How to Build an MVP to Raise Funds and Gain Ground Efficiently
How to Build an MVP that can raise Funds and Gain Ground
Mayank Patel
Feb 23, 2024
6 min read
Last updated Feb 23, 2024
Table of Contents
Define the core value proposition and the target audience
Choose the right features and functionalities
Choose the right platform and technology
Test and validate the MVP
Conclusion
FAQs
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Are you a startup or a software company that has a great product idea but not sure how to turn it into reality? Do you want to validate your product idea, test the market demand, attract investors, and gain early adopters? If yes, then you need to build an MVP.
An MVP, or a minimum viable product, is a version of your product that has the minimum features and functionalities that ares enough to solve the core problem of your target audience and deliver the unique value proposition of your product. An MVP is not a final product, but a prototype that you can use to test your assumptions, get feedback, and learn from your users.
Building an MVP is one of the best ways to launch your product idea and achieve your business goals. By building an MVP, you can:
Save time and money by focusing on the most important features and functionalities of your product
Validate your product idea and test the market demand by getting real user feedback and data
Attract investors and raise funds by demonstrating the potential and viability of your product
Gain early adopters and loyal customers by providing a solution that solves their problem and satisfies their needs
But how do you build an MVP that can raise funds and gain ground? How do you ensure that your MVP is not too minimal or too viable? How do you balance between the quality and the speed of your MVP development?
In this blog post, we will provide you with some practical tips on how to build an MVP that can raise funds and gain ground. We will also share some examples of successful MVPs that followed these tips and achieved their business goals.
Define the core value proposition and the target audience
The first step to building an MVP is to define the core value proposition and the target audience of your product. The value proposition is the main problem that your product solves and the unique benefit that it offers to your customers. The target audience is the specific segment of customers who have the problem and need the solution.
To define the value proposition and the target audience, you need to conduct market research and customer discovery. You need to understand the pain points, needs, wants, and expectations of your potential customers. You also need to analyze the existing solutions and competitors in the market and identify the gaps and opportunities.
Some questions that you can ask yourself to define the value proposition and the target audience are:
What is the issue that your product resolves?
How does your product solve the problem differently or better than the existing solutions?
What is the unique benefit or value that your product offers to your customers?
Who are your ideal customers? What are their characteristics, demographics, behaviors, and preferences?
How big is the market size and potential for your product?
Some examples of successful MVPs that had a clear value proposition and a well-defined target audience are:
Epigamia: Epigamia’s value proposition is to provide a range of healthy and delicious dairy products, such as Greek yogurt, smoothies, spreads, and milkshakes, made from natural ingredients and free from preservatives. Epigamia’s target audience is health-conscious consumers who are looking for a convenient and nutritious snack option.
Bira 91: Bira 91’s value proposition is to provide a craft beer brand that offers a variety of flavors, such as blonde, white, light, strong, and IPA, catering to the diverse tastes and preferences of Indian consumers. Bira 91’s target audience is young and urban beer lovers who are looking for a premium and refreshing beverage experience.
Vedantu: Vedantu’s value proposition is to provide a live online tutoring platform that connects students with qualified and experienced teachers for personalized and interactive learning. Vedantu’s target audience is students from grades 6 to 12 who are looking for quality education and academic guidance at affordable prices.
NoBroker: NoBroker’s value proposition is to provide a real estate platform that eliminates the middlemen and brokers from the property transactions, saving time and money for both buyers and sellers. NoBroker’s target audience is property seekers and owners who are looking for a hassle-free and transparent way to buy, sell, or rent properties.
Chaayos: Chaayos’ value proposition is to provide a cafe chain that specializes in customized and freshly brewed tea, along with a variety of snacks and desserts. Chaayos’ target audience is tea enthusiasts who are looking for a cozy and comfortable place to enjoy their favorite beverage and food.
The second step to building an MVP is to choose the right features and functionalities of your product. The features and functionalities are the specific elements and actions that enable your product to deliver the value proposition to your target audience.
To choose the right features and functionalities, you need to prioritize them based on the value proposition and the target audience. You need to focus on the most important and essential features and functionalities that are enough to solve the core problem and deliver the unique benefit of your product. You also need to avoid the unnecessary and complex features and functionalities that are not critical for your MVP and can be added later in the future iterations.
To prioritize the features and functionalities, you can use tools such as the lean canvas or the prioritization matrix. The lean canvas is a one-page template that helps you map out the key aspects of your product, such as the problem, the solution, the value proposition, the target audience, the channels, the revenue streams, the cost structure, the key metrics, and the unique value proposition. The prioritization matrix is a two-dimensional chart that helps you rank the features and functionalities based on their importance and urgency.
Some examples of successful MVPs that had the right features and functionalities are:
Twitter: Twitter’s MVP was a simple microblogging service that allowed users to post and read short messages of 140 characters or less, called tweets. Twitter’s MVP focused on the core feature of enabling users to share and consume information in real-time, without any extra features such as hashtags, mentions, retweets, likes, or direct messages.
Spotify: Spotify’s MVP was a streaming music service that allowed users to listen to millions of songs online, without downloading or owning them. Spotify’s MVP focused on the core feature of providing users with access to a large and diverse music library, without any extra features such as playlists, recommendations, social sharing, or offline mode.
Instagram: Instagram’s MVP was a photo-sharing app that allowed users to take, edit, and share photos with filters and effects. Instagram’s MVP focused on the core feature of providing users with a simple and fun way to enhance and share their photos, without any extra features such as videos, stories, reels, or direct messages.
The third step to building an MVP is to choose the right platform and technology for your product. The platform and technology are the medium and the method that enable your product to deliver the features and functionalities to your target audience.
To choose the right platform and technology, you need to consider the value proposition, the target audience, and the budget of your product. You need to select the platform and technology that best suit the needs and preferences of your potential customers and that can provide the best user experience and performance for your product. You also need to consider the cost and time of developing and maintaining the platform and technology and the scalability and security of your product.
To choose the right platform and technology, you need to weigh the pros and cons of different options, such as web, mobile, desktop, cloud, native, hybrid, etc. You also need to research and compare the different tools and frameworks that are available for each option, such as HTML, CSS, JavaScript, React, Angular, Vue, Flutter, Ionic, React Native, Swift, Kotlin, Java, Python, Ruby, PHP, Node.js, Firebase, AWS, Azure, etc.
Some examples of successful MVPs that had the right platform and technology are:
Netflix: Netflix’s MVP was a DVD rental service that allowed users to order and receive DVDs by mail, without late fees or due dates. Netflix’s MVP chose the web as the platform and PHP as the technology, as they were the most popular and accessible options at the time. Netflix’s MVP also used a cloud-based service called Amazon Web Services (AWS) to store and manage its data and operations, as it was the most cost-effective and scalable option at the time.
Slack: Slack’s MVP was a team communication tool that allowed users to create and join channels, send and receive messages, and share files and links. Slack’s MVP chose the desktop as the platform and Electron as the technology, as they were the most suitable and convenient options for its target audience of software developers and tech workers. Slack’s MVP also used a cloud-based service called Firebase to store and sync its data and messages, as it was the most reliable and secure option at the time.
WhatsApp: WhatsApp’s MVP was a messaging app that allowed users to send and receive text, voice, and image messages, without any fees or ads. WhatsApp’s MVP chose the mobile as the platform and Erlang as the technology, as they were the most relevant and efficient options for its target audience of smartphone users and emerging markets. WhatsApp’s MVP also used a cloud-based service called XMPP to handle its communication and network protocols, as it was the most robust and scalable option at the time.
The fourth and final step to building an MVP is to test and validate the MVP with real users and get feedback. Testing and validating the MVP is the process of measuring and evaluating the performance and the outcome of your product, based on the value proposition, the target audience, and the business goals.
To test and validate the MVP, you need to use different methods and tools to collect and analyze data and feedback from your users. You need to observe and measure how your users interact with your product, what they like and dislike, what they need and expect, and what they think and feel. You also need to compare and contrast your results with your assumptions and hypotheses and learn from your findings.
Some methods and tools that you can use to test and validate your MVP are:
Surveys: Surveys are questionnaires that you can use to ask your users about their opinions, preferences, satisfaction, and feedback on your product. You can use tools such as Google Forms, SurveyMonkey, or Typeform to create and distribute surveys to your users.
Interviews: Interviews are conversations that you can use to ask your users about their experiences, challenges, goals, and feedback on your product. You can use tools such as Zoom, Skype, or Google Meet to conduct and record interviews with your users.
Analytics: Analytics are data and metrics that you can use to measure and track the behavior, activity, and performance of your users and your product. You can use tools such as Google Analytics, Mixpanel, or Amplitude to collect and analyze analytics data from your product.
Beta testing: Beta testing is a method that you can use to invite and recruit a group of early users to test and use your product before launching it to the public. You can use tools such as TestFlight, BetaList, or Product Hunt to find and manage beta testers for your product.
Some examples of successful MVPs that tested and validated their products are:
Zappos: Zappos’s MVP was an online shoe store that allowed users to order and receive shoes by mail, with free shipping and returns. Zappos’s MVP tested and validated its product by creating a simple website that displayed photos of shoes from local shoe stores, and then buying and shipping the shoes to the customers who ordered them. Zappos’s MVP used surveys and interviews to get feedback from its customers and measure their satisfaction and loyalty.
Groupon: Groupon’s MVP was a daily deal website that offered users discounts on local products and services, such as restaurants, spas, and events. Groupon’s MVP tested and validated its product by creating a simple website that featured one deal per day, and then sending an email to a list of subscribers who signed up for the deal. Groupon’s MVP used analytics and beta testing to measure and track the number of subscribers, the number of purchases, and the revenue generated by each deal.
Buffer: Buffer’s MVP was a social media management tool that allowed users to schedule and post content across different social media platforms, such as Twitter, Facebook, and LinkedIn. Buffer’s MVP tested and validated its product by creating a simple landing page that explained the value proposition and the features of the product, and then asking users to sign up for the product or pay for the product. Buffer’s MVP used analytics and beta testing to measure and track the number of sign-ups, the number of payments, and the retention rate of the users.
Building an MVP is one of the best ways to launch your product idea and achieve your business goals. By following these tips, you can build an MVP that can raise funds and gain ground:
Define the core value proposition and the target audience of your product
Choose the right features and functionalities of your product
Choose the right platform and technology for your product
Test and validate the MVP with real users and get feedback
By building an MVP, you can save time and money, validate your product idea, test the market demand, attract investors, and gain early adopters.
But building an MVP is not an easy task. It requires a lot of planning, research, development, testing, and learning. It also requires a lot of expertise, experience, and resources.
That’s why you need a reliable and professional IT product development company that can help you with building your MVP. A company that has the skills, knowledge, and tools to build an MVP that can raise funds and gain ground. A company that can provide you with the best quality, speed, and value for your MVP development.
That’s why you need us.
We are an software product development company that specializes in building MVPs for startups and software companies. We have a team of experts who can help you with every aspect of your MVP development, from ideation to launch. We have a proven track record of building successful MVPs that have raised funds and gained ground.
We can help you with:
Defining the value proposition and the target audience of your product
Choosing the right features and functionalities of your product
Choosing the right platform and technology for your product
Testing and validating the MVP with real users and getting feedback
Launching and scaling the MVP to the market
We can also help you with writing, rewriting, improving, or optimizing your own blog content, such as this one.
If you are interested in building an MVP that can raise funds and gain ground, or if you need any help or guidance on your MVP development, please contact us today. We would love to hear from you and work with you on your MVP project.
We are your software development partner. We are here to help you build an MVP that can raise funds and gain ground.
Ready to Kickstart Your Idea? Let's Build Something Awesome!
Frequently Asked Questions - FAQs
Mayank Patel
CEO
Mayank Patel is an accomplished software engineer and entrepreneur with over 10 years of experience in the industry. He holds a B.Tech in Computer Engineering, earned in 2013.
You might be wondering how you can manage your energy use more efficiently and effectively, without compromising your performance or quality. You might also be facing some common challenges, such as:
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Limited skills and expertise: You don’t have enough staff or resources to implement and maintain an effective energy management system. You don’t have access to the latest technologies and best practices that can help you improve your energy efficiency and sustainability.
If you are facing any of these challenges, you are not alone. Many tech companies are struggling with the same issues, and are looking for solutions that can help them overcome them. That’s the reason we are here to assist you. We are a custom energy management software development company that specializes in creating tailor-made solutions for tech companies like yours. We have the experience, the skills, and the technology to help you achieve your energy goals in 2024 and beyond.
What is Custom Energy Management Software?
Custom energy management software is a software solution that is designed and developed specifically for your tech company’s needs and objectives. It is not a one-size-fits-all product that you can buy off the shelf. It is a customized solution that takes into account your unique energy profile, challenges, and opportunities.
Custom energy management software can help you:
Data-driven Energy Management
Collect, analyze, and report data related to your energy consumption, and ensure its correctness and integrity. You can track your energy use and efficiency in real time, and compare it with your historical data, industry benchmarks, and best practices. You can also visualize your energy data in various formats, such as graphs, charts, dashboards, or reports.
Implementing Efficient Energy Strategies
Design and implement energy-saving plans and technical measures. You can identify and prioritize the most effective and feasible energy-saving opportunities, and estimate the potential savings and payback periods. You can also automate and optimize your energy use and control, and adjust it according to the external and internal factors, such as weather, load, price, or schedule.
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Comply with national and international energy standards and regulations. You can ensure that your tech company meets or exceeds the energy efficiency and emission reduction targets set by the authorities. You can also use energy efficiency markings on your products and services, and showcase your commitment to sustainability and social responsibility.
Green Tech Innovation
Use renewable energy sources and technologies. You can integrate renewable energy sources, such as solar or wind, into your energy mix, and reduce your dependence on fossil fuels. You can also use smart grid technologies, such as microgrids, energy storage, or demand response, to enhance your grid stability and resilience.
How Custom Energy Management Software Can Benefit Your Tech Company
By using custom energy management software, you can reap the following benefits for your tech company:
Reduced energy costs: You can save money on your energy bills, and improve your bottom line. According to a study by the American Council for an Energy-Efficient Economy, implementing energy management best practices can reduce energy costs by 10% to 40% for commercial buildings.
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How We Can Help You Create Custom Energy Management Software
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Development: This is the stage where the developer writes the code and implements the features and functionalities of the software. The developer also performs unit testing, integration testing, and debugging to ensure that the software is error-free and functional.
Deployment: This is the stage where the developer delivers the software to the client and installs it on the client’s system. The developer also provides training and documentation to the client and the end-users on how to use the software. The deployment stage also involves maintenance and support to ensure that the software runs smoothly and efficiently.
Evaluation: This is the stage where the developer and the client evaluate the performance, quality, and satisfaction of the software. The developer also collects feedback and suggestions from the client and the end-users to identify any issues or areas of improvement. The evaluation stage also involves updates and enhancements to keep the software up-to-date and relevant.
Custom software development can offer many benefits to businesses and organizations, such as:
Competitive Advantage: Custom software can give businesses a competitive edge by providing them with unique features and functionalities that are not available in off-the-shelf software. Custom software can also help businesses differentiate themselves from their competitors and create a strong brand identity.
Cost-Effectiveness: Custom software can be more cost-effective in the long run than off-the-shelf software, as it can eliminate the need for licensing fees, subscription fees, and maintenance fees. Custom software can also reduce the operational costs by improving the efficiency and productivity of the business processes.
Flexibility: Custom software can be more flexible and adaptable than off-the-shelf software, as it can be modified and updated according to the changing needs and preferences of the client. Custom software can also be integrated with other existing systems and applications, enhancing the functionality and compatibility of the software.
Security: Custom software can be more secure than off-the-shelf software, as it can be designed with the specific security requirements and standards of the client. Custom software can also protect the data and information of the client and the end-users from unauthorized access, theft, or loss.
Customer Satisfaction: Custom software can increase customer satisfaction by providing them with personalized and customized experiences that meet their expectations and needs. Custom software can also improve customer loyalty and retention by creating a positive and lasting impression on the customers.
What are the steps to selecting an ideal custom software development firm?
Choosing the right custom software development company is crucial for the success of the project, as it can determine the quality, functionality, and reliability of the software. Here are some criteria to consider while selecting a bespoke software development business.
Portfolio: The portfolio of the company can showcase their previous projects, and testimonials. The portfolio can also demonstrate the company’s expertise, experience, and skills in custom software development. The portfolio can help the client assess the quality, creativity, and diversity of the company’s work.
Reputation: The reputation of the company can reflect their credibility, professionalism, and trustworthiness in the industry. The reputation of the company can be verified by checking their online reviews, ratings, feedback, and referrals. The reputation of the company can also indicate their customer satisfaction, retention, and loyalty.
Communication: The communication of the company can indicate their responsiveness, transparency, and collaboration in the project. The communication of the company can be evaluated by checking their availability, frequency, and mode of communication. The communication of the company can also determine their understanding, alignment, and agreement with the client’s vision, goals, and expectations.
Cost: The cost of the company can reflect their affordability, value, and return on investment in the project. The cost of the company can be compared by requesting quotes, estimates, and proposals from different companies. The cost of the company can also be analyzed by considering their scope, quality, and timeline of the project.
Technology: The technology of the company can reveal their innovation, competence, and capability in custom software development. The technology of the company can be examined by checking their tools, frameworks, and methodologies that they use for the development. The technology of the company can also be matched with the client’s requirements, preferences, and standards.
Best Practices for Handling and Growing Custom Software
Managing and scaling custom software can be a complex and challenging task, as it involves various aspects, such as:
Quality Assurance: Quality assurance is the process of ensuring that the software meets the quality requirements and standards of the client and the end-users. Quality assurance can involve various activities, such as testing, debugging, validation, verification, and inspection. Quality assurance can help improve the performance, functionality, and reliability of the software.
Maintenance and Support: Maintenance and support are the processes of providing ongoing assistance and service to the client and the end-users after the software is deployed. Maintenance and support can involve various activities, such as troubleshooting, bug fixing, updating, enhancing, and optimizing. Maintenance and support can help keep the software running smoothly and efficiently.
Documentation and Training: Documentation and training are the processes of providing information and instruction to the client and the end-users on how to use the software. Documentation and training can involve various activities, such as creating user manuals, guides, tutorials, and videos. Documentation and training can help increase the usability, accessibility, and adoption of the software.
Feedback and Evaluation: Feedback and evaluation are the processes of collecting and analyzing the opinions and suggestions of the client and the end-users on the software. Feedback and evaluation can involve various activities, such as surveys, interviews, reviews, and ratings. Feedback and evaluation can help identify the strengths, weaknesses, opportunities, and threats of the software.
To manage and scale custom software effectively, here are some best practices to follow:
Plan Ahead: Planning ahead is the practice of defining the scope, objectives, budget, timeline, and expectations of the project before starting the development. Planning ahead can help avoid scope creep, cost overrun, and schedule delay. Planning ahead can also help align the expectations and requirements of the client and the developer.
Follow Agile Methodology: Agile methodology is the practice of following an iterative and incremental approach to software development, where the software is delivered in small and frequent releases. Agile methodology can help adapt to the changing needs and preferences of the client and the end-users. Agile methodology can also help improve the quality, functionality, and feedback of the software.
Use DevOps Practices: DevOps practices are the practices of integrating the development and operations teams to collaborate and communicate throughout the software lifecycle. DevOps practices can help automate and streamline the processes of testing, deployment, maintenance, and support. DevOps practices can also help improve the efficiency, productivity, and reliability of the software.
Implement Cloud Computing: Cloud computing is the practice of using remote servers and networks to store, process, and access the software and data. Cloud computing can help reduce the infrastructure and operational costs of the software. Cloud computing can also help improve the scalability, security, and performance of the software.
Monitor and Analyze: Monitoring and analyzing are the practices of tracking and measuring the performance, quality, and satisfaction of the software. Monitoring and analyzing can help detect and resolve any issues or errors in the software. Monitoring and analyzing can also help optimize and enhance the software.
A strategic investment for long-term growth
Custom software development empowers businesses to achieve their unique goals. It streamlines workflows, enhances customer experiences, and fosters agility in a dynamic market.
While managing and scaling custom solutions requires careful planning, the benefits outweigh the challenges.
This blog post has equipped you with best practices to navigate the custom software development journey. By following these steps, you can ensure your software not only meets your present needs but also scales effectively for the future.
Ready to unlock the full potential of custom software?
Consider partnering with a reliable company like Linearloop. We offer high-quality, cost-effective solutions across various industries. Our team of experts will craft software tailored to your specific needs and provide ongoing maintenance and support to ensure its smooth operation.
A US based client is a healthcare provider that offers telemedicine services to its patients. The client wants to create a telemedicine platform that allows its patients to:
Schedule appointments with their doctors
Talk to their physicians through video chats
Receive prescriptions and referrals from their doctors
Access their medical records and test results
Pay for their services online
The client has the following requirements for the telemedicine platform:
Platform must be compliant with the Health Insurance Portability and Accountability Act (HIPAA) and other relevant regulations
Platform must be secure and protect the data and privacy of the patients and doctors
Platform must be user-friendly and intuitive for both patients and doctors
Platform should work well with different devices and browsers.
Platform must be scalable and reliable to handle a large number of users and transactions
The client decides to hire a custom healthcare software development company to create the telemedicine platform. The company offers the following services to the client:
Business analysis and consulting
Software design and architecture
Software development and testing
Software deployment and hosting
Software maintenance and support
The custom healthcare software development company follows an agile methodology to create the telemedicine platform.
The agile methodology consists of the following steps:
Discovery: Conducts a discovery phase to understand the client’s business goals, user needs, and technical requirements. The discovery phase includes activities such as stakeholder interviews, user research, market analysis, and competitor analysis.
Planning: Creates a project plan that outlines the scope, timeline, budget, and deliverables of the project. The project plan also defines the roles and responsibilities of the project team, the communication channels, and the risk management strategies.
Design: Creates a software design that defines the features, functionalities, and user interface of the telemedicine platform. The software design also specifies the technology stack, the software architecture, and the integration points of the telemedicine platform.
Development: Develops the telemedicine platform in short iterations, called sprints. Each sprint lasts for two weeks and delivers a working software increment. The development process includes activities such as coding, testing, debugging, and reviewing.
Delivery: Delivers the telemedicine platform to the client for feedback and validation. The delivery process includes activities such as deployment, hosting, configuration, and documentation.
Support: We provides ongoing support and maintenance to the telemedicine platform. The support process includes activities such as bug fixing, performance optimization, security updates, and feature enhancements.
We as a custom healthcare software development company successfully creates the telemedicine platform for the US based client. The telemedicine platform meets the client’s requirements and expectations, and provides a seamless and satisfying experience to the patients and doctors. The telemedicine platform also helps the client to:
Healthcare software development is a challenging and rewarding field that requires a combination of domain knowledge, technical skills, and best practices. Healthcare software developers can benefit from using an agile methodology and hiring a custom healthcare software development company to create software products that meet their specific needs for your project.
A custom healthcare software development company can offer a full-cycle software development service that covers all aspects of healthcare software development, from analysis and design to development and support. We overcome the common challenges and pitfalls of healthcare software development, such as compliance, security, integration, user acceptance, and maintenance.
If you are looking for a custom healthcare software development company that can help you create a software product for the healthcare industry, you can contact us.
We are a software development company that specializes in creating custom software solutions for the healthcare industry. We have a team of experienced and skilled healthcare software developers, domain experts, and consultants.
We use the latest technologies and tools, and follow a proven and tested agile methodology. We offer a flexible and scalable software development process, and a comprehensive and transparent software development service. We can help you create a software product that meets your specific needs, expectations, and budget.
If you are interested in our healthcare software development services, you can request a free consultation and quote from us. We will be happy to discuss your project vision, requirements, and expectations, and provide you with a customized proposal and estimation.
We look forward to hearing from you and working with you on your healthcare software development project. 😊
Are you ready to transform healthcare with custom software?