What to do when have an App idea, but no money to bring it to life.

There is an old saying that it takes money to make money and this is true.

But does this mean if you have no money, should you resign yourself to the fact that you will never have any money?

Absolutely not.

It’s better to own a share of something rather than 100 percent of nothing!

There are in-fact many people in the world that invest their time rather than money into developing an idea, putting together all the parts and people required to get a new product, or brand to market.

Property Developers are a good example where they find a property, or a parcel of land where they forecast a yield or great return once developed.

Now in some cases they will use some of their own money to do the diligence, get reports, draw up plans, deal with authorities, builders, and much more, but very often they will put the plan or deal together, and then get investors in, use their money to reduce their own risk, and still make plenty of dosh at the end of the day.

This is called hedging in the finance world, or laying off in betting and wagering industries. Good Bookmakers take your bet and then bet elsewhere playing with fluctuating odds to reduce their own risk, and when done conservatively always come out in front.

Where to Start:

Like anything and as we keep on harpering on here at Hustle Digital, the first place to begin is with a workshop around your idea, a face to face meeting designed to help you answer questions about  your app idea, and who it will be serving, clearly defining its value proposition. The outcome is a blueprint or plan and document that with steps, timelines, and pricing, and with financial modelling that demonstrates how you you you will turn your idea into a reality,

App ideas and finding investors:

Once you have your plan and proposal, you will be ready to begin talking to prospective investors to raise the needed capital for your idea and can include any of the following:

Angel Investors: In the technology sector we see many Angel investment firms that are willing to invest their own or other people’s money into new ideas, products and services due to the highly scalable models that tech brings. Angel Investors are willing to give money out providing that there is a a good business case and plan to support the idea.

Just note, Angel Investors have been known to want a larger piece of equity for parting with their money.

Government departments: Local, State, or Federal Governments have numerous grants available for research and development through to assist in marketing of new innovative ideas for the community. These grants are available for anybody to find by doing a simple online search. One of our clients has gone as far as to contact the UN and has received funding for their idea that fits into the appropriate criteria.

Large Business: If you have an idea that you believe can add value, make a difference to an existing large business, you could approach them about your idea. An example would be where you come up with a better way to automate a process in say the car industry. You could approach a car manufacturer or retailer to get them in as an investor on your idea. Just be sure to get them to sign off an NDA before revealing anything to them.

Family, friends: Obviously, if your idea is a genuine cracker, you have done your homework, have you plan in hand and feel confident that it could seriously disrupt and add value, then you could approach your family and friends.

Naturally you always need to make them understand that as with anything with massive gains and possibilities, there is still always a with investment of their hard earned money, albeit it an educated one.

In summary, if you have an idea,

  • Do your homework
  • Get professional help and advice
  • Get a plan in place that talks about the idea and how it will generate income
  • Get an indicative financial and business model
  • Find the best groups of investors to pitch your idea to.

At Hustle Digital, we work with a number of clients that have used this approach and as a result where able to retain the bulk of their equity, while still getting the needed investment to bring their app idea to life.

 

Remember, it’s better to have share in something rather than 100 percent of nothing…

 

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