Coming up with a million-dollar app idea is a significant breakthrough itself. But a car (a mobile app idea) even if it is a Porsche, cannot move without fuel (funding). Therefore, finding investors to finance your app design process is vital.
Mobile app development is a step-by-step process including prototyping, UI and UX designing, coding, marketing, etc. Each of the phases demands money to be fulfilling enough, so the application will positively rank on the app stores.
Finding investors willing to push ahead is a bit of a challenging task. As a startup leader, you need to present a tendentious mobile app business plan in front of investors to foster relationships as the ultimate goal.
Keep reading today’s Twelfth Dream article if you envisage a fruitful collaboration. Don’t have an app idea yet? Then check our blog post about the top 8 app ideas to make money.
Developing the idea
The world of the internet is replete with millions of apps for Android, iOS, and other OSs. The abundance of smartphones applications pave the way for users to find every app they need in their daily grind. This situation, on the other hand, leads to fierce competition between app-based companies. Consequently, an app should have a competitive advantage as the distinguishing factor. It is important not only for investors, but also for the users of the application. Investors do not support an idea that already exists. If the idea lacks uniqueness, then polish it. Acquire knowledge about rivals’ apps and think about how you could make your app better by embedding the features. Ask yourself the following questions before making investment appointments. If you don’t answer well, investors will most likely be reluctant to put money into your idea.
Is the idea feasible?
Evaluate your business idea so you can manage time and strategies better. Determine all the aspects of the market for your products and services and how you are going to compete with your rivals. Educate yourself with the necessary skills you need in order to rise and shine in the marketplace.
Who are your main competitors?
Identify three types of competitors your business has: direct competitors, indirect competitors, and replacement competitors.
What makes your app different?
There is almost a solution for anything. Undoubtedly, your idea has been developed before, so, customize your idea and add new unique values in an elevated way.
Write a business plan
A business plan is a written blueprint explaining business goals, objectives, and how they can be achieved. When the business plan is clear, investors are keen on putting down money on the business. Add explicit information about:
1. The Market
2. The timing and budget
3. Your team members and their field of expertise
Perform “proof of concept”
Proof of Concept (POC) are the basic steps that lead to the development and implementation of a novel idea. This process determines whether a new idea is feasible in practice or not. This method helps to identify logistical and technological concerns.
Defining: You need to know your team members and stakeholders for this investment. Set your goals and be responsible and accountable for the success and execution of things according to the plan on time.
Developing: Create practical applications for very small but compelling actions and keep your stakeholders informed of the process.
Engineering: Test your idea and see if it works. Design, implementation, and success definitions should be included in this step.
Running: Assess the probability of positive and negative situations and test your concept in each of these situations. Observe its longevity. Trials and results should be included at this stage.
Evaluation: Finally, review the results with your team and convince them to actively participate in this step. At this point, you need to see if the results match what you expected, and it is after this step that the stakeholders decide on the investment or not.
Brand your app
Branding is at the heart of every business. A full-fledged branding strategy is usually comprised of four things. Picking a distinctive memorable logo and a good domain name, depicting mockups (prototypes) of the app’s screen and a demo of the user interface. Investors are able to picture a vivid image of the project scheme. Therefore, the chances of leveraging over them increase.
To look at it from the customers’ side, with robust branding techniques, customers relate to primary objectives and values in deep.
Make a pitch deck
First things first. You have got a limited amount of time to form a firm impression on the people who are going to venture into your business. Time is gold for investors, so pay more attention while preparing an overview of the app, which is called the elevator pitch. The information should be brief, but address all the aspects of the business. For example, identifying your purpose, the app features, what is it going to solve, etc..
Tip: Practice presenting the elevator pitch in front of friends and colleagues.
Once you catch investors’ attention, you need to make a pitch deck for a future meeting. A pitch deck is a visual review of the business plan mostly formatted as a PowerPoint presentation.
Once you catch investors’ attention, you need to make a pitch deck for the future meeting. A pitch deck is a visual review of the business plan mostly formatted as a PowerPoint presentation. Of course, you do not need to state the obvious. Put charts, diagrams, the core information, and without further ado, elaborate on them. Take a look at the Uber pitch deck on slideshare.
What are funding options?
Angel investors are people willing to financially back a newly thought app idea or small startups and businesses in the early days. You need a bit of a hook to get individuals to put money on the project, so be well-prepared to attract investors. Address the idea’s potential by presenting a prototype or a minimum viable product to show that the idea is being hailed as a success.
Venture capital investors
Venture capital investors usually put down money on big startups. To be honest, it often takes time building relationships with VC investors. In exchange for money, they demand equity. They are impatient and want a fast return on their investment. Venture capitalists fund an on-balance idea of when the time is ripe.
In a bootstrapping model, you rely on your budget instead of looking for external investors. If you are at the initial stage, it is better to fund the app yourself. Having complete dominance on the project procedure is the main advantage of bootstrapping.
Crowdfunding is a relatively new term. With crowdfunding, you can raise a small amount of money from people through the web. Some examples of crowdfunding websites are Kickstarter, Indiegogo, Patreon, CircleUP, etc. Opt for a crowdfunding platform, upload screenshots of the application, the required budget, your objectives, and other information which makes people accompany you.
Now you know the nuts and bolts of getting the funding you desire. Act smart, apply all the methods mentioned above, and reap the harvest of the connection. In addition, if you are looking for an app development company to add life to your idea, Twelfthdream can be the apt choice. Founded in 2015, we have worked with many businesses in Vancouver and beyond. Team As A Service (TAAS) profoundly contributes to reaching a new level of success. Expand your business’s horizon with a dedicated team of IT professionals who know the ropes. Book a free discovery session now.
Frequently Asked Questions
Who are direct, indirect, and replacement competitors? Your direct competitors are businesses that offer value, products, and services as you do. For instance, Pepsi Vs Coca-Cola. Large firms aren’t the only ones who compete directly. Two bakeries in a town compete directly to broaden the number of buyers. Indirect competitors sell different products though they are in the same category. For example, two mobile stores one for iOS and one for Android. They both sell smartphones but to distinct types of customers. A replacement rival offers a product or service that is similar to yours.
How to talk investors? Explain why an investor is vital for your company. When you explicitly and comprehensively encompass why you need money you build the trust.
Why mobile app business plan is important? With a business plan, you know your business strategy while spying on your competitors for inspiration and fostering innovation at a greater value.