Securing Funding for Your Digital Expansion
Like any business, your digital expansion requires capital. Mobile applications range in costs. When looking at simple applications, the average is approximately $100,000. However, when we look at complex applications with multiple features, the applications can cost over $230,000. While some of you may have the capital to fund your project right away, many of you may be required to look at alternative forms of funding.
Funding can be obtained in a variety of ways. The most conventional way to get funding is through a bank loan. WIth that said, there are alternatives, which include bootstrapping, grants, or subsidies.
Bootstrapping is not always an option that is readily available to people. Oftentimes, businesses need to consider a loan. This is due to the fact that grants and subsidies are limited, and require conditions to be met. Loans aren’t an easy way to get money because they require forethought and work. So how do you secure funding for your digital expansion?
Regardless of where you are getting your funding, you need to have full confidence in your business, and the model you are proposing. When you display confidence without showing arrogance, you have a more trustworthy basis. This confidence needs to be developed and projected through knowledge. By understanding your business plan thoroughly, you can show those that are investing how well you understand the business and industry. This will allow for trust and confidence to be built. This is how you can fully understand what you are getting into. When preparing for meetings with different stakeholders (Banks, Boards, Family, etc.), you need to prepare for a variety of different questions. By anticipating a question , you can be better prepared.
At the end of the day, being well informed will ensure that you can succeed and risk can be mitigated.
A business plan is very important, not only to the bank, but for yourself. By building a business plan, you can show an understanding of what you want to do and achieve. It is obvious that you need to describe your mission and goals, but there are things that you can add to a business plan to set it apart from others, and show the bank that there is promise and potential. By including financial projections, you can better show your understanding of the market, and understand what success will look like when the business is operating.
When we look at app development specifically, funding is often required. With that said, there are ways to show how your application will serve the market. By including a mock-up and a user journey, you can show the uses for your application. This will create confidence in the business and application.
A business plan needs to be able to touch all the important bits of the business. By ensuring that there is ample detail, the potential for investment is far greater.
When you build your business, you need to ensure you are doing the most financially feasible thing. This means you need to look for the best deals. In order to find them, you need to research. Through research, you can find the lowest interest rates and the highest acceptance rates. With that said, you need to ensure that your rmoney is coming from legitimate sources. By researching your options, you can ensure success.
Speed isn’t the key to success. If you want to have long term success, you need to make sure that you take the right road.
The Bottom Line
Vog is transparent in its pricing. As long as you maintain your scope, you will know your costs before you begin the project. Consider Vog: A Canadian company that wants to help you develop your business. Contact us for more information on how Vog can propel your business forwards.