What are some compelling reasons to develop an MVP?
The latest research shows that almost 70% of all startups don’t succeed because of premature scaling. On the other hand, those that scale properly, grow even 20 times faster. This is why the concept of an MVP exists. The abbreviation stands for a Minimum Viable Product. In short, this is a product with a minimum set of features that solves a definite problem that users have, while still having enough features to attract early-adopter customers. It’s the most popular in industries such as software as it can help the product team receive user feedback.
Why do many companies start with an MVP? What are the most compelling reasons for building a minimum viable product? BinarApps began as a startup and, in time, has managed to launch other startups, so we have some real-life experience in that matter, and well understand the benefits of an MVP.
You can release a product to the market as quickly as possible
The time saved can be really significant. Your whole product usually requires months to be completed. Creating a minimum viable product helps you determine the minimum requirements that will work. Then, once you’ve achieved that, you can move forward with adding another process that will enhance your product. An MVP often saves a huge amount of time and workload. Very often, it’s the product that first appears, gains a following, and wins the market. If your MVP can really help users with their most pressing issues, the sooner you present it, the better. Careful estimation says it’s possible to create an MVP at BinarApps in 3 months. However, the exact amount of time depends on the project.
As an MVP might be even developed in a couple of weeks (or months), you can roll out your product really fast. In consequence, you have better chances of prospering on the market. What is more, you also speed up the learning process. While developing a successful product, you have to learn about the experiences that a real user must face and you often do that through in-house research and testing. If you start with an MVP, you can use real customer feedback to improve the upcoming version of the product.
You can test your product with real users before spending much money on the product’s full development
Building an MVP allows you to get early data that confirms users’ interest in your product. You check whether the product appeals to your target users. Positive results are the best green light to develop the full version. Building an MVP enables you to test the product in the real market. It’s the best way to evaluate the growth of the market, trending technologies, and the economy. The purpose of the MVP is to build a responsive process for the product where it’s tested, released, and enhanced. The MVP is a great way to zero-in on necessary product improvements. You get the most valuable information for your product’s future – user feedback. You get suggestions and complaints and this is the opportunity to evolve your product according to users’ expectations and needs.
You can try out an idea for your product without building the entire product
This way, you save resources by making sure you’re investing in a project that is likely to be successful. Building an MVP also helps you validate your product and services. It allows you to decide whether you should continue to go after your product idea. You only focus on the major feature of the product, which saves your money, time, and resources, as well as the effort needed to initiate the product. The members of your team speed up all processes by developing a minimized version of the product. In case your product turns out to be successful, you can use the return on investment to develop a new version of the product which will much more viably meet customer needs. On the other hand, if your product has issues, you can either try to fix them, or you can abandon it without any further loss of resources.
One of BinarApps’ founders had to close his startup after only 10 months. One of the main reasons was that, at that time, users didn’t feel comfortable using credit and debit cards to pay for subscription services. If that kind of feedback had come earlier, it would’ve been possible to fix this before going to market. Lesson learned!
You can lower the costs of building the final version of your product
For many companies, cost-effectiveness is the most compelling reason for building an MVP. A product with only the few, most important features is a safer endeavor in terms of budget costs. And, in consequence, when you don’t invest too much at the start, you leave some space in your future budget.
You acquire a potential user base and find early adopters
You can also attract investors earlier. The income you start receiving right after you launch an MVP might be not impressive but it will be meaningful financial support for further development. After you release your first version of the product, you will be noticed by investors and they will play a huge role in the future of your product.
Building an MVP is a perfect way to establish long-term relationships with both customers and investors. On top of the network itself, you also improve your product through their feedback and suggestions which makes you more reliable in their eyes. They get a better product (in investment) and you create a product that sells well. It’s win-win.
You can determine the final features of your product
While coming up with an idea of a product, you always keep consumer needs in mind. Sometimes this results in adding certain redundant features, making the product less valuable. An MVP lets you focus on the real value of the product, alongside customer needs. After all, you can focus on product success in the market, instead of wasting resources on needless features.
Building an MVP can shorten the time-to-market period of your digital product. A properly managed MVP will get you feedback from your target group, which can save you time on developing the right features. You also get insight into your market. All of this is attractive data for potential investors. Finally, this is a budget-friendly approach, but only if you have clear expectations from the MVP – it’s not the final product, just a taste of it. If you have any further questions or need help to build your MVP, ask for a free consultation!