Building an efficient and quality app takes skill, patience, and strategy. In addition, once you identify a market gap that your app features can cover, you will need a lot of help to get it out there for people, businesses, or companies to begin to use, and that’s where it might get tricky.
Research shows that it takes about $100,000 -$300,000 to develop and launch an app, depending on its features. There are approximately 8.93 million apps worldwide, some with similar features and some with unique features. Depending on the features of your app, investing in it can be high risk.
To get investors to invest in your app impress them with your pitch deck, which should contain the following information:
- The problem/market gap
- The solution to the problem
- How your app can become the solution
- The role you want your investors to play in bringing developing the app
- Their returns on investment (ROI) and your payment plan.
For you to create a winning pitch deck, here’s how it should look like.:
Self-Less
As a business owner, we understand that your main objective is to make a profit, and trust us when we say that your potential investors know it too. This is why you might seem too selfish when you dwell on how much profit the app can bring to “your” company or how much fame or popularity your company can gain when your app launches.
Let your pitch deck be focused on the gap you have identified, how you intend to close that gap, and how your investors can also benefit from helping you close the identified gap.
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Data-Backed
One thing investors will never joke with is numbers. This does not necessarily mean that you should draw up a table of unending numbers without an actual meaning to them. It just means that you need to bring in your facts and figures when you present your pitch.
For example, suppose you have identified a gap in timely delivery service, and you build an app that covers not only state or interstate deliveries in 3 working days but also worldwide deliveries within the same time. In that case, you can start your pitch by saying, “in year XXXX, about 30 million people in the U.S reported that they never got a delivery they had paid for”. This has already shown your investors that 30 million people are seeking better services that you can provide.
For a better and simplified representation of your data, you can segment it into smaller collections, e.g., year A to year B, age A- age B, or whatever element you are presenting to your investors.
Clear Goals and Objectives
The goals and objectives of your app need to be clear to your investors. This will help them understand their role in creating, developing, launching or maintaining your app.
When presenting your goals and objectives, you have the opportunity to uncover your passion for the solution you are creating. This will go a very long way to show your investors how personal and important the app/project is to you. You can even throw in personal stories that made you yearn for the solution you are creating. Who knows, one or more of your potential investors might identify with your struggles.
A precise statement of your goals and objectives is called a mission statement.
If your mission statement is clear, precise, and catchy, it can deepen your investor’s interest in ensuring that your app’s goals and objectives are achieved.
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Clearly Stated Returns on Investment (ROI)
Some investors are genuinely interested in the positive changes that your app can bring to the quality of life of individuals and society at large, some are interested in only the monetary returns that they can get from your app, and some are interested in both. You may have one or all these types of investors on your list, so you need to create a pitch that appeals to all of them. This does not mean that you need to write several pitch decks. It just means that your pitch deck must be comprehensive enough to appeal to all types of investors.
What your investors are looking to get from investing in your app is their ROI, and you must take this section of your pitch deck quite seriously as it is one of the deciding factors on whether or not they will invest in your app.
Your ROI section should contain:
- How much investment you need
- How you will use the investment
- The speculated profits that will come out of your app
- How you intend to share the profits with your investors
Tip 1: You can express the ROI in figures or percentages
Tip 2: You can present the factors that might affect the ROI negatively or positively.
App Description
The manner in which you present your app to your investors will show them whether or not you can sell your app to your target market. This is why your pitch deck should cover the features of your app and how every feature creates a solution to an existing market problem.
This part of describing your app to your investors is very sensitive. You might have a pretty great idea, but if you cannot properly describe your app, its features, and its uses in a very interesting manner, you might quickly lose the interest of your investors.
It is advisable that you should make your app description presentation very conversational and engaging and be ready to answer your investor’s question(s) in a polite, honest, and engaging manner.
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Lay down your structure
You might get your investors excited at the ROI or even your goals and objectives, but one question you would get from a potential investor is, “How do you aim to achieve this?”
This is where the structure of your operations comes in. You need to have a structure for building your app, its launch, marketing processes, customer management, follow-up, etc. You also need to talk about your team size, supply, and purchase of required tools and materials for creating, developing, and maintaining the app, team management, etc.
While doing this, you are also giving your investors an idea of how much of the profit gets to be theirs, given that you have a bunch of other things to pay for.
When presenting your structure in your pitch deck, you are making your investors feel involved in your potential success story, which can get them excited too.
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What qualities do I need to have while presenting a pitch deck to my potential investors?
If you want your pitch deck to win your investors over you, you need to possess certain character traits such as:
Confidence
The confidence in your app and your processes can easily be noticed by your investors and convince them too to be confident in you.
Empathy
It would be best if you showed empathy toward the individuals seeking the solution you are longing to create. This will show your investors how passionate you are about making the app a success.
Honesty
No investor is like a dishonest person. You need to present every piece of information as it is for your investors to know what chance they stand from investing. The moment your potential investor senses a lie, they might feel cheated and back out from assisting you.
Politeness
No matter the demographics of your potential investors, you must ensure that you politely speak to them and answer their questions.
Conversational
Your pitch deck has to be presented in a conversational tone for your investors to be able to express certain interests or reservations for you to address.
Precise
To be precise, you need to be an excellent researcher. Investors like people who go the length to present accurate information. Your presentation’s level of precision can also spike your potential investors’ interests.
Succinct
If you have the privilege of getting a potential investor to listen to or read your pitch deck, you have to ensure that your pitch deck, while being informative, is also brief and clear. Studies show that a person mentally drifts in and out of a conversation after 15-20 minutes.
Given that you want your investors to hear and understand your Pitch deck clearly, you need to work with giving your best within 15-20 minutes.
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Frequently Asked Questions
Where can I find investors for my app?
To find investors for your app, you can ask family and friends, attend networking events,
Seek private investors, seek angel investors and venture capitalists and sign up on crowdfunding platforms.
Can I have more than one investor?
The amount of assistance you need for your project will determine how many investors you might need. Also, the closer you get to the amount you need, the lower the number of investors you will need. You just might get lucky and have only one investor to give you all you need for your app, or you might need to try harder to convince more investors to take a chance on you.
To learn more on how to plan your own app business click here!
Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.
About the author. A lifetime of Entrepreneurship.
Hi! My name is Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop (link here http://archives.starbulletin.com/2003/05/18/business/index.html) to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet new business owner, I see myself. I know how hard the struggle is to obtain and retain clients, finding good employees and making sure everything works together all while trying to stay competitive.