How important is the minimum viable product for the startup? This is often asked when many companies use MVP before launching a new product. Based on our findings, reported on the Codica, the article discusses why a startup is prone to failure in launching its products, originating from a 35% lack of product market fit. It was revealed that the data was taken in 2022.
Until now, when searching using the common reason startup fail query, the problem regarding product market fit is still at the top. This indicates that many startup companies still need help in product market fit or preparing a minimum viable product. In this article, we will thoroughly discuss the minimum viable product. Take advantage of the opportunity you have at the end of this article.
What Is MVP?
What is a minimum viable product? This is a question that many entrepreneurs wonder what a minimum viable product (MVP) is. Basically, it is a simplified version of your product that allows you to determine the most essential elements of your plan quickly.
An MVP is the least you can do to give your customer something of value. This may seem obvious, but knowing what is considered the minimum feature set for your product genuinely represents eligibility.
Why is Minimum Viable Product Important?
Startup companies often seek funding to develop their product, but before that, they need to test their idea and assumptions about what their target audience needs. The quickest way to do this is by creating a minimal product with minimal budget and effort. The main goal of a Minimum Viable Product (MVP) is to gather knowledge and validate assumptions in the business ideas, which is crucial for creating a viable business.
An MVP approach can also allow a startup to release a product to the market quickly, allowing them to be the first in its market or market type. However, this benefit may only sometimes be worth the cost, as it largely depends on the product type and business model.
Instead of focusing on creating a product that a large number of real users like, it's better to build something that a small number of users love, according to Sam Altman from Y Combinator.
Three Key Characteristics for Find your Product-fit in Market
To find a minimum viable product for your startup, you need to know there are 3 key feasibility characteristics of a minimum viable product. Based on Techopedia, their articles have mentioned 3 primary keys in a minimum viable product:
- Has enough value; at least people are willing to use or buy it.
- Shows benefits for future use.
- There is positive feedback to do further development.
Has your product met all three of these criteria? If you still need to immediately check your MVP right now. Then after knowing these three criteria, what are the actual benefits you can get from making an MVP before going to the product? Check out the following discussion.
How your startup can benefit from an MVP?
You are still confused about what benefits you will get from this minimum viable product. Let's look back and evaluate the root cause of the product being disliked by consumers.
Most startup tech entrepreneurs strongly focus on developing products that are highly desirable for consumers. They are determined to become the next big thing in the market, like Apple or Uber.
However, it is essential to remember that Apple did not start with its popular products like the iPhone or Apple Watch. They carefully evaluated MVP factors to capture the interest of consumers and continued to improve their products through iterations to become a world leader in the industry.
Based on that, the first point that needs to be considered is validation from the market regarding your business product idea.
1. Validation
It is essential to thoroughly test your business model canvas to create a robust business model. MVP can be used to validate some or most of your assumptions. Thus making the overall business model more solid.
2. Iterative process
Iterations are essential to product development as they allow teams to collect feedback and gain a deeper understanding of their users. However, simply going through iterations without fully developing each feature can result in an incomplete product that is difficult for customers to use. The product must be functional and work well for users to continue using it. Iterations are a valuable tool but must be used with thorough development to create a successful user experience.
3. Customer feedback
Importance of gathering feedback for early adopters to help the product development team in the right direction toward product-market fit. However, the team should be careful not to focus on every single point of feedback and instead use it in batches to extract market signals for a more comprehensive approach. Otherwise, the team may resolve only particular customer problems rather than working towards product-market fit.
4. Manageable investment
Starting with a Minimum Viable Product (MVP) can reduce the risk of failure for startups in the early stage, even though it may seem counterintuitive. Less time and money spent learning and adapting to the market can lead to increased focus and simplified demands, ultimately resulting in clear goals and a willingness to learn. In contrast, having too much funding can lead to wasteful spending and a lack of understanding of why specific departments are necessary. Starting with a manageable investment can lead to more tremendous success for startups.
Examples Of MVP Success
1. Amazon
Amazon began as a small startup focused on selling books and has grown to become a $1 trillion business. Jeff Bezos, one of the world's wealthiest CEOs, was the company's founder. The company's success is attributed to its minimum viable product approach and continuous growth over time.
2. Instagram
Instagram was initially launched as a photo check-in website called Burbn, inspired by the founder's love for whiskeys and bourbons. The app, however, gained immense popularity and attracted 25,000 users in just one day at its launch, with minimal marketing effort, due to its lean business model. Today, Instagram is one of the most popular social media platforms, with over a billion active users globally.
3. Dropbox
Dropbox, developed by Drew Houston, was initially rejected by financial backers due to a lack of a marketing strategy. Houston's take on the minimum viable product (MVP) was impressive, and he created a video demo to showcase his idea. The demo convinced investors that Dropbox could provide seamless cloud storage to anyone globally, despite previous failures with similar products.
Start your MVP Success Today
It doesn't feel like we're at the end of this article. After you know the importance of MVP for your product or even for your business. This time, your opportunity is golden to get a minimum viable consultation schedule for your product with experts from Emveep.
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