Is your App worth investing?
The size of the app market was estimated to be worth over $100billion in 2019. With Covid-19, we have seen unprecedented growth in apps as consumers look for alternative entertainment or work from home during the lockdown and social distancing drives. However, many app developers have failed to attract investment in their ideas. Often this comes down to not understanding the specifics of pitching an app idea as opposed to anything else. Here’s what you need to include in your pitch when you’re trying to get an investment for your idea.
- Have a prototype ready
If you really want someone to invest in your app, you must have a fully-designed prototype. For many investors, it might be difficult to totally understand how the app will function if they cannot see it. When you have a prototype, it shows that you are serious. You have to be willing to put time and some money into creating a designed prototype.
Always remember that a picture is worth a thousand words. Do not bore your investors by just showing them a prototype.
Consider how you will make your pitch. Make it less awkward and easier by simply pulling up a prototype on your phone and walking them through your app.
- Have a development plan.
Investors may like your idea, but the next thing they want to know is what it takes for you to execute it.
You can develop an app or any software by yourself, hire full-time developers or hire an app development company. The choice will depend basically on your skills, your budget, and the scope of work.
If you have an app, that means you have a business. So, market it!
The app market is quite different from most other businesses. Once you are ready to launch, you already have a distributor ready to show your app to people and you automatically have your real estate and your shelf space at the App Store.
Be ready when an investor asks about estimated expenses and potential user number.
If you have an app, it means you have a business, and if no one knows about it, no one will use it. To obtain users, you need to do a marketing plan.
Here are a few of the most important acquisition strategies:
– Do an App Store optimization to ensure you rank high for essential keywords.
– Create a website with an email signup to notify users when you are going to launch.
– Make a budget for “cost-per-install” ads that will allow you to pay only for users installing your app on their phones.
– Have public beta tests that will help you get prompt users.
– Connect to the media to get them to write about you.
By investigating your competitors and how they market their product, you will be able to have an estimate for your expenses and potential users. Also, have the number of potential users ready when an investor asks.
It is true that getting an investment can be hard, and it may take you quite some time before you get it. But do not give up. Keep going and reaching out to new investors. As long as you are prepared and have confidence in your idea, it is just a question of time until you get an investor that will pay you for your app.