What is Minimum Viable Product (MVP), and How does it Work?
The most critical step in turning a business idea into reality is to start small, rather than overthinking and spending too much time building the “perfect” plan. It’s better to execute and improve along the way. One of the best strategies to take your first step into the market is developing a Minimum Viable Product (MVP).
In the previous article about lean startups, we mentioned Minimum Viable Product (MVP) as one of the critical features of lean startups. But what exactly is a minimum viable product, and how does it work? Let’s learn more about it.
What is a Minimum Viable Product (MVP)?
A Minimum Viable Product (MVP) is a product that is specifically created to test out the market. Instead of offering a full-featured product on the get-go, the MVP strategy is about providing a product with “just enough” features to gather customers’ feedback. In other words, MVP is about minimizing the cost of production to understand their customers’ needs quickly and develop their product accordingly.
Why Use Minimum Viable Product (MVP)?
1. Testing Market Demand before Spending too Much Budget
MVP is more about testing out market reaction to your product/services than maximizing profits. With MVP, a company can understand their customers without spending too much money on a project with no guaranteed success (proof of concept).
2. Develop products based on Consumers’ Insights
By gathering consumers’ insights in the MVP phase, a company can increase its product quality and consumer relationship. The company can leave unimportant features and focus on developing desirable aspects of their products
3. Attract Investors
A new business needs to pitch its ideas and convince investors with a solid marketing and monetization strategy. MVP is one of the methods to attract investors. Investors are more likely to be convinced by testing your prototype on the market. You can also launch your product faster and give quick, tangible results to investors.
Steps of Building a Minimum Viable Product (MVP)?
1. Research About Your Target Market
The first step is to research your target market. You can do this by doing the qualitative or quantitative method. The most common go-to-market research method is a survey. This research is to find out what your target market needs.
2. Building the Key Features
The next step is to identify the core features of your product. Sort out your components from the most prioritized to the least and put only the high prioritized ones on the MVP. Focus on creating the most “basic” product possible that offers value to your consumers without extra features.
3. Test Prototype
The next step is to test the MVP on the market. Keep in mind that you still need to make the product “valuable” because low-quality products might leave your consumers dissatisfied and damage your reputation.
4. Gathering Feedback and Evaluate
After putting your MVP out there, it’s time to collect customers’ feedback about your product. You need to record your customers’ reactions to your product and evaluate what works and what doesn’t work.
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