How startups attract investors in the software market? With the help of sales Proof of Concept.
To excite investors and to garner your first customers, an idea on paper is not enough. You need to show rather than tell. Enterprises need evidence that your solution can actually do what you declare before paying a pretty price for the deal.
A successful Sales POC can help investors understand how your idea is feasible, which means it can convince them to invest in your project. The way how Proof of Concept works is outlined below.
What does PoC make?
A Proof of Concept for a plane is a kite. An implementation of a particular method or idea using specific technologies. Something that confirms the practical potential of your plan.
You will need little time and little money to prove the kite can fly. So, sales PoC is usually small, focusing on a particular aspect of the product, and is typically not complete. Its lifecycle is short because the objective is to decide if further investment is to be made or not.
In addition to testing the feasibility of your concept, PoC is a vital part of the company's marketing and development. Let's set out the reasons:
- Sales tool. A PoC helps to demonstrate the product's competitiveness on the market, its authenticity.
- Fast feedback. A Proof of Concept saves resources and makes it possible to improve the concept at the initial stage.
- Relations with customers. PoC increases the trust of clients, turning one-time buyers into returning customers.
Questions that PoC should cover
Once you are ready to engage with investors, you should be proactive. The more people you meet during networking, the higher chances you will get an investment. It would be best if you are always prepared to show your PoC version. So you'd better have the answers to these questions ready to go:
- What needs does your product meet? What is the objective of your PoC?
- How long does it take to set up and run the business?
- What is your strategy for the next five years?
- What are the features of your product?
- Who is your target audience? What is the size of the market?
- How to interact with a product for its improvement?
- What is required besides money, and how to provide it?
- What is the initial investment?
- What are the criteria for success? How to understand that the product is growing, or is it time to sunset it?
- How will you proceed if the PoC doesn't work?
Brief and straightforward replies are a great tool to start the relationship.
There's even no need to schedule meetings to show your Proof of Concept; you can come up with a remote sales POC available from any web browser.
How we can help
Zfort Group specializes in custom software development and consulting. We can help you draft a POC for your startup and develop a prototype or minimum viable product.
If you want your POC to bring successful outcomes, don't hesitate to talk to us.