Even though an app isn’t a traditional brick and mortar business, the step of writing a business plan is still the same process, only the financial analysis are different due to the membership process
the steps are:
- Executive summary.
- Company description. …
- Market analysis. …
- Organization and management. …
- Service or product line. …
- Marketing and sales. …
- Funding request. …
- Financial projections
Your startup costs include everything that you’ll need to get your business moving. Keep in mind that some of these costs may transfer into ongoing resources, such as legal counsel and software. Most app developers will pay for startup costs with their initial investments.
· Development – Will you be hiring an in-house developer or outsourcing to a development agency? Your development costs will vary depending on who’s building it and what type of app it is.
· Equipment and Software – If you’ve hired in-house developers, they’ll need personal equipment and software. This may include computers, touchpads, development software, and more.
· Legal – As you’re getting started, it’s important to have initial legal counsel. Business lawyers can help you conduct trademark and patent research to understand if your app is infringing on intellectual property. Furthermore, your app may need legal disclaimers for users depending on what you’re offering.
· Submission Fees – Once your app is ready, there will be submission fees to have it featured on app marketplaces like the Apple App Store and Google Play for Android.
· Recruiting and Hiring – As you’re getting started, you’ll likely need a few core employees to help keep your business moving. This might include a lawyer, accountant, developer, and marketing executive. Some businesses may not choose to invest in the recruiting process, while others could spend hundreds of dollars per month on recruiting software and services.
Your ongoing costs may change over time. It’s important to develop accurate estimates for your ongoing costs so you can determine how much you’ll need to break even. Keep in mind that many startups don’t turn a profit until their second or third year. Until then, they’re working toward paying off their ongoing costs using initial funding and investment.
· Marketing – Marketing can include everything from traditional outlets like TV, print, and radio. These days, apps are best marketed online through digital formats like social media, pay-per-click (PPC), and content marketing.
· Payroll – Your business is only operational so long as you have the resources to keep it moving. Your employee salaries are a key ongoing cost.
· Operations – Operations can include everything from office rent, utilities, insurance, taxes, and supplies.
· Hosting – Just like a website, apps need to be hosted on a dedicated server. Hosting costs are usually monthly and depend on a variety of factors. Hosting sites will need to know the type of app you have as well as the number of users and projected growth over time.
· Enhancement and Maintenance – Your initial development cost will get the app up and running, but you’ll still need to account for continual development. As your app gains more users, you’ll be able to track user behavior. Using these analytics, you can optimize your app to make it easier to use or more engaging. You’ll also need to prepare for ongoing maintenance. Just like a website, you may deal with bugs or security issues that need continual updates.
Devise a realistic plan according to the funder’s requirements and other financial regulations. Your bizplanhero will help you compile.