Worldwide, many beginners are facing the challenge of pitching their business ideas to investors. A lot of them think that money or capital is given to people with a brilliant app idea. Mainly, this occurs when they hear or read articles about startups that gather millions in funds. Statistics indicate most companies collapse during this early stage. It is proof that what seems easily possible to find investors that trust in your idea is not. However, success is there only when your investors get convinced in you, after a long struggle of convincing them. This article is for those who have a mobile app and are looking funding for app from investors.
7 Simple Steps on How to Pitch Your App Idea to Investors
1. Prepare a Prototype
Once you decide to look for investors who invest in your application, you need to prepare an archetype. The application market is rapidly growing and convincing investors how it functions without them seeing it is very difficult. A beginner appears serious when he or she has a prototype. The investor is then convinced that you are working on your project. Deriving a business idea is not difficult than implementing it. One way on how you should compare your thoughts to those of your investor is when you are spending on your prototype. You will feel the pinch of the expenses incurred while preparing a sample. Generating a sample is simple since designing requires a few stores to design them. Conversely, if you have funds, it is advisable to hire an app development company to create it. On the other hand lack of funds should never make you fail to design a prototype. Apply UI kits which you quickly drag and drop design elements, this way you can create a mobile app.
2. Clarify the Problem
With your prototype, you can explain your agenda. First, discuss the problem since most applications are there to solve the problem of their customers. Consider social media apps that are used for socializing purposes. Investors are very sensitive to a lot of stories, and therefore you should be short so as to win their confidence. Discuss a simple problem that is meaningful and one that attracts your investors.
3. Derive a Solution
Investors are waiting for an answer to your problem since they have your identity. They are determined to know how prepared you are to fix the problem. How then do you do it? The best way is to offer a conclusive judgment on how you will improve the current solution. Fore stance, when you are pitching social media apps, highlight to the investor the pain points it cracks. Here, use a functional prototype by including screenshots and demos.
4. Show Target Market or Audience
Not everyone is a potential user of your app. However, you need to get funding for whatever reason. What you need is to be realistic about your young commodity. This is not to make your viewers contented but to help you demonstrate your plan.
5. How to Handle Competition
Let the investor know how you will handle competition. This is unique since a lot of personnel forget it. This also helps to explain how your app is outstanding from others. The best way to discuss your plan is listing your competitors on the margin of your cover page. Also on the page where you have your features or benefits compare what other company offers and how you will handle best that service. To show your competitive advantage, put check marks in significant areas of your competitor’s failure.
6. Revenue Model
Investors know you need to fund your app development project. Be specific about your products and ratings. Emphasize how consumers are eagerly waiting for your solution in the market. Present various pleas from potential consumers on your solution in the market.
7. Funding Needs
As you express your funding needs, be specific and show what amount of money you have already spent on your product. Also, show how much you need to achieve your target level. Remember that investors want you to be open. Show them how many times you are likely to ask for their funding. Explain to your listeners how you will render your services to them together with the support of your management team. All that you need to do is to present information on how much funding for your app you need and how you will spend that money.
How you pitch your mobile app idea to investors for funding is not a walk in the park. A prototype, discussing the problem with the right solution, and convincing your listeners is the only way you can increase your app funding. When your app excels, it will get into the play store and will become great. This way you will persuade investors.