Business Model vs. Business Plan for App Development
Almost all business professionals are agreed on one thing and that is the importance of making a business plan. Yet there is a number of organizations existing which doesn’t contain any proper and prescribed business plan model. In this competitive arena, planning is one of the most significant parts to run a business successfully; no matter whether it is a big multinational company trying to expand or a small business representing a fresh product. It is very easy to establish a new project, but without careful planning, it is like going on a journey to an unidentified destination without a roadmap.
Building a mobile application is not that much tough, but to make it something which resolves your customers’ queries is quite difficult. This is the main reason of having a feasible business plan model for mobile app development is important.
Actually, there is a difference between a business model and a business plan.
It is a complete mechanism with the help of which an organization can able to generate its profit. The business model illustrates how an organization is placed within its industry’s value chain and how it organizes its relation with its clients, partners as well as suppliers in order to generate profits.
It’s a document which represents the company’s strategy, plan, and expected financial performance for the upcoming years. The business plan helps to make planning regarding clients, suppliers as well as partners and quantifies their financial effect.
There is a number of entrepreneurs who are anxious by the thought of drafting a business plan. The thought of writing such a comprehensive document might remind you about the old school days or you might feel that you can utilize your time in better ways. But the business plan has solid importance as a planning model, especially for the small business owner. It offers you all the details regarding your business and enables you to analyze the clear facts that are required to build strong business decisions.
Here is a business plan model that might aid you in Mobile App Development.
- Premium business plan model that needs money to download an application or a game.
- Freemium model- Integration of free and premium. It is a good approach to boom the number of users as well as to earn revenue.
- In-App Advertising or we can say free application but with advertisements which is widely utilized in a number of applications in today’s arena. In this, you offer the option of free downloads but meanwhile, continue earning revenues through in-app advertisements.
- Subscription-based app models are ideal for big-screen mobile phones and tablets. By paying some money monthly/yearly, subscribed users can consume the services. You can also use the freemium mechanism in Subscription in which allow users to view some content for free and then prompts them to sign up for a paid subscription.
- There is a business model based on the commission as well where the company performs as a mediator between the retailer and the purchaser.
- Sponsorship involves partnering with certain advertisers who offer your users profitable incentives to conclude certain in-app proceedings.
The strategy of business requires to be decided in advance, as it matters a lot in the design you embrace to develop your application. Also, the mobile application development company should have a good knowledge of developing apps on the basis of similar models.
- Some reasons why you need a business plan?
- Grow your existing business
- Seek investment for a business whether it's a startup or not.
- Help to generate new business
- Deal with experts
- Build new business alliances
- Share as well as explain objectives of the business
- Aids to Hire new people
- Manage displacement
- Share your strategy, priorities, and specific action points
- Set specific objectives for managers
- Secure funding
- Manage cash flow
- Support strategic exit
Change is an ordinary term in the world of business. Small businesses must have the ability to get used to the transformation of industry as well as the requirements of their admired customers. Failure in the adoption of this change can result in a big loss of customers and reduced margins of profit. If you don’t have business planning as a business owner, you are at a big risk as you will face a number of disadvantages.
Time spent in making the best business plan model is time spent well. The more time you utilize, the better you will be geared up.