Mobile app development business plan

Mobile app development business plan

Mar 12, 2022

In the 90s, people’s attention was completely filled with television, since the 2000s, computers and the Internet have entered everyday life. Now we can say with confidence that smartphones rule the world. Using the Internet with a smartphone has become convenient and affordable. Smartphones are known to generate 52% of all web traffic in the world.

It is for this reason that mobile applications are gaining popularity, their market is constantly growing, and entrepreneurs make good money on this. For example, analytics firm App Annie released the results of its 2018 study:
• 194 billion mobile apps installed, 35% more than the previous year
• $101 billion spent on online shopping via smartphone
• Millennials spend 30% more time on non-gaming mobile apps.

We think these numbers are convincing evidence that the prospects for the mobile app market are huge. Monetization of mobile applications can occur in several ways:

  • Advertising. This method is perhaps the most popular. Each application is used by a certain group of people: medical calculators – doctors, educational applications – schoolchildren and students, business software – entrepreneurs, etc. Accordingly, advertisers, knowing which applications their target audience uses, enter into an agreement with the owner of a specific mobile application and place their advertisements.
  • Paid subscription. In addition to free, there are mobile applications for which you need to pay. Such a subscription can be monthly or perpetual.
  • Sale of goods and services through the application. For example, the mobile game itself can be free, but the ability to improve your character, give him some kind of superpowers is paid.
    After you have decided on the theme of the future mobile application (gaming, information and reference, financial and technical, etc.), it is important to choose a platform – iOS or Android. The cost, audience coverage, features of the development and promotion of the application depend on this. According to statistics, up to 14% of smartphones run on the iOS operating system. Despite such a small percentage, iOS applications are actively developed and monetized well. This is due to the fact that Apple users have higher purchasing power and are more likely to order online, buy paid subscriptions, spend more money on online entertainment.

The question that worries all our customers is how much does it cost to develop a mobile application? It is difficult to say the exact cost of an Android application, because it depends on many factors:
• Design intricacies
• Number of screens
• Skill level of developers
• Development speed
• Integration with third party services and systems
• Changes in market trends
• Duration of test runs

To guide you, here are some approximate figures:
• Simple application – 3000$.
• Application of moderate severity – 5000$.
• Complex application – from 8000$.

The cost of developing applications for iOS is on average 20-30% lower than for Android. This is due to the developer not having to optimize the application for many smartphones from different manufacturers. The developer spends less time testing and fixing bugs.

Separately, it is necessary to take into account the cost of promoting the created application. This is often done by independent marketing companies.

Summing up, we can say that the key steps for drawing up a business plan for developing a mobile application are: choosing a topic and concept, platform, creating a technical task, calculating the budget and development time, and drawing up a plan for promoting the application.

Our company has extensive experience in developing mobile applications and is ready to create what you need.

You can see some of our applications on our marketplace profiles:
iOS – here
Android – here