What is MVP and why every tech entrepreneur must embrace the concept of MVP to launch their app idea?

The concept of MVP is probably unfamiliar to the majority of aspiring entrepreneurs. Therefore, let us begin with the most obvious, the definition.

The American entrepreneur and author Eric Ries popularized the term “Minimum Viable Product” (MVP). In layman’s terms, a minimum viable product is one that contains only the features necessary to validate a business idea by attracting users. He referred to it as the product development cycle’s initial phase.

An MVP enables customer feedback on an idea or product to be gathered without depleting resources.

Building an MVP for your idea is the only way to progress in startup culture. Without one, you have to rely on trial and error and potentially waste time and money to gain any insight, let alone profit.

Let’s look at what exactly an MVP is,  and what you need to keep in mind when creating one.

What is a minimum viable product (MVP) in a startup?

Many businesses struggle with issues such as productivity, efficiency, performance, and competition.

Today, every startup company must also contend with identifying the right customer problem to solve and the appropriate market in which to sell it. And they must do this quickly and effectively.

This used to be done with extensive product management and a top-down (or waterfall) approach. Things began to change about a decade ago with the introduction of Lean startup methodology. 

In contrast to launching a fully finished product followed by waterfall product management, an MVP allows entrepreneurs to develop a prototype that helps them discover whether customers need it, find it easy, or are willing to pay for it.

However, creating an MVP isn’t easy. Understanding exactly what an MVP is and what purpose it should serve will help in avoiding common pitfalls or misunderstandings about the development path to take.

Why is an MVP necessary for your app idea?

With competition in the market becoming more fierce, having an MVP for any mobile application can be the difference between success and failure. It will help you discover whether your app idea is truly unique or not, and offers the quickest route to market as well as access to real user experience to help you evaluate your project.

Source:peerbits.com

An efficient and accurate way to get user reviews about your app

You may have had an idea for an app and spent days or months developing it. But its success can’t really be predicted. In the end, it is the users who will determine whether or not your app is a success.

However, having an MVP enables you to obtain feedback on your app idea in the quickest and most accurate way possible, meaning you’ll only need to implement the features that users have asked for, and fix those they’ve had issues with.

The MVP is regarded as the “heart” of the mobile application

The minimum viable product’s primary purpose is to focus exclusively on the primary concept and key app features.

As such, an MVP approach supports Lean startup ideology. The Lean startup can be defined as a business that begins with the smallest possible budget and operates within a reasonable timeframe. 

An MVP is the perfect match for this kind of business. It reduces the cost of app development by implementing only the most basic features. 

MVP facilitates the resolution of security issues

App security is critical, especially if your app includes an in-app payment feature. The MVP will assist you in identifying and resolving security flaws.

Another advantage of addressing security concerns early on is that your app will be bug-free from the start, which will increase the app’s conversion rate. It also enables seamless navigation.

Developing a new version of the app

The minimum viable product enables you to determine whether or not your app is attracting user attention in the market.

If you haven’t received the expected feedback, or haven’t been able to attract users to your app, it’s time to redesign the product and look for ways to improve it.

A few popular apps with outstanding MVP succes

If you do your research well, you’ll come across numerous examples of successful MVP launches that resulted in massive app popularity. Consider a few of these:

Uber

Uber, the ride-sharing app, began its journey with an MVP launch. Uber’s initial version concentrated on establishing a strong connection between drivers and users, while also adding the ability to pay with a credit card.

However, it quickly grew in popularity, and today it’s a billion-dollar business with a slew of advanced features.

Instagram

One of the most popular photo sharing apps, Instagram now has the highest user base. In its initial version, users had a limited number of filters available when sharing photos.

When Instagram launched, the market was flooded with superior photo editing apps. However, the company gradually gained momentum and added a Unique Value Proposition (UVP) that enabled users to edit and share photos concurrently.

Facebook

The story of Facebook, the social media giant, is fascinating. Mark Zuckerberg initially restricted access to the social media platform to Harvard University students. Later the service was expanded to other colleges and universities, and eventually the world.

Facebook’s initial version featured a single profile page with the ability to send friend requests and messages. However, it’s now completely transformed with the addition of new features on a regular basis. One of these features was the  now extremely popular direct message capability.

4 simple steps to create and launch your app’s MVP

• Work out which features are critical

To begin with, determine the most critical features you want to incorporate into the app to make it viable. The choice should be made very carefully following extensive research.

You need to determine whether your idea is truly viable. You must also decide when to launch the MVP application. All of these points should be discussed with your development team.

2. Product design and development

Once you’ve established that your app idea is viable, you can focus on designing and developing the app, utilising the appropriate set of technologies to optimise the app’s performance. 

It’s a good idea to use Agile development methodology because it’s adaptable and allows for continuous testing of the application.

The app development company hired to complete the job must provide the app’s MVP. And very often, the difference between a successful launch and a successful run is in the details, not the big picture. 

At Appomate, our unique SeeitB4UBuildIt (SBUB) process acts as a mini-incubator for your app idea. We help you see your idea in action prior to launch in order to identify its strengths, risks, challenges, and opportunities.

• Distribute the product to potential customers

After the design and development phases are complete, you move on to the next stage. Now’s the time to reveal the product and distribute it to potential users and find out whether the app provides value to its users.

You can also choose a specific user group to target for review and feedback after releasing the MVP. 

• Leave room for improvement

No app is perfect, which is why it’s critical to leave some room for improvement after receiving valuable user feedback. You may need to make changes to the UI or UX designs, add value to existing features, and improve security, among other things. This phase takes the most time but is essential to the success of your app.

Conclusion

Your mobile app idea may be unique, and may very well disrupt the app market. But before that occurs, it’s essential to invest in an MVP to save time and money. Ask yourself these questions: 

• What is my concept? 
• Who is my intended audience?
• What features does my app need to have?

Once these questions are answered, a software development team can help you initiate the process.

With a good MVP, you can keep errors to a minimum and start making money from your app sooner.

10 smart ways to fund your app idea in Australia

Startup ecosystems are on the rise from locations all over the world. Many entrepreneurs have been able to build profitable businesses from small towns by getting funded through angel investors and venture capitalists.

The same is not yet true for Australia where a significant portion of startups either relocate or pivot their teams towards India or Silicon Valley to get the initial funding they need to grow their business.

But here’s the good news: there’s now a growing interest in early-stage investments in Australia as more companies look to invest in interesting ideas. Venture capital firms that previously only looked at software as a service (SaaS) startups, are now showing an interest in other product-oriented companies as well. 

“Most Australian startup founders aren’t aware of the potential benefits of seed funding. Even the ones who are aware, see seed investment as a last resort,”Seed funding is not easy to get in Australia, but it can definitely give your business a head start.”

In this article, we look at 10 ways Australian entrepreneurs can raise funds for their startup idea.

1. Bootstrapping 

Although this might seem counter-intuitive, bootstrapping is perhaps the best method for getting early-stage funds because it forces you to focus on revenue generation.

“Bootstrapping can be tough, but focusing on generating revenue from day one makes good business sense,” 

BlackStar has bootstrapped its entire operation over the last 12 years without any external funding. “And we are very happy with this decision because starting out with zero money means that every dollar we earn goes back into our business.”

 Also many entrepreneurs don’t realise how difficult it can be to start a small business. They tend to underestimate the amount of work needed before their companies start seeing profits and overestimate the amount of money they’ll make through investments.

Running your own business is much harder than many people think, especially if you are doing it alone, You need to be committed and patient because it takes time to establish your company.

2. Fundraise from friends & family

There are many sayings about making money, but the old ones are often the best. The same holds true for funding your startup – if you can get other people to fund it, it’s probably the quickest way to get an early injection of capital into your venture. Crowdfunding sites have made this easier than ever before. KickStarter, one of the most well-known crowdfunding sites in Australia, hosted around 26,000 projects and raised over $690 million since 2009.

A major advantage of this method is that there isn’t an expectation on you to give up equity, nor is there any need for documentation or financials (although they may provide useful information). You can also get valuable feedback from people in your network.

3. Seek government funding programs

The Federal Government has a number of grant schemes in place to support entrepreneurs and startup companies in Australia. These include R&D grants, Commercialisation Australia Program grants, Enterprise Connect grants, HR & More grants and Mentoring for Investment grants. There are also other state and territory government programs that can give you a leg up. Do your research and find out what’s available to support early-stage companies in the industry you’re involved with.

4. Seek equity crowdfunding

Equity crowdfunding is a relatively new concept; it only became legal in Australia on 1 January 2015, but has been taking off since then. The idea behind it is that anyone can invest small amounts of money into a startup business for an equity stake, as opposed to traditional models which required large investments from wealthy individuals or institutions. One example of equity crowdfunding in Australia is CrowdfundUP, who launched their product late last year after working closely with the Australian Securities and Investments Commission (ASIC). On their website they claim that in the next five years there could be up to $500 million in equity crowdfunding deals.

However, some of the challenges associated with using a crowdfunding platform include: 

• You need to build and market the campaign yourself. 
• Campaigns tend to be more successful when they offer rewards such as preorders or discounts. 
• It’s not easy communicating with your audience on crowdfunding platforms – engagement is low compared to social media channels such as Facebook or Twitter.

5. Treat your startup like a consultancy

Seed money is often hard to come by at the beginning, but you don’t necessarily need it if your startup begins as a consultancy business – people will pay you simply to give advice and formulate a plan for them. Start small and show potential clients that if they hire you for this service, then they can avoid wasting time and money on their project. Once you have some momentum going with one client, others will start looking into hiring you as well.

6. Seek investment from angel networks or incubators

Angels are high-net-worth individuals who find investing in early-stage startups attractive due to the amount of potential for growth. Although they’re generally willing to take more risks than most people, angel investors are looking for strong ideas with a strong team behind them. You can find angel networks by contacting organisations with an interest in your area or industry, or you can seek out incubators who have already begun investing in early-stage companies. However, it’s important to know that like crowdfunding, in the eyes of the law you are still seen as a shareholder and so there is risk attached to this method.

7. Seek assistance from innovation & science agencies

Industry Innovation and Science Australia (IISA) is an organisation that focuses on identifying and building relationships between Australian entrepreneurs, scientists and innovators. IISA can refer entrepreneurs to sources of funding such as grants and angel investors once they have determined if their idea has potential or not. They provide advice on regulatory requirements for any new product or service, and help determine growth potential. Most importantly, IISA is a free service. You can find out more about this on their website.

8. Seek investment from venture capitalists

Venture capitalists look at potential opportunities and see whether they can get into a new market before anyone else does. The difference between them and angels is that VC investments tend to be larger ($1 million minimum), but there are greater risks involved and also higher returns. This means that VC firms are often not suitable for early-stage startups but are worth approaching once you’ve reached the proof of concept stage.

9. Seek investment from your customers

Use discounts to incentivise your customers to buy into your idea early. You could give them a discount or give them a small percentage of equity. The advantage of this approach is that you don’t have to worry about giving away too much equity because you can simply refund their cash if your idea doesn’t materialise.

You may want to consider launching a crowdfunding campaign instead of applying for a grant or running a beta-test round. There are many sites where companies can crowdfund from backers and investors, such as Kickstarter, mentioned above, or Pozible These options give you the ability to raise money at a faster pace than traditional funding models.

10. Get a mentor

Having someone on your side who understands your business is vital when you’re getting started, especially if they have successfully navigated the startup process before. Find someone who has relevant experience in your industry and nurture the relationship by keeping them updated on all aspects of your startup. If you can’t find anyone through networking or online, consider spending some of that seed money on coaching sessions. Even one hour a week talking about how you run your company could help accelerate your progress when starting out. There are also various websites (such as www.mentormate.com) that match mentors with mentees.

To sum up…

There are multiple ways of getting seed funding for your startup, all with different levels of risk and return. The best option depends on the type of idea you have. 

The moral of the article is that it’s definitely worth seeking funding from various sources. The more avenues you explore, the more likely you’ll be to fund your startup.

And if you’d like to book a one-on-one coaching session with an expert who’s helped multiple startups get off the ground, get in touch with us today.