8 Elements That Must Be Added To Write Software Business Plan

When you make business plans for mobile applications or network-based software services, there are certain key factors that should be included in your business plan. In addition to basic sales forecasts, profits and losses, cash flows and balance sheets, there are Consider Eight main factors that are added to your business plan:

1. it is estimated that the most useful and standard forecast of traffic can estimate the number of people visiting in the future. Long term tracking of this figure is essential. Access is also a very useful indicator, because the combination of visits and absolute visits is an indicator of repeated visits rate, and repeated access rate may be an important research object. In 1990s, what we call the number of hits on Web pages (the number of visited pages and the number of images viewed) is no longer a good indicator. In particular, the average web site residence time is also a useful indicator for long-term tracking.

Two conversion When a web browser selects a subscription, the transformation takes place. Each visit is converted to conversion rate for obtaining gifts (free primary version of the product) and the conversion rate of each visit to paid subscription. Another useful prediction is the conversion rate from getting gifts to paying.

3. customer churn rate, customer churn rate is an indicator of the percentage of visitors who only get gifts each month and the percentage of paid customers who withdraw. Some people do not calculate the monthly average wastage rate, but calculate the lifetime value of each customer. These are just two sides of the same coin.

In addition to these comprehensive traffic forecasts, there are also some key indicators of business processes and basic business models:

Four Customer The cost of development includes the cost per click and the average cost of other marketing activities for paid users. Dividing your sales and marketing costs by the number of customers is the development cost of your customers.

5. customer lifetime value is closely related to customer churn rate. The average monthly income from each subscriber is calculated by the average number of subscribers subscribed monthly, which is the customer lifetime value.

6. the rate of capital consumption is to estimate the amount of money a company needs to continue to develop every month. Including wages, daily management fees, marketing costs, etc. Usually, the rate of capital consumption will change with the development of business.

7. the departure time is stated on a monthly basis, as we call it "take-off time" in the months when there is a cash balance in terms of how much money is spent. It's like saying, "we have 9 months' departure time".

8. revenue sales projections should have shown revenue. I add income here because it is an important and extremely useful indicator of the scale and process of an enterprise. It does not include investment or loan, but includes freight, subscription costs, sales and service income. This is just a simple prediction of how much money you earn every month.

In all of these business projections, a good business plan estimates the budget and explains the assumptions and drivers of how these figures will change in the future. Ideally, it should include every forecast in the next 12 months, and every forecast in the next two or three years.

Generally, the number change over time is more important than the original data at any given point. In addition to making detailed assumptions, the best way to verify any prediction is to show that the future forecast looks credible compared with similar predictions in recent years.