Many companies began as MVP(Minimum Viable Product)s and today are industry giants. Examples include Uber, Facebook, Spotify, Instagram and Zoom.

Definition of MVP

MVP is an initial version of a product restricted to key features. The purpose is to gather user feedback, present it for evaluation by investors and get an idea of market demand. Instead of spending resources on developing the entire product, less money, time and effort is spent to develop an MVP. This way resources are saved if the MVP is not suitable for the market and target audience.

How to Craft an MVP

• Perform market research

See if identical products are available in the market. What do people seek in a product or service? What are folk’s needs as well as preferences?

• Set Goals and Objectives

Ask yourself the following questions.

What problems can the product resolve?

What benefits does the product deliver?

The reason(s) users should prefer your product over the competition?

Now you can proceed to craft the MVP with the needed features and functionality.

• Partner with a Competent Software Developer

They will design and develop the MVP keeping your specific requirements in mind. Make sure you hire an entity with the relevant experience and expertise. That way all requirements will be present, there won’t be any flaws and your precious time is not wasted.

• Craft and Test the MVP

After understanding your specific requirements, the software development team will design and craft the MVP. Periodic testing will be carried out to weed out flaws. The software development team will ensure that the MVP is user-friendly and has all the pre-decided functionality.

• Feedback Analysis

Once you present the MVP to end users you will receive different kinds of feedback. This way you will come to know the shortcomings of the MVP. Incorporate the desired feedback into the MVP. You can introduce new features, remove features or change existing features based on user feedback. This iteration of submission for feedback and incorporating user feedback will result in a better product with less time, money and effort spent.

How Does MVP Attract Investors

Now that the MVP is ready, we need to approach investors for MVP funding. We take a look below at the reasons why investors want to have a look at your MVP before making any financial commitment.

Verify Market Awareness

By examining the MVP, potential investors can evaluate whether you know contemporary market conditions as well as whether you have the capability to adjust to the changing market environment. Investors know that a credible MVP involves considerable research as well as preparation.

Assess Quality of Team

A capable team can make even a mediocre idea succeed while a weak team will result in even a brilliant idea to fail. A high-quality MVP demonstrates the technical prowess and domain knowledge of your team. Also, it is a reflection of your relevant experience, range of skills as well as the knack of converting initial vision into a high-quality tangible deliverable.

Evaluate Market Viability

MVPs are specifically designed to test if there is market demand for the final product as well as whether buyers are willing to purchase it at your price. Investors can have a look at the MVP, view the user interface and play around with the functionality. It gives them a fair idea of the final product as well as market viability of the final deliverable. Thus, they can make an informed decision in terms of investing their money.

Expense of Developing an MVP

The answer to this is that it depends. The cost depends on the UI (User Interface)/ UX (User Experience) desired. The software technologies involved also play a role. If you use open-source technologies the costs are less. Another factor is the hourly rate of the software developers and testers. The rate depends on the skills, experience, and location of the software development team. Other factors include the product features and functionality, industry, and the size of the MVP. For instance, the cost of developing a social media app is different from that of an education app or healthcare app.

How to Shortlist Investors

Do the Requisite Research

Look for investors who have previously invested in MVPs. Find out their interests and risk appetite. Another important factor is their financial capabilities. Remember investors tend to take lesser financial risks during economic slowdowns. Keep that factor in mind to shortlist suitable investors.

Showcase the Future Scenario

Do not just discuss the present potential of the app. Show the roadmap by which the MVP will evolve into a future success. Give realistic projections and elaborate why the MVP is a lucrative opportunity keeping the long-term in mind. Make it easy for investors to visualize the long-term vision you have for the MVP.

Tailor Your Pitch

Remember every investor is different. They have different financial resources and interests. Devote time and effort to make a pitch personalized to every investor. Give them statistics and visual projections of the product growth trajectory. This way you will increase the likelihood of potential investors making an informed and positive decision.

It is Natural for Potential Investors to Ask Questions

It is logical and expected for any investor to be satisfied about product viability before investing in the product. So do your homework thoroughly. Typical questions could include technical feasibility, the amount of investment, timeline and expected profits. Honesty and transparency are the best strategy in such situations.

Money Management

Investors may not have money to launch the product in a big way. So, give ideas and strategies to keep the product lean and developed at lesser cost. Most investors would appreciate this step.

Why CoffeeBeans?

CoffeeBeans is highly experienced with all the skills required to build an MVP app. We are aware that cost is a concern especially for start-ups. As we are based in India, our rates for building and testing MVPs are competitive. If you do not know how to build an MVP, CoffeeBeans is a stellar choice. We can scale up to the demands of big organizations as well. Whatever the size and complexity of your MVP we are at your service. Our pace is fast and we respond in real-time as we very well know the frenetic pace at which market conditions change and new products are introduced.