I Have An App Idea But No Money
Omninos Solution receives inquiries on a regular basis from people who have a great app idea but lack the funds to begin the app development process. This is the unfortunate reality for the majority of startups, entrepreneurs, and new businesses; I know it was for us; it's a shame because a good idea should see the light of day! So, where do you even begin?
Startups can be fully VC funded or self-funded and bootstrapped, among other things. A simple MVP could cost as little as $10,000 for a simple locally run app with minimal functionality targeting just one platform (i.e., iOS/iPhone), but if you want a more complex app that relies on a back-end API server, runs on both iOS and Android, and has a front-end web app version as well, you would be looking at $50,000 or more. We can aid in the requirements sizing process and offer you a written quote estimate.
What funding options are there for developing new mobile applications? Here are 5 of the best funding options to consider for your app development budget:
Self-fund & Bootstrap from Personal Savings
The best strategy without a doubt if you want to keep total control and ownership of your new digital app or product. By self-funding, you can put your own money toward your idea or business. You can get started right away because it is a simple process. Even in the startup world, many highly successful businesses started and continue to operate on their own funds. If you're interested in bootstrapping, which you should be, keep in mind that once your app is built, marketing will need money as well (for things like Facebook ads and Google AdWords); there is a great course from Stanford that I'd recommend all aspiring entrepreneurs take (you can watch the entire course on YouTube).
Peers and family
You should pitch your idea professionally, almost as if you would to a true investor you do not know, since it is ultimately a business transaction and they will undoubtedly want to know the specifics of how your app will generate revenue and, more importantly, return their investment. This is another excellent way to stick with the bootstrap method. Working with f&f can have significant effects on relationships if things do not go well, so think very carefully before moving forward with this funding idea!
Bank Loans for People or Businesses
You can get a loan to start a business (or an app/website) in the same way that you can get a loan for a car. You will need to complete the standard forms, Q&A's, and similar that the bank or financial institution will throw at you and demonstrate (likely on paper) how your app business will make money moving forward. We can help you by providing a quote and also a nice glossy proposal (for a minimum fee) for you to submit with your loan application.
Private Investors: Is your app idea geared toward a particular sector of the market? Why not present the concept to some influential people in the relevant industry? In exchange for a percentage of your company, the right person might be willing to fund the entire web and/or mobile app development build. Again, there are drawbacks to this because they will probably want to have a say in how your business is run, but there are also many benefits, such as connections and knowledge of the industry.
Investment Capital (VC firms)
Many of the major players in the startup world choose the VC route, or do so after they scale significantly. Think Facebook, LinkedIn, Uber, and AirBnB. The VC route requires patience, an A-game pitch, and a willingness to have your idea modified to fit the VC firm's view of the quickest path to success and a financial return on their investment in you and your concept.This is the quickest route to success, but not everyone is successful, and even if you are, there is no guarantee of success. Nevertheless, this is a great start, and if you can secure venture capital at an early stage and are game for the ride, that's fantastic news for you! In many cases, it may be best to get your app idea off the ground by bootstrapping and then go for VC at a later date; who knows, you might be the next Basecamp or MailChimp! Keep in mind that just because you don't start with VC doesn't mean you can't get it later.
In addition to the aforementioned, there are numerous online platforms available to attract investors in order to secure funding. One of the most well-known of these is AngelList.
I hope the information above is helpful or at least gives you a few ideas about where to begin when trying to secure funding for your app development idea. If you have any questions, please contact us; we'd be happy to assist.
Conclusion
Therefore, these are some alternatives if you were wondering how to create an app for free, or at least for much less than retail. This is by no means a complete list, and if anyone is aware of any others, please let me know. What it does demonstrate is that having a limited budget doesn't mean your app idea is doomed. You could still realize your aspirations of starting an app with a little ingenuity and a lot of effort. Where there is a will, there is a way, as the saying goes.
