From recipes to meal planners, cooking apps are becoming more popular every day. With a rise in popularity, more food tech startups are launching. As a result, hungry investors are putting their money where their mouth is (no pun). If you’re a cooking/food app startup founder, you’re in luck – the market is ripe. However, you’ll need a strong cooking app business plan to make the biggest splash when approaching investors.
In this post, we will examine three of the most important considerations to make when writing a cooking app business plan.
What’s Different About Food App Business Plans?
Writing a business plan for a mobile app startup takes different considerations than for other industries. Even in the app business planning space, food app plans differ from other types of apps.
Here are three important questions to consider when writing a business plan for a cooking app.
How Will You Monetize It?
There are many cooking apps on the market, and competition is fierce. Some of the top cooking apps were launched by television networks and food personalities who use their app as a marketing tool as opposed to a revenue generator.
With so many options out there, you’ll need to be clever in how you choose to monetize. If you’re offering meal recipes through the app, there are already dozens of free recipe apps – why would they pay for yours?
Explaining your monetization strategy will be important to writing a strong cooking app business plan. Consider which strategy makes the most sense for your particular application – whether its monthly subscriptions, in-app sales, or mobile app advertising.
How Will You Promote It?
Every business plan needs a marketing strategy, and your cooking app business plan needs a strong and viable strategy to launch and penetrate the market.
Many of your competitors will already have a platform. Food Network’s app, for instance, won’t need to implement too many strategies since they can just launch commercials for their app on their network. Likewise, Food.com’s app receives a ton of traffic and downloads from their community of website users that they have accumulated over the years.
Unless you already have a strong platform, you will need an effective marketing strategy. This strategy will need to be detailed in your cooking app business plan.
How Will You Scale It?
Investors don’t just want to see how viable a product is, but they also want to know how scalable it is. For many cooking apps, scalability is limited. Sure, a recipe application can keep adding new recipes but will it help increase or manage growth in customers or customer demand?
Millions of people cook each and every day and tools that help individuals cook better are widely adopted. However, many apps in this space are unable to succeed due to the wide amount of competition.
When you write your food or cooking app business plan, make sure your idea is scalable and that the opportunity exists to bring your idea to the next level.
Writing a Winning Food App Business Plan
Food apps are here to stay, and for scalable startups that can create a strong competitive advantage, investment is definitely possible.
Need help writing a great food app business plan? We’d love to help. Our team of business plan writers has written business plans for several successful cooking app startups. Contact us today and let’s discuss your project!
