How great would it have been if there was a secret formula to raise money for your app startup? Today around 2 out of 5 employees are keen on quitting their job and are looking for setting up the startup or a reliable app development company for getting their ideations executed. However, the main problem that lies beside is that they require a handsome amount of funding to turn their ‘brilliant app idea’ into a reality.
Raising funds for your app startup is not an easier thing to do. You can’t just raise approximately $1 million for your mobile application startup, more so if you haven’t proven that the customers actually desire for your products.
But then it is part of every startup journey, isn’t it? At the beginning, it is assumed by the entrepreneurs that investors would be glad to spend on their mobile application at the very idea stage. However, what they fail to realize is that even a great app idea can’t appeal to investors if it is not validated that customers desire the product.
The reason for the same is that there is a huge difference between a great idea and a great product. As you give shape to an idea, it changes and grows.
Meanwhile, on their part, investors, who would spend on your mobile app startup, are well aware there are various other similar app ideas out there in the market. So the difference lies in, how the idea is uniquely transformed into a product.
Once you have successfully proven how you are planning the execution, you gain a better chance to raise funds for your app startup business. So, here we discuss some easy ways to get money to build your first app:
Nail your App’s Elevator pitch
Just promoting what your app is all about is never enough to win the hearts. Hence, you must present it uniquely, in a manner that it allows your investors connect with your app right from the idea stage.
It is vital to know the best way to describe your app to the investors in the span of a riding in an elevator with them, and that is called an elevator pitch. Sharpening up your skills in this zone will help you with everything, be it writing emails to thinking about competitive differentiators.
Find Business Partner
To get your app funded it is best that you find a business partner who is eager to take care of your project expenses. Even though a sleeping partner is not going to play an active role at any stage of the process, however, you will get the essential support as s/he will supply the capital needed to go ahead with your mission.
However, you need to take care of a few things before finalizing upon your dormant partner, like you need to make sure that they are legitimate and will supply the funds as claimed by them. Next, ensure that they are apt for your business and would fit well into your scheme of things. At the same time, you need to ascertain that both you and your partner are on the same page regarding the amount of investment they require to make in your business, the profit-sharing percentage and much more.
Find contested market for your app
Understanding the competitive landscape of your app is utmost important. You need to be intimately familiar with the offerings of other apps in your space. Look at the alternatives, comprising of those that may not even be app-focused. Like, before Instacard was there, we had another grocery home delivery service. Besides, shoppers can also go to the store themselves.
Take part in App Contests
Raise money for your app startup by participating in app contests. Several of app contests take place globally where the best ideas win money to fund the mobile app development process.
Angel funds and business incubators also organize several of such contests with the intention to inspire developers to build unique and incredible mobile apps.
These kinds of contests are certainly very competitive, and it is imperative that you make a strong sales pitch appealing to the investors. Further, your app idea must be mind-blowing, and it needs to show how it is supposed to change lives.
Crowdfunding is one of the most appealing funding avenues for startups having no resources of their own at all to get ahead with their ideas. Despite the fact that many app and startup ideas go unnoticed and unfunded on crowdfunding sites, yet the right pitch can be game-changing to make your dream turn into reality. Once you deposit the service fee and a transaction fee from the payment processor, the crowdfunding platform assures you sufficient funds to give wings to your dreams.
Tie up with Angel Investors
Angel investors are these wealthy business individuals or establishments who are interested in funding startup projects. In exchange, they will demand ownership equity or convertible debt in the future. Though there would be many such companies keen on funding your entire project, however, you must clearly negotiate all the terms and conditions with them. Also, draw out a detailed business plan to make sure that the deal takes place in a smooth and trouble-free manner.
Go for Bank Loans
Applying for a bank loan is yet another great way to get funds for your app startup. Numerous banks are keen on offering loans with reasonable rates of interest. However, you need to present your proposal, stating the reasons like why you require a loan. Also, you must sketch out a comprehensive plan for your task at hand.
Once the bank has realized your seriousness about the project and that they would get a good return on investing in your project, then your loan appeal would get your loan appeal sanctioned immediately.
Build a prototype
If you can self-invest a little and it is advised to build a prototype or first release version of your mobile application. That makes it easier to gather funding for development stages ahead.
It is useful in convincing your investors as well as they would be confident that you are serious about your business.
Conclusion : Evidently, there are many methods to raise funds for your app development project, and you just require choosing the one that meets your requirements well. All you need is to make sure that you are on the right track and have chosen the proper source to fund your financial needs.
Author Bio : Ajit Jain is marketing and sales head at Octal Info Solution, a leading android app development company, offering platform to hire mobile app developer for your own app development project. Connect with him on Google Plus, Twitter , Facebook , Linkedin and go through his ideas on distinct topics.