Need to Fund Product Development? Here's How
You're all set to change the world (or to disrupt a niche industry sector) but how do you fund your Minimum Viable Product (MVP)? Speaking at the recent Travelers Institute symposium - Small Business - Big Opportunity - Saurev Chopra, CEO and co-founder of Perkbox, shared his insights.
The MVP Is Often the First Milestone for Start-Up Businesses
After all, without some proof of concept, it’s easy to feel like you’re just one person with a plan.
Saurav Chopra knows about this pressure. His business, Perkbox, helps SMEs develop the employment packages they need to compete with larger organisations in the battle for top talent.
He Believes MVPs Should Be Created as Cheaply as Possible
“There are lots of software technologies and other tools out there that can help. So use everything you can to create the bare minimum product you can ship.”
He also believes that it’s too easy to over-engineer the MVP. “I once attended an event featuring the co-founder of LinkedIn, Reid Hoffman. He said: “If you’re not ashamed of your first product, it’s shipping too late.’”
But What if £40K Really Is the Bare Minimum?
If that’s the case, Saurav believes you should try and get funding from friends and family plus an angel investor with experience in your domain.
“Friends and family will be de-risked if they know you have an angel investor and the angel investor will be de-risked if family and friends are involved. That’s what we did during our first round six years ago.”
The subsequent success of Perkbox is sufficient testament to Saurav’s approach.
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