing funds, while others have not yet begun developing but have the right ideas to distribute and monetize an app.
We are finding that quite a few would-be mobile app entrepreneurs have limited business backgrounds. Some have tried to model their own plans following an Information Technology business plan. Others have a very good grasp on app development but lack a solid business strategy.
The market for smartphone and tablet apps is definitely in place. The projected growth is very promising, and users are very interested in apps. The problem is that developers without a business strategy are not necessarily working or growing with the market. Sometimes they are jumping from one strategy to another, and one look at the Android Marketplace and the disparity in app pricing and features indicates that many developers are operating without a mobile business plan. Some don’t even bother to incorporate or develop a business credit profile.
In our experience, app developers are too eager to monetize apps on sales alone but fail to show lenders and investors key factors like realistic P&L projections, expenditures, side revenue from ad-supported sales, assets, marketing strategy, etc. Our mobile business plans cover all these factors and more, but more importantly we work with entrepreneurs in choosing the right business strategy, which is what investors and lenders really want to see.
Note: We are seeing an uptick in interest from entrepreneurs who intend to develop or market Windows Phone 8 apps. These clients, in turn, are reporting encouraging results with their plans.
Category: Business Planning