No matter what you design an app for, getting it off the ground and into the market is not as easy as it may have first seemed. You need help.
Whether it is paying for the last few steps of the development process or you are aiming for that big money investment payout, you need a proper investor.
You can’t settle for any investor. You want a solid business partner and someone who cares about you as a producer of a product as much as the app itself. To find that, you need some tips for negotiating.
The Top 5 Tips for Negotiating Investments
Developing mobile apps can involve a lot of management, detail work, and talented people. The perfect storm of a great app idea and a competent team to pull it off.
When it comes time to put it all together and get the profits you deserve, you need to know how best to work out a deal. Keep these 5 negotiating tips in mind.
1. Keeping Investment Interest Balanced
A negotiation isn’t about finding a chance to dominate, but getting a perfect balance. A good deal isn’t good if both parties aren’t satisfied with the end result.
This works both ways. If you push too much in your favor, you drive off investors. If they are pushing you around, it won’t be a good partnership and you won’t get what you deserve.
2. Consider Investors With Industry Experience
An investor that doesn’t understand your product is an investor that pulls away as soon as things get uncertain. You want someone who understands your industry so that they are with you on each natural ebb and flow.
It also helps sell the product when the investor is aware of what has come before and what might be good for the future.
3. When in Doubt, Find an Experienced Lawyer
You can never be too safe when you are signing documents for thousands if not millions of dollars. As such, having a lawyer with experience in contract negotiation can be a lifesaver.
4. Don’t Sweat Every Detail
Being too particular with contract negotiation is a problem that can come up. While it can be safe to err on the side of caution, the more time you spend nitpicking on details, the more time the investor has to have second thoughts.
This doesn’t mean to ignore problems. If a detail will impact you in a negative way, by all means, deal with it.
That said, you do need to avoid wasting time on negligible details when you can instead be forming a better bond with your investor.
5. Look for a Business Relationship
In the end, your investor is not a pile of money that you can take from. Your investor needs to be much more than that to put you on a strong footing.
Your success in business depends on the relationships you build. Pay attention to your investor during the negotiation process. Are they attentive? Are they interested in your app? Are they interested in you as a company or group?
As well, understand what it takes to be a solid investor. Know what they are looking for and know when to spot when they are after short term profits over long term partnerships.
Creating a mobile app business plan before you get too deep into the app development side of things will help bring everything in focus. Without a firm plan in place, you’ll end up making important decisions on the fly, which might potentially run your app into the ground before you get a decent footing.
Working with Industry Leaders
Working with investors can be an intimidating process. You need an edge and these tips for negotiating can be the trick you need.
We here at EBPearls are an industry leader for a reason. Our experience and knowledge got us ahead and now it can push you further, too. Eager to get started? Contact us today for more information.