One of the main reasons why startups fail is because their initial product is built on assumptions. Entrepreneurs make the mistake of believing that their product will address a problem better than any other solution currently available. When you want to dive into the market with a new business idea, but are not yet sure where to start, what to focus on, and what the target audience needs – your way out will be the MVP approach. There is no chance you can know whether someone needs a product before you start making it. That is why MVP startup will help you to explore the possibilities and estimate the profits of your idea. So, let’s figure what this method is and what will it bring to you.
What is an MVP?
An MVP approach (minimum viable product) is a simple, ready-to-launch version of a product that includes only the most essential elements (which define its value proposition). It is designed with the goal of reducing time for market research, attracting early adopters, and achieving product-market fit from the start. MVP startup is a bare-bones version of your product that is put to the test in the market. This app development method enables your team to test (or disprove) product assumptions as well as understand how your target audience responds to and uses your product’s main features. It will show you how to correctly allocate your money to meet your overall goals by integrating MVP in business.
Building an MVP approach is an iterative process for identifying user demands and determining the right product features to meet those needs over time. In the context of verifying business assumptions, the MVP is viewed as an experiment. Rather than implementing an isolated business strategy, MVP benefits new firms and startups to discover where business possibilities exist.
Read also: 8 Main MVP Benefits
Successful examples of MVP in business
Facebook began as a simple social media platform for connecting with friends when it was first released. When ‘TheFacebook’ was opened in 2004, it was exclusively available to Harvard students, and their profiles were as simple as they could be. The concept proved to be successful enough to warrant further app development, and the platform grew in complexity over time.
Facebook was progressively pushed out to other universities in the United States, and then to the rest of the globe. This aided the notion in gaining momentum and scaling effectively until it became the main social network that we are familiar with today.
In fact, Dropbox played outside the rules and opted not to start any product development at all. Dropbox began as a demo video, demonstrating the MVP benefits of keeping data in one location. They wanted to see if people were interested in their file-syncing concept. They could have created an entire hardware infrastructure, with full app development, and so on, but they didn’t want to take that risk. As a result, customer input assisted the then-startup in obtaining the financing it need to expand its service.
Airbnb provided users the opportunity to advertise a room for short-term rental to make additional money, starting with the founders’ own flat. They offered lodging for individuals who traveled to town for a design conference to test the concept. The platform expanded as it became obvious that tourists were eager to stay in someone else’s house to save money on lodging. So the improved features and the functionality of the platform appeared on the basis of the first income, founders profited with their MVP startup.
The initial concept was to match drivers who were willing to transport passengers with passengers who needed a trip. The MVP app ‘UberCab’ only operated on iPhones or through SMS when it first launched in 2009, and it was only available in San Francisco for drivers who weren’t afraid to have credit card payments authorized in an unknown app. It was enough to achieve their main aim of providing taxi services at a low cost. Uber as we know it now is the consequence of a successful MVP test and the appropriate strategy to business scalability. The app’s data helped Uber expand and quickly become one of Silicon Valley’s most valuable firms.
Many essential functions, such as copy/paste, were missing when Apple introduced the original version of the iPhone. There were no recommendations when you intended to send an email and started inputting your friend’s address. It didn’t have MMS or Bluetooth, and it only supported EDGE (2G), which meant spotty network coverage and excruciatingly sluggish web surfing. Within three years of the iPhone’s debut, Apple’s MVP startup had evolved into the iPhone 4. Furthermore, the so-called smartphones of the past, with their built-in keypads and difficult-to-use interfaces, were being phased out.
Building MVP startup
Step 1: Get prepared
Before a company launches a concept and begins the MVP development process, make sure it meets the demands of the target audience. This may be performed through the use of surveys, market research, field analytics, which are all useful at this point. In the long run, the more data a company has, the better its chances of succeeding. Also, remember to keep an eye on what your rivals have to offer. Make sure you’re not competing with other offers for the same audience. You should identify how distinctive your product is if you intend to enter a competitive market.
Step 2: Define the idea
After the market research, you will be able to specify the offer to the target audience, which will fulfill the demand. At this stage, you should pay attention to all the alternatives that might appear on the market. And when you have already made the decision – hire the development team. Check if the team complies with your overall vision and will be able to keep up with your plans.
Step 3: Design a structure
The user’s comfort should be the driving force behind the design. Select the most efficient and cost-effective method of delivering the major functions and features to the customer. Think about how users will get the service and where they will pay for it. At first, it might be easier for you to gather all the suggested features you will have on your mind. This way you will have a clearer understanding of how would be going the product development in the future, with all the advanced features you can add there.
Step 4: Confine to the basics
You’ll be able to tell at this point what features to include in your MVP startup and what things to put on your product development roadmap that aren’t as important. Identifying and prioritizing features may be as simple as asking yourself, “What does my user desire vs. what does my user need?” Keep in mind that integrating too many user-requested features too quickly might detract from the product’s core goal and degrade the user experience. The only features you should offer should be related to the ultimate purpose of your product.
Step 5: Launch an MVP
The MVP may be created once a company has agreed on the major features and has learned about market demands. Keep in mind that an MVP approach is not a lower-quality version of the final product; it must still meet the demands of the consumer. As a result, it must be simple to use, appealing, and relevant for the consumers. The production of the MVP is the most time-consuming of the stages listed above. Make use of the preferred prototype and stay on track with the objectives.
Step 6: Post-launch actions
It is critical that you get feedback from your users once you have launched your MVP startup. Users provide reviews on the product’s shortcomings, ensuring market recognition. This will assist you in developing new ideas depending on consumer behavior research that will affect future editions of your product. It’s critical to keep testing, learning, and measuring, and then testing repeatedly until the product development is complete.
An MVP approach is just what you need if you want to boost the odds of your business lasting a long time and being profitable. By discarding lossmaking company concepts, the MVP startup helps you to save money. It also aids in the timely improvement of the app development and the collection of a client database prior to the official launch.
Applying MVP in business should make the product development journey less daunting. Just follow the processes and tactics outlined. And do not forget that an MVP is created to be improved through time, so there is no need to try making it complete right away.
Now that you know what is an MVP, you should realize that creating one is not a simple task; it takes a significant lot of effort. It’s beneficial to go this path if the sort of offering you intend to build will be good enough as a minimal viable product. But, as an additional advantage, if your concept isn’t as well received by users as you had thought, you may maneuver before wasting a lot of money and time. And we are here to help evolutioning your MVP startup into a successfull product!