Why Startups Must Develop MVP? Key Reasons
Uber and Airbnb are gig names now. The apps and the idea itself lauded by people across the globe and the facilitative features provided are put to use frequently. What more could be asked for? The same goes for Apps/websites like Spotify, Foursquare and Groupon. What do all have in common? All of those started off as MVP (Minimum Viable Product) products, the advanced features were added later on and the modifications were made gradually by monitoring used cases, identifying the issues and rectifying them.
What is an MVP?
As the name suggests it is a minimal viable product, which is nothing but the product in the simplest yet functional form which probably no one would like, yet ca be tested for functionality. A minimum amount of resources is required to create such a product. A product’s viability is often determined using an MVP to check whether the product is really needed and whether or not it serves the purpose.
So why must startups develop MVP? Here are the key reasons.
- Focussed Development
The creation of an MVP allows to identify the core features of the product. It streamlines the process, helps in sorting the must haves and the good to haves, and hence makes the initial development/manufacture process easier and faster. It also can bring down the development cost.
- Early Launch
Just like the Uber and Airbnb, the product can be launched as an MVP and modified gradually. The launch of an MVP can determine the value of the product, its feasibility in the market and also assist in gathering the inputs from potential users’, and getting feedback on how they want to see the final product.
As discussed above, the MVP can help in validating the idea and marketing it to a great extent. The MVP can be used to showcase the real value of the product by highlighting the key factors and the ones that set it apart from the rest.
- Reduced cost
Startups work with a low budget and often lack the financial flexibility. MVP can assist in keeping the initial costs to the minimum. By keeping only the basic features on their product, startups can minimize initial development cost.
- Customer validation
Ever been hooked to an app after the trial period? Think Netflix, Hotstar etc. That’s almost similar to what the MVP can do. A MVP can help in understanding the customers’ needs and wants, and deducing whether or not they would be interested in paying for the product. Depending on the purpose and innovativeness, customers are more likely to use it.
Customer validation allows the Startup to forge ahead and improve, by understanding how a customer uses their product. Based on the validation the startups can improve the final result efficiently.
In addition to the abovementioned, MVP can also attract investors. When there is an idea that can be presented in a working model, the chances of investments may increase, considered that the idea is innovative enough too. On the other hand, the creation of an MVP may even bring the startups to a realization that the product or the idea isn’t good enough. With MVPs this would come in early and without bearing much loss.
Here are the Key Tips for Startups to Consider While Building an MVP
The launch of an MVP should be ideally followed by marketing (word of mouth mostly), and then analysing the usage, rectifying the errors and improve the product gradually. MVPs can help in solving the core issues and improve the functions and workings, for startups this would mean, bringing the idea to life in the easiest possible manner and ensuring that it stays in the market.
Are you a Startup? Have you created an MVP? If not, get started now, and if you need assistance, we could be of help.