iPhone App Developer Business Plan

Posted by Matthew Deutsch on July 1st, 2011 at 06:16pm

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iPhone App Develop Executive Summary

In this article, we are going to focus on the development of a SBA loan business plan specifically for an iPhone application developer. iiPhone apps as applications for smart phones, android phones, and other mobile devices have had a surge in popularity over the past two years. As more and more telecommunication networks have integrated 3G technology into their plans, to demand among users have mobile devices that can operate specific applications has skyrocketed. This coupled with the extremely high margins associated with the sale of iPhone applications, android applications, and Smartphone applications has created a tremendous industry that does that is anticipated to grow substantially over the next five years. At the time of this writing, there are more than 200,000 different applications available for individuals that have mobile devices. As such, we are going to structure this business plan, for a small business administration loan, and how you can show the bank why this isn’t economically viable business.

Most importantly, we are structuring your business plan need to have a discussion as it relates to the executive summary of your business. This executive summary, you need to very clearly showcase to your SBA loan officer exactly what your business does. That’s especially important for technology business, like application software developers, this is a relatively new industry. As such, within your executive summary you’re going to want to clearly showcase how much money you need, your contribution to the application development business, the anticipated interest rate of your small business administration loan, the anticipated loan repayment rate, and most importantly you to want to showcase the very high gross margins associated with this business. They were able to effectively do this; you will be able to show that you are a very good candidate for a SBA loan.

Also within the executive summary, you’re going to want to discuss your experience as a software developer and how you will be able to produce applications that are in demand among people that own devices. Is extremely important, especially given the difficult lending environment, they show that you are an excellent candidate for developing business to profitability very quickly.

Also in executive summary, you’re going to want to showcase exactly the anticipated profits and losses, expenses, and income before taxes that will be associated with your application development firm.

Also in this section, you’re going to want to focus specifically on how you are going to expand the business over the first five years of operation. This includes the development of new applications, working with other parties are in need of mobile device applications, and potentially developing recurring streams of revenue from subscription based services. They should be thoroughly focused upon as rapidly growing industry.

SBA Loans for iPhone App Developers

In the next section of the business plan, go to one focus tremendously on the financing needs of the business. For a application development company, you’re going to focus specifically on the amount of money to be spending on computers, location developments, working capital, office development, higher than the programming staff, marketing, and other expenses relating to developing this highly specialized software company.

Also within the section of the business plan, you really need to a discussion relating to providing equity to key employees, discussing and shaggy is, so that individual application assets to third parties, he took on investment from third-party investors, and how much of the business you own.

iPhone App Sales and iPhone Application Developments

As it pertains to iPhone application development services are going to want to thoroughly discuss how you intend to both produce applications that you will sell on behalf of your own account also producing applications that are in demand among companies that do not have the capability of developing these applications in-house as such you can develop a tremendous amount of income from companies that want to have moved applications for their business as. This is becoming very common friend in the industry as individual companies want to be able to provide their customers with people the access services normally. Have we focus on those aspects of this revenue was business as you produce revenues not only from the sale of proprietary applications, but also from the sale of services relating to developing applications for third parties.

iPhone App Industry

The second thing to focus on the general economic analysis as well as the industry novice associated with application development firms. This is an extremely important part of receiving a small business admin mode as the companies and banks want to see exactly the growth of the industry and how a economic recession could impact your business. The low pricing points associated with the applications, and economic recession should not have a tremendous impact on mortality to generate profits in maintaining a cash flow positive financial model. As such, you can keep this aspect of the business plan relatively for as this is not of any extreme amount of importance to your business.

The next section of your piquant analysis, you will focus specifically on the application development software industry. This includes discussing the number of companies out there that develop mobile device applications, the annual revenues of mobile device application sales, the number of companies operating within the industry, the number of people employed by the application software development industry, and expected growth in market trends.

As we discussed earlier, the demand among individual users for mobile application devices is tremendous. As such, and as you apply for an SBA loan, it is extremely important that you continue to focus on how this is a very fast and emerging industry that is going to remain in demand for expensive. It’s extremely important to note these facts about the industry in order to again take how you aren’t economically viable business.

In the last section of the strategic analysis you’re going to discuss the competition that your company will face as you progress through business operations. This includes discussing very popular applications that may compete with applications that you develop, discussing how you intended differentiate your applications from other popular software applications, and how you intend to operate a multifaceted firm in that you’ll be producing proprietary software that also working on a contractual basis for companies that want to have applications developed. As such, if you are able to clearly showcase is to your SBA lending bank, the companies that this is an extremely economically viable business that has expansive growth potential.

iPhone App Developer Marketing Plan

This brings us to the application developer marketing plan. In the second business plan you should have we focus on how you intend to use popular distribution websites such as the Apple app store, as well as other platforms in order to sell your products. This is extremely important as the Apple applications store is the largest distributor of mobile applications. You may also want to discuss how you intend to develop a proprietary website that would allow individuals to directly purchase and download applications to devices from your website. On this website, you should necessarily focus on how you intend to showcase your third-party application development services to potential business customers. As relates to this type of business, it anticipated a tremendous amount of marketing who spent specifically on Internet-based channels. This is primarily due to the fact that there is a strong demand among individual users to find these applications on the Internet and not through traditional print advertisements were televised advertisements. However, you may also want to have a discussion about how you intend to use a public relations firm to that unique applications can receive press published publications. Finally, within the application software developer marketing plan to also been one of discuss the pricing points associated with her planned applications.

iPhone App Developer Financial Plan

The stimulus to the application developer financial plan. In this section of the business plan, you’re going to again one focused heavily on the high gross margins associated with the sale of your work develop applications as well as the revenues they were generated by developing applications on behalf of third parties. Also, you may want to reiterate the terms of the SBA loan that you intend to receive and how you intend to use these funds in conjunction with purchases of tangible assets such as computers. As we’ve discussed before, is extremely important to show that the business will have a significant amount of collateral as it relates to your business operations.

Additionally, you’re going to want to clearly showcase your profit and loss statement, your cash for analysis, your breakeven analysis, as well as providing a schedule of payments as it relates to your SBA loan. While many business consultants and CPAs overlook the amortization schedule, it will provide your SBA loan officer with an extensive understanding of what the anticipated monthly payment will be, how much of this patently attributable to interest, how to the payment will be extendable to principle, and how the business is income to support the ongoing monthly payment is required from you.

As always, and as we’ve discussed time and time again, if you are uncertain as to how to appropriately developed any aspect of your activation develop the financial plan strongly recommend that you consult with a certified accountant has a complete understanding of the software industry, the mobile device application industry, and how to structure a financial statement that is appropriate for a specific type of business loan.

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