'I have a million dollar idea'. You must be hearing this quite often recently, as the startup era is booming nowadays. 2 out of 5 employed person wants to quit their job and requires funding for their so-called 'brilliant idea'. Is it so? Is it so easy to get funding? Are every idea a million dollar ideas? Well, that's diplomatic, but one thing is for sure that 'Execution' is far more important than just a mere 'Idea'.
90 per cent of startup has failed dramatically not because they were not funded but had bad execution.
One of the interesting startups today is, 'Mobile app' startup. For instance, every mobile developer is feeling that his/her idea is unique and thinks, “Wish, I get funding for my mobile app startup” They forget that customers know nothing about the idea, but they are interested in the final product- how it will be useful to them.
There are certain factors, obviously, that limit the outgrowth of Mobile App Startup. Even, no investors will look over the startup which is at an idea/initial stage. It takes a lot of craftsmanship in converting the 'Great Idea' into 'Great Product'.
Buffer's co-founder Joel Gascoigne admits, "We would have really struggled to raise funding without that traction, and so I advise others to just get started and try and build something that people will pay for."
Wish to go to the journey of excitement, risk, fortitude and roller-coaster of experience? So while there isn’t just any magical formula in place, let's peek into some simple but stunning strategies that can push you higher on the pathway to be a 'Mobile-preneur'.
Here are some common conundrum for startup apps.
1. Investors never experiment, they see feasibility
Yes, if you are going with just an idea and no prototypes, then it's useless since they don't' speculate or forecast anything. They get thousands of approaches with the working models. Furthermore, everybody reaches to the 'Idea' stage but few touches the next stage and that is what the investors want to see. Practice it while watching TED and Podcast of famous personalities. This will certainly do.
2. Competitive Landscape
Of course, there is a tiny-tiny possibility that the same kind of mobile app idea exists or is on the verge or already launched but with some differences. You have to show the 'X-factor' that others don't have or anything that distinguishes your startup. Interactive app demonstration is required to impress them.
3. The potentiality in 'The Pitch'
Umm..You may get 15-20 minutes to pitch your idea and show what you have got. It all depends on how you manage to get that done radically and convince investors.
4. Investment Basics are must
Well, well, well. You have jumped into startup stuff so you ought to know all its terminology. Otherwise, you will merely be judged as a 'Dumb CEO of some rusty startup'.
5. Seriously, Get a Co-founder
Nobody can't do anything. Not only will the co-founder shares risk and capital but if he is a technical person then half of your burden will be released (if you are the non-tech person).
6. Saying ' No' nicely!
It swings both ways. Sometimes you will have to listen investor's humble 'No'; sometimes you will have to say 'No' if the deal is not appropriate and beneficial from your side. In either way, the 'No' will have to say nicely and politely. Be prepared for the brainstorming of when to take money, from where to take it and how much to.
7. Show them your 'Plan of Attack'
This is important. Vision, Validation, Problems with Products, Mobile App Market Opportunity and Trend, Revenue Model, Competition, Growth rate, a uniqueness of the product, etc., concerns investors a lot. So, while you design and develop your initial model of your mobile app startup, be prepared with the above things. Homework is mandatory.
8. Pouring fuel on fire
Coming up with an investment source is not easy, but here are some resources to get you started. That is, the fuel to the ignited fire is essential. Here are few of the ways to raise the capitals for your mobile app startup.
There are very few like Travis Kalanick, Jeff Weiner, Ben Silbermann, David Karp, Kevin Systrom, Deepinder Goyal, Jack Dorsey, Mark Zuckerberg who strives hard to achieve their ultimate destination. Well, in fact, the above personalities are icons and role models for many of us. Have you ever come across the thought 'I can make it too'?
These are some practical and pivotal ways raise money for your mobile application startup.
A] Angel or seed funding: Angel investors are individuals who invest in companies that have a concept or an idea, which is on paper and not yet materialized by means of a developed app. If they believe in your idea, they will definitely fund you, but only if they applaud your first released version of your mobile application.
B] Bootstrap: Is there any way you could bootstrap your mobile app? Yes, there is. Bootstrapping essentially means that you raise money through your existing job, savings, investments or alternate business enough to get you started.
C] Self-Funding:The first and important advice is that even if you have X amount of money, save X/2 for future. That is in case if you want to upgrade or develop your startup further ahead.
D] App contests: There are many app contests run by business incubators and angel funds where the top ideas win money to fund development. All you have to do is show your finest presentation and pitching skills to them.
E] Your Network: Colleagues, partners, friends and families. Call them, get them involved and take them through the business plan. In return, you can offer them a stake in your profits.
F] Loans: It's a risk but not if you are confident about your startup. Of course, you need to present lenders with a solid business plan with market research, revenue projections, etc. Banks provide small business loans to entrepreneurs who can prove their idea can bring about a positive change.
G] Credit cards: Last, but not the least. Using a credit card can be an expensive way but on the positive side, it can help you get started quickly or a required push. In fact, if you can get your mobile app off the ground through this means, you can then go back to other sources to show proof of your work and gain more confidence in getting the second round of funding.
Tweak It While You Seek It
Congratulations! 'The app is scalable and funded'. Don't get over-excited about this. Though this might entice you, obviously. But once your prototype gets traction, it's time to take your mobile application what you have dreamed off with the money VC firms might fund.
Your successful prototype is a big step toward funding, but you still have to convince in more VC or angels on the board to break the ground, and take the mobile app startup to the very next level.
Feedback: As far as your mobile app startup is at its initial level, any feedback is gold since you will get the user-end suggestions directly.
It is some adrenaline-rush, right? All things considered, raising money for a mobile app startup is neither easy nor hard; everything is about the chain of encouraging elements that will stretch it all over to reach its goal. Do you have any mobile app startup idea? Are you planning to execute it soon? If not, what are the hurdles? Is above considered 'Plan of Attack' useful for it?