Many, if not most, startups face the challenges of raising enough funds for their ideas. Of course, there are thousands of investors, especially venture ones, who are eager to invest into that or another startup idea. However, their possibilities are also limited and cannot be allocated to all startups.
Moreover, they do not put money into all ventures. To be attractive to venture investors and gain more traction not having enough funds, think over MVP development for startups by Otakoyi. What is MVP? Why do startups need to consider this option? Lets tackle.
MVP: What Is It, And Why Would Startups Benefit From It?
The minimum Viable Product, or MVP, is basically a new product introduced to the market to gather as much information and feedback as possible without spending thousands of dollars on it. It is a basic version of your future full startup idea in plain language, but it can be developed much faster and at much lower costs.
This way, you are able to collect your target audience’s feedback on your product and take that into consideration when developing the full version. What is more, having tested the MVP of your startup idea, you can present more facts and data to potential investors, and the traction is higher. Thus, you are more recognizable and credible.
Speaking about the benefits of building MVP, we would like to outline the most valuable ones.
1. Lower Risks
As the practice shows, implementing a minimum viable product is a low-risk venture. First of all, investments are relatively low if compared with the full version of the product, while the outcomes are exponential. It means that ROI is very high regarding your business idea is actual.
For example, Dropbox and Uber implemented MVP to check out their startup ideas. How do you like them now? Of course, you have to consider other factors, like timing and actuality, but if you hit the target with those, your product is bound to be successful.
2. Saving Time And Money
As mentioned before, MVP is an extremely economical way of starting up your business. First of all, you have to find a reliable software partner like Otakoyi, who will put your ideas into practice shortly. Developing MVP requires much less time and money. This way, you may invest more into developing customer relationships.
You are able to present a better product, which strongly relies on customers’ feedback and impressions and facilitates the risks at minimum costs. We recommend you not put funds into an idea that hasn’t been tested in the market yet. It is a smart move.
3. Early adopters
When launching a product, remember that your biggest asset is people. When we say people, we mean your target audience. That is another reason a minimum viable product brings a lot of benefits as it aims at the right people. With it, you can market your idea to early adopters who become influencers and spreaders of your product, promoting it among others and within your industry.
Is It Just On A Roll?
Surely, there are some challenges on your way. However, taking some challenges into consideration prior to building a minimum viable product can help you eliminate the most common ones.
1. Confusing MVP With Prototype Or Proof Of Concept
As you know, both a proof of concept and a prototype are used to test your ideas. So is MVP. How to tell the difference? To speak briefly, a proof concept is just a solution on how your startup idea can be developed in reality, in different scenarios, and without any actual development. A prototype is some kind of imitation of your future product on the basis of a proof of concept.
However, MVP is a viable version of a product and its very first version (albeit possessing limited functions and features). In other words, a prototype is based on a proof of concept and MVP is based on a prototype, and, finally, the product is based on MVP.
2. Market Fit
Keep in mind that a great idea means nothing if it is wrongfully targeted. When launching MVP, your task is not only to test your product but also to test target audiences. You may add or change age, interests, or location groups to your target audiences—anything to check out which one is yours. Do not give up after the first try, maybe you just need to adjust requirements to your niche audience.
3. Project Management Methods
When implementing MVP, tech startups should consider the two most common and suitable methodologies – Waterfall or Agile. The right choice falls on you to define which one fits your startup idea. Basically, it is chosen in tandem with your software development partner, and they usually are aware of what to pick.
Waterfall methodology is about a strict development process, following one step after another. Agile, on the other side, is completely the opposite. You have to be flexible and ready for iterations, so make sure the method chosen is a proper one.
Fake Door Testing
Ever heard of a fake door MVP? Basically, it comes down to different crowdfunding platforms where you can post your startup idea and not only raise funds but also check if your product is appealing to the audience. It is a great idea to opt for such an option as you can see what features are missing, what people don’t like, how the target audience reacts to and perceives it, and, most importantly, it does not cost you much.
There are many popular examples of companies that started off with MVP, for instance, Uber, Airbnb, Dropbox, etc. If you are willing to become the next generation Facebook, test your idea until you make it perfect.
Implementing MVP is the easiest and best way to test your startup idea efficiently, quickly, and with flying colors. As soon as you gain trust among early adopters, you can start gaining traction and more users and come off as a complete product on the market.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.