10 powerful steps to build MVP and raise funding in 2023?

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Avishek Gupta

10 powerful steps to build MVP and raise funding in 2023?
10 powerful steps to build MVP and raise funding in 2023?                                                                             (Image courtesy : canva)

How to build MVP and raise funding in 2023?

Today, with technological advancement and entrepreneurship, building an MVP and getting funded is a standard step for any startup and innovator. We’ll go through the steps involved, step-by-step to make your idea into reality and raise funds for the same.

Before we dive in, let us see what an MVP is and how to use it 🙂

Meaning of Minimum Viable Product

MVP — this abbreviation was introduced by Frank Robinson in 2001 and refers to the earliest possible release of a bare-bones version of your product with enough features to attract early adopters who will use it for the purpose of providing feedback for future updates. Founded by Steve Blank and Eric Ries and focused on using working minimum viable products to validate assumptions and therefore ensure an effective end product with less wasted effort.

MVP [Minimum Viable Product] is the most basic version of your product that tests hypotheses about user needs and wants before building something more expensive.

Let’s say you would like to open a restaurant from scratch. Rather than starting up an entire restaurant, you could create a food truck. You would have the ability to take your menu and concept out to the consumer, with a small amount of sunk cost. You could then open up a physical location of your restaurant if your food truck is doing well.

This rule applies to building an MVP for a digital product as well. instead of creating a feature rich product, you can begin with a stripped down version that only contains the core functionalities. Testing your product idea on real users is going to help you gather feedback and iterate before going all-in on the development process.

Minimum Viable Product in Agile

MVP is one of the key concepts in agile development. It is an iteration of the product containing only what is necessary to get it out to early adopters [the “Minimum Viable Product (MVP)”] so they may give their feedback about future product.

Agile development is a development process in which software systems are developed iteratively and incrementally. The idea here is quick iterations of building a product with some basic feature-set to release into market to validate the concept and avoid wasting time and resource building something people don’t use.

This enables the team to gather user feedback as soon as possible and incorporate changes as needed before developing the rest of your product. Using an MVP is an essential aspect of agile software development. It enables teams to avoid constructing something which people don’t require, and assists them to be sure that a new release is what their users indeed need.

To create an MVP in agile, teams typically follow these steps:

  1. Discover what makes the product unique. They’re the ones the team can get the most out of learning from (and providing the biggest benefit to users).

  2. Develop the prototype for the product including main features. This is a prototype as simple as a landpage, a mock up, or as a real implementation of the actual product itself.
  3. Release the prototype to early adopters and gather feedback. This data is gathered through user studies, testing sessions or observations of interactions with the prototype.
  4. Make new iterations with your prototype using the feedback of user. This flow continues until the team feels that they want to release the product for users.

How to build MVP?

How to build MVP?
How to build MVP?  Complete guide                                                                                                                (Image courtesy : freepik)

Another crucial phase to get your creative idea off the ground is building an MVP (Minimum Viable Product). The simplest version of your product or service that gets tested with real-use users: That “minimum” in all of the “Minimum Viable Product”. Here is a tutorial on creating an MVP 🙂

  1. Define Your Idea: Be very explicit about what you mean by the term and what problem it solves.
  2. Market Research: Do you’re own market research and competition analysis.
  3. Prioritize Features: Look for main characteristics of your MVP.
  4. Design: Create user-centric interfaces and prototype.
  5. Test Internally: Make sure others in your team check (bugs) or even user experience (UX) issues.
  6. User Feedback: get a few opinions.
  7. Iterate: Make improvements based on feedback.
  8. Prepare for Launch: Expect wider exposure and launch.
  9. Monitor and Measure: Track user behavior with analytics.
  10. Decide Next Steps: Switch, and switch again until you do; or raise money if you have to.

How can you raise money for MVP in 2023?

In order to have a successful MVP you need an intelligent strategy behind it when raising funds for the product in 2023. Let’s get you started on a quick tutorial.

  1. Prepare Your Pitch: Craft a sexy story around why your MVP is valuable.
  2. Network: Connect with investors, mentors.
  3. Angel Investors: Seek support from individual investors.
  4. Venture Capitalists: If your Minimum Viable Product (MVP) has the ability to scale, then you may be courting venture capitalists.
  5. Online Crowdfunding: Consider those “Crowdfunding” platforms where you can get funding (Kickstarter is one of these).
  6. Competitions: Enter startup contests that give out money prizes.
  7. Accelerators: Get in to acceleration programs where you can pitch for funding as well as mentorship.
  8. Show Success: Showcase how great your MVP does and its user numbers.
  9. Be Persistent: Fundraising is hard; don’t quit easily.
  10. Negotiate Carefully: Carefully review and negotiate terms of funding.

Some Additional Tips

How to build an MVP for different types of products:

1. Website: Build a landing page with a basic overview of what you offer, a sign-up field, and a call to action. If you would prefer an easy way to create a landing page quickly, you could use a website builder such as Wix or Squarespace.

2. Mobile app: Using a tool like Figma or Sketch create a wireframe/prototype of your mobile application. With the help of this prototype, you can show to future users and collect their feedback.

3. Software product: Develop an early prototype for the minimal viable product with basic functionality. You can send out your beta product to possible users via a web page or an e mail record .

 

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