How to Develop the Perfect MVP to Attract InvestmentLeave your thoughts
That very moment between the life and death of your start-up is your Minimum Viable Product. It is the project’s first introduction to potential investors. First impression means a lot, and rarely do you get a second chance at making one. With your Minimal Viable Product, maybe you have already accomplished something important. Maybe you’ve even started turning a profit. Oh, then you might be in the running to get your start-up funding!
But, what are potential investors looking for exactly? First of all, the prototype has to work, MVP is not just a vague idea on the paper. Perhaps indeed, at the very beginning, it really started out like that when you had that wonderful moment of clarity. But now it has to be something more, actually a lot more.
Second, the prototype’s intrinsic meaning derives from the very fact that it is genuinely useful to end users. This is going to give way to its first downloads. These very first users are often the most relevant because they show the real potential of your project to investors.
SHOW PROSPECTIVE CLIENTS THE ADVANTAGES
Is your item an invention that does not have any analogues on the market? Or, in a niche which already has some strong competitors, maybe you want to grow your product? Thorough market research is important in any case.
Solve their problems: The product has to solve someone’s problem in the case of creativity. It could be a mistake to build a commodity that very few individuals need. Observe your prospective clients. Determine the challenges they face as well as those that they face unknowingly. Reflect on those painful points now and try to fix them. Instead of being only mediocre or mundane, it will make your product necessary and practical.
Find your unique value: you will need to find the particular advantage that will differentiate you from your competitors or even future competitors if you want to keep up with the competition. Think of what you’ve got that your rivals don’t.
What creative approach would bring the product to life? To get investors on your side, this is what you need to know.
FIGURING OUT THE PAIN POINTS OF CUSTOMERS
If you just want to get an impartial opinion, then talking to strangers rather than friends and family is the best way to do so.
Can you explain briefly the issues your clients have and how to deal with them? Then, with your startup, you are more likely to have investors on board.
An interesting thing to note here is that there can be quite a significant gap between what a consumer wants and the issues they have. Not only do people lie to each other, also to themselves. Do not yield to the temptation to only ask individuals what they want. Only be observant and strive to concentrate on the product’s unique meaning and not just the primary definition. Then implement the most powerful way to achieve this benefit and you will be on your way to the top.
- What features are important for the product of the future?
- Which characteristics will ensure your product’s success and allow you to capture your target audience?
- What would not only help you stand out but also leave your rivals trailing in the dust?
- What features can be best implemented in later versions in order to save money in the absence of real venture capital?
All these questions are expected to be answered by a detailed and deep conversation with your CTO. That’s why he has to be a person that you can trust. An unquestionable and seasoned specialist.
The functions that your MVP should include are those that either make your product special or those that include something that your rivals are unable to deliver to your customers.
Adopt the approach of design thinking:
- Step 1. Explore the opportunities and possibilities that are available.
- Step 2. Identify complications and existing solutions.
- Step 3. Try to suggest something innovative, something no one has ever considered..
- Step 4. Eliminating those among them the ones that will work from those that most likely won’t.
- Step 5. Create prototypes and present your customers with them. To observe, to listen and to understand.
- Step 6. Assess their input and iterate. Do this and do as many rounds as you need
On the market, there are a lot of goods that have been popular because they have dealt with some small yet convincing and aggravating issues people have had.
GetAround, for instance, is a start-up where one person can rent their car to another without going through a traditional car rental service. Not only is insurance affordable, but it’s included.
SmartThings is another illustration. This start-up provides users the ability to remotely access and track their devices and services from their mobile phone.
Successful MVP’s have brought countless applications to life that we use on a regular basis. It even seems impossible to imagine imagining our lives without them.
Think about Uber, the famous taxi app. In the market, they saw the demand and offered a product to fill the niche. It all began when Uber’s CEO asked local car drivers if they were interested in anything like Uber being involved. 3 of 10 responses were positive.
So, as a San-Francisco taxi app, they entered the market and soon spread all over the world. They are also adding some outstanding features today, such as a helicopter taxi.
It is possible to turn the Uber experience into a sustainable development strategy:
- From the very start, to build a high-quality MVP.
- To evolve and be scalable, be prepared.
- For consumers, simple features will not be enough, they will demand more.
- On the working side of it, focus.
- Eliminate all technological impediments.
NEVER UNDERESTIMATE A GOOD MVP
You have decided, along with your CTO, which characteristics are needed for your product. It’s time now to transform them into reality. Never underestimate the value of an MVP. As a result of an unstable company or inexperienced developers, you cannot afford to lose future funding.
It will cause a lot of new costs in trying to economize here. So, be cautious about your decision. Examine the portfolios of the firms. Read their reviews. Look for companies that have expertise from scratch in developing successful startups.
Stop the most prevalent mistakes
Creating a brand has now developed into more than just a pile of innovations. One of the key factors is you need to make your user experience. It is not enough just for your product to be produced. It requires a lot of effort, research, planning, risk-solving, etc. when you need to raise venture capital. All of this is only possible if you begin with the right plan.
Categorised in: Startup Pitching
This post was written by SoCal Angels