When developing a completely new product it often makes sense to not directly develop a fully fledged version of the product but to start with an MVP, for example due to initial budget limitations especially in case you are a bootstrapped business.
But what precisely constitutes an MVP, and why does its role extend across businesses of all sizes? Let’s explore the realm of MVP development and illuminate its critical significance in both product innovation and market validation.
Note: 🍋 Throughout this guide we will use the example of a food supplement company to better illustrate each task and information.
What is MVP Development?
When developing a completely new product it often makes sense to not directly develop a fully fledged version of the product but to start with an MVP, for example due to initial budget limitations especially in case you are a bootstrapped business.
MVP stands for Minimum Viable Product. It is a concept in product development that emphasizes creating a basic, functional version of a product with minimal features, just enough to satisfy early customers and get feedback for further improvement. The concept is mainly used for the development of tech products. However, we believe that there are some useful principles and takeaways that can be applied to any type of business or product, so even if you are building a non-tech product or service, keep reading!
An MVP is typically developed quickly and with a low budget, to test the viability of a product idea and to gather feedback from early adopters. The goal of an MVP is to validate assumptions and test hypotheses about a product’s market fit, user experience, and potential business model.
The features of an MVP are often limited to the core functionality of the product, with additional features added incrementally as feedback is received from users. This allows the product team to focus on developing the most essential features first and avoid spending resources on unnecessary features that may not be valuable to users.
An MVP is not a final product, but rather a starting point for iterative development based on user feedback and data. The ultimate goal is to develop a product that fully meets the needs and expectations of users while achieving business objectives.
Now, you probably will wonder what’s the differences between a prototype, a MVP and a full product. So let’s look at them here:
Some voices claim that an MVP is something that you should be ready to throw away, once it serves its purpose. And that you should build the full version of the product/service from scratch, rather than evolve the MVP. However, in the real world entrepreneurs, start-ups or small and medium businesses are usually working on a limited budget and don’t have money to throw around. Building an MVP to throw it away is wasting money and resources.
So when you are working on your MVP, try to build it in a way so its features can be evolved and it can be scaled later.
What are the Benefits of MVP Development?
MVP development is crucial as it allows businesses to validate their ideas, minimize risks, and optimize resources before fully committing to product development.
- Market Validation: MVPs enable businesses to test the market demand for their product idea, validating assumptions and reducing the risk of investing in a product that may not resonate with customers.
- Cost Efficiency: Developing an MVP allows businesses to minimize initial investment and focus resources on core features, avoiding unnecessary expenses on features that may not add value to the product.
- Rapid Iteration: MVPs facilitate rapid iteration based on user feedback, enabling businesses to quickly adapt and improve their product to better meet customer needs and preferences.
A well-defined MVP is crucial for all types of businesses:
- For Entrepreneurs, MVP development provides a cost-effective way to validate business ideas and gather valuable feedback from early adopters, guiding future product development efforts.
- For Start-Ups, MVP development accelerates time to market, allowing for quick validation of product-market fit and rapid iteration based on user feedback, fostering growth and scalability.
- For Corporates, MVP development fosters innovation and agility, enabling large organizations to test new ideas, validate assumptions, and stay competitive in dynamic market environments.
- For Investors, investing in businesses that embrace MVP development signals a commitment to innovation, efficiency, and customer-centricity, reducing risk and increasing the likelihood of high returns.