Not all businesses can afford to be bootstrapped. Businesses like that of mobile app development companies require funding to realize their goals and aspirations. If you’re reading this, we’re assuming that you intend to develop a mobile application and launch it in the market.
You’ve probably looked at the fact that the mobile app development industry is one of the fastest-growing industries out there, anticipated to become a $189bn industry by the end of 2020. You see a huge market potential for your idea and you want to cash in on this trend.
That’s awesome but for you to make your app successful, you need to tackle a lot of hurdles that come in your way. From getting the right resources to being able to afford them, you cannot think of releasing an app unless you have developed it.
That’s why we’ve come up with this blog in the first place. All those of you who are struggling to get an investor on board for your app development company, here’s a quick guide. This post will also shed light on what you must do to lure investors into funding your app.
7 Ways To Pitch Your Mobile App Idea To Investors
Identify The Problem
Your solution is only as useful as the intensity of the problem it addresses in the first place. If your app idea is developing an eCommerce app just for pillow covers, it’s too weak to fetch investments because one could get that on Amazon. But if your app idea solves a real problem, where your end-users face hiccups in living their everyday lives peacefully, your app will not just serve a purpose but will get the attention of potential investors, as well.
That’s why identifying and discussing the problem you intend to solve in the first place is crucial. Investors eye for value and your app has to hit the sweet spot on the first go.
Offer The Solution
Once your investors have an idea about the problem in hand, they would be now more curious to find out how you would solve it with the help of a mobile app. It is now that you should reveal the solution, explaining to them the other aspects involved including –
● Insights on why this is the most practical solution
● The tech infrastructure that would be required to achieve this
● The tech expertise required to develop this in the first place
● The probable workarounds people could use and how to fix them
● How your solution is airtight and future-proof and more
Show Market Potential
When your investor asks you about who your target audience is for your app and you reply saying that it’s everyone, realize that you’ve lost your chance on getting funded. Your revolutionary app might be what the world needs but at the end of the day, it’s not for everyone.
Even one of the world’s most popular apps – WhatsApp with over 1.5bn monthly active users – hasn’t managed to convince the entire world that has a population of over 7 billion.
So, just like the problem you’ve identified, your target audience is very specific, too. No matter how small your target audience is, always mention the right numbers. Exaggeration and unnecessary estimations could fetch you investments but could end up being lethal to your business in the longer run.
To convince better, break down the stats you have into age, demographics, geographical locations, purchasing powers, reach of the internet and more.
One of the frequent questions asked by investors is in competition management. You should have a solid answer that is very authentic. Competition management involves studying the apps of your competitors extensively to find out loopholes in their functionalities or identifying features they’ve missed incorporating into their apps.
Reviews from app stores also reveal user experience over a period of time. These insights could help you learn more about your competition, allowing you to implement the best features of your app.
If app security is your USP, project that more. If speed, scalability or the incorporation of blockchain the USP, project that. Projecting what your competition lacks and what yours has is always a good way to approach investors.
We understand that not everyone would have the best communication skills to convince investors. While there are a few who could pull off talking about any subject, there are those who tremble when talking to somebody or a panel of investors.
However, developing storytelling skills is inevitable. Storytelling is what gives structure to your pitch. Though there are conventional approaches, investors are tired of listening to them. You should spark interest and curiosity right from your first instance of interaction.
When it comes to storytelling, you could consider the following key pointers:
● The investor won’t remember the data or statistics you keep throwing at them but they will remember your story
● Pitch the problem from the perspectives of fictional characters
● Build drama around how your app solves problems
● Never use the words we, you or I in your pitch
● Refrain from using words that connote hypothetical scenarios like can or could
● Don’t rote memorize your story
● Have multiple variations of your story
Investors are pumping in their money on your app for substantial returns. It’s not philanthropy and you as a business owner should have a solid business model in place. A business model that ensures your cash registers ringing. In your business model, convey how you plan to get customers during the app launch, if you’re opting for a subscription model of pay-as-you-use model, how you intend to increase your customer base six months down the line, the updates and additional features you plan to deploy in the future, any diversification ideas and more.
When you come up with a business model, it’s always recommended that you get that validate from people in your professional circle or industry veterans before taking it to your investors. If your investors find even a minor loophole, they will quickly judge all the efforts you’ve put in so far.
Build A Prototype
Apart from effectively communicating your app idea with storytelling, it is also suggested that you show them how your app would actually work and function. Develop an MVP or a prototype of your app and visually convey everything about it. This will help them get a first-hand idea about the app, the problem it’s trying to solve, the tech dependencies and their role in the entire journey.
Besides, having a prototype also gives you a competitive edge as it shows how serious you are with your app idea. Understand that you are not the only one meeting your investor on that day. There would be a lot of ideas fed into your investor’s ears and to stand out, having a prototype helps.
So, these were 7 crucial factors you should consider and incorporate in your pitch. Time is always a priority for investors and it’s on us to make it worth their while. If you think any of these steps is daunting and some assistance could be of help, get in touch with us today.
Our tech experts can help you right from the ideation stage to marketing your app. We could help you build a prototype for your app and suggest the best tech practices for its deployment. We work with the best minds in the industry, who are exposed to some of the most disruptive technologies today.