In a time where technology is developed to the point where we can continue our professions within the comforts of our home, startups have taken a new spotlight, especially among the younger generations. However, the tight budget, fewer resources, and high risk of startups have made the term MVP or the Minimum Viable Product popular in the industry. In this article, we look into the importance of MVP for startups and how it can be effectively utilized to achieve the desired outcomes.

What is an MVP?

The Minimum Viable Product (MVP) is an earlier version of a product that gets introduced to the market with basic features but with enough functionalities to get the consumers' attention.

 The concept allows the team to gather a large amount of validated usage data about customers with the least effort. These projects usually are not aimed to generate profit. Instead, they analyze and improve upon what the customers have to say. 

Allowing developers to gradually improve the chosen product without building the entirety is not the only thing a MVP can do. It also can reduce the time and resources you might otherwise spend on building a product that won’t be successful.

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The right understanding of MVP

The concept of MVP revolves around testing what works and what doesn’t. One of the main goals of the MVP is to achieve an understanding of the product/market fit.

 Getting users' valuable feedback is a massive help for the developers as it provides them with a general direction in which the product should lean towards. User-generated usage data and feedback is crucial for any project— Because the end-users will most likely look for the same type of functionality as the MVP users.

 The benefits of the MVP are no small topic. But to simplify things, here are a few of them.

• Analyzing the right product/market fit
• Understanding the essential milestones of the product roadmap
• Helps to develop a monetization strategy
• Aiding in calculating Cost-Efficiency
• Developing a healthy bond with the users
• Testing UX Functionality
• Helps to achieve a quicker release
• Constant Updates according to feedback
• Progress With Low Risk
• Operate under limited human and financial resources

 It is common knowledge that a well-functioning large-scale project takes years to build and requires a significant amount of money, time, and effort. So, using an MVP approach helps to reduce the risk of failure and wastage of resources. Some prime examples of successful MVP startups are Facebook, Spotify, Airbnb, and Dropbox.

How to build an MVP?

MVP may be a simple product with limited features, but developing the MVP has a complex development process. Following a well-thought-out MVP building process always will lead to a successful result. Here are the 7 steps for a well-balanced development process of a MVP.

Step 1 - Describe the Goal 

The first order of business is to identify the problem that needs solving. This will provide a solid foundation to build the MVP upon.

Step 2 - Do a Market Research 

The objective of Market research is to identify what the target audience needs and how to fulfill it. Gathering survey data, doing research, and collecting information about similar products are the best ways to go about this. The more information you have, the easier it will be to develop a user-friendly product, and the more accurate the end product will be.

Step 3 - Define the Target Audience 

Defining the potential customer is the objective of this step. By doing so, the company can get an idea about what the customer needs, does the product solves the consumer's problem, and how to make the product more likable to the customer.

Step 4 - Analyse competitors.

The Marketplace is sure to be filled with competitors that provide customers with the same type of product. So, the sensible approach here is to analyze your competitors. You can find out their strengths and weaknesses, strategies, and market share to better understand what to expect and what to do when you enter the market. You can also collect information from the customers of your competitors and find out what can be improved.

Step 5 - Map Out User Flow 

Mapping out the user flow could also help the accessibility of the product. This can also reduce the time a user has to spend to complete a certain task by removing all the unnecessary steps in between.

Step 6 - Prioritise MVP Features 

Next on the list is prioritizing the MVP features. Keeping only the most essential parts of the project that helps to solve a problem is the way to this. Then categorize the remaining features from high to low  based on priority giving higher prioritized features more focus.

Step 7 - Launch MVP

 This is pretty self-explanatory as after figuring out and adding the necessary features to the MVP, it is ready to launch. But the product must be suitable for customers and easy to use.

What comes after an MVP?

What to do after the launch of the MVP could be a bit tricky. Some companies tend to take details gathered from the MVP to do a full release of the product. On the other hand, some decide that the next step is to develop the MMP or Minimum Marketable Product.

 If you are going to follow the first approach, then what you have to do is keep an eye on the numbers. This will help to identify how the MVP is doing in the market and react to it accordingly.

 At this stage, you should keep an eye on Lifetime value and Cost of acquisition of a customer, Churn rate, and sale numbers. Listening and functioning according to the customer's feedback is the main objective here. 

 On the other hand, The MMP approach acts as the first version of the real product. This is usually the product with the fewest possible features that can still be sold and marketed successfully.

 You can build a MMP for a lower cost than the end product and it can potentially become an early source of income. MMP is aimed towards customers who are willing to look past rough edges. The functionality of the MMP is to document market feedback from real paid users and get better proof of success. 

Conclusion

When entering the market with a new idea, it is always wise to consider an MVP. It will help save valuable resources and time for any company that enters the market. Though it's not supposed to earn money, it will lead to a more successful end product that would become an even more valuable asset to the company.  

We here at Xentury are development experts who can help you build a viable MVP for your next project. Feel free to get in touch with us to make your business a success.