Over 34% of venture capitalists claim they meet their doom because their products do not fit the market. Many potential projects fail despite handsome investments, acquisitions, and mergers if not prepared. They look for gateways of opportunity. They aren’t aware that the primary step to becoming a better market fit begins with validating the original idea at the earliest.
Many VCs often do not know whether they are ready to take on PoC-powered startups. They don’t know what kind of PoC is needed to meet their expectations more than taking on the term. To overcome these hurdles, it’s necessary to understand the definition and objectives of PoC, the sector of your VC, and, most importantly, your startup partner.
What is PoC?
Proof of Concept (PoC) is a general approach wherein an early final product model helps test a design idea. Creating a PoC enables demonstration of the functionality and verification that a specific concept can be attained in development.
It is different from a prototype and Minimum Viable Product (MVP). Or it can be said that after the success of PoC, prototype and MVP follow up to create the final product. While a PoC addresses whether the idea is achievable, a prototype presents the product’s look, and an MVP shows how different functions would work.
Need for PoC in Software Development
To deliver the spark of innovation in the present days and make your VC attain a pathway to success, PoCs are a must. The need for PoC arises when it is essential to ensure the decided workflow plan is correct or determine a solution’s limitations and make sure if it is technically possible and a match for the target audience’s expectations.
In software development, proof of concept helps avoid potential technical issues in the future. It allows the developing team to obtain valuable feedback at an early development stage, reducing unnecessary risks. Vendor business roles utilize a PoC to establish whether a system satisfies the aspects of the purpose it was designed for or successfully resolves a particular problem. When a vendor is satisfied, they go ahead with creating a prototype or MVP.
Building Flow of PoCs in Software Development
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Concept Design: Detailed Idea Planning
The PoC development team begins by understanding what it has to work on in the software project’s discovery phase. They obtain all details from a client regarding their idea about the final product look, the target audience, its aim, and what main points it should address for the benefit of end-users. The team can efficiently work on the gathered information, provided they have proper proof of concept plan.
PoC Design Planning: Setting Up Project Requirements
The detailed descriptions from the previous step demand goal setting to make it easier to compare the result. When the scope of work misses the stage-specific requirements, the result is never viable. Thus, production is documented to ensure the team of software experts and the VCs (venture capitalists) are on the same page. It comprises iteration management and specifically marks all that has to be done in the initial stage and what has to follow next.
Selection of the Right Team
A successful POC plan must have the right team and project manager to ensure constant support in POC initiation, abiding by the POC document criteria, and providing the expected POC software. A VC must ensure that its vision matches the vision of its team.
Design Verification: Choose the Right Metrics for Testing the Idea
The testing stage and idea evaluations test the development team’s idea internally amongst certain assigned users. Once it receives potential feedback, it is further analyzed. Without testing, there is no certainty if the product meets the predefined requirements or not. Design verification confirms whether:
Idea is practical
Can meet user’s expectations
Resolves the target group’s problems
Will meet the budget if you proceed with the development stage
Gather Feedback From the Target Audience
Gathering feedback is one of the most crucial stages that marks the tipping point of the concept. Here everything is thoroughly analyzed to formulate a final verdict on whether the idea is feasible. Once PoC passes this stage, VCs can direct clients to design an MVP or the complete product. In this stage, suggestions can be made to the development team to focus on specific aspects such as speed enhancement, scalability features, and more.
Correct the Course of Your Business Idea
After testing and feedback, the development team gets a complete idea of the pluses and minuses of the initial PoC idea and its future impact. Being completely aware, one can easily decide which way to go next: work on a product, enhance it, incorporate expert recommendations or completely abandon the idea.
Impact of PoC Within a VC
While the introduction of new software has a significant impact on the team and day-to-day work, PoCs provide a chance to incorporate several people with different expertise and responsibilities in the project’s initial stage. The people once assigned can serve as ambassadors throughout the project development to make it a success.
Possess a Proof
PoC results in a working application exhibiting the potential of digitalization. When tested with the end-users, you will be able to present proof and show the potential impact and value of the project. A proof that is difficult to argue against helps convince the department head with whom you are partnering.
Quicker Fail, Faster Learning
A PoC provides both the development team and the VCs with a complete idea of the constraints and project challenges. They can modify and adjust the idea without any big risks. Adjusting once the project is up and running is as difficult as possible.
Dry-run at a Low Cost
POCs are the best options for avoiding spending financial resources on something that isn’t viable. If your organization’s partner is not convinced of the solution, you can convince them to carry out a dry-run at a low cost. You will have a firm ground for budget negotiations with proof of the solution’s viability.
Are PoCs Needed: A Definite Yay!
Giant tycoons are known for betting fairly high amounts on new startup companies with the hope of hitting a home run on a potential billion-dollar company. Having said that, they do spend time vetting your proposal and looking for key ingredients to success. So, you require strong storytelling and a perfect pitch to lure them into your business, and PoCs serve the purpose straight.
Software project PoC development has a multitude of advantages for convincing large enterprises:
- A complete idea validation method answers questions on the product’s viability and feasibility.
- Demands minimum investments to obtain maximum benefits.
Suppose the idea happens to be appealing and has a promising potential to transform into a popular platform. In that case, PoC serves as a template for future engagement in the development processes. If the idea has some flaws, one can try out different versions of it, weed out any design or function and work towards understanding how to create the final product better and convince the establishments of the same.