Getting a unique app idea is such an achievement in itself. Isn’t it? You start building a castle of getting limitless ROI, gaining limelight in the market, and ruling the minds of every person on the market. But, wait a minute - do you have enough funding for the same?
No doubt mobile application development is among the profitable businesses in the present scenario, but it is equally expensive too. Developing a mobile app would cost you around $50,000 to $1,50,000 (or even more). On the top of it, the cost for market research, operational overhead, app marketing, and other such expenses would add to the mobile app development cost. Do you have enough funding for this? Or you are still figuring out how to get funding for an app idea?
If you are someone hustling to gather an adequate app development funds, here’s the catch: Build MVP app.
MVP- What does it stand for?
An MVP (Minimum Viable Product), in the simplest term, means the smallest functional version of your app. You work upon the most basic features and functionalities of your application and come up with a mini-version of your application. You later add updates to it to finally get your mobile app ready. But, the approach should be such that at each stage, you deliver something valuable to your customers.
How can MVP raise your app funds?
Now as you are familiar with the terminology, let’s move to the core part of this article, i.e. benefits of MVP development in raising app funds.
Raising Funds from Investors
If I’m not wrong, you would be planning to take your idea to an investor. That’s great, but let me share that out of 95% of entrepreneurs, only 5% succeed in the battle to get out money from big investors. How to land on this list of 5%?
The one-word answer is MVP. An MVP, being the mini-version of your mobile app, will enable the investors to understand the future of your application easily. Instead of visualizing your app idea, the investors will be able to work with the real app (though mini version). They will be able to know the app idea inside and out, and determine the market response, revenue generation scope, and other such factors. With all the insights gained, they will be able to take a faster and favorable answer.
And this approach of arranging funds via MVP app development is not restricted to investors you meet in person. You can also try this method on various popular fund gathering platforms, like Kickstarter, AppStori, Indiegogo, and AppBackr to name a few.
Gaining Funds from Users
An MVP let you launch your app idea at the earliest. It helps to land into the market and cater to the needs of your end users before you would be able to launch a full-fledged app. It empowers you to create a hype in the market, gain the attention of more target users and generate higher ROI eventually. With the monetary fund gained, you can roll out the next update, entertain a wider audience, and this way, turn your comprehensive app idea into reality without looking for other ways to get funds.
Other Monetary Perks
Let’s take a simple example. Suppose you got an idea of mixing Maggi with pizza (I know it already exists, just assume that it doesn’t). What will you begin with? Buy millions of packets of Maggi, bake thousands of pizzas, prepare their mix, and sell on a large scale. Or start with buying a packet of Maggi, placing it on pizza and asking the users to taste and share feedback. Obviously the second one, right? By following the second procedure, you will easily get to know the user response, will be able to record and employ their feedbacks into modifying your app idea. This will eventually reduce the risk of app failure, which somehow means investing your funds into a better deal.
Secondly, an MVP acts like a marketing tool, cutting down your efforts and cost for promoting your mobile app. And in the least yet possible scenario, an MVP can prompt the business leaders and investors to directly reach you and provide you with the required fund.
So, now as you know how MVP development can help to raise fund for your app idea, what’s your next step? Are you planning to build MVP app? If so, get in touch with a reputed mobile app team and stir up your app development plan.