Business Plan For Startup Or Mobile App

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hi everyone how are you this is gonna be

a good video I'm gonna explain how to

write a business plan for a tech startup

or a mobile app and you know if you're

in a tech community you you know you may

you may be aware that people are kind of

moving away from business plans and

people are they don't know if they

should ride them or how to ride

sometimes so I'm gonna explain the

basics of like whether you should have a

business plan and when you have a

business plan and then I'm gonna explain

how to write a business plan for a tech

startup course or tech business or like

a startup or an app because those are

very different business plans and

businesses from your regular like a

canon core long carrot right so number

one our community the tech community is

sort of moving away from business plans

because well they're really just moving

away from that like the long 20 page

business plans those long things are out

but people still want to see that you

can express your business in a short and

effective way because how are you going

to express that you know in a written

form and you can do it as a short

business plan like a couple of pages

sometimes people ask for as little as

one page or you can have a business plan

that some people even ask sometimes for

like a slide like an investment deck

which is like a PowerPoint deck just

covering the basic points because before

people get really deep and this is

usually investors before they get really

deep into and looking into your business

they want to know the high-level

overview because most likely they're not

interested because they see so many

businesses that they need to quickly

determine if yes if that's a yes or no

and so they have this filter and they

need to kind of quickly browse something

to determine whether that may be a fit

for them or not and whether to have a

second meeting or not so it doesn't have

to be a business plan and sometimes if

you are approaching investors they may

ask you for stick you'll earth ings they

may ask you for a slide deck they may

they may ask you for a short business

plan and that or that sometimes it's

okay to ask like what form of

documentation do you want and sometimes

they'll say short business plan

sometimes they will not so you may not

need it the case when you do need it in

my opinion and I mean I

I originally wasn't a fan of like

business plans but they are effective

for you personally and for your team

because you're able to express your

entire business model just as a document

for your internal use in your internal

team - or you know you're able to

structure your thoughts and organize

your thoughts and kind of have that

presented in one document and all your

team members can be on the same page and

it's organized and most importantly when

you put things down on paper you kind of

see a lot of your mistakes sometimes and

you can discuss things with your team so

it's it's it's really helpful it's also

a very kind of good tool to find what

are like the like the kind of like where

are we going wrong because would you

really do it in the business plan is

you're expressing your business model in

a business model a lot people many

people get confused with this term and

make it because many people have this

confusing definitions but really in

simple terms the business model is a way

to express how every piece of your

business is going to function together

how it's all gonna come together right

how the product is gonna get marketed

and how you're gonna make money from

that thing you know and if your

component your business has other

components like you know supply

warehousing tech businesses usually

don't have those so basically if those

to simplify it's really those three how

are you gonna make the product people

love and then get engaged with how are

you gonna market that product and how

are you gonna make money from all this

and you should certainly have that in

your business plan and you should

certainly kind of go into some savvy and

depth in those things right because as

you know like online marketing is very

complex these days that itself I mean

that you can read a lot about that so it

is a good way to really structure your

thoughts and making sure that you've got

all those important bases covered and

that they're gonna work together well

because sometimes they don't work

together well and when one piece moves

it one of these changes it changes that

how that's all gonna work together you

know if your marketing chain marketing

very strategy changes a little bit or

like let's say your product changes a

little bit then the marketing strategies

to promote it change a little bit and

then you're gonna get slightly different

type of customers because they come from

different sources and then those

customers may not monetize in the same

ways so it's all kind of complicated and

it Devils really in the details so you

should have this

you should really okay you should have

it alright let's move on to how to do it

so you always want to focus on your

target market because without it you

don't know who you're the product is for

and how to promote it to them right so

you always want to know your target

market the target market is usually and

I have videos for how to identify your

target market and a video for how to

calculate the size of your target market

but what you want to do is identify them

the first thing is you know there's

there are two kinds of ways you can

identify them there is demographics age

sex income education geography and then

there's like psychographics what do they

like what do they prefer what are they

consumption patterns are like you know

what are their hobbies right so what is

gonna motivate them - and those are -

you know you gotta get those they both

work together right you know it's not

just it's not just about the

demographics that are like oh if this

person has to be this age or educate

educated it's also like you know what

are their preferences what do they like

what will get them excited what are

their needs so you kind of combine

demographics let's hang congrats and

then you gotta calculate what is the

total market and then you gotta

calculate like what segments of that

market can you actually address with

your marketing strategies in who and of

the people who you reach who can become

client right so okay so that that's so

your target market of course the

important part there is the size of the

target market if you are looking for

investment in the tech space typically

investors in tech they like to invest in

really really large markets not area

every market seems like it's large when

you would put a dollar amount next to it

like if you say fifteen million dollar


big no that's actually small so they

want like markets with a be billion

dollar market because you're not gonna

capture the whole market and they really

need to invest in companies who are

going to become really gigantic so it

has to be space to grow there so that's

what one thing that investors like they

also like fast growth so fast girls big

market they also really like ruling

teams most of them are okay with non

proven teams but it's so much better

have a proven team and proven team means

you've sold it or successfully built a

store sold the company before they have

many more criteria like they like to

invest in different sectors look leblanc

I'm not gonna get into it here but you

know you can just browse Angela's calm

the many of them most of them are listed

most of the Masters are listed there but

we're just gonna focus on business plans

for this kind of thing the next thing is

there's this tricky thing where you know

if you have a non tech business like a

simple business like a mechanic or you

know that business is the commoditized

business and most of the variables are

known but in your case most of the

variables are unknown if you're doing

something innovative you don't know like

if you're making an app like actually

when I made my first half I made many

mistakes I actually made a mistake in

identifying my target market I mean I

tried to identify my target market but I

just didn't I correctly because what I

thought the target market was kind of

going to be like they didn't want what I

built for them you know and I did my

sort of like I you know if you I got

some feedback and I would you know it's

like maybe actually should have more

feedback but anyway so I kind of didn't

get a target market right you know

because you really know the target

market for a mechanic for your car but

you really don't know your target market

sometimes for your tech product because

you're sort of trying to figure it out a

large part of it is actually you're

figuring it out and because I didn't

know the target market I kind of made a

mistake on the target market the whole

trickle down was a little bit wrong

because you know I didn't market to them

the right

away at first you know then I didn't

create the product that was perfect for

them at first or either satisfy their

needs so everything was just off you

know and so that's why I want us but

that's the sort of what I want to kind

of caution is that I really really

really focus on the needs of your target

market then the second thing is you know

experiment and try and try try many

things I mean I used once I launch my

app I used Eric Reese's famous sort of

Lean Startup methodology where you put

out a little kind of Minimum Viable

Product make sure that it's viable was

not just minimal and then sort of you

know write and get feedback so my

feedback I really you know I got some

users and I saw what they were doing and

I saw like oh my god you know I totally

misunderstood the target market so I

changed you know at first I got it

getting me a more insight into the

target market then I changed the product

accordingly then improved a little bit

and I kind of kept that cycle going and

those apps became pretty highly rated

apps now so I mean they're pretty

successful apps but it was a matter of

experimenting all the time so that whole

Lean Startup approach it's a matter of

experimenting so the business plan the

one reason why there should not be that

much focus on it in technology or apps

is because you really don't know any of

these variables that you're going to be

writing you may know how various revenue

streams monetize you know like ads

that's known you may know some pieces

right but you really don't know whether

this new product it's gonna be liked by

people and by whom you know often when

people make zaps they think they know

but then they come

becomes kind of a they get surprised

like all why am i why is my product used

only by this demographic what the heck

you know and it happened to me and it

happened to some people I know and

actually I don't know anyone who got it

totally right at first it's always like

a little experimenting well I kind of

actually do know some people got it

right but it was very clear in those

cases so you want to make something if

you're making something innovative you

should certainly not focus and not spend

too much time on the business plan

because spend more time on actual

experimentation and putting that small

prototype into the market one thing that

most people back is that they think that

if they write a really good business

plan they'll get funding with which they

can hire a developer to make the

prototype and that's not gonna work for

many reasons number one developers are

pretty cheap now like you can for only a

few thousand dollars you can have a

prototype you should if you have if you

don't do the prototype thing and you

start and you your version one will be

like this fool baked app then that's a

recipe for kind of disaster because

number one it's gonna be a big project

it's gonna take months it's gonna be

expensive which you will need to raise

money and most likely that would go to

some waste you know because you're gonna

be over building you don't know how the

users will accept this product you don't

know if you're gonna be able to get

traffic to it there's so many things you

don't know you don't want to release a

bulky product and I see that mistake

over and over and over I think it's

happening less now but so no bulky

product so small kind of iterative

approach then once you do this iterative

approach you start to not need a lot of

money and waiting around for funding

with your business plan you're not gonna

get funded with just the business plan

unless it's like some people you know or

it's like you're doing a Kickstarter

campaign or something but most of the

time people struggle with with raising

money for it before somebody has

so in a way I mean it's almost better to

you know get it you know you can save

money by working and just spend a couple

thousand dollars and get it that

prototype made see how people respond to

it things like that that may be a better

approach of course the better approach

is to be able to make it on your own so

you don't have to hire anyone that's

kind of what I did because it would have

ended up really expensive if I had to

hire someone because it's taking a long

time you know it wasn't just the

prototype it was like prototype and then

after so that's kind of it right so you

want to focus on your target market you

won't understand them but also you

should understand that you you very

likely are gonna have many things that

you misunderstand about them and

understanding that will help you to kind

of not stick to this business plan but

try to try to get closer to get those

questions really answered by the market

right so you're not gonna enter in that

theoretical business plan it's gonna get

entered by the market itself and that's

how these innovative business ideas with

apps and website that's how they

typically find success not through the

business plan not to the formal business

plan right so just use the business plan

to organize your ideas if investors ask

for it ask them you know what the

communication they need they ask for it

write it but if you don't they don't

write it don't focus on it that much

focus on experimentation and focus on

figuring out I mean do have a deep sense

of the main thesis but know that most

likely this is not gonna be hard to go

to play out at least in many many cases

what people think

isn't that what ends up happening so

that's it that's why I would recommend

approaching business planning for tech

startups or apps or things like that

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you for watching and I'll see you in my

next video bye