From the idea of a mobile application to the MVP that investors will invest in

by Bob F. CCO

A good idea is worth a lot. However, there are many examples of how a good idea was spoiled by the wrong approach to its implementation. It would seem that the most difficult thing is to find such an idea, while implementation and development are secondary. But in fact, the opposite is true. Imagine a young entrepreneur who comes up with a cool mobile app, for example, with the development of an application for crypto-investors based on blockchain idea but has no notion how to implement it correctly with blockchain development services. What should be done in such a situation?

The first step is to secure investment. You can try to raise a startup on your own by taking out a bank loan or borrowing money from friends, but you won't be able to get big money for a bare idea. In order to get at least the first round of angel investments, an entrepreneur must demonstrate to investors not a bare idea on paper, but something working – a prototype or a ready-made MVP. That is why the right step would be to turn MVP to the software development company and convert your idea into a working product that can bring customers value.

Basically, whether you are developing an MVP to get your first investment, or just to test the market and get your early adopters, the process is fairly uniform. However, there are several important factors without which you will never be able to secure investments. It is about them that will be discussed in this article.

Understand Investors

First of all, it is important that the entrepreneur could put himself in the shoes of investors. These people are ready to risk their money, but this does not mean that they are ready to throw it away. They will not agree to finance the development of even extremely promising, but only ideas, without ready-made mechanisms and working, proven processes.

The task of entrepreneurs is to create such an MVP that will not only check the market for a problem or a solvent segment, but also validate the correctness of the solution that the idea of this specific mobile application carries. And if it really worked for at least 20-30 people, then this is the case we need.

Find the right people

Any development starts with the right people who will do it. It is critical that these people share the values and goals of the author of the idea and work together to implement it.

The beauty and the main advantage of MVP development is that it can be done by students or beginners who are ready to work for an idea in the hope of future profit. However, if you are hoping for a high-quality result that can attract the first adopters and investors, then you will need the services of experienced specialists.

Make sure your MVP carries value

An MVP that hopes to attract investment must have a unique value and deliver it to users. The unique value is what will distinguish this MVP from existing solutions on the market.

The task of such an MVP is to solve the problem of users. Let's say that you have already been able to make sure that the problem really exists. Now you need to develop an application that solves this problem. The MVP of such an application should contain both the unique value that we talked about above and a mechanism that can, at least at the initial stage, solve the identified problem. There is no need to try solving a global problem, you can develop an MVP that helps users at the very first stages. If it works, then it is enough. Product scalability should be left for later.

Risk Management

Much has already been said about risk management. Yes, this is one of the crucial directions in modern development, not only in MVP but also for full-fledged products.

Obviously, in order to create a working product, you need to assess all possible risks. Employees must understand what problems may arise and what solutions are available for these problems. This confidence will help create an MVP without too many stresses. Moreover, the risk management strategy will be assessed by the investor as well, since risks are the first thing they think about when putting their money at stake. Seeing that the entrepreneur also understands the crucial role of the risk management plan will make them more confident in their desire to invest.

If you have little experience in risk management, you can conduct a simple SWOT analysis that will help determine the Strengths, Weaknesses, Opportunities, and Threats of your MVP. Divide a regular sheet into 4 sections and fill them according to their purpose. This quick analysis will help you calculate the overall pros and cons of the MVP.

Gather and measure all the feedback

One of the main goals of creating an MVP is to measure the first interaction with users, collecting and analyzing their feedback, with the subsequent implementation of the necessary changes. Nothing reassures investors like the MVP, which has collected a large amount of feedback from early adopters. After assessing this feedback and developing a strategy for implementing the necessary changes, this is the moment when you need to go to investors. You will show them a working solution that has already been tested by real people in the real market (the main advantages of the MVP). However, in order to start making real profits and bring users value, you need to implement the necessary changes and turn the MVP into a full-fledged mobile application. And that's why we need investments for mobile web development.

In Conclusion: a few more factors that will convince investors

A good idea with a properly implemented MVP is a great success. But sometimes that may not be enough. In conclusion, here are a few more factors that are critical to investors.

The product and market are promising. Your idea may be very good, and the MVP only emphasizes its coolness. But if investors understand that you are operating in a market with no future prospects, they will not risk their money. Make sure that the market and your product have future prospects.

The product is scalable. Above, we talked about the fact that the issue of scalability can be postponed for later. However, investors should see that your product is not capable of solving a problem for 20-30 people, but, with investment, can also do it well for 20-30 thousand people.

Team. After all, it's all about the people. A good team is 30% of success in negotiations with investors. If they see enthusiasts who share common values, it makes a very good impression on the investors. Therefore, choose your team members carefully.