Mobile application development business plan for starting your own company

From being just another technological gimmick to becoming something we use for pretty much anything, mobile apps have come a new way. As of now, everyone needs a mobile app. Businesses, services, retailers, all of them. We are presenting this mobile app business plan that you can use to establish your own mobile app development business.

Read through this document if you want to know how to write a business plan for an app. This mobile application business plan template will cover all there is to starting a mobile app development business from planning to the finances involved in it. The requirements for this are just like those for a online dating business plan.

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Executive Summary

2.1 The Business

Rob Developers will be a cutting-edge company in the field of mobile application development and will act as an example for this mobile application startup business plan that you are about to go through. The business will be focused at providing all mobile application development services under one roof. It will be owned by Rob Hancock who will also be the chief executive.

2.2 Management of Mobile Application Development Business

If you want to know how to write a business plan for a new mobile application, the next step is learning the management structure of the business. As said earlier, the business will be headed by Rob Hancock. He will be hiring 3 managers for business process improvement. These managers will be responsible for external relations, operations, and sales of the business.

Just like a video games business plan, the managers will be answerable to Rob and all the important matters would be brought to his notice as and when they arise. Rob will exercise supreme power over the business and his decision, after consulting the concerned manager, will be final.

2.3 Customers of Mobile Application Development Business

As mobile application development is a diverse business, the customers will also be from a range of different categories. The main customers of this business will be:

  • Businesses who want online store apps.
  • Corporations that need apps for employees.
  • Educational institutions needing campus management system apps.
  • People who want to get mobile apps developed for a business.
  • Companies who want apps developed for their products.

2.4 Business Target

Subjectively, the target of Rob Developers is to become the leading app developer in the US. The following objective targets are set at the start of the business:

  • Having at least 10 permanent long-term clients by the end of the first year.
  • Starting to generate at least $27,000 in profits per month by the end of the three years.
  • Bringing innovation into the business wherever possible.
Mobile Application Development Business Plan - 3 Years Profit Forecast
Nonprofit Start-Up Business Plan 
Discloses concept of non-profit/charity organizations to attract financing from donors, government agencies, and investors.

Company Summary

3.1 Company Owner

This mobile app development business will be headed by Rob Hancock. Rob is a software engineer and has been the mobile app development team leader at a reputable software solutions firm for 5 years. He is passionate as well as well-educated and experienced for this job.

3.2 Why the Mobile App Development Business is being started?

Looking at app business plan examples, we can tell that it is a must to have a strong reason, other than money, for starting a business. The reason Rob is starting this business is that he ahs a passion in developing mobile applications. He has been doing it for a very long time.

In addition to that, Rob has made quite a lot of friends in the field. He is confident that he can bring together the perfect combination of developers and clients onboard that will make it very profitable to run the business.

Let’s now see some other aspects of this business plan for app startup.

3.3 How the Mobile Application Development Business will be started?

Step1: Planning Phase

Planning is one of the most important aspects of any sample business plan for mobile app is the planning phase. This is the phase where the business owner needs to conduct research on the demand and supply situation in the field to see if the venture is even worth investing the money.

Different surveying tools will be used to make sure that the field has enough space for a new entrant to enter and actually make profit.

Step2: Brand Development

As the mobile app development field is a pretty crowded one, the business needs to make a brand that people can trust. Only then can they be successful in getting enough customers.

Step3: Establish An Office

People cannot trust a company which does not have an office. Rob Developers will establish an office in Downtown Manhattan where the business will operate from.

Step4: Establish a Web Presence

It goes without saying that any technology-related business has to have a web presence. Rob Developers will establish a website that will serve as an interface for connecting with the customers as well as for marketing.

Step5: Promote and Market

An elaborate marketing plan will be made to make the business and the brand known to the target audience.

Mobile Application Development Business Plan - Startup Cost
Start-up Expenses 
Research and Development$32,000
Expensed Equipment$48,000
Start-up Assets$330,000
Cash Required$351,000
Start-up Inventory$46,000
Other Current Assets$232,000
Long-term Assets$250,000
TOTAL ASSETS$1,209,000
Total Requirements$1,552,200
Start-up Expenses to Fund$343,200
Start-up Assets to Fund$1,209,000
Non-cash Assets from Start-up$1,585,000
Cash Requirements from Start-up$321,000
Additional Cash Raised$56,000
Cash Balance on Starting Date$32,000
TOTAL ASSETS$1,994,000
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$36,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,552,200
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$376,800
Total Funding$1,552,200
Any questions? Get in Touch!


    Now that we know these things about establishing a mobile app development business, the next thing this mobile application business plan template needs to cover is the services this company will be providing to the customers. In a broader sense, we will be providing all the services of software development.

    However, just like a business plan online store the services of this app development business plan can be divided into the following four categories.

    • Mobile Application Development

    This, as the name suggests will be the chief service provided by the company. We will cater the needs of any and all people who need to have a mobile app made for any purpose. The company’s bulk resources, and manpower will be dedicated to this service.

    • Web Development

    This service will be provided to augment the apps as well as in the form of a dedicated service. We will provide all sorts of web development services for mobile and desktop use scenarios.

    • Cybersecurity

    Cybersecurity is one of the chief concerns for the people using mobile apps. We will provide this service so that the people coming to us can get all the services in one place.

    • Cloud-Native Development

    The software world is shifting to the cloud faster than we think. It is imperative to include cloud-native development services in our menu to make sure we get substantial business and long-term clients.

    Marketing Analysis of Mobile Application Development Business

    Franchise Business Planning 

    Having an in-depth knowledge of the industry is a must for making a business model mobile app. In this section, we will be looking at the marketing analysis of this start up application mobile. The industry we are looking at is a $170 billion industry. This means that if you start a successful business in this field, we can make some serious money.

    Before you know more about how to make a business plan for an app, there’s another thing that you need to know. The mobile app development industry is going to grow to the size of $470 billion by the end of 2026 which is a projected growth the like of which no industry has seen in the recent history. This makes this application for business proposal a lucrative one for any investor.

    5.1 Market Trends

    Now, we have to have a look at the market trends of the app business plan. Just like starting a virtual assistant business, this field has seen its fair share of growth in the past years. The main thing to be noted here is that this industry has not been easy to enter by newcomers, not even by a long shot.

    Just like any business plan for a video game company, we need to make sure that we bring something new to the table. Only the companies focusing on innovation and novelty have been successful in this field.

    5.2 Marketing Segmentation

    The expected market segments that the mobile application development business will be serving will include:

    Mobile Application Development Business Plan - Marketing Segmentation

    5.2.1 Corporate Clients

    These will be the long-term clients that will give us a steady stream of income. These will not be in a large number but will be the high-paying ones.

    5.2.2 Educational Institutions

    This will also be a source of sustained income. These clients will hire our services to get campus management systems made.

    5.2.3 Individual Clients

    These will be the small business clients looking to have mobile apps made for their business. These will not be very high paying but will be in a large number.

    5.2.4 Small Businesses

    Small business who want to have a mobile app for their products will also be one of the market segments for our business.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Corporate Clients32%41,00042,00043,00044,00046,00010.00%
    Educational Institutions22%24,00025,00027,00028,00029,00010.00%
    Individual Clients27%34,00036,00038,00039,00040,00010.00%
    Small Businesses19%19,00020,00022,00024,00025,00011.00%

    5.3 Business Target

    • To be the leading mobile app development service provider in the USA.
    • To start making sustained profit of more than $27,000 a month after three years.
    • To have long-term corporate clients who can give us business on a permanent basis.
    • To be the first to accept new things and innovation in the field of mobile app development.

    5.4 Product Pricing

    We will price our products and services around the average of the competition, a bit higher. This is because we will be hiring the best professionals of the field and that comes at a price.

    Marketing Strategy

    Moving on, the next thing needed to complete this mobile app business is the mobile app marketing strategy template because the business plan cannot be complete if we do not have a mobile app marketing plan pdf. The marketing strategy of this business will be centered around two things, innovation, and experience.


    We will be an innovative company and will be hiring some of the most experienced people of the industry from all over the country. Those are the most important things for any  “”business plan for an internet startup  and will give us the competitive edge we need to be successful.

    6.1 Competitive Analysis

    1. After running an extensive competitive analysis, we have determined that we will be the leading providers of cloud native development services in the area.
    2. The second competitive edge we have is the CEO of Rob Development, Mr. Rob Hancock. He is an experienced and educated man who will be a great asset for the company.
    3. The third competitive edge Rob development is going to have will be the innovation. We planned to be the first company in the US to adopt any new tech that comes to the market.

    6.2 Sales Strategy

    • We will use print, electronic, and social media to advertise the business to drive sales.
    • We will use all possible ways to get projects from notable clients that can earn us top dollar.
    • We will price our products and services according to the competition in the field.

    6.3 Sales Monthly

    Mobile Application Development Business Plan - Sales Monthly
    Any questions? Get in Touch

    6.4 Sales Yearly

    Mobile Application Development Business Plan - Sales Yearly

    6.5 Sales Forecast

    Mobile Application Development Business Plan - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Mobile Application Development48,00050,88053,933
    Web Development45,00047,70050,562
    Cloud-Native Development28,00029,68031,461
    TOTAL UNIT SALES156,000165,360175,282
    Unit PricesYear 1Year 2Year 3
    Mobile Application Development$45.00$52.20$60.55
    Web Development$50.00$58.00$67.28
    Cloud-Native Development$60.00$69.60$80.74
    Mobile Application Development$2,160,000.00 $2,655,936.00 $3,265,738.91
    Web Development $2,250,000.00 $2,766,600.00 $3,401,811.36
    Cybersecurity $1,610,000.00 $1,979,656.00 $2,434,185.02
    Cloud-Native Development $1,680,000.00 $2,065,728.00 $2,540,019.15
    TOTAL SALES$7,700,000.00 $9,467,920.00 $11,641,754.43
    Direct Unit CostsYear 1Year 2Year 3
    Mobile Application Development$43.00$49.00$56.00
    Web Development$48.00$55.00$63.00
    Cloud-Native Development$58.00$66.00$76.00
    Direct Cost of Sales   
    Mobile Application Development$2,064,000.00 $2,493,120.00 $3,020,236.80
    Web Development $2,160,000.00 $2,623,500.00 $3,185,406.00
    Cybersecurity $1,540,000.00 $1,855,000.00 $2,241,582.00
    Cloud-Native Development $1,624,000.00 $1,958,880.00 $2,391,020.80
    Subtotal Direct Cost of Sales$7,388,000.00 $8,930,500.00 $10,838,245.60

    Personnel plan

    The mobile app development business plan also needs to discuss the staff that will be needed to start and run the business. If you need to know how to create a business plan for an app, here is a rough outline of the staff the company will need.

    7.1 Company Staff

    • Rob Hancock will be the CEO.
    • 3 Managers for operations, sales, and external relations.
    • 5 App developers.
    • 3 Web developers.
    • 2 Cloud-native developers.
    • 2 Cybersecurity experts.
    • 1 Office boy.

    7.2 Average Salary of Employees

    Personnel Plan   
     Year 1Year 2Year 3
    Operations Manager$14,000$15,400$16,940
    Sales Manager$13,000$14,300$15,730
    External Relations Manager$13,000$14,300$15,730
    App Developers$54,000$59,400$65,340
    Web Developers$35,000$38,500$42,350
    Cloud-Native Development$24,000$26,400$29,040
    Office Boy$6,000$6,600$7,260
    Total Salaries$185,000 $203,500 $223,850

    Financial Plan

    The next thing we need is the financial plan for mobile application. Here is the rough outline of the finances that will be needed to start the business.

    • The cost of setting up the office.
    • Salary of the staff for the first six months.
    • The money needed for promotion of the business.
    • The money needed for hiring the staff and conducting the interviews.
    • The money needed for setting up the website of the business.
    Any questions? Get in Touch!

      8.1 Important Assumptions

      General Assumptions   
       Year 1Year 2Year 3
      Plan Month123
      Current Interest Rate8.26%8.27%8.30%
      Long-term Interest Rate8.33%8.36%8.45%
      Tax Rate23.80%24.06%24.56%

      8.2 Break-even Analysis

      Mobile Application Development Business Plan - Break-even Analysis
      Break-Even Analysis 
      Monthly Units Break-even5343
      Monthly Revenue Break-even$131,200
      Average Per-Unit Revenue$235.00
      Average Per-Unit Variable Cost$0.62
      Estimated Monthly Fixed Cost$163,980

      8.3 Projected Profit and Loss

      Pro Forma Profit And Loss   
       Year 1Year 2Year 3
      Sales$7,700,000 $9,467,920 $11,641,754
      Direct Cost of Sales$7,388,000 $8,930,500 $10,838,246
      TOTAL COST OF SALES$7,388,000 $8,930,500 $10,838,246
      Gross Margin$312,000 $537,420 $803,509
      Gross Margin %4.05%5.68%6.90%
      Sales and Marketing and Other Expenses$110,000$126,000$127,000
      Leased Equipment$0$0$0
      Payroll Taxes$29,000$30,000$31,000
      Total Operating Expenses$333,540 $369,556 $392,300
      Profit Before Interest and Taxes($21,540)$167,864$411,209
      Interest Expense$0$0$0
      Taxes Incurred($4,308)$33,573$82,242
      Net Profit($17,232)$134,291$328,967
      Net Profit/Sales-0.22%1.42%2.83%

      8.3.1 Profit Monthly

      Mobile Application Development Business Plan - Profit Monthly

      8.3.2 Profit Yearly

      Mobile Application Development Business Plan - Profit Yearly

      8.3.3 Gross Margin Monthly

      Mobile Application Development Business Plan - Gross Margin Monthly

      8.3.4 Gross Margin Yearly

      Mobile Application Development Business Plan - Gross Margin Yearly

      8.4 Projected Cash Flow

      Mobile Application Development Business Plan - Projected Cash Flow
      Pro Forma Cash Flow   
      Cash ReceivedYear 1Year 2Year 3
      Cash from Operations   
      Cash Sales$55,000$59,400$64,152
      Cash from Receivables$19,000$20,520$22,162
      SUBTOTAL CASH FROM OPERATIONS$74,000 $80,660 $87,113
      Additional Cash Received   
      Sales Tax, VAT, HST/GST Received$0$0$0
      New Current Borrowing$0$0$0
      New Other Liabilities (interest-free)$0$0$0
      New Long-term Liabilities$0$0$0
      Sales of Other Current Assets$0$0$0
      Sales of Long-term Assets$0$0$0
      New Investment Received$0$0$0
      SUBTOTAL CASH RECEIVED$74,000 $81,000 $88,000
      ExpendituresYear 1Year 2Year 3
      Expenditures from Operations   
      Cash Spending$40,000$41,000$42,000
      Bill Payments$19,000$21,000$22,000
      SUBTOTAL SPENT ON OPERATIONS$59,000 $62,000 $64,000
      Additional Cash Spent   
      Sales Tax, VAT, HST/GST Paid Out$0$0$0
      Principal Repayment of Current Borrowing$0$0$0
      Other Liabilities Principal Repayment$0$0$0
      Long-term Liabilities Principal Repayment$0$0$0
      Purchase Other Current Assets$0$0$0
      Purchase Long-term Assets$0$0$0
      SUBTOTAL CASH SPENT$60,000 $64,800 $69,984
      Net Cash Flow$18,000$20,000$22,000
      Cash Balance$26,000$27,000$29,000

      8.5 Projected Balance Sheet

      Pro Forma Balance Sheet   
      AssetsYear 1Year 2Year 3
      Current Assets   
      Accounts Receivable$26,000$29,120$32,731
      Other Current Assets$1,000$1,000$1,000
      TOTAL CURRENT ASSETS$285,900 $320,208 $359,914
      Long-term Assets   
      Long-term Assets$10,000$10,000$10,000
      Accumulated Depreciation$19,000$21,280$23,940
      TOTAL LONG-TERM ASSETS$26,000 $29,120 $32,760
      TOTAL ASSETS$298,700 $334,544 $376,362
      Liabilities and CapitalYear 4Year 5Year 6
      Current Liabilities   
      Accounts Payable$19,000$21,280$23,919
      Current Borrowing$0$0$0
      Other Current Liabilities$0$0$0
      SUBTOTAL CURRENT LIABILITIES$16,000 $17,920 $20,142
      Long-term Liabilities$0$0$0
      TOTAL LIABILITIES$15,000 $16,800 $18,883
      Paid-in Capital$29,000$30,000$30,950
      Retained Earnings$58,000$63,220$69,542
      TOTAL CAPITAL$298,600 $325,474 $358,021
      TOTAL LIABILITIES AND CAPITAL$313,600 $334,544 $376,362
      Net Worth$297,000$323,730$356,103

      8.6 Business Ratios

      Ratio Analysis    
       Year 1Year 2Year 3INDUSTRY PROFILE
      Sales Growth7.29%8.08%8.95%3.00%
      Percent of Total Assets    
      Accounts Receivable9.12%10.10%11.20%9.80%
      Other Current Assets2.09%2.32%2.57%2.40%
      Total Current Assets150.20%151.00%152.00%158.00%
      Long-term Assets11.44%11.60%11.70%12.00%
      TOTAL ASSETS100.00%100.00%100.00%100.00%
      Current Liabilities4.95%4.99%5.04%4.34%
      Long-term Liabilities0.00%0.00%0.00%0.00%
      Total Liabilities7.60%7.66%7.73%7.38%
      NET WORTH101.30%102.11%103.05%110.00%
      Percent of Sales    
      Gross Margin95.00%97.57%100.30%99.00%
      Selling, General & Administrative Expenses95.00%97.57%100.30%97.80%
      Advertising Expenses1.60%1.64%1.69%1.40%
      Profit Before Interest and Taxes42.00%43.13%44.34%33.90%
      Main Ratios    
      Total Debt to Total Assets0.17%0.17%0.17%0.40%
      Pre-tax Return on Net Worth74.20%75.20%75.59%75.00%
      Pre-tax Return on Assets95.03%99.78%104.77%111.30%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin34.08%35.14%36.23%N.A.
      Return on Equity53.26%54.91%56.61%N.A.
      Activity Ratios    
      Accounts Receivable Turnover7.77.87.8N.A.
      Collection Days100100100N.A.
      Inventory Turnover32.233.8133N.A.
      Accounts Payable Turnover15.51616.4N.A.
      Payment Days272727N.A.
      Total Asset Turnover2.42.42.6N.A.
      Debt Ratios    
      Debt to Net Worth-0.04-0.03-0.04N.A.
      Current Liab. to Liab.111N.A.
      Liquidity Ratios    
      Net Working Capital$250,000$264,000$278,784N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.880.870.87N.A.
      Current Debt/Total Assets1%0%0%N.A.
      Acid Test29.229.429.7N.A.
      Sales/Net Worth2.12.12.2N.A.
      Dividend Payout000N.A.

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