How To Raise Money For a Mobile App Using MVP?
Raising funds for your app idea can be difficult for many business startups! Well, not anymore, check out our blog to find out some of the necessary steps to consider while building an MVP that gets funded. Take your mobile app idea to new heights of success with the right MVP!
How To Raise Money For a Mobile App Using MVP?
Most business owners especially startups struggle with the budget as they start their journey of becoming an entrepreneur. With thousands of apps in the market, businesses need to come up with a unique app idea that is different and better than what competitors are offering.
That is why every startup business deals with finding the right problem and the right market to sell the app.
To meet the expenses of mobile app development, businesses tend to look for funding. However, they need to test and validate their app idea to find out what their target audience needs and what resonates with them.
The only solution is building MVP (Minimum Viable Product) with minimal effort and budget. In this blog, we will find out why you need funding and the steps to build an MVP that can help you raise for the development of the mobile app.
Why Startups Need Funds and What Investors Look for In Your App Idea?
Once you have an app idea finalized for your startup business, you need funds to validate it in the real market with real users to see if your app is needed by users. For an instance, let’s say that you made an app to solve issues of people in a small village and they liked it.
But, will you be able to scale your app outside that village with the little amount of money you have? For many of you, the answer will be no.
You need funds to first transform your app idea into a well-developed app. After that, you will need more funds to keep it growing to cater to a larger customer base.
If you are among the budding entrepreneurs who are planning to build an app, you must have plans to build it for a huge user base and make money from the app. And for this reason, it is very important to plan your budget and raise funds.
So far, it is clear that you need funds but one question that must have popped up in your mind is- what does your app idea needs to ensure that you get investors who are ready to raise fund on your app?
The only way is validation for app usage ability and its acceptance level. To start with the journey of app validation, you need to launch it in the market of genuine users and that is where MVP comes into play, a weapon for your mass funding.
Knowing MVP & the Steps to Develop an MVP That Gets Funded
After coming up with an app idea that you believe in and which you think the world needs, you need a working and functioning model that helps users to test it. This model is called MVP which is built with basic features without putting much effort, time, and money. This is the one tool that investors base their funding decisions on.
To help you in building the MVP that can get funded by investors, here are some of the best steps you must keep in mind during the development of MVP.
1. Know Your App Idea
The first step in the MVP development process is the validation of the app idea to know if there is a mass problem that your mobile app will solve for users. Find out if the solution you are providing is what your target audience needs. Keep location, target audience, their needs, etc. in mind.
For instance, if you are building a real estate app to help buyers and sellers in the home buying and selling process, know if they are willing to use the app and go for online home searches rather than physical visits. Once you know the answer, find out any type of conflicts that may arise while building your app.
2. Communicate with Real Users
Your app is meant for customers, so talk to them to know how the app features are helping them, and how they can improve to offer better services. If your app is planning to target users of different age groups, talk to them separately to ensure that the app you are building is meeting the needs of every user.
This will help in getting genuine feedback from users, which will eventually find out the pain points in your app. Any improvements or upgrades to the features of the app can be implemented for a better user experience.
3. Finalize Features to be Added
The next and last step is to finalize the features your MVP should include during its development. You can make use of the famous method- Pareto Analysis to help you in this.
After identifying the exact needs of your target audience, create a list of features that includes both primary and supportive, which would help in solving the users’ needs.
Ensure that you follow the 80/20 Pareto analysis rule to keep only 80% of features that contributes mainly to solve the problems as your MVP features and keep 20% of features for the later phase of development.
Building MVP in this way will not only help in giving what users need in the initial stage but also enable you to add additional features in the next stage. This will ensure that you don’t spend a fortune on MVP development but also help in creating a brand image with app ideas that investors are more likely to fund.
Now that you are aware of what MVP means, what role it plays to help you raise funds and what are the necessary steps to build the MVP that attracts investors. It’s time to give wings to your business app idea and start building an MVP that would help in generating funds.
What are you waiting for? Hit the app market with your dream app and attain the success you wish to achieve. Start with MVP launch to validate your app idea and get desired funds from investors.
For any issues in finding the platforms that attract investors and raise funds for the app, here are a few examples- Kickstarter, Indiegogo, Appstori, etc.
For any help in building MVP or other app development needs, connect with our expert mobile app developers and transform your app idea into a tangible business product in a short time.