Musicians and music fans have benefited greatly from the rise in technology over the last two decades. New music apps have given listeners the opportunity to find and stream music instantly, while they’ve provided musicians with new ways to learn and connect. Today, some innovative music app startups are raising millions of dollars in investment. However, if you’re going to impress investors, you will need a detailed and effective music app business plan.

Types of Music Apps

Since the launch of the app stores, hundreds of new music apps have been introduced to the market. These apps range across a variety of categories

Including but not limited to:

  • Streaming Apps: From Pandora to Tidal and beyond, music streaming has become a part of our every day lives. There are dozens of music streaming apps on the market that allow users to browse new music and stream it directly without having to download it first.
  • Magazine and Media: Music-based media startups have launched a variety of mobile apps to allow music fans to keep up on their favorite genres and artists. These apps may provide new music, reviews, news, and more.
  • Concert Scheduling: Scheduling apps for concerts and music events fall into this category. These apps allow users to browse, search and discover new events, and may even allow for ticket purchasing and more.

With so many music apps out there, it can be hard to compete – both in attracting consumers and attracting investors. To even get an investor to read your music app business plan – your plan will need to truly stand out from the average music app business plan.

Tips for Writing A Music App Business Plan

Those writing a business plan for a music tech startup will need to consider several factors as they introduce their concept to investors. Although the format of your plan will generally follow the same layout as other app business plans, there are some differences. Here are three of our biggest tips for writing a music app business plan.

Solve a Real Problem

Music in itself is such a dominant force that many music startups forget to address a real problem. Access to music, on its own, is no longer a challenge to consumers. There are dozens of leading apps out there that allow consumers access to music.

For your music app to succeed, it should solve a real problem that other apps fail to solve. New streaming apps, for example, won’t make an impact if they don’t offer something more than just streaming. Tidal, for instance, offers better incentives to artists and exclusive content for consumers – solving additional problems outside of just music access.

There are so many music apps out there and it can be difficult to really define a true unique selling proposition. Whether your app serves listeners, artists, or music creators, you will face a great deal of competition – make sure your music app solves a problem that either no other app is addressing, or that it solves the problem better, more effectively or more efficiently than any competitor.

Understand Your Competitors

For music apps especially, investors want to know that you understand where your app fits within the market landscape and how it fits compared to competitors. Analyze your business with a SWOT analysis, and then do the same for each of your competitors. How does it compare?

Showcase your understanding of the competitive landscape with a competitive analysis. A two by two matrix is an effective way to display how the strengths of your music app compare to the strengths of other apps in the market.

Write for the Right Audience

Always keep in mind that you are writing for an investor audience. Most investors that invest in music apps aren’t musicians. Some of them won’t know the terminology used by potential customers of your app.

For example, if your music app allows musicians to play together virtually with no latency, that is a huge accomplishment! However, 90% of investors will have no idea what latency is.

Always write to your audience. Your consumers may be musicians or music fans, but the audience for your mobile app business plan will likely be potential investors. Try to avoid specialized terminology, and if it must be used, make sure to explain the term thoroughly.

Need An Investor-Ready Music App Business Plan?

If you’re ready to create a winning music app business plan, we’d love to help! At ThinkLions, our business plan writers have written hundreds of plans for app startups around the world, raising millions of dollars. Contact us to speak with one of our mobile app business plan consultants today!