Nowadays, more and more startups and even big IT companies use MVP as a starting point for the successful development of the project. Moreover, there are many IT projects, which started their way to the success from the MVP development and now they are already well-known brands such as Spotify, Airbnb, Foursquare, Groupon, etc. So, what is MVP and why its development is the best solution for new startups? Well, let’s start from the MVP definition.
MVP (also referred as minimum viable product) is a simple functioning prototype of the product, with one or several basic functions, that solve some concrete customer’s need and that is primarily used for the demand investigation and idea testing.
The most difficult part in the process of MVP development is to find an optimal ratio of the costs to the quality. You need to develop such product with minimum costs, but with the functionality, that your customers will be ready to pay for. Now you may think, that low costs is the main argument for MVP development? Of course, costs for MVP development is much lower, than for the full functionality project, but MVP development concept came not from the poverty, but from the rationality. Let’ consider several points of this rationality.
1) Reduce your risks
First point of MVP development rationality is that it helps startups to check their hypothesis about the project’s idea and to see if this idea could win customers attention. MVP development could save time needed for the project release, developing only the core features of the project, allowing evaluation of the projects effectiveness indicators and making the corresponding conclusions as for the project sustainability. You will be able to understand on the stage of MVP development if your idea finds an appropriate demand at the market.
2) Customers feedback
It is one of the main arguments for MVP development as it allows you to understand if your customers need your projects, will they be willing to use it and to spend money for it. Moreover, you will understand what features need some modifications, what is better to add into the project’s functionality and what is better to change or remove.
The main reason for startups projects failure in many respects – is the lack of knowledge about their clients. Instead of having to learn their needs even in the early stages of MVP development, many startups take a risk of the full functionality projects development without testing the idea on the real users. Then they get the following result: they have full functional project with complete list of features, but this project has no customer value and therefore has no opportunities to be successful at the market and generate good revenue.
3) First customers base creation
After MVP release you will be able not only get a feedback from your customers but also gather first base of the potential customers and early adopters of your product. This will be a good starting point for the sales and marketing after the full functionality project release.
4) Good argument for investors
Each startup needs investments for its further development and promotion. Nowadays, investors have a lot of opportunities and proposals where to invest their money and they understand all the risks connected with any investments that is why they need to see some evidences, that your idea is viable and have a good potential to be successful at the market. How could you persuade your investor? Show your MVP product and your investor will understand, that at least you are not afraid to spend your own finances for the project development that also means you believe in your own idea.
Moreover, you will be able to show the first results, received after MVP release such as first client’s feedback and market reaction to the product; these will be a good argument for investors, as they will clearly see possible perspectives of the project and their supposed return rate on it.
We could find much more arguments in favour of MVP development, but we think, that mentioned above is enough to make the right decision. In addition, always remember: “Great oaks from little acorns grow”. Enjoy your startup ideas!