These days everyone wants to be an entrepreneur and want to take his business on the top. With start-ups cropping up so quick and many at the same time, it has become everyone to survive the competition. While there are only some whose name we might remember as they doing extremely well and stood victorious among the crowd, there are many which might not even know the name of as they suffered losses which led them to them shutting down soon after establishing.
After a lot of investment made in these start-ups, it comes as a shocker when a business goes through a downfall. All money spent on it goes a waste.
Well, there is an alternative route the start-ups can take. Without spending a lumpsum on the start-up, they should opt for MVP – Minimum Viable Product. As the name suggests, an MVP does not need too much money, however, the businessman would have to compromise on the functions and limit them to an extent. The functions that one lists under the essential functions should be of use to the customer and solve their problems. The main purpose of establishing an MVP is to verify the economic viability of a company.
Big names like Amazon and Dropbox are the perfect examples of MVP’s.
Here is what the MVP’s focus on mainly:
- Less amount of money spent on the development of a product.
- Delivering the product in less time and solving the problem of the users.
- Incurring low costs on testing a product.
There are several benefits of developing an MVP as listed above. Let’s throw light over some of the major factors that contribute to the advantages of building an MVP.
1- Cost efficiency: If you make an application which is more feature rich and has too much to offer to the user, that will any day take a lot of time and effort of experts. This will in turn make the cost of the of the project go high than you expect. On the other hand, an MVP will cost much less and you can develop your business step-by-step. This will help you invest the money you earn through profits and put not much money from your own pocking burning a hole in your pocket.
2- Consumer reach: Feedback is very important for your business to flourish. This is why it is best to launch the product in the market before anyone else does. This will make the consumer or the end user use your product before anyone else’ and provide you feedback. Like mentioned earlier, you can then go step-by-step on building your product. There will be feedback which will help you make changes to the product in the later stage. Useful features can be later developed fulfilling the demands of the users.
3- Testing: As an MVP does not contain a lot of features, it is easy to test the software. There is not cluster you have to take care of. The limited number of features are tested easily and you won’t have to remove features that have already been paid for. Later, new features can be added to your tested application or software, or you can also work on the development on the existing features.
4- Attraction for the investors: Since there is a lot of scope for addition and changes, an MVP gets the eyes of most investors. There are some companies who are ready to invest their money, however, most companies look forward to outside investment. Therefore, MVP is an attraction for the investors as there is a lot of scope for change in improvement in the same. Stakeholders in the case of an MVP, do not have to wait for long for the product to be launched.
An MVP is always going to make an it beneficial for companies as they will not incur much loses as compared to the full-fledged business. It makes it start-ups easy to establish themselves in the market before facing any hurdles or competition.
Now, let’s take a look at how an MVP is built.
MVP has fewer features and fewer steps as compared to the full fledged businesses. Let’s take a look at each step separately.
1. Market research: Analyzing the market is the first and foremost step for any business or product. If you don’t want to end up penny less, it is important for you to do study the market and then match it to the product you are planning to launch. You can conduct market surveys, with the help of platforms like Onepoll, SwagBucks, Toluna and so on. Put your product out for a survey and analyse the market trend to develop the features.
2. Getting a clearer idea: You cannot work on anything if you don’t have a clarity on the same. It is a must to find answers to questions such as:
- The reason why the users would use the solution provided by you
- How useful can it be for the user
- The problems of the user that can be solved by your product
By the time you are done analysing all these questions, you must know what you are looking for and what features the users will benefit from. Only those features should be included that will me the most in use. This will prevent you from investing money in features that will not be in use.
3. Make a list of the features: While you hire a software development company, you must be prepared with a list of features to provide to them. So all the components should be properly noted down before handing it over to the developers.
4. Building the app and launching it: After you conduct a meeting with the developers, you can go ahead with the building procedure of the application. Within very little time you will reach this stage. You have all the reasons to build a bad product in case of an MVP, as there is a lot of room for improvement. So, don’t get disheartened if it doesn’t work too well among the users. Instead, halt and see where the product is going wrong and make the amendments in it accordingly.
5. Feedback: Last, but the most important, analyse the market and consumer trend and be open to the feedback you receive from the users. This will help you know where you are going wrong or about the features which need to be upgraded or are not in use. You will also find bugs in your software if any.
All you have to do is make sure that the MVP is not overloaded with features, as you lost the concept there are make it another full-fledges software. The main aim of building an MVP is less features and room for modifications.
Some of the major examples of MVP are as listed below:
There are a lot of reasons for the failure of the MVP’s, but this might not stop you from putting in your maximum effort. If you build a successful MVP once, there are chances you might get to know a lot about the user behaviour and build successful MVP’s in the future as well.