If you’re planning to launch your own startup app then there are several ways of going about it. To increase your chances of success then you should consider launching a mobile app project with very few bells and whistles, building an app which in the industry is referred to as a Minimum Viable Product or an MVP. There’s a lot at stake when launching a new business, risk can be reduced by opting for a low-risk, low-cost product that can be on the market sooner.
Startups that provide innovative products or services have a high growth potential. But sadly, 90% of startups fail and millions of dollars of invested funds are wasted. It is normal for a startup to come across hurdles, after all they are called startups. The problem occurs when a startup fails at a late stage of the enterprise and all available funds have already been used.
Investors like to put their money into a reasonably safe bet. Attracting investors at an early stage when the idea is still just a sketch or a slideshow presentation is unlikely to blow anybody away or make them reach for their check books. And this is one of the reasons why creating a MVP is important in order to provide a clear notion of the product for the investor.
What is a MVP?
The Minimum Viable Product is a launched app with the minimal set of functionalities that can still have value for the end customer. It’s an app stripped down to it’s bare bones. It’s a way of getting your app on the market and open for investor interest. Once your app has been built and launched then it is easier for the public and investors to understand the value of your app.
What’s the value of MVP development for finding investors?
Wondering how to start an app and attract investors? Again, consider building MVP, as it allows investors to examine the product and its features in detail. It gives them a first-hand experience which increases the chances of financial backing. Investors are more likely to be impressed by your idea if they are able to test the functioning product, rather than read reports about it.
Startup apps often fail. A MVP can get the product out on the market to get feedback from the end users. Steve Blank, the author of customer development methodology, believes that the reason many perspective startups fail is because they ignore or have no way of hearing what the end user is saying about their product.
MVPs make it possible to clearly understand the customer’s opinion about the product and provides feedback for the ongoing development of the final product. Developers can use this feedback to establish what the public need and remove any unwanted features. When you have a working minimized version of the product in your hands it is far easier to follow the specs and ensure that everyone has a similar understanding of a future project.
In a nutshell, creating a MVP allows establishing the right vector of the startup development.
MVPs allows your startup to find early adopters of the product. Early adopters are key to product awareness, creating a buzz around your app and increasing the demand for the final product.
Best of the best use MVP
Many successful companies have got their business of the ground by launching MVPs. Huge players like Spotify, Airbnb, and Foursquare all started life as MVPs. Let’s take a closer look at each of them and see how they turned MVPs into global success.
Spotify used the MVP model and released a product that only streamed music. With the help of a MVP, they managed to find investors and continue to expand and develop their startup. Today it has 60 million users and it’s worth 8.4 billion dollars.
The Foursquare application used the MVP model to provide check-ins and rewards for its users. On the basis of user feedback, they decided to increase their reach by adding city travel guides and recommendations. Today foursquare unites more than 50 million users.
Airbnb is a successful tourist and traveler service for a short-term apartment rental. They used the MVP model to create a small website to rent apartments, and then they realized that short term apartment rental had the potential to compete with hotels. Today it’s one of the most popular worldwide tourist services.
The MVP model allowed these giants of the startup world to present their product to customers, analyze their feedback, focus on important features and run with them. This enhanced product sales and their startup app success.
You may find interesting articles on how to integrate telemedicine into EHR system and develop custom hospital patient management software.
MVP benefits for your startup
Many startups fail because they decide to go all in with the product release. They miss many opportunities because they do not consider the possibility of testing their product first. The MVP model reduces risk in the startup world, allows your business to concentrate on the product's main selling points and remove unnecessary features.