It’s not enough to have a great idea for an app or a product, you also need to convince investors to get the necessary funding. If you don’t you will need to spend a lot of time and money to build the product and then wait for it to make money.
Convincing an investor is never easy. It will be tough especially if you’re a first-time entrepreneur. They need evidence that the app or product will be successful and will provide value to the users. You need to create the necessary trust for the investors so they can believe in you.
At the idea stage, the risk for the investors is the highest. However good the idea is there is a lot of uncertainty, such as whether the customers will be willing to pay for the service, the pricing, the demands of the market, and the target audience. There will be a lot of similar questions which will need to be answered by you. Everything is imaginary during the idea stage.
Proof of concept
How do you get the proof which shows that the app or the product can be successful and the risks can be managed?
This is where a proof of concept (POC) comes into play. A proof of concept is designed to achieve the following benefits.
i. To attract investors and venture capitalists to fund your product.
ii. The market feasibility and the value it creates for the users.
iii. Pricing to be decided. Whether the customer is willing to pay for your app.
iv. Technical feasibility and the best technology to be chosen.
Before designing a POC, the target audience should be clearly defined. A product has a better chance of succeeding when it solves the problems of a specific group of users.
Using mobile analytic tools you will be able to get a lot of information about people who are interested in your products. Researching and finding information about competitors is another important thing to do before creating a POC.
It will be much easier to pick the right audience if an app that’s at least somewhat similar already exists in the market. Of course, your idea may be different and solves a problem other apps don’t but there’s usually an app that has at least 1 thing in common. If you’re launching a completely new concept, you may have to do more research and really dig deep.
If you’re already at the point where you need a POC then contact a company like SDI (AppsDevelopers Australia) who has created POC’s for many apps across all categories. Our background in developing various apps and other digital products for the last two decades has given us enough experience on how to design a successful POC. Have an idea feel free to contact us.
Requirements of POC
A POC also includes a basic version of your app which is not expensive and can be marketed easily. These help to test your ideas in the market with minimal risk.
POC also tests whether a particular concept is feasible from a technical point of view. A POC is an excellent method to share the core functionality of the product internally.
Now, let’s take a look at the basic requirements for a POC.
i. It should be simple. The users should be able to understand the functions easily.
ii. It should have the main interactive features of the app. This will help you identify technical errors and also provide you with more information about user behaviour.
iii. It should be compliant with all screen sizes and devices for which it is developed.
iv. It should reach the targeted audience so that proper feedback is received.
v. The pricing is pretty low which helps to keep the costs low.
Process of designing a POC
There are certain standard processes for designing a POC
1. Identify the need
A product can be successful only if there is demand in the market. So the need should be clearly identified and the pain points the target audience is currently experiencing should be clearly understood. This should not be assumed or guessed but you will need to know the actual issues after talking with some of the intended users. You may find certain concerns being repeated. You will then be able to create a list of all the specific needs your product will solve.
2. Arrive at the right solution
After collecting all the pain points, start brainstorming to find solutions. There may be several solutions to a single problem, you may like to arrive at a solution after taking all aspects such as cost, technology, competition, timeline, etc. into consideration. Once the solution has been finalized, go back to the users and get their feedback. Based on the feedback you can finetune your product.
3. Create a Minimum Viable Product
This should have the core features of the final product. It should solve all the pain points which you have identified. This allows you to test your product to a wider circle and get valuable feedback. You will get an idea of how much your product resonates with the users.
4. Present the POC
After the concept has been tested and the product improved, you can submit the POC to venture capitalists or investors. You must present along with other things, the pain points and their solutions, the technology that is being used, various features, the value of the product, and long term sustainability. Once the investor is convinced, you can go and develop your product.
Find all this overwhelming. No worries. Our team at AppsDevelopers Australia(SDI) can help you in designing a POC that will really help you in understanding the market and find the right solutions. We are a great partner for both big and small businesses. Our quality standards are the best in the industry.