Implementing an MVP into your business not only generates revenue for the project and attracts investors but also minimizes the chance of failure.
The main role of an MVP for your business is to demonstrate the essence of your product to the customers. A professionally built MVP will engage first buyers and promote large growth of your product within 2-3 months. A minimum viable product allows moving forward without losing time and resources. The most popular and successful products like Facebook, Instagram, Spotify, and Uber were developed as MVPs first.
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What is MVP?
A minimum viable product is a principle of product management that promotes its faster advance in the market. An MVP has enough features to involve early adopters and receive the quickest response for validating the product. The main goal of an MVP is to demonstrate the bare functionality and clarity of the product that needs further development to the customers for its additional refinement and improvement.
Many product owners tend to waste a lot of time and resources before their project even reaches the customers. This strategy is self-defeating because the idea and clear functionality of your product should be in the first place.
The purpose of MVP
MVP has numerous purposes, and every one of them is an essential part of successful business management.
1. Clarification of Idea
People tend to believe in ideas and stories rather than logic. At the outset of your product development, you need to clarify the concept and core features that will be crucial for your target audience. Giving people the chance to solve their specific issue quickly and effectively will attract them to your product even before you release it on the market.
2. Saving Time and Resources
Using the MVP framework lets the company concentrate on the establishment of the product’s core functions. As soon as you finish developing the basic functionality, you can release the product on the market.
3. Fast Gaining of the Audience
Early adopters will give you valuable reviews of your product, which enables a better understanding of their needs and requests. MVP helps to find and define your preferred target audience that actually needs your product. MVP projects provide value to the customers so there is no need to waste extra time and money on advertising and marketing.
4. Understanding target audience needs
Early release and narrow focus of MVP will provide you with better knowledge of your audience requirements. Users will inform you which functions they need the most and which ones they find the most valuable. The better you understand the preferences of your customers, the faster you will be able to develop and improve your product.
5. Minimising the Risks
There is no need to waste huge budgets and years of hard work on something that will not work out. Implementing an MVP prevents the loss of your money and time because it is cheap and fast to develop.
MVP can help you save time, money, and resources even when entering the market with a fresh idea. That’s why the concept of MVP is worth implementing in any business.
Types of MVP
An MVP can come in different shapes and forms, from a No Product type to a Minimal Product type. Each of them requires a different amount of effort, time, and investments so you can create an MVP with minimal risks and spendings.
|Types of MVP||Description||Complete Minimal Product|
|No product||The description of the future project to attract an audience||0%|
|Pre-sold product||The creation of the product on the money you get for the pre-sold product||20%|
|Product Imitation||The providing of the product manually with no developed technology||60%|
|Minimal Product||The functioning version of your product with core capacity||100%|
How to Attract Attention of Investors to Your MVP
Investors tend to take interest in MVP because these projects provide them with early customer feedback, have the potential to grow and develop, and also aren’t costly.
There are reasons why it is important to create a well-functioning MVP that will grab the attention of potential investors:
1. Investors Should See the Unique and Clear Functionality of MVP
The MVP of your company should present unique and helpful features in order to compete with other products on the market. If a company wants to be funded, it should provide investors with new ideas and opportunities.
2. Investors Should Understand that Your MVP is Viable
Quality MVP gives a clear understanding of the final product will meet the customers’ requests. If the core functions of your product work properly and the audience finds them necessary, it gives immense potential to scale up and promote your MVP to a greater product.
3. Investors Should Have Feedback from Your Audience
The swiftest way to know if the product needs improvement is to get clear feedback from product users. An MVP provides accurate data of the product performance because it includes only the significant functions and does not fulfill a lot of tasks. Investors can clearly understand if your project is worth funding by your customer’s response.
4. Investors Should Know How to Manage the Risks
An MVP should grant a risk-free option of managing the product. As a rule, a big-time MVP is able to provide investors with insurance of effectiveness and safety of funding the project. That’s why a lot of investors are interested in successful MVPs.
Why Developing MVP Instead of Prototype
Minimum viable product and product prototype may seem the same, but unlike a prototype, an MVP provides a better connection to the target group, allows identifying the future and present customer needs, and has the potential to be funded.
|Objective||The functioning product model that can be improved||Review of the potential product that should be developed|
|Aim||Gaining the target audience and attract investors||Providing the outline of potential product|
|Target audience||Big customer groups||Small group of stakeholders|
|Revenue||From early-adapters||No revenue|
|User interaction||Full interaction with main features||Testing the users commitment|