About a decade ago, the phrase, “There’s an app for that!” was a ubiquitous cultural revelation. Moreover, it was a phrase that heralded upcoming changes to societal, business and technological norms globally.
At the start of the digital era, the revolutionary smart device was replacing the traditional cell phone, and the internet began connecting the world and collective human experiences in real-time.
And if there is one thing that brings the world together, it’s a good business pitch.
One thing that the rise of the smart device and the internet changed forever was traditional business practices. Instead of trekking to a brick-and-mortar location, over 2.1 billion people in 2021 became regular online consumers. That estimate represents almost a third of the global population.
Since we live in a world with almost 9 million distinct apps and counting, no one needs to say, “there’s an app for that,” anymore.
And the digital connective tissue which brings online consumers and products together is usually the app.
So, if you want to sell your app idea, here are strategies for pitching it successfully to app investors.
Have an app dream that you want to turn into a business reality? Then contact Strides today.
You must know how to pitch to investors if you want to sell your app idea.
Depending on the app’s complexities and functionality, the demographic you seek to serve, and the size of that demographic, you could need anywhere between $20,000 to $1 million to develop an app.
The first step before you pitch an app idea is to have a working prototype.
The stark reality of the investing world is that new ideas, or variations of well-established ideas, are treated like an anxiety-inducing pool – no one wants to jump in first.
Real-life is nothing like a movie – rarely do abstract ideas in the form of a pitch become fully funded by investors. Anyone can present a picture, but those who follow through and create a prototype get the most attention.
A functioning prototype visualizes functionality, monetization potential, and potential return on investment for investors.
Developing a prototype for an investment pitch to sell your app idea also shows you have a stake in the game. It could cost you hundreds or thousands, but you will show potential investors that you are your first investor.
After all, why should potential app investors invest in your app idea when you haven’t?
The next step in how to get investors for an app is to have a solid business plan.
Investors looking for new ideas will always need a sound business plan to convince them of the worthiness of your app idea.
Having a business plan also shows investors that you are serious about making money. Selling app ideas should be more than just realizing your dream. The people who invest in you want to create a popular product, break even on their investment at worst and make a tidy profit at best.
You need a business plan to show investors how your app idea is going to make money.
There are almost 9 million apps in the world. What sets your app apart from your competitors? What service does your app provide? Does your app provide a solution to an existing consumer problem?
Study the app market, study your competitors, and explain in a business plan what differentiates your app.
Who is the demographic for your app idea? Have you studied which age base, economic base, or cultural base of consumers will likely buy your app? Investors for ideas want to know with certainty that you understand who the consumer base for the app is before they invest.
Do you have a marketing plan to sell your app idea? For example, will you use a social media-based content marketing campaign or a local grassroots campaign? How will you market and advertise your app idea to its proposed consumer base?
Have you developed pricing and return on investment models for your app idea? Nowadays, most apps are offered free. Consumers are enticed to pay for in-app purchases, enhanced graphics, or other services after downloading free apps.
You should have a plan that demonstrates how the app will make money and potential dates for when investors may recoup their investment.
Many websites offer free business plan templates that you can make use of. But you need to base your business plan on detailed app market research relative to your business needs.
Wait before you send a detailed business plan pitch to investors. They are busy, and you are better off sending them an abbreviated version of your pitch ideas in a “pitch deck” (more on that in a minute).
As you learn how to present a pitch, you should make a list of who you will pitch to long before you contact them.
You will probably need the aid of venture capitalists to gain the financing required to make your app idea a reality and to get it released on a mass scale. Here are some sites with free directories of venture capitalists looking for investment opportunities.
Don’t assume that your app idea will blow away every investor you contact. Instead, study the investment specialty of the investors, the amount they usually invest in proposals, and their operational track record.
The typical venture capitalist firm usually looks for projects requiring $250,000 to $1 million in financing. If you need less than $250,000, you may be better off contacting individual investors or small tech-related businesses.
It is important to personalize each business proposal contact relative to the person or firm you contact. For example, when making a pitch that requests large amounts of financing, a generalized business proposal will look informal, unserious, and in poor taste.
Your initial app idea business proposal should be brief and to the point.
A pitch deck is a short video slide, video, booklet, report, or abbreviated business plan of your original, more detailed business plan.
Your app idea pitch deck explains everything that venture capitalists need to know about your app idea within 10 to 20 minutes.
Think of the pitch deck as the bullet point version of your original business plan. What do potential investors need to know upon the first introduction to your app idea to pique their interest?
There are over 9 million different apps on Earth, and you will only get one chance to make a first impression.
If you have an app idea in need of an investor, contact Strides today for guidance on business plan execution.
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