Developing a financial plan
You may think that starting your own business is a daunting task. Apart from the necessary planning and market research that needs to be done, the financial side of things requires a lot of focus and determination.
A dedicated mobile app is necessary for new businesses, to ensure complete customer reach and an increased profit. Did you know that according to a recent study by Knicket, there are approximately 40,000 new app releases every month, with an estimated 200 billion app downloads per year by 2017?
Planning the budget for your app development startup
– How much money will be needed to get off the ground.
– What to expect in the first few years in order to best allocate the available
Additional planning for developing the app could include suggestions regarding supplementary staff, premises (or work-from-home) or any other type of additional software or equipment.
A short overview of the costs involved in the mobile app industry
84.5% of Australia’s mobile phone population has accessed the internet using their mobile devices in 2015, alone. This speaks to the powerful source of influence and conversion that the mobile industry is capable of.
Here are some interesting facts regarding the costs and revenues involved in app development:
– 76% of Apple’s App Store revenue was made from in-app purchases in 2013.
– 38% of iOS’ apps are paid, while Android has 31% of apps as paid on their platform.
– The App Store has approximately 20,000 apps which cost more than $6.99.
– The average cost of an app is $1.47 on iOS, compared to $3.74 on Android.
Forecasting the real costs of your app development startup requires rigorous financial planning and a reliable view of the market. To get things started, you need to create a plan for business in the real world.
The first steps:
Depending on whether you are a sole trader or not, the start-up costs for your app don’t account for a great deal of money. Instead, think about calculating costs based upon the situations presented below:
– What your wage is
– The marketing costs involved
– The development costs involved
– Hiring an accountant
– How will you raise the startup funds (for example, through crowdfunding, banks or
venture capital firms).
The budget for app development
In other words, what are the costs involved in the development of the app and the budget allocated for it. Think about the platforms your app will be launched on and the submission fees and processes included.
If you want to submit an app to the iTunes Store, for example, you will need to sign up for a developer account first. Each platform has their own submission fees and additional benefits included in their program.
Monetising the app
From signups and emails to efficient advertising and multiple payment options, monetising your app is crucial in order to transform your startup into a profitable business.
The marketing process
This is what makes your app go viral! If you want to market your app accordingly, think about:
– How you will get good reviews
– Having good SEO practices in place
– Securing reviews from bloggers prior to the app’s official release
– Advertising through social media
– Having a strong and relevant online presence
The successful outcome of your app development startup begins with a good financial plan.
EB Pearls can help you develop a powerful and efficient financial planning template for your app development startup.
Have a chat with us for more information regarding app budget and revenue suggestions.
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