Minimum Viable Product
Every entrepreneur's dream is to get funding for an app idea that they strongly believe in. And, unfortunately, the frequent news of tech start-ups receiving funding solely on the basis of their app idea does not improve the situation. In fact, it's more terrifying than motivating.
To begin with, forget about all those tech startups and their ideas and focus solely on yours.
And now that you've given your complete focus to your app idea, let's move on to another point: the reason your startup hasn't gotten off the ground is because you're being unrealistic. Either you haven't started working on your idea yet, or you're a headless chicken going in circles with no clear destination in mind.
In either of the cases, there is a lot to do.
So, let's get started.
We will walk you through the same process that we use when the budding entrepreneurs seek our Mobile App Consultancy service, which focuses on challenges on 'How to Get Funds'.
We will initially begin with why you need money, then go on to what investors look for when investing in an app idea, even if the world today has over 5 million apps (which we will discuss later in detail), and finally we will look into ways where you may get investors for your mobile app.
Why would a startup need funding in the first place?
So you have an app idea that, according to your relatives and neighbours, would be ideal for improving the economic status of an Indian remote village.
What you do is make preliminary estimates of the expenses and time needed, then contact an investor for funding. Is it going to work? Definitely not!
You'll require initial funds to test your idea in a real market with real people to see if they actually need the service (or if it was a problem only according to you due to lack of market research).
Now, imagine you created an app to address genuine issues, and the people there welcomed it and observed a positive impact in their lives as a result. What happens next? Would you be able to expand your app beyond the boundaries of one town if you had X amount of money?
I think we both know the answer.
You'll need money to turn your idea into a full-fledged application, and then to keep growing it until it reaches the masses. Don't be delusional and believe that your app will create money for you; it never does, at least not enough to build an empire around your idea.
However, if you are one of those businesses that is solely interested in establishing an app for a local community and that too for social purposes and have no intention of making money from it, this post is not for you. That's a long time.
If, on the other hand, you are a budding entrepreneur looking to build a reputation in the business and earn millions and millions of dollars in income and billions of dollars in eyeballs, it is time I reveal the secret of what Investors actually look for.
What makes your idea special that investors fund you?
The answer to that is they invest in businesses and entrepreneurs that have created a difference with their implementation and maintained a healthy relationship with them over time. But we know the percentage is much under 5%, and you, like the other 95% of new entrepreneurs, are born to fight, so let's roll up our sleeves and get that dream app of yours funded.
Since you've been with us for so long, it's time to reveal the key to obtaining the riches you need (only if your idea is actually as revolutionizing as you think it is).
Getting right to the point* Validation is what investors look for when selecting whether or not to put their money into your business.
Validation, both in terms of software usability and level of acceptance.
I'll discuss on both the validation points right away.
To begin with, the path to proving your app's usability will require you to deploy it in a market of real users, which is where your weapon of mass funding comes in — the Minimum Viable Product (MVP).
What is an MVP?
To put to the test an idea that you truly believe in and that the world needs and wants, you create a working model that you then sell in the market to test the waters. This working, functional model, also known as your guinea pig, is the MVP.
You contact a team of skilled mobile application developers and create a Minimum Viable Product with the basic features without investing too much time, money, or effort into it, and you evaluate its engagement and feasibility, which determines whether you should proceed with the idea, change it, or, in the worst-case scenario, drop it.
To summarize, MVP is the tool upon which investors base their funding decisions.
Now, the description of MVP as – A product that is released with basic features that best explain the issues and goals of the app and your entire startup – comes with many more questions attached, such as – What attributes to include? How can you tell if the solution you're trying to offer is actually required? How do I get rid of even one of the features?
Don't worry, we will answer all of your queries.
When you begin your MVP development process, the first inquiry is not even about the features. Isn't that crazy? Please bear with me on this one.