An Expert’s Perspective on Better App Startup Business Plans

Have you read through sample app startup business plan PDFs on Google? Read five of them in a
row, and you will be bored to death by the sixth. The secret for connecting to investors through a mobile app business plan is very similar to how authors structure
novels to connect with readers. In this article, we will introduce the components of a Mobile App Startup Business
Plan, and teach you how to build an awesome plan using our “Novel” approach.
[ebook-form]

What is the “Novel” Approach to Writing App
Startup Business Plans?

I’d guess that the average tech investor receives dozens of business plans for apps to their
e-mail each month. I’d also guess that the average app startup entrepreneur believes that this investor routinely
and excitedly reads the thousands of pages they receive. Truth is, investors are either excited about or
disengaged with a plan from the moment they look at the cover page.

Think about shopping in a bookstore. You’re looking randomly at a bookshelf for a great mystery novel. You see an
awesome cover, and you grab the book off the shelf. Then, you flip the book over and read the summary. Sounds
boring, you
put it back. You repeat this process until you find one that is worth purchasing and reading.

This is the same process that investors go through when reviewing mobile application business
proposals If they see something that looks interesting, they read the executive summary, and then make a decision on
whether it is worth reading or whether it fails to peak their interest.

The ThinkLions “Novel” approach to writing a business plan adopts the same principles that make novels interesting
to readers. What is it about a summary that makes a reader anticipate reading an entire novel? What is it about a
novel
that captivates readers to willingly engage with 200 pages of text? The “Novel” approach answers these questions and
applies them to the business plan writing process to create plans that are better written, more captivating, and
ultimately, more successful.

Why a Mobile App Startup Business Plan is
Different than a Traditional Plan

The “Novel” approach works especially well for representing a mobile app business model.
While a mobile app plan has many of the same components as a traditional business plan, there are also many vast
differences and considerations that must be accounted for. App startup business plans must especially consider:

1. Size of Market:
   Physical businesses don’t have the reach that mobile apps do. Since 25% of the entire world is connected to a
   smartphone, phone app business plans must consider a much larger market. As a result, market number expectations
   for mobile apps can often seem unrealistic to investors.
2. Design:
   UI/UX and design are extremely important in software. Your business plan should consider and explain how your
   application will look, feel and navigate. This is especially important if you have not built a prototype or MVP,
   as
   you will have to detail the user journey through text and visual examples.
3. Revenue Model: Apps typically have very specific revenue model types. For
   example, many apps use one (or several) of the following mobile app business models to generate revenue:
   freemium, advertising, in-app purchases, subscriptions, or one-time fees (upfront payment to download app).
   Finding the right revenue model is critical for an app startup, as in some cases, there are
   benefits to using one specific revenue model over another.
4. Proof of Concept: New appsare launched every day and competition is
   extremely high for those seeking investor funding. In the software world, investors
   want to see that there is a clear need and demand for your software. They don’t just want research; they want
   proof. Your app startup business plan should show how you have tested your concept thoroughly, and explain how
   results of that testing proves that there is a demand for your solution.

App Startup Business Plan: The “Novel”
Mindset

There are hundreds of business plan templates available on Google. Most of them are acceptable formats for
organizing your information. What’s more important than the format of your plan, is the mindframe that you have
while writing
your plan.

Consider what your business plan says about your brand. Not what it literally says, but what
is said between the lines.

• Tone:
  Depending on your brand and industry, your brand personality should be expressed through the tone of your
  writing. Does your brand foster a culture of humor, or expertise, or even aggression? If so, the language and
  tone that
  you use should introduce and expose these qualities.
• Precision: When writing business plans for apps, be sure to never make opinionated
  assumptions. State facts or opinions that are based on strong evidence, and prove any assumptions before you
  write them in your plan. There is a huge difference in stating that “Teachers need apps to help them grade
  better” and that “78% of teachers agree that a mobile app would help them grade better”. One is an opinion,
  while the other is a statistic based upon real survey data.
• Brevity & Completion:
  Experts often say to keep your business plan under a certain number of pages — say, 20 or 30 pages.
  Realistically, your plan needs to be whatever length allows you to tell the complete story of your app startup
  in a brief but complete manner. Sometimes however, such as when applying for incubators or accelerators, there
  may be a certain page length requirement. Otherwise, it’s much better to have a longer plan than a plan that
  leaves questions and confusion. The trick is to be direct with each point and eliminate any fluff or unnecessary
  information.
• The Plot:
  In some ways, you are literally telling a story — the story of how your concept will grow into a sustainable
  and successful business. No one likes reading textbooks. We read them when we have to, but no one actually
  enjoys it
  (well, I don’t anyway). Think of your app business plan like a novel — you want to draw emotion and take
  readers on a journey from start to finish. Successful app startup business plans not only inform the reader, but
  they engage them, and in some cases, even entertain them.

Writing the App Story

To people who don’t read plans all day, the individual sections of a business plan can seem
somewhat disconnected and independent of one another. However, we’re writing a novel and not a textbook. This means
that each chapter isn’t a separate lesson, but a continuation of the story. The journey for a successful business
plan moves from chapter to chapter, building upon the story with new information. Consider the following plot:

• Description of the business: A great story always starts with an introduction of the
  character, or in the case of an app startup business plan, the Company or brand. The goal in the beginning of
  the story is to explain the character’s personality and mission, and to build a connection between the character
  (brand) and the reader. If this story were about Batman, we
  would start by introducing Bruce Wayne and establishing him as an important part of the story.
• Business Objectives:
  In our Batman story, the first chapter would introduce us to the character, and by the next chapter, we’d know
  that the character’s mission and goal was to save Gotham City. Now that we have identified your character, or
  your
  brand, the next chapter of the business plan will be to display what your character hopes to achieve throughout
  the story, or in the case of an app startup, throughout the first several years of business.
• Identify the Problem: At this point in a novel, the plot would present the
  “challenge” in the story. In a superhero story, this is where the city is being terrorized by the villain. For
  an app business plan, this is where you identify what issue is terrorizing your market. This chapter presents
  the information that builds a valid case, and proves that a problem exists and a solution is needed.
• Present the Solution:
  As Penguin reeks havoc upon Gotham City, everyone knows there is only one person who can beat him… Batman!
  Looking at Batman’s history, we know that he possesses the required skills and knowledge, and has the unique
  advantage to
  win a battle against Gotham’s enemies. The operational strategy portion of your app business plan will do
  something similar. While your app solution probably doesn’t involve wearing a cool costume, this chapter will
  identify why your brand is the perfect solution for the problem that your market (or your Gotham City) is
  facing. The management portion of your business plan will prove why your team is ideal for defeating the Joker,
  and why it has the unique advantage over any other superhero or brand (don’t forget, Bruce Wayne was a
  billionaire entrepreneur — Wayne Enterprises).
• Show the Result:
  After Batman finishes kicking ass all over Gotham, the story concludes by showing the city revived back to it’s
  former crime-free glory. At the end, there is usually a successful ending that perfectly concludes the story
  with
  the character achieving his or her goals. In an app business plan, the result of your solution is displayed in
  your sales expectations, financial forecasts and valuation projections. In other words, your financials conclude
  your story and show the success of your character/brand as it solves
  the market’s problems.

I’ll admit now that I know much more about app startup business plans than I do about Batman.
My apologies to any Batman fans, I haven’t watched a Batman movie since I was a kid… Does Gotham still even exist?
Anyway, don’t let that deter you from the point of the article!

Investors are Human

Always keep in mind that there is a human on the other side of your business plan. If your
plan is your only way to present your idea to them, make sure it is presented in a way that is compelling,
captivating and worthy of their time. Use our “Novel” approach to create an app startup business plan that stands
out and demands attention! Be Batman!
Do you have any tips to writing business plans that stand out? If so, leave them in the
comments below!