Many startups create products which really don’t get attention and visibility in the market as they should, and vanish from the market because they are not built on the basis of what consumers want. Creating a product without conducting market research and failing what needs to be delivered to the end-users can be a tiring process for start-ups. After all, it’s still taking all the resources one can use to create a successful product! That’s where the concept of minimum viable product development comes.
Creating the end product, investing a whole amount of savings(when we talk about start-ups), time, efforts, sweat, and blood only to get the failure at the end is not a dream of anyone, basically.
What is MVP?
Minimum Viable Product also popularly known as MVP, is a budding version of a new product idea with core features, functionalities, and competencies that allows a business to collect the maximum amount of validated feedback and learnings straight from the target audience with the least amount of invested efforts and budget.
Aims of a MVP Development:
- Check market demand for the product you create.
- Get direct feedback from the end-users.
- Save costs involved in the development budget.
- Acquire a base of users or early adopters.
- The project highlighted in the market, creating visibility for investors.
The main goal of MVP creation is to produce an actual product that you can offer to the target audience to test and validate the hypothesis. To be more specific, before creating an MVP startups can define the metrics or KPIs which can be tracked and which metrics you need to achieve to consider that your Minimum viable product development (as well as the hypothesis) is a huge success. Many start-ups can keep the metrics on the basis of the number of registrations, time sessions created by the end-user in the application, retention rate, no. of downloads, etc. The metrics are generally unique for every product and service & it’s important for a startup to define the metrics, which will help them in not failing.
Multi-Billion dollar businesses like Snapchat, Spotify, Twitter, Airbnb, Dropbox, Uber, etc. were started in a small room, between a small team as a minimum viable product & they were taken into the market once their set metrics were met.
The Process Involved in MVP Creation:
1. Build up a User Base
To create and test a product clearly, it is important to have a sizable sample size of the end-users who can validate ideas and usability behind the product, while giving their feedback which can result in the success of the MVP. Hence, the first step is to create the right user base that matches your ideal end-user definition.
2. Data Collection and Measuring
Once the user base is created & MVP is developed, start collecting the data from the user base. Collect this data accurately and analyze it. Measuring data will help you understand what your customers are actually looking for.
3. Receive Feedback from the Customers
When the data is collected, understand what all changes you need to bring to your product to make it a viable product for the market, so that end users can accept your product with their whole hearts! Also, if there are additional functionalities required, that can make your product really stand out, then BINGO! You Are On The Top!
4. Product Updates
As the startups gain feedback and reviews from their target audience, all they need is to make the necessary updates, even when they are out there in the market! Product updates are the best way to keep your product up to date with market requirements.
Also Read: Roadmap of how to build a Video Chat App
Why MVP Development is Important?
1. Test your Business Idea:
While creating a hypothesis, your idea might sound great and hit with top ratings, but when you actually start developing the product, things change with the development process. That’s where the MVP comes into the picture because that helps you in checking the feasibility of the business idea. A minimum viable product can give you accurate insights on how promising the future of your business is.
Even when you create a product with catchy design and functionalities, your targeted audiences might not be ready to accept the product and be interested in using it. Because there are well-known businesses in the same category or they just don’t need it, for example. An MVP really helps you understand whether your user base is even interested in your business idea and whether they are ready to actually pay for your product because every business comes to a conclusion of profits and losses.
2. Reduce Development Cost:
The startup’s life revolves around how smartly they are using their funds. Investors or not, it is essential for startups to put the fund into good use. Spending most of the funds on the development of a product that is not accepted in the market is unacceptable. Creating an MVP and weeding out the issues which might not end well with the targeted user base will help the start-ups in saving a lot of funds which can be used for large scale product launch, and also combat the suspected failure. MVP works on the process of ‘minimum’ features required for the product to be ‘viable’ and functioning, can turn out to be the real-life savior for the upcoming start-ups.
3. Validation Straight from the Horse Mouth:
One of the main reasons why experienced developers recommend building an MVP for a start-up is the feedback and reviews one gets straight from the targeted audience. Creating an MVP with minimum features can help you understand the market acceptability while understanding which features are the most needed and expected, and which ones are unwanted.
The thing one needs to understand is that the product should be the solution to the end-users’ problem. And the best way of finding what issues or problems your end users are facing is to get this information straight from the end-users. One can leverage this data and create a mind-blowing product which is the exact need of the audience.
4. Attract Investors:
When you get the best MVP results, the market value of your product gets non-negotiable. As you get on with the facts of how well your pilot testing went, and the KPIs were successfully met, you can negotiate on the numbers that you want. Without an MVP, even a good product can be wrecked by the investors that can get the maximum benefits out of the deal. Once both the start-up and the investors understand what outcome can be extracted from the product, they can come together to create opportunities for the product.
5. Build a Roadmap for Future Products:
The MVP can create a roadmap for each version of your product. The whole concept behind the business and creation of products can take years in the development process. Starting our small and Releasing an initial version can help you establish the concept and work on the expansion of the business. The Minimum viable product is considered to be the foundation of the product, which shapes the future of your product in the market. It helps the startup in making the product manageable. While getting the reviews and working on the feedback of the products, it enables the business in achieving the goals set in the beginning and avoid roadblocks which can hamper or delay product growth in the market.
At Apptread, we have helped a number of startups get going by planning, designing, developing, and launching their Minimum Viable Products. Click here to contact us & talk to our development experts to get your MVP project started today.