Do you have an idea for an app but not funding to bring it to fruition? You’re not alone because the majority of startups, entrepreneurs and new businesses simply don’t have the funds available to bring an idea for an app to life.
You do need money to start an app and develop it for a platform. Your first step is figuring out how much it is going to cost you and the prices can differ here. For instance, for a basic app that is available on just one platform and has minimum functions you could spend as little as 10,000. However, if you want to ensure that it runs on various devices, you need to think about spending as much as 25 up to 100,000. This is always going to depend on the level of functionality that you need.
Here are some tips by Exemplary Marketing that can help you to get funding for an app idea that you want to develop.
Self-Funding
Many developers want to ensure that they do retain complete control of an app that they are developing. If this is the case, then you need to make sure that you are self-funding your app. Self-funding will provide you with complete control and guarantee that you don’t end up in a situation where you have to wait months to get the funds together. If you are opting for this route, then you will need to keep your budget as tight as possible. There are some great ways to keep your budget under the right level. But you do need to make sure that you have enough money to cover the cost of marketing. This will eat up at least 20% of your total budget.
Private Investors
Alternatively, you might want to consider approaching private investors as a way to fund your app. This could be a relevant option if your app is going to appeal and be relevant to a specific industry. However, do be aware that if they provide money for your app, then they will want a percentage stake in your business. That said, they will also provide knowledge and expertise in the industry that you can use to your advantage.
People You Know
People are often reluctant to borrow from either friends or family members to fund their app with the money that they need. However, this does provide significant advantages. For instance, you won’t have to worry about dealing with heavy interest rates that are going to make it more difficult for you to repay any money that you borrow. If you do decide to borrow from friends and family, then you need to make sure that you still treat it as a professional investment or transaction. You should always think carefully before proceeding down this path. If things go south, it could sour your relationship with anyone involved in the investment.
Venture Capital
You might want to think about exploring the VC route. VC firms are an option that you can consider when you want to scale up your app development. This is the option that the majority of larger startups choose including LinkedIn, Facebook, and Uber. The problem is that you’ll be entering quite a competitive landscape. It’s fair to say that not everyone gets funding. So, you need to make sure that your pitch is perfected. Do be aware that if you don’t get interested from a venture capital firm early on, this doesn’t restrict you from gaining support later. You can return to this option when you are further down the line with more experience under your belt.
We hope this helps you understand that you can get funding for an app if you have an idea that could be marketable. There are many different routes to explore here. The key is to make sure that you are searching the market and looking at all the different possibilities that are available before settling on the right choice.
Founder Dinis Guarda
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