Apps business plan for starting your own software development company
A mobile application business plan for startups has to answer specific, key questions that position the business brand in a highly competitive industry. Apps have proven to be successful marketing strategies for businesses and give consumers access to useful utilities and programs that make web usage much more efficient. One of the first questions the business plan Company Description must answer is whether the mobile apps will target businesses, individuals, or both. The apps business plan will also address topics like the following:
- How will products generate revenue despite the fact a high percentage of available mobile apps in the marketplace are free (charge consumers for mobile app store access, sell local ads, monetize business access, earn portion of revenue from online deals, etc.)?
- How will businesses access products (as one-time purchases, time defined access, pay for play, etc.)?
- What marketing strategies will be used to showcase the mobile app product line?
- Have mobile phone compatibility issues been thoroughly addressed?
- Who are the primary competitors and how will the business manage the fact there is fairly easy market entry for competitors?
- Who will design and develop the mobile apps – business owners, hired staff, business partners, and/or contracted programmers?
How to structure mobile application business plan
In the mobile application business plan is a description of the types of products the company will produce. Mobile Apps for businesses can drive customers to physical businesses or to websites using a variety of techniques. Applications for individuals can streamline mobile searches, simplify access to commonly used websites, and generate recommendations based on preferences. The market segment targeted also makes a difference. Mobile applications designed for tech-smart youth will be different than apps designed for tech-smart baby boomers. The distribution channels mobile businesses will find most effective are also dependent on who will be the primary end users.
The operations strategy and financial projections are going to be closely scrutinized by potential investors that include angel investors, equity partners, venture capitalists, and traditional lenders. Since paid app and app packages will have a relatively small price tag, development and design costs must be minimized to reach profitability within a reasonable amount of time. When mobile products are ready for launch, the marketing strategies have to be streamlined and systemized to penetrate the market quickly.
When you are ready to develop a business plan for mobile application, OGS capital is ready to help. Completing the contact form will get you quick access to an OGS Capital professional with the required expertise in business plan development for technology-related businesses.
5 Reasons to Opt For a Mobile App for Your Business
Technology constantly keeps developing and changing for the better. Businesses can hugely benefit from technology, especially start-ups. Hence, there have been several start-up companies building websites and mobile apps. Currently, a mobile app has taken the place of websites. Now, you may think as to why more and more firms are starting to build mobile apps. The reason is simple. It has turned out to be a boon to their start-up industry hugely that is why more start-up companies are turning to utilize the advantageous aspects of mobile apps.
Those who have a mobile-responsive site for their business are among those 10% industry owners who are already running ahead of their competing industries. Building mobile software, allows you to beat your challenging firms by boosting your leads extensively.
Listed below are 5 advantages of mobile apps that can prove very useful for your start-up and existing business. Learning about these 5 reasons will make your realize why you need a mobile software to enhance your business prospects.
- Ease of Access: Now-a-days almost everyone has a mobile phone. For convenience, every user prefers to get everything in their mobile devices. Thus, when you have a mobile software for your start-up business, you are making your business accessible to millions of users easily on their portable device. The user-friendly feature, where users need not turn to their PC or laptops makes it very convenient. Therefore, more and more people tend to access mobile apps and you can exceed your target audience very quickly just with your start-up venture.
- Customer engagement is Improved: When customers have a software of their requirement right in their mobile devices, there is more customer engagement. The reason for this is that users can easily connect at any point of time, like- while travelling to work, waiting at an airport or just chilling by the beach. They are not limited like earlier times to wires and fixed computers. This is a significant advantage. The more easily customers can connect and engage, the more it gets easy at your end to win their confidence. You can keep them interested and give them the assurance that they can rely on your start-up industry and the services/products you are offering.
- Enhances Brand Identification: The percentage of mobile app downloads in mobile phones has been record-breaking. This proves how extensively people tend to use their smart devices and the importance of apps. By building a mobile app and having it on a mobile phone interface you can make your brand known to hundreds and thousands of people. This will make a huge positive impact of your brand recognition.
- Value Proposition is Perked-up: A mobile app is a supremely convenient way to provide all sorts of helpful info to the users. Any form of promotional offers, discounts, free trails can be instantly provided to the customer through mobile apps. Since, mobile apps have notification feature, the user can immediately learn about the offer or discount, and thereby can benefit from it. This attracts more customers to install it in their respective devices so that they can be updated about discounts at all times.
- It is another outlet to heighten business sales: Users tend to opt for those business deals that provide them easier accessibility and handiness. So, when you will be providing mobile app facility to the customers, they will tend to stop using all those other businesses that require them to log in to websites which causes them inconvenience. The clients will switch to your user-friendly mobile apps and carry-out all dealing with your industry.
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Understanding the Market: It’s Significance
All these above stated 5 benefits of mobile apps can definitely prove fruitful to your start-up industry. But do remember to analyze the market. There is a direct relationship between the market arena and the success of the start-up business. You have to find out what is trending in the marketplace to flourish in your app development business plan. You need to figure out which mobile apps are preferred by the users and what is in those mobile apps that make them so popular among the masses.
To get a grasp of market, you need to dig into the mobile app store. Make a list of all the successful mobile apps and use them. Prepare a list as to how many mobile app you will check out per day and tick them as you go on your task. Only when you actually use them, you will learn what all the range for that particular app is. You can scrutinize the features, check the purchases, and experience the feel of various mobile games and so on. Note down all the things that attracted your interest towards the mobile app and kept you glued to it.
Additionally also note down the troublesome factors that you would not wish to use in your mobile app. Do not rely on your sole perspective about the mobile apps. Get friends, family, kids and neighbors involved in your research. Ask them which sort of mobile apps they prefer and why. The market trends keep changing quite rapidly along with people’s changing preferences of mobile apps. To stay updated at all times visit the play store and check the apps listed under the heading- “Top Charts”. There you will find all the mobile software that are generating the highest revenue.
With all these information, easily accessible, you can study the market conveniently. This will help you mark out all the features that must be built in your mobile app to make it hugely popular. If you can create a mobile app as per the market trends then success is guaranteed.
Write a Mobile App Business Plan: Why and How
There are several essential elements that come collectively as a whole to make a mobile app business plan work successfully. Some of such significant facets are having a balance sheet, keeping track of the losses and profits of the industry, taking note of the cash flow, and also calculating the prospective sales margin. Yes, these play an important role when crafting the mobile application business plan! But, along with these factors the structure too plays a significant role to impress the reader. A well structured business model is always easy to read, understand and appeals to all. So, before you start writing, you must be well-versed with the formal to write a mobile app business plan.
A business plan is basically a business model that helps you to function in an organized manner internally. Moreover, every team member and their designated tasks are mentioned in the document. You have all your thoughts, ideas and targets noted down in the draft. Therefore, it turns out to be a very useful document, not only to acquire funds from the prospective investors but also to aid in functioning and carrying out all the work in a disciplined manner.
Furthermore, as everything is marked out and already written, you can keep track of how your industry is running from time to time. If you are going off track and away from your goals then you can check yourself in time. Without a pre-written draft, you won’t be able to figure out if you go wrong somewhere in your organization.
You must know that not always will you be asked to submit a similar type of business model. For instance-
- Sometimes you may be asked for a broad business model with each and every detail of your business elaborately explained.
- While at times, investors may ask you to present a very short one page business model for mobile app.
- It may also happen that you may be asked to submit a power point business strategy for your mobile app. This often happens as the investors want you to highlight that major aspects of your business.
In any such situation, you may not want to lose out on the prospective investors by presenting something that the clients did not ask for. You would also not wish to present a very confusing and unorganized document which makes it very difficult for the reader to understand what your industry aspires to do. To avoid such instances, it is best to hire a consultant to guide you through the entire process of crafting the document. You may also take the help of good quality business model templates available online.
In order to craft this essential document accurately, we have a sample mobile app business plan format. You can use this format, fill in your company’s vital information under the correct headings and you are good to go.
In the executive summary, you are to present a brief account of your mobile app company. In this concise synopsis you may cover 3 essential things:
- first, the various mobile apps you are going to create;
- secondly, mention about the particular value proposition that sets your mobile app industry apart from all other similar mobile app firms;
- Finally, give a well-calculated prediction of your mobile app sales. Use graphs and diagrams to show a proper break-up of the operation expenses, profit and sale probability.
Industry & Monetary Summary
You need to concisely sum-up about your mobile app industry’s history. State about what sort of mobile apps you intend to develop and what exactly are you looking for.
- Industry Summing-up: Here, you must describe your mobile app firm, not elaborately, give only the crux. In the description write about your mobile app firm’s rights, the set goals and mention where your mobile app company’s is located.
- Financial Summing-up: Here, you ought to state about the monetary help you seek for your mobile app business. For instance: Be clear about whether you are looking for a loan or an investment. Furthermore, you can encompass some info with regards to what you are offering- stocks, services etc.
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Goods & Services
Clarify as to what your mobile app firm intends to provide. Do not fill this section with unnecessary fluff and elaborate detailing. Stick to the point and mention only the essential particulars like the various kinds of apps your company is going to develop, the various services you will provide to your customers, which sort of audience you will be aiming for, and so on.
As the heading suggests, you must make a profound survey of the market arena for the mobile apps your industry develops. The investigation must be stated here and it must encompass:
- Company Analysis
- Consumer Profile, as in which people exactly are your app users, history of their earlier buys etc.
- Competition Breakdown
- SWOT Investigation, in this particular section you state your firm’s strong and weak points, along with the challenging and prospective aspects.
In this slot you ought to write about your promotional tactics, comprising your strategies for market, products and also positioning.
Here, you sketch out your firm’s managerial diagram, recognizing the central members of the team and each of their unique skills and expertise.
Write down your industry’s financial strategy that you have decided upon for the coming 3-5 years. You can use diagrams to clearly state your future goals. You may mention-
- Cash Flow estimate
- Expected Profits & Losses report
- Balance sheets
This sample business plan for mobile application can help you craft your desired business model. Yet, if all this seems too much for you, and you unable to start writing, we have our professionals for assistance. It is quite likely that you have your funding support as well as a rough sketch of your thoughts, ideas and company fact sheet in place. We understand that putting together everything using a sample mobile app business plan may not seem as easy as it looks.
You can trust OGS Capital on this. We have specialists trained in writing mobile app development business plan. Furthermore, if you have any queries on how to make a business plan for an app, we are more than willing to help you. You can also take the aid of templates. Templates are very readily available for free online. These templates have the structure outlined. You can download the template from any trustworthy online portal and fill in your industry’s business information and you are done.
5 Useful Factors to Select a Mobile App Developer
Bank/SBA Business Plan
At the present times, for marketing a business online one of the key tactics is mobile apps. The drastic rise of people of all ages using mobile phones at all hours of the day, installing apps for convenience has proved to be a very helpful promotion medium for company owners. Now, maximum such companies claim to have exceptional mobile app developers who have all the training, skill, knowledge and experience necessary to build mobile apps that users are most likely to download and install in the mobile phones and tablets. Think again! Do you actually have such expert mobile app developers?
The mobile app/apps that your company designs; may be centered on one or several types of services. It might be an online shopping portal where users can purchase various items right at the click of their mobile gadgets. It may be a flight, train or hotel booking mobile app giving users the convenience to book tickets and rooms as per their convenience. It might also be a health and fitness centric mobile app. No matter what the mobile app’s particular purpose focuses upon, you need an expert developer who is equipped with all the talent, and practice to develop a mobile app exactly as you envisioned it. Whoever you hire must have the flair to understand your idea regarding what sort of app you seek and be able to build the mobile app brilliantly.
Now, when you start to sort a mobile app developer out of hundreds having the required degrees can seem to be a daunting task. Do not be intimidated as we have enlisted 5 factors, following which you will be able to pick an excellent mobile app developer with ease.
Ensure the mobile app developer is well-experienced in your particular business
This is a primary essential factor when choosing a mobile app developer because any professional having proper work experience and understanding of your specific industry will be capable of offering better output. Such a developer holds the ability to handle and add lot more to the mobile app designing process’s abstract theoretical aspects as well as the practical technical aspects. Moreover, such industry specialist developers possess helpful insights which aid to build an outstanding mobile app to advertise your industry.
You must ensure that the developer not only understand your company specific requirements but make sure he/she is capable of answering these fundamental points correctly as well:
- What are the things that prove worthy for your company and what all does not?
- Which is the major target audience that you seek through your mobile app?
- What are the precise things that your company is lacking in, that could be fulfilled by the mobile app?
- In which way is your specific mobile app going to stand out among all the other similar existing mobile apps?
Thoroughly analyze the mobile apps which have already been built by the developer
If the interviewed app developer has ample experience in his field of work, has high qualification and is a specialist holding broad understanding of your company’s work, then he/she will be more than willing to share his work folder with you. The applicant will offer you with the information of his past work and showcase all the mobile apps he/she has built. A careful examination of the mobile apps presented in the portfolio of the applicant will give you a fair idea of his/her capabilities. You’ll be able to evaluate the excellence of the mobile app developer. Therefore, making a decision to hire or reject the candidate will become easy for you.
You must always remember that, the mobile apps must have these basic qualities-
- The apps must look appealing
- It should be user-friendly furnished with spontaneous controls
- Must definitely execute their assigned purpose impeccably.
Enquire the app developer about providing client referrals
Any applicant will try his level best to impress you and get hired for mobile app developing job. They may state that they played the key role in app developing for the previous company/companies. You cannot go by whatever the candidate asserts. You have to make your verifications. To verify the truth in such statement you have to get the client referrals from the interviewed mobile app developer.
You have to contact the firm where the candidate was placed. Speak to the company HR and ascertain whether the applicant is telling the truth or is just bluffing to grab the job. The details you extract from conversing with the earlier clients of the candidate will give you a true picture of what is in store for you in case you hire the candidate. You will learn from the client’s experience as to whether you are going to have a pleasant or an annoying experience working with the interviewed mobile app developer.
Do not shy away from posing important questions while in conversation with the customers (as per referrals) like-
- How actively did the app developer participate in the app designing procedure?
- Was the mobile app developer quick to respond to the concerns of the client?
- Was he difficult to cope with?
- Was there a transparency in communication?
- Was there a round the clock mode of communication where the client could speak to the mobile app developer easily and whenever necessary?
- Is the app developer capable of meeting deadlines or is sloppy with his work?
- Was the mobile app developer able to accomplish all the pre-requisites of the design within the budget?
Fix a face-to-face meeting with the mobile app developer
With the rise of mobile app demand by large number of companies, several app designing and developing agencies have cropped up. These agencies cheat the clients by giving false assurances that they have brilliant developers and designers in their team working towards offering the best mobile apps. While in reality they sub-contract the entire developing and designing job to someone who may be residing in some other city or country.
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Most of the times, these types companies intentionally create communication blocks. This is a method by which they restrict clients from getting in touch with the 3rd party mobile app developers.
You won’t achieve an excellent quality, easy-to-use and extremely efficient mobile app by dealing with such kinds of developers who are hard to contact. Communication plays a crucial role when assigning tasks to an app developer. Only when you’ve the freedom to speak freely with the developer, you will be able to share your ideas and thoughts about how you would like the app to look like and what are the functionalities that must be incorporated in its creation.
When you are selecting the app developing agency ensure that they have an exceptional on-staff mobile app developer. You can be sure of that only by meeting the agency in person. You may directly discuss the deadlines, budget and what you need in the app in the face-to-face meeting. Remember to acquire their contact details so that you can share your inputs and ideas from time to time. Additionally, ask them to keep you updated with the work so that you are certain that the mobile app is developed as per your requirements.
When selecting the mobile app developer be flexible about the price
Price is always a very important aspect when choosing a mobile app developer. There is no second thoughts about the fact that price should always be considered. But, it is not highly beneficial to be fixated upon a budget so strictly that you lose out on an expert mobile app developer.
At times, being a little flexible with the price just so that you can hire an app developer who is a specialist in developing mobile app for your industry is a good way to go. Such a first-rate developer will be capable of understanding your idea and transforming it into an attractive fully-functional outstanding mobile app which gets you more than the expected audience. Furthermore, just by selecting app developers as per your fixed budget might end you up with a poor app developer who builds an average quality mobile app that hardly does any good to your business.
This might lead you to hire another app developer who is skilled enough to correct the below standard app that was submitted by the previous developer. Ultimately, by paying twice for 2 different app developers you will be spending more than your estimated budget. Therefore, be smart, spend once, and choose the best app developer at the start itself.
Endowed with the 5 chief factors, you need not have to go through a trial and error method, to come up with a perfectly created mobile app for your business. If you utilize these 5 factors when selecting the app developer right at the start, you are sorted. Scan sample apps similar to the ones required for your industry. You need not copy them but can get useful tips to build the mobile app suitable for your business.
8 Tips To get the maximum Out of Your Chosen New App Developer
- Don’t make advance payment. Hey, you only just hired the developer, so why pay for the work which you didn’t receive yet? It isn’t a safe move so don’t do it.
- Before hiring, set the objectives that the developer needs to achieve. Get a written agreement on that. Be crystal clear when telling what you hope to obtain per objective.
- Do not forget to enquire about if the developer provides any rate cut-offs. There are several app developers who do their first task at a discount price as a good relationship building tactic. If you like their work and hire them again then they charge you their usual fee.
- For payment choose to stick to flat rates. If you opt for pay/hour system then there are chances that the developer will tend to delay your project unnecessarily just to get paid for the extra hours. You are safe from such tricks with flat rates and will get your project done at the fixed time.
- When working with a new developer it is best to give them a small project first. It will give you a fair idea on whether the developer is a good communicator; are you satisfied with the result and so on. If the whole experience wasn’t good enough then there is no use sticking around, just move on to some other developer. If 50% app work, is your first set milestone, then it will be too late to judge the developer and move on to a new one. So, always go with smaller objectives with first timers.
- As far as communication goes, with new developers, try and speak to them every day. A lapse of communication can cost you. Sketch out what you would want from the developer with respect to communication so that they don’t feel alarmed at your calling up daily. Ask them to send a report at the end of the day and speak about it as to whether they are doing it right or you need any changes. If you feel everything is on track, you may say so or just call up to ask if the work is running well.
- You cannot skip any detail, no matter how minute it may seem. It is a team work after all. You need something to be created by another person. To get exactly what you need, you have to explain each and every little thing elaborately. Ensure that whatever you are explaining is correctly understood by the developer.
- If you are impressed by the work done, give the developer some incentive as an appreciative gesture. Again, if the developer finishes your work before the assigned time efficiently offer some bonus for the toil. It shows that you are grateful for their hard work and sends off a positive vibe. The developer will look forward to working with you again.
Each of the about stated pointers are a must when working with a developer for the first time. But, you can also use some tips with developers who aren’t new.
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Finding the Befitting Business Model for Your Mobile App Development Industry
In case you own a mobile app development industry, you already are aware that finding out the money making prospects via your mobile app can be really tough. Of course, there is no denying the fact that the mobile apps are still ruling the market. The reason being the record-breaking sale of mobile phones across the world has changed the way customers choose to get their job done. Now, mobile phones are the rave of every town and with internet facility reaching every nook and corner, each individual prefers to use mobile apps for communication, shopping, banking, and so on.
There are a lot of ways through which you may utilize your mobile apps to churn money. The tricky part is to pick the most apt business model for your app. To help you out of the difficult situation, we have assorted some mobile app fund-making means that are trending currently. You may go through this list and utilize it to zero down on the most apt business model for your app.
Selling Mobile Apps
This one is a simple and clear-cut app business model. All you have to do is, develop the mobile app and sell the complete version of the app. This, in fact, is the most convenient method of employing your app to earn profits.
Free Mobile Apps
If your business focuses on developing leisure activity and gaming apps, then it is the suitable business model for your industry. You may utilize the free mobile app business model with a wide range of mobile apps. Since this particular business model includes multiple techniques to make money using your app, your business can actually reap huge benefits.
When you will offer your mobile apps for free, without charging the users a single penny, you will automatically get an extensive app distribution. After all, we all majorly download and install gaming apps that are free of cost. Achieving a large number of customers was the easy part, the complex part involves in gaining capital out of this broad range of users.
Here are 4 key ways in which you may gain profits via your free mobile apps:
- Pro/Enhanced Version: Maximum industries utilize this version out of the various free business model versions as it may draw the highest number of users. Here, you offer a free sneak-peak of your mobile app to the users. As the customer starts using your app’s pro version, they get hooked in and you provide them with the premium version. To upgrade to the premium version, which contains enhanced features you charge a fee from them. Thus, you generate revenue.
- In-App Marketing: This revenue generation trick works only when you have a humongous number of customers for your mobile app. You may select to go with this type of in-app marketing business model by allowing permission to the advertisers to access the large quantity of customers that you own for your mobile app. You have to get at least thousands of users for this particular business model. The advertisers will showcase their adverts in your app through which you may make profits. You must have noticed several ad pop-ups while playing in a gaming app. This is called in-app advertising.
- In-App Purchases: In this case, you get the opportunity to earn money by offering your mobile app users to buy content within the app itself. For instance, if it’s a gaming app then the user will get the chance to buy various weapons, coins, diamonds, cars, tools, etc. at each level. They can also buy additional levels in the game. Moreover, if the user wishes to remove the various ads and other limitation in the app, he/she can do so by spending some real money.
- Service App: You can churn monetary gains by using service apps too. To do so, you ought to offer you users an important function at a cost. This can turn into a flourishing app business plan only when you successfully meet 2 major criteria. First you have to find an area that is not been served well. Secondly, you have to offer that area some value-added services from time to time without fail. If you may achieve to constantly offer such services then you can keep the cash flow coming in regularly. Start off by testing your app versions in a restricted zone. Always keep in mind that to run this business model effectively and make long-term profits, you must have a large number of mobile app customers.
So as to distribute contents, tool, & program utility to users, subscription apps are turning out to be the most popular way. In case you are offering your customers any of the below mentioned mobile apps, then you must definitely pick the subscription app business plan:
- Content App: A large number of newspaper, books and magazine publishing industries are opting to keep in pace with the changing times. Hence, they are upgrading their content distribution method from printed content to the virtually readable content. They are choosing the subscription after marking the significant rise in their profit margin. Reading news in paper has become an older generation habit, which is quickly changing due to the convenience of smart gadgets. Furthermore, reading news, articles etc. in a mobile device has added advantages. The reader can watch live videos and also read more on a chosen topic of news via the provided links.
- Tool App: To supply users with further convenience and ease of accessing the content, certain subscription apps offer online tools. These tools can be utilized by the customer along with the content in their everyday life. The tools have been designed to enhance the user’s readability and also to tailor the information as per their convenience. For instance, if a reader regularly checks the stock market, the online tool will aid him/her to customize the stock market data in a pie-chart or as a bar diagram to make it convenient to see whether the user’s selected stocks are going up or down.
- Program App: Do not sell apps if they fall under the program category. It will not be a wise decision. Irrespective of the fact, as to whether you have developed a program app that offers imaging, software or writing functions, you must choose to provide it via subscription mobile apps business plan only. Mainly because, this particular business model is capable of supplying you with highest cash flow and you will be at loss in case you opt to sell the program app version. Across the globe several big-shot industries have been implementing subscription app business plan due to its high success rate.
Developing Apps for Other Firms
Many mobile app developing industries brush aside the thought of making money by developing apps for other industry. They are so gripped with the idea of creating a mind-blowing mobile app that they disregard offering development service for various other industries. They feel it will waste their time and take them away from their goal. It is a misconception! In order to build a brilliant mobile app that provides customers with awesome features you require a sound capital.
Hence, by developing app for other companies you may earn the funds that will come in use for you to build your dream app. Furthermore, as you create, develop and design mobile app for other firms, your skills are polished. All the minor errors here and there get corrected while you are doing development services for other industries. Ultimately when you work on your very own app, you make no errors and are proficient enough to create an exceptional mobile app.
These are diverse app development business plan. It is your decision to choose any app business plan which suits your mobile app industry aptly. It is very important to choose the apt app development business plan, especially because only correct industry business model is capable of making your mobile app successful.
If you aren’t able to select the mobile app business plan that would be most suitable with regards to your industry, we may assist you. Contact OGS Capital for any problem you have been facing with regards to a mobile app development business plan. Our trained professionals who are specialists in their field will all encompassing knowledge and experience. Their sole aim would be to guide with every sort of assistance you may require. Our experts may also assist you if you’ve any queries as to how to make a business plan for an app. You may also utilize our unique sample business plan for mobile application as a reference. If you are having difficulty regarding which task you must start first, just dial up and speak to one of our consultant.
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