The old school wisdom related to funds struggle suggests that if you don’t have any money, you should always save for the rainy days when some fascinating but imminent idea will come knocking, will promise many things but will require much to start. Else it will be very hard to get funded, so you should rely on your own savings. However with new age problems, have given us new age solutions which we will discuss in this article.
Many entrepreneurs incorrectly presume that their app at the idea stage will attract the investors. What they don’t realize is that even great ideas, don’t have any value unless validated in terms of customer response and order book.
In the words of Steve Jobs, there is a great artistry involved in having a great idea and getting it converted to an excellent product, without much of original getting lost in translation.
Investors are shrewd and do realize that while there are thousands of similar ideas lying around, e.g. two search engines, but the execution of each idea is what makes the difference. If you can prove your execution right, you have a better chance of selling your idea right.
Ideally, we classify the entrepreneurs in three categories as listed below. An entrepreneur can be any one of the following who:
There is another breed of entrepreneur who has funds, knowledge, and idea, which we have excluded from this article’s purview for obvious reasons. Following are the few of the effective ones:
Before instating your belief to anyone else, you need to fully believe in your idea in order to gain something from it. If you flounder while explaining your idea to a potential investor, it will not be a very ideal situation to demand monetary assistance.
Joel, co-founder of Buffer app narrates his experience, “By the time we hit into the blue eyes of our investors, we were already at figures of 50,000 downloads and were making $13000 a monthly.”
It is important to believe in your idea, but it is even more important to make that belief work for others. Once you are through self-evaluation phase, your product will eventually fly off the shelf in no time getting investors from all over.
Bootstrapping means that you raise money through whatever legal and valid means you can – channelizing your salary, investments, savings, or alternate business. Let’s say if your go live date is six months away, start saving towards a fund every month. Though you will not save a huge sum, but it will be more than enough. Also, outsource your app development in the beginning. So that you can create a payment schedule for development lifecycle and will help you to get started right away. Do read How to hire an app developer.
Many banks provide business loans to entrepreneurs who can prove their idea can bring about a positive change or sometimes for a stake in the holdings. But for that, you need to be ready with a solid business pitch with accurate market research and revenue projections. The due diligence process done by banks will be grilling as well, much more than crowdfunding and bootstrapping so be prepared for some cross-examination about your business, products, aim and future timeline you look forward to.
Angel investors are individuals who invest in a concept or an idea either by an individual or a company, which is yet to be materialized via a developed app. If they think your idea can click, they will fund you. Though, same as above in case of bank loan, this would work effectively only
if you can show why your app is going to hold the ground in the fiercely fought competition and that you are serious about your product – angel investors might put in their trust in you. Again, it all depends how well defined your goal plans and objectives are. A well-developed app is the three fourth of work done.
So you have an app ready, and you are ready to list it out in the market in front of millions of users and you plan to gain something monetary out of it.
There are few key points to consider:
Apps are cheap. Applications you develop aren’t going to sell at jaw dropping prices like their desktop counterparts do and yet the margins are huge – around 70% for mobile app developer much more than PC and Mac software developers much less.
In-app purchases. Most apps are free due to a reason – building trust. Clients need to feel a special connection with a feature of the app which is not going to be with them anymore in next few days of trails. Letting them repeatedly feel about it, leads to monetization on in-app purchases. This business model is smooth as anything – app is free, let your clients find value first and then ask them to pay up once they do and monetize, simple as that.
App advertising. Advertisements within an app are the trusted way of earning through apps. However, be aware that user experience is impacted due to ads which may get to the level of annoying for many. And the overall feedback may be ad-oriented rather than functionality and feature. However, non-intrusive ads can be considered for free users than full page banners and video ads.
Visual still remains the king. For marketing your app, you will need all – stylish visuals, introductory videos, screenshots with detailed feature explanations and value factor telling the customer as to why downloading your app should make their life easier. Presentation is all that matters the most – outside the app and within the app as well. Developers with extensive experience with API and libraries often create some stunning designs that alone have the loyalty factor which keeps a customer abound.
Customers hate buggy apps and usually only give 3-4 seconds of attention to explore with an inquisitive eye, and if some bug pops up in that midst, consider your app a goner. You need to create the product and start testing it. Get some beta users and their feedback; revise, rinse, repeat till you end up with a stable version good to be launched in the open market.
You can have a certain idea about the app development cost by using the app cost calculator, developed at Zenia mobile solutions which combines a factor of several different parameters. An App Development Calculator is an easy to use and near accurate simulated cost estimator which shows you the cost involved in getting an app developed which you should least expect.
The only sure way to find out what it will cost to get your app idea developed is to get some quotes from experienced app developers. They can discuss the details of your idea with you and give you a pretty good idea of what it will cost. Getting three quotes is helpful as it will give you an idea if a quote is too high (or too low, which can be just as bad). Appmuse will help you in getting ball park quotes from 3 highly experienced top-rated app development companies from our wide range of network through filling our Quote Request Form.
Do you have some ideas about how to fund mobile app development costs? Leave a comment or e-mail me.
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