Forums: Discussions for entrepreneurs and small business.

Hi everyone,

A few friends and I sat down at red robin a few weeks ago and it dawned on us to start our own business. We're not uber smart like Mark Zuckerberg but we had an idea on how to combine social media with traditional marketing.

One of our needs is to find an app developer. The app developer is a major part of what we're trying to achieve so bringing someone in in imperative. MY question is, since funding is pretty non-existent right now, when we pitch to investors do we say: "Our business model also includes app" or is that something we add on later when we can actually PAY someone to do it?

Any takers?

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nyugirl2005,

Funding is available -for the right situation.  You will probably need to have more than an idea (no matter how great it is) to attract the professional investor type.

Having a "product" developed (your app) is usually a positive accomplishment for an investor. However, bringing in someone to write an app at the expense of team chemistry and significant equity -probably isn't the optimum way to go either.

I'd recommend doing those things that will make you capital ready. If you need early funds, then choose a capital strategy that enables you to do things in stages.

 

If you would like to discuss your specific situation, feel free to send me a Pm or contact me directly.

 

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

I had something like 100 negotiations with equity funds and I invested inf several projects too. Idea is the least important part of the startup - the most important thing are the team, the infrastructure, the drive and motivation and the market opportunities.

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My favourite tattoo designs and invest guides

All good advice here.  You not only need to have a product but, some type of traction with it as well - that could be revenue, contracts or customers.  No investor invests in an idea - they invest in people and you have to show them that your management team can execute this project.

Why not pull your funds and hire an app developer.  There are many across the world that will do this for a very reasonable price - with so many people out of work, you should be able to leverage competition between them to get a great price.

Get a basic app - beta test it - then ask those to purchase or recommend.  If you can generate revenue or get customers to sign up - you have traction - investors will listen to traction - not pipe dreams.

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Business Money Today
Small Business Loans & Start Up Loans

you need to show in your biz plan that there is demand and that demand will rise , along with projected rate of returns

btw, mark zuckerberg is not smart at all. he stole ideas from others. thats just opinion, of course

I read the posts above and thought I would try to give you a specific blueprint to help:

1) Think about what your app does or what problem it solves

2) Think of 5 questions you would want to ask potential customers to understand what they really want from your app

3) Join twitter and facebook

4) Get a free surveymonkey membership and put your questions in a simple survey _ make sure you ask people if they WANT your app and would be prepared to pay for it

5) Cut and paste the surveymonkey code into twitter and facebook and send messages with relevant words which relate to your target customer

6) Get your results and see what the prospects say and what they want 

7) Now sit down and write a word document which outlines what the app does in simple language. Try to keep this first version as clear and simple as possible. You can always make version 2 more complex with more bells and whistles later

8) Go to Scriptlance and find a person to build your beta - you can often do this for under $500.

9) Get your beta out there to trial prospects (see step 5 above)

10) Rinse and repeat from step 4 onwards for version 2 and include existing customers.

....and once you have done this - if you still want investors, take your traction, your beta and your customers which show the potential and sell them on it. And I'd skip the business plan...

Reach out to me if I can help further via www. theFundingGuru dot com

Best of luck and I hope this approach works for you - was getting a little bored of generic funding advice :)

Andrew

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Andrew PS - Here's a free report on creating your startup success. Free report