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An Investment Attraction Guide on Launching a MVP for Your Startup
11 min.

Launching a minimum viable product (MVP) is one of the most critical aspects of any startup. According to Eric Ries, the key aim of minimum viable product launch is to test your product idea with real active users.

In addition, launching an MVP helps attract investors quickly, as it’s a real product that can be sold and used. It’s one of the main reasons that make MPV attractive to inventors and double your chance to raise money.

In this article, ProCoders will explore how to launch an MVP, define the right business model, the first steps to start developing your MVP, its launch, and the right approach to investors!

the man is asking to come

6-Step Product Launch Checklist Crucial to Attract Venture Investors

Imagine you want to create a delivery app, and you’re ready to get started. However, before you even start to think about launching your minimum viable product into the market (or pre launch MVP), it’s essential to have the right preparation to start developing a digital product itself. A good checklist can help ensure that you’re ready for any challenges that come your way. Here is one from ProCoders:

Step 1. Do a preliminary market analysis.

This will help you understand the current state of your industry and the market opportunity for your business.

Here’s how to get started: complete a SWOT (strengths, weaknesses, opportunities, and threats) analysis. This exercise will help you better understand which areas of your business need improving and where there might be more opportunities for growth within the industry.

mvp swot

Step 2. Define your Business Model.

A business model is a framework for understanding and evaluating the opportunities and challenges of an organization. It provides a structure for developing strategies, making decisions, and evaluating results. A business model identifies the core activities of an organization, including the value proposition and cost structure.

A company’s business model is often referred to as its value proposition, which describes how it will deliver value to customers to generate shareholder returns. Business models are essential components of strategic management — they describe how an organization creates value for stakeholders (customers, suppliers, employees) and how it captures that value.

Step 3. Create a business plan.

A business plan is a written document describing how you plan to start and grow your company and how much money you’ll need. A good business plan helps investors understand what makes your idea unique, why it can succeed in the market, and how much money will be needed to make it happen.

A typical business plan has three sections:

  • Executive Summary (or Abstract) – a high-level overview of the entire document;
  • Company Description – an overview of your company, including its history/background/mission statement; products/services offered; market opportunities; management team experience and skillsets (including resumes); financial statements (if available); other key metrics such as revenue growth projections;
  • Business Plan Strategy & Execution – this section includes detailed information about each part of your strategy for achieving success in terms of product development/innovation cycle times; marketing plans for different target audiences based on psychographic data from user surveys etc.; details on distribution channels used by competitors so you can improve upon them if possible.
minimum viable product still need a business strategy

Step 4. Build your core team.

A strong team can make or break your business, so it’s important to find people who are not only talented but also aligned with your goals.

  • Determine what type of relationship you want with prospective teammates. For example, we at ProCoders prefer direct and informal communication. Why? Here’re some reasons:
    • such communication helps explain the work goals better;
    • it helps to create a friendly atmosphere;
    • our employees don’t feel under professional pressure.
  • Find people who have a proven track record—not just what they say they’ve done before;
  • Look for individuals that have complementary skills and experience.

If you don’t have time for the hiring process, ProCoders can help! Over the years, we have gathered a team of experienced engineers, that’s why you can be sure that if you come to us we will provide you with a team of professionals under your requirements! Don’t hesitate to contact us today.

Step 5. Build a prototype or beta version.

A prototype is a mockup of the intended design, ready for testing by real customers (or users). You should remember that if you don’t have a prototype, there’s almost no chance you would find an investor, as nobody likes to invest their money in something they can’t feel and use in real-time.

Besides, also consider using such services as Discovery Phase. This is a roadmap of how your project will be created.

Start your Discovery Phase with ProCoders Today!
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Step 6. Formulate a marketing strategy.

Your marketing strategy should be based on the product’s target audience. You can do this by segmenting customers into groups most likely to buy your product and finding ways to reach them.

The next step is to align your marketing strategy with your product vision and goals, which will help you determine how much money you need for advertising and who should be involved in creating the campaign.

Finally, ensure that your positioning (a statement about what makes you unique) is reflected in all aspects of your marketing plan, from website copywriting to social media posts! If possible, try testing various platforms until one works best for reaching out to customers (i.e., Facebook vs. Instagram).

MVP Launch Approaches

You’ve put in the work and finally got a product ready to launch (for example, you have created a transportation app). But how do you go about it? You should consider three main approaches in your MVP launch strategy and include in your MVP launch plan:

  • Soft launch. This is when you’re still testing your product without telling anyone outside your team about it.
  • Hard launch. A hard launch is when you push your product to the public and it’s live.
  • Dark launch (also known as “stealth mode”). What happens here is that only certain users will get access to whatever updates come along with dark launches.

Tips on Launching a Minimum Viable Product without Bootstrapping

To launch your MVP without bootstrapping, consider the following:

  • costs and coding speed: the faster the product is available in Appstore/Google market, the faster you will move to the next step of its improvement;
  • focus on the features that can attract customers and investors, not just the technical perfection of the product (one of the main issues of tech geeks);
  • tech stack: the issue is that startup guys usually choose the stack they can code by themselves (so no criteria like cost-effectiveness, security, scalability, etc., are considered). Usually, they can’t complete the MVP by themselves and are trying to find someone to complete it. At this stage, they face the issues like a lack of talents, high rates, low coding speed, and sometimes the decision to change the stack and start from 0. Because of that, ProCoders recommend making the Discovery Phase for your project before even deciding on the tech stack you will use.
Want To Find a Cost-Effective Tech Stack? Consult ProCoders!

MVP Presentation: technical and entrepreneurial success tips

To ensure that your MVP presentation is successful and memorable, it’s essential to be well-prepared. You should know precisely what you are going to say and how you are going to say it. When preparing your presentation, consider these tips:

If you are doing a presentation for the first time, pay attention to the formal and technical aspects:

  • speak no more than 5 minutes;
  • don’t overfill the slides with text;
  • use high-quality images;
  • only one slide per thought.

What’s more: before the event, check that all equipment is set up and that there will be no problems during your performance.

  • Make sure you take the time to test your MVP before sharing it with people. The best way to do this is by hiring a professional tester. ProCoders can help you do this because it’s not reasonable to hire someone for 2-3 weeks of testing. Instead, you might want to use outstaffing services. Knowing that everything is tested will make you much calmer and more confident when presenting your product to an audience.
  • You should clearly state your business model, so investors understand how you plan to make money from your application or website. If your market research, marketing strategy, etc., are convincing enough, the investment will come soon!
  • Rehearse as much as you can. It may seem silly to say something standing in front of a mirror, but it can help you see your performance from an outside perspective and highlight all your weaknesses. You won’t get a second chance to make a first impression, so get over your embarrassment and get going!
rehearsal is important

How to Measure the Success of Launching an MVP?

To measure the success of launching your MVP, you need precise criteria. This will not also help you see what can be improved, but it can also be shown to your investors and make a report accordingly. ProCoders recommend using the following ones:!

Check whether your MVP has achieved the goals

The most common mistake ProCoders see when our clients evaluate their MVPs is that the main goals set at the beginning are lost. The key point here is to evaluate your product or service according to its purpose, not just because it looks nice or does not have bugs. It’s important to understand what problem you’re solving for your customers and how your product solves this problem better than competitors do.

Follow the right metrics

When launching an MVP, your chosen metrics must be measurable and actionable. Also, these metrics should be relevant to your business goals and specific enough so that the team knows what they need to do next. Here are some examples of good measures:

  • Click-through rate (CTR). It lets you know where users drop off in the funnel and how much work is needed before converting it into sales or signups.
  • Net Promoter Score (NPS). This measure asks customers whether they would recommend a company’s product or service; its calculation uses responses of 0-6, where six means “definitely recommend” and 0 means “would not recommend at all.”
  • Conversion Rate. This measures how many users sign up or purchase from your site or app.

Focus on KPIs

The most important aspect of measuring the success of your MVP is user engagement. You should measure how often users open your app or website and how long they stay engaged.

You can also measure how frequently users share their experience on social media after using your app or service and how many people tag you in their posts or stories.

In addition to user engagement, you should track retention rates for each new application version or every time you release a new feature on the website. This will allow you to determine which features are working best for retaining users and which ones aren’t.

How does the development team matter, and Why Choose ProCoders as Your Partner When Building And Launching an MVP?

Money is given to investors by the idea of the project, its team, MVP, and business model.

However, it is important to understand that money flows not only from investors but also from users. And if you have an interesting product, then users will be attracted by it, which is a very important factor in which your business can grow.

If you think about building an MVP, you should ensure that your team is prepared for what’s coming. The team should include people who can implement your ideas in technical terms. Also, remember that if you hire effective people and at the same time remain cost-friendly, this will show investors that you can manage their money wisely.

Need A Development Team To Bring Your Business Idea To Reality?

Don’t forget about scaling: first, you need a designer, then developers and testers. Don’t hire everyone at once, as developers wouldn’t have work till designers make a prototype, and testers – till developers develop this prototype.

Also, a good team can offer you the most effective solution because they have experience and know “shortcuts” to achieve your goals (because they’ve come across similar problems and either already know how to solve them or understand how to figure it out).

Remember: the main thing for investors is that they see perspective projects and have confidence in them. And we at Procoders are experienced in this kind of cooperation.

ProCoders provide a wide range of development services, including web and mobile app development, backend and frontend development, blockchain development, and cryptocurrency wallet app development. Besides, we have different services for different stages of your project:

  • Discovery Phase, which will transform your business plan into the development roadmap;
  • A self-managed Dedicated Team which will be built according to your requirements, but at the same time you will have complete control over the development process and be able easily to make changes as the project evolves;
  • Outstaffing Service if your project is already running, but you lack developers, designers, QA specialists, etc.

When working with us, you can expect the following:

  • Our developers are well-tested, and we have all the HR and administrative processes in order;
  • We care about your project and will do everything we can to help you succeed;
  • ProCoders are available for short-term projects that require additional resources or extra development services to meet urgent deadlines;
  • We are open and transparent throughout the entire process, beginning with naming realistic terms, continuing through choosing a relevant technology, and ending with actions taken to solve problems;
  • ProCoders don’t need more than 40 minutes to answer your questions during working hours;
  • Our developers have extensive experience building websites and apps from scratch (this ensures that everything will function smoothly during the launched MVP).

We also offer free consultations, so feel free to reach out!

FAQ
Why did MVP fail?

There are several reasons for that:

  • not enough resources (money or time);
  • bad product quality (QA specialists didn’t test the product well and it didn’t impress investors);
  • unrealistic development plan (due to the lack of experience);
  • entrepreneurs don’t know what kind of results they want from their MVP. Sometimes, they don’t even know what problems they’re trying to solve with their product. 
  • in many cases, entrepreneurs also try to solve too many problems simultaneously. They need to focus on one problem and one person who has that problem to find the best solution for it.
What are the investors’ requirements for minimum viable products?

The investors need to see at least three things:

  • The team. Investors want to know that your team has the skills and experience to bring the product to market. They also want to know that you are a good fit for each other—that you work well together and have complementary skills.
  • The business model. Investors want to know how you plan to make money, so they can determine if they’ll make money too!
  • A high-quality product. Investors want to see that you’ve spent time testing, iterating, and refining your product before bringing it out into the world.

Don’t Know Where to Start? ProCoders Yill Help You! Contact us Today to Gather a Cost-Effective and Professional Team.

How will the product owner measure their results on the MVP stage?

One more good way to measure the results on the MVP stage is through the AARRR model.

The AARRR model is an acronym that stands for:

  • Acquisition – how many users have signed up or subscribed to your service?
  • Activation – how many users have used your product at least once?
  • Retention – how many returning users are there in a given period of time? If a user comes back after 30 days, they’re considered retained.
  • Referral – how many users recommend your product to their friends or colleagues? How many people do they refer?
  • Revenue – once users have been acquired, activated, retained, and referred – how do you monetize this traffic?
Why is MVP crucial for startup success?

Here are three reasons why MVPs are crucial for startup success:

1) They allow companies to test their ideas before investing too much money into development

2) They help teams prioritize what features they should build first

3) They allow companies to attract investors and get funds for the future improvements of the product.

Conclusion

We know that launching an MVP is not an easy task. It requires a lot of hard work, investment, focus and just luck from your end. However, if you follow our recommendations, you will be able to attract the investments for your business:

  1. Do a preliminary market analysis;
  2. Define your business model;
  3. Create a business plan;
  4. Create and motivate your core team;
  5. Test the product idea out with potential customers;
  6. Build a prototype or beta version;
  7. Test and define a marketing strategy;
  8. ​​Use agile and lean technologies to move forward with small and clear steps;
  9. Choose the MVP product launch model (soft, hard, or dark launch).

After launching the product, don’t forget to measure your success by looking at metrics and analytics to determine whether you have reached your KPIs.

Luckily, many tools are available to guide you in the right direction. If you’re looking for some help in this matter, we would love to assist you with our services at ProCoders. We can write a development plan for your MVP, choose the right technical and architectural solutions for the product, save money and help you get investments! Contact us for a free consultation!

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