Minimum Viable Product or popularly known as MVP is a concept that gained traction after Eric Ries mentioned it in his book Lean Start-up. Here’s how Eric Ries defines an MVP as “that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.” This implies that start-ups need to implement MVP strategies to minimize the efforts they spend on extensive product development and save costs. Minimum viable product agile is a part of the agile process of start-up management. A research paper on ‘World Business start-ups’ suggests that approximately 137,000 businesses are introduced every year of which around 90% unfortunately fail. With statistics skewed towards the wrong end of the tipping scale, implementing methodologies that give quick product feedback is essential to pivot the research and development directions.
Here are 4 reasons why it is important to build an MVP for your product
If you are in the start-up market, you are basically in a lethal battle that may end in the death of your product. To be in the 10% of successful start-ups, you need to take steps that are smarter and efficient instead of wasting valuable time and resources on product development. Go-globe confirms that start-ups that scale properly grow 20 times faster.
1. Reduce Development costs
The start-up business revolves around the smart use of funding. If you do manage to get your investors on board, then it is essential that the money they have brought into the project is being put to good use. Spending tons on product development which might not withstand in the real market is unacceptable. Create an MVP’s prototype and weed out the issues that crop up in the MVP. Create solutions for the probable issue, thus saving money on a large scale launch and suspected failure. MVP works on the process of ‘minimum’ features required for the product to be ‘viable’ and function, thus, in turn, being highly cost-effective.
2. The perfect pilot test
Who would you want to miss up on an opportunity to get your idea pilot-tested? Minimum Viable Product Development Service allows you to understand consumer behavior patterns. Since the system is not fully automated, the back end is usually manual. Thus the developer gets the first-hand experience about what features are favored by the users and which features are deemed to fail. Improve your chance of success by undertaking customer feedback first hand. You will get a good sizable and measurable number of how well your product is doing in the pilot test
3. Call in good investors
When you have legit MVP results, the market value of your product is no-negotiable. Once you have cold hard facts about how well your pilot testing went, you can demand a number of your choice, you can have the negotiations weighed on your side. Without an MVP, even a good product can be sabotaged by investors that extract maximum benefits out of the deal. Once both you and your investors know for sure as to what outcome can be expected from your product it becomes a leveled playing field for both you and the investors.
4. Gain your first client
We are all in this for the thrill of creating something, making businesses, developing brands and scaling businesses. Getting clients is what it all comes down to. The MVP testing methodologies help in reeling in your first line of customers. You can also make good money out of the testing phase, if the product works well, you may even cover the costs of your MVP strategy.
What are the processes involved in MVP designing?
MVP can be broken down into 4 easy steps to follow while product creation.
- Create a User Base – in order to test the product correctly, it is important to have a sizable sample size to validate the results. The first step is to create the right user base that is in line with your ideal customer definition.
- Data Collection and measuring – Once the user base is in place and the product is out and rolling, you will start collecting data from the customer. Collect this data accurately and analyze it. Measuring data helps you know what your customer needs are.
- Receive feedback from the customers – once you have all the necessary data, understand what changes need to be made is key. For instance, if there are bugs, if there are additional functionalities required, if any other changes are required, all of this can be done on the basis of feedback.
- Product Updates– When you have the feedback, customer reviews and updates, all that needs to be done is to make necessary updates. Product updates are the best way to keep your product up to speed with market requirements.
Use MVP to change the way you manage your start-up. Improve the chances of your start-up with this simple yet effective strategy of using minimum viable product agile. MVP is a key feature in the agile project management system. Agile management systems work on the principle of iteration and making necessary changes as required based on the feedback the systems received. The only way to scale your business tactfully and sensibly it to create an MVP’s prototype to enhance the productivity of a product development cycle.
A simple way of understanding MVP is how effectively get a simplistic solution for your product that has a direct intervention from the users and thus as a developer you can make the necessary changes in the product life cycle.