The app startup sector is full of intimidating difficulties, but for most, the biggest one is securing that first investment. We live in a world where we are constantly hearing about businesses receiving large sums of money in fundraising, which gives people the impression that money is being thrown at anyone with a good concept. This, of course, is not always the case.
A large part of my job at Messapps entails assisting potential clients in obtaining the finance they require. When a company does not receive the investment it seeks, it is usually due to one of two factors. They are as follows:
Being unprepared with financial projections
Not comprehending the fundamentals of pitching an app idea
As a result, it’s critical that we all go over what we need to include in our pitches in order to increase our chances of acquiring that app funding.
Make Your Prototype
Do you want someone to put money into your app? The first stage is to have a fully designed and functional prototype. Keep in mind that the app business is only a decade old, which means that many major investors still struggle to understand how an app might work unless they experience it for themselves.
Furthermore, creating a prototype demonstrates that you are more than just a thinker – you are serious about making this app available. Execution and dedication always trump ideas, and if you’re not prepared to put up the effort and money to create a true prototype, how can you expect others to put up their money to assist you take it to the world?
Making a prototype is less difficult than you might think:
- First, design 1-3 core user stories (or the sequence of screens seen by the user prior to attaining their goal).
- If you have the money, engage an app design and development company to assist you with the design. Are you short on cash? Use UI kits to quickly develop a user story using basic drag-and-drop pieces.
- Run a prototype with InVision, and you’re ready to go!
A single day of labor, putting in the time and effort to create a prototype, can make a significant difference. It may mean the difference between a $1 million deal and struggling to get through the week’s grocery shopping. Next, consider how you will deliver your pitch. We’ve all seen how it’s done on Shark Tank and Dragon’s Den, but in real life, you rarely get to stand up in front of investors and show them your pre-prepared presentations!
At actuality, most pitches take place in an office or over a cup of coffee at a central cafe. Think again if you think your laptop and printouts will fit comfortably between your cup of tea and slice of cake. By opening up a prototype on your smartphone and walking them through your app, you can keep things simple, straightforward, and attractive.
Make a Development Plan
Assume for the moment that the investors are enthusiastic about your concept. If that’s the case, they’ll want to know what it takes to carry it out and see it through. App development can be accomplished in one of three ways:
- You can create it yourself.
- You have the option of hiring full-time developers.
- You can enlist the help of an app development business.
The decision you make will be influenced by the extent of your task, your project budget, and the talents you presently possess. For example, if you’re a top-tier developer with the abilities and experience can polish up the app on your own in less than two months, go ahead and do it. However, that is uncommon in our field because both back-end and front-end coding will be necessary, and when was the last time you met a developer that was proficient in both?
Set about establishing a full-time development team if you have access to a large budget and know where to recruit exceptional developers. There are some drawbacks here: you’ll need to pay fair wages, and people can be untrustworthy (as I’m sure we all know).
Another option is to engage an app development business. This solution allows you to preserve all of your equity, avoid long-term obligations, and have access to a variety of developers and designers with the necessary abilities. The only significant disadvantage here is the price: as you are surely aware, app development firm prices range widely, from the very inexpensive to the exorbitantly costly.
Whatever method you choose, make a milestone based on milestones and associated costs. Examine the average salaries and speak with a few app development businesses to get a variety of quotations and a better understanding of your possibilities.
Having an app means you’re operating a business… therefore promote it!
The app market has numerous unique characteristics that set it distinct from other firms. For example, when you’re ready to launch, you’ll already have a distributor lined up who is eager to show off your app to the world. However, if you’re a breakfast cereal manufacturer, for example, you’ll have to jump through hoops and pay a variety of fees in order to gain shelf space in supermarkets. If you own a business that sells vehicle parts, you must pay for the real estate on which your firm is located, and so on.
Apps are vastly different. You already have your’real estate’ and shelf space, as well as income from the App Store, with your launch.
This actually causes some misunderstandings in people’s perceptions of apps. Many people believe that just since your software is displayed on the app store, the developer can sit back and collect the money. How could they be so wrong?
There are numerous acquisition tactics available. Here are a few of the most crucial:
- Optimize your app for the App Store to ensure you rank high for essential keywords.
- Launch a website with an email signup form to alert users when your launch is scheduled.
- Set a budget for “cost per install” advertisements. These will allow you to pay just for consumers that download your software and install it on their phone.
- Consider public beta tests, which may assist you in gaining early devoted users.
- Use typical public relations techniques to reach out to blogs, publications, and influencers and ask them to write about your product.
Remember to research your competition and observe how they market their products. This will give you an estimate of your expenses and potential users. Furthermore, you should always have those numbers on available in case an investor inquires about them!
Remember the pitching rules.
Regardless of the variances described above, apps adhere to the basic pitching principles. Prepare your pitch deck effectively by explaining the problem(s) you’re tackling, as well as how you intend to solve it and the financial benefits you anticipate from your achievement.
Be a salesperson as well as a storyteller. Make certain that you are familiar with your numbers (but be sure to avoid slipping into boring accountant mode). Put your enthusiasm forward – and remember, it’s often not the concept that’s being invested in, but you as a creative, developer, and individual. If you’re excited and passionate about the figures and the execution, the rest of the puzzle should come into place.
It’s not always straightforward, and it sometimes take much longer than we’d want to acquire the correct investment. However, it is critical not to give up. Continue to put yourself out there, reaching out to new investors and building the necessary relationships. It’s only a matter of time before an investor provides you with the funding you require to make your ideas a reality.
