When it comes to startups and software development, getting funding for a project is one of the hardest and most exhausting parts of the job. Investors want to be sure that their money is safe, so most of them are thorough while choosing a project. A great way to increase your chances of being funded is to create MVP. Minimum Viable Product approach is not a new idea in the React Native mobile development. It has multiple benefits for the developer, but how is it helpful for the investor?
The answer to this question is rather complex. Let’s take a closer look at what you need to do to create a proper MVP and how to use said MVP to get funded.
How to start building an MVP
MVP is a helpful tool, but only if it is made right. The proper MVP development process can be divided into clearly defined steps:
- Make a clear list of features for your product – define most of the features you plan on your application to have. Rely on needs you want to satisfy and the problems you want to solve. Conduct surveys and create a clear image of your customers. Research your potential competitors as well, take a close look at what they’ve done right and wrong Determine the most important features that should be included in the MVP, try not to overcomplicate things. Leave complex design ideas for last;
- Develop and launch – develop your MVP like any other app, just with a limited number of features. The MVP should be polished and easy to use, don’t expect just to fix all the problems during the React Native mobile development;
- Gather and analyze the feedback – user feedback will help you to find the problems in your MVP and gather ideas for new features and ways of improvement for your product.
Benefits of MVP for the investor
1. They clearly see the product functionality
Any product you develop has to solve certain needs of the user in order to compete with other products on the market. It needs to have unique (or uniquely implemented) functions that will help your clients one way or another.
MVP is one of the best ways to present these unique features to your investors. If it’s clear to them, which problems your product solves, they will better understand how it fits the market and whether it’s viable for them to fund further development.
Obviously, MVP does not provide a complete look at the full functionality of your product: yet it demonstrates the most important features of your application. However, it also provides an outlook on the potential of your product. If the MVP is well done and can already fulfill certain needs, just imagine what the full product will be capable of.
2. It is easy to see if the product is viable
There are multiple factors that influence product viability. It is a challenging task to determine whether the app fits into the market and whether it will be successful. Furthermore, the results of such an analysis are not concrete — the market is hard to predict and a lot of the aspects are hard to account for. Some of the factors can change due to the React Native mobile development process.
MVP can provide a clearer picture of these circumstances and allows for a better analysis of the product’s viability. If the investor sees how certain features already work, it would be easier for them to determine how the additional features you plan to add will work together.
Furthermore, during the MVP development process, you can choose what features to include to create the best impression for the investors. For example, you might want to focus on your products’ scalability to demonstrate that it will work well even in a huge market.
3. You prove your market awareness
As we’ve already mentioned, market analysis is an important part of the MVP development. If you want your product to succeed, you need to know about the need you fill, your competition, their advantages, and disadvantages, and what’s unique about your software. React Native mobile development skills is not the only thing you need to have.
Most investors know that MVP creation requires much more effort and preparation than a simple pitch arrangement. They understand that you wouldn’t spend resources on MVP without knowing the market. MVP demonstrates that you know the market, which might help you to gain investors’ trust.
Understanding the current market situation will also help you to provide better assessments of your product success and the risks you might face. So, while investors will see it as your strength, it will also help you in other avenues, after you find funding with an MVP.
4. There is an initial feedback
User feedback is an important tool for software development. Not only does it allow to gauge the product success, but also it helps to identify the problems any software has, and it allows us to determine which features need to be worked on more.
For investors, user feedback showcases how well the money they’ve contributed is spent and what needs to be done to maximize the profits. However, usually the feedback they get can only be gained after the React Native mobile development process and after the product has been put on the market.
MVP allows you to gain and provide to the investors an early users’ feedback. This will provide them a prior look at the benefits of your product they might profit from, and what needs to be done to fix the initial issues. This saves a lot of time, which is a huge bonus in the eyes of the investors.
5. They know you have a right team
In order to support your project, investors not only need to trust you but your team as well. Usually, they are interested in their experience in the field, like React Native mobile development and the previous projects they have been working on.
A well-made MVP will show the investors your team is ready for the job more evidently. It will showcase their skills in bringing the idea to life, even if not in its full capacity. This will mean that your team can determine the main goal, focus on it, and deliver a concise and representative experience when needed.
MVP will be seen as a kind of a test run of your team, which will establish how skilled they are. So, you need to make it count and make sure the minimum viable product is polished and attractive, so your team gets the funds and starts working on a full-fledged product.
6. You’re committed to the project
If you as a founder only have a vague idea of what your app will look like and how it will function, it will be difficult for you to persuade the investors to invest in your project.
If you use MVP to find an investment, the development team will help you to present the best and most important features of your product in a concise manner. This way the investors will discover the potential of your project and definitely deem it investment worthy.
Furthermore, investors know that you need to spend time and other resources for the React Native mobile development of an MVP, which further proves that you’re ready to make sacrifices for your project. It’s proof of your commitment, which is always appreciated and valued.
All in all, the MVP approach to software development has a lot of benefits for the developer. Through it, you can conduct a thorough analysis of the market and gain some important user feedback that can assist you in creation of a better, more fleshed-out application.
However, as we have shown, this approach is also beneficial for the investors. Using an MVP, it is easier for them to estimate the success of the project, how well it will perform, will it be profitable, and how well the developer is prepared for the next stages of the development.
This makes MVP a fine tool to gain investors’ trust and secure the money for the project. However, it needs to be done right to ensure complete success. So, make carefully calculated decisions, be thorough and attentive during the development, and choose the proper tools for it.