Ask Me Help Desk - Help writing a business plan to a venture capitalist

Hi All,
I'm an artist that did a concept design of a mobile app and I have a partner based in Russia who will be doing the programming development for the app. We agreed to share the revenues from the appstore and also the development cost, and my part of the development is about $10000. The problem is that I can't fund my own part of the development cost, so I solicitated for funding for my own part of the money from venture capitalists on linkedin site and I've been lucky to find someone that is ready to fund my own part and the venture capitalist has requested me to write a business proposal/plan for the project.
My problem now is that I don't know how to write this proposal, so I would need someone to give me a breakdown of how approach writing this business plan, so I can win over this venture capitalist.

Thanks and I'll appreciate your help.

Ugo

I would think that a business plan for an app is all about timing, competition, and sales platform.
You need a timeline for development and it needs to be FAST.
You need to spell out (succinctly) what it does that no one else has done and prove how you know it doesn't exist yet.
And last, how and where you will put it up for sale, or if it will be free, how much ad revenue you expect to get.

Without knowing what the app is (and you shouldn't tell), I don't know what else to say.
I would keep the plan to 2 pages max, using an outline format.

Quote:

Originally Posted by joypulv

I would think that a business plan for an app is all about timing, competition, and sales platform.
You need a timeline for development and it needs to be FAST.
You need to spell out (succinctly) what it does that no one else has done and prove how you know it doesn't exist yet.
And last, how and where you will put it up for sale, or if it will be free, how much ad revenue you expect to get.

Without knowing what the app is (and you shouldn't tell), I don't know what else to say.
I would keep the plan to 2 pages max, using an outline format.

Hi,
Thanks for your interesting reply and advice, but prior to what you advised me, which reads,
"You need to spell out (succinctly) what it does that no one else has done and prove how you know it doesn't exist yet."

So prior to your above statement above, do you think I should completely explain to the potential investor what the app at hand does exactly even though it's at the design stage now, so some information about the app's functionality should be kept confidential until I'm sure the investor will invest on my app's design.

Hope you understand my concern here

Also prior to you advice, is there a site or article etc that can give me a tip of drafting an outline format like you advised me to use
Hope to read your reply again.
Thanks

Ugo

I meant don't tell anyone else, especially on a worldwide site like this. Of course you tell the investor, in an outline form.
Prior means 'before.' 'Prior to our meeting, I spoke with the CEO.' I think you mean re (regarding) or perhaps pertaining?

I don't know of a template for this, nor do I think you need one. Just write clearly and simply in your own words. And you want to do this ASAP! Don't agonize over it.

Start with a rough outline such as:
A. What the app does and what the closest competitors are, if any
B. Timeline for development and presentation.
C. How the app will be presented to it's target audience
D. How revenues will be made (google adsense, etc)
E. Expected profits at 3 months, 6 months, and 12 months
F. Basis for expecting those profits

Then fill in under those main titles with either short paragraphs or numbered steps.

If you only have a good idea and have no idea how you will get this app out to the world, or how it will earn money, then you might as well drop the whole idea, because you have a lot of research to do.

Quote:

Originally Posted by joypulv

I meant don't tell anyone else, especially on a worldwide site like this. Of course you tell the investor, in an outline form.
Prior means 'before.' 'Prior to our meeting, I spoke with the CEO.' I think you mean re (regarding) or perhaps pertaining?

I don't know of a template for this, nor do I think you need one. Just write clearly and simply in your own words. And you want to do this ASAP! Don't agonize over it.

Start with a rough outline such as:
A. What the app does and what the closest competitors are, if any
B. Timeline for development and presentation.
C. How the app will be presented to it's target audience
D. How revenues will be made (google adsense, etc)
E. Expected profits at 3 months, 6 months, and 12 months
F. Basis for expecting those profits

Then fill in under those main titles with either short paragraphs or numbered steps.

If you only have a good idea and have no idea how you will get this app out to the world, or how it will earn money, then you might as well drop the whole idea, because you have a lot of research to do.

Hi
Thanks for your inputs here.
To clear up you inquisiton, I already have a developer who will develop the app based on my prototype specification from my idea.

Also, prior to your outline sample, for line (F) which reads: "Basis for expecting those profits"

Could you please elaborate what you mean there.

Also, I wish to know if you think it's important to state specifically in my proposal how much share the investor will get from the revenue from the app. Eg, as the investor you'll get 25% and I'll get 75%

Hope to hear your views again.

Thanks

Inquisition is the wrong word, and you keep using prior incorrectly, so aren't listening.

Basis for expected profits means just what it says! If you expect X dollars in 6 months, you say WHY, such as ad clicks. I'm not going to do this for you. I don't even know where your revenues are coming from and I'm not getting the feeling that you do.

Yes of course say how much the investor gets, and he may counter with something else.

It's still not clear that you know anything more than just an idea for an app.

Quote:

Originally Posted by joypulv

Inquisition is the wrong word, and you keep using prior incorrectly, so aren't listening.

Basis for expected profits means just what it says! If you expect X dollars in 6 months, you say WHY, such as ad clicks. I'm not going to do this for you. I don't even know where your revenues are coming from and I'm not getting the feeling that you do.

Yes of course say how much the investor gets, and he may counter with something else.

It's still not clear that you know anything more than just an idea for an app.

Hi

Thanks for your very informative tips again. I'm sorry for my grammatical errors, especially my use of "prior." actually by using "prior," I meant to say "from your earlier statement..."

Actually, you may be right as to how much I know about the app business. I'm just a artist who's trying get his first app idea developed, but I just hope the investor will understand this fact.
I also want to know if I have to include or express my future plans for this app and also include their possible financial benefits to the investor
Eg that the technology used for designing app :
--could be licensed to different companies as an Ad tool

--could be used to develop an ad format for mobile phones

--also that this app could be sold one day to the highest bidder

-etc

Thanks and hope to hear your views again