I am looking to build an android app and I am meeting an investor for this. I want to know how should I prepare for this? And How should I prepare the budget.
Hi. Great you have an opportunity to meet with an interested investor so early in the game.
Your initial meeting will likely not result in a "yes" or "no," so view it as an information sharing session for both you.
Given that, you should:
* present the market need you're addressing
* convey your competence and expertise
* stress the uniqueness of your venture and the product
* offer well-reasoned financial projections on revenues and profits for the next three years--ideally a good pro forma
* explain what $ you need and what you plan to do with that $
* propose what the $ will get the investor (e.g. equity, debt note) and the structure around what that looks like (e.g. share of the company, interest rate, conversion opportunity)
In turn, you should learn the following:
* the investor's sophistication in investing and their understanding of risk
* the investor's skillset and willingness to lend a hand in those areas if needed
* connections that the investor is willing to make
* a sense of why they're interested in investing
If you wish to discuss, send me a PM through Clarity for 15 free minutes.
This might be my favorite topic to advise on outside of Leadership.
Meetings with investors can be a nerve-racking experience. In advance of any important meeting, the most important thing is that you mentally prepare yourself so you can be ready to present yourself and your idea confidently and effectively.
Success in any patch is often less about the information and more about persuasion. Many great ideas have not been funded simply because the pitch was terrible. Many awful ideas have been funded simply because the pitch was outstanding. The difference between these comes down to how you approach the meeting and command the attention of your audience.
My first suggestion is that you sit down to read Pitch Anything by Oren Klaff. https://amzn.to/2H4MR6Q
This book will teach you the fundamentals of a concept known as Neuro-finance where you will undertand how the human brain receives and processes information. In short this will help you understand how to command the attention of the investor and be seen as new, novel, and interesting is of utmost importance.
Some key points about the substance of your pitch should include:
What are the market trends in your favor?
-Is now a particularly good time for your app/product because of the economy, changes in peoples behaviors, or new advances in technology?
How is your product different from the alternatives?
How hot is the deal?
-Are others interested in investing?
-Or is this deal otherwise dead if this investor does not put money in?
Investors are more likely to put their money in deals that others see value in. Further if no one else is investing, then the investor has all of the leverage and you have none.
These are all just some things to think about at the outset.
Let me know if you'd like to discuss this further on Clarity.
I have created over 200 mobile apps for Android, so I think I can help on how to prepare a budget and have some thoughts on investors.
First, the investor. I prefer not to use an investor, I took our initial $3,000 which has personally made me over a million dollars in the app space. However, I think the experience for you to meet one will have a lot of good learnings, just be very prepared.
Preparing a budget. So create a spec document, be clear on your app and the vision (this will help or should have been done for an investor). Then reach out to a bunch of outsourcing companies (upwork, PeoplePerHour etc...) and get a good understanding of the cost to develop your android app. You will be shocked to see how the price difference is depending on where you get it developed. This will give you an idea on the cost.
Then once you know the budget and if it is high, go with an investor, if it is not then dont. My first app, I got quotes for $300 and $10,000. I spent $300 by a buy working on the side of his day job plus the work I did myself to create the app and later sold it.
The $3,000 to start was spent on $2400 went to training/mentors and $300 to set up a company. Good mentoring and training matters from experienced professional.
If I can help, call me