If they are not already, Many startups face the challenge of raising sufficient funds for their ideas. There are many investors who would be willing to invest in this or any other startup idea, particularly venture ones. But, they are not available to all startups and their potential is limited.
What is MVP and why would startups benefit from it?
A minimum viable product, or MVP, refers to a new product that is introduced to the market in order to collect as much information as possible and get feedback without spending thousands. This is the basic version of your full startup idea, but it can be improved and developed faster at a much lower cost.
So, You can collect the feedback of your target audience about your product, and use that information to help you develop the full version. You can also present potential investors with more data and facts by having tested your MVP. This will increase the likelihood of you getting more traction. You are therefore more easily identifiable and credible.
Also read: Top 10 Mobile Apps for Launching Startups
We would like to highlight the most important benefits of building MVP.
1. Lower Risks
As the experience shows, Implementing a minimum viable product is low-risk.First, the investment costs are lower than the full product version, but the results are high. This means that your ROI is high if your business idea is real.
For example, Dropbox and Uber implemented MVP to test their startup ideas. What do you think of them now? You must also consider timing and reality, but if your product hits the mark with these factors, it will be a success.
2. Save Time and Money
As mentioned above, MVP is a very economical way to start your business. You need to first find a trusted software partner such as Otakoyi who will help you put your ideas into action. It takes less time and costs much less to develop MVP. You can invest more in customer relationships.
A better product will be presented. This is possible because it relies heavily on customer feedback and impressions. It also facilitates taking risks at a minimal cost. We advise against investing in an idea that has not been proven to work on the market. This is a smart decision.
3. Early adopters
Remember that people are your greatest asset when launching a product. When we say people, we mean your target audience. A minimum viable product is one of the best options because it targets the right people. It allows you to market your idea too early users who then become advocates and spreaders of the product within your industry.
Is it just on a roll?
There will be challenges along the way. However, it is possible to eliminate most of the common problems by taking into account these challenges before you build a minimum viable product.
1. Confusion of MVP with Prototype or Proof Of Concept
You already know that a proof-of-concept and a prototype can be used to test your ideas. So too is MVP. What is the difference? A proof concept, which is a simplified version of a startup idea, is a way to see how it can be realized in real life. It does not require any development. A proof of concept is a basis for a prototype, which is essentially an imitation of the product you want to create.
However, MVP is a viable product version and the first version of a product. It has limited features and functions. A prototype is based upon a proof-of-concept, MVP is based upon a prototype, and the final product is based on MVP.
2. Market Fit
Remember that a great idea is worthless if it is not targeted correctly. Your task when launching MVP is to not only test your product but also check target audiences. To determine which target audience is yours, you may change their age, interests, and location. Don’t give up after your first attempt. Maybe you need to adapt requirements to your niche audience.
3. Project Management Methods
Tech startups need to consider the two most common and suitable methodologies – Waterfall and Agile. when implementing MVP. It is up to you to decide which one best fits your startup idea. It is usually chosen together with your software partner. They are often aware of which one to choose.
Waterfall is a method of developing a product by following a specific process. Agile is the complete opposite. Flexibility and willingness to try new things are key characteristics of agile.
Fake Door Testing
Have you ever heard of fake MVPs for doors? It’s basically a matter of posting your startup idea on different crowdfunding platforms. This allows you to raise funds and also test if the product appeals to your target audience. This is a great way to see what features you need, what people like, and how your target audience perceives it, and most importantly, it doesn’t cost much.
Many companies have started with MVP. These include Uber, Airbnb, and Dropbox. You can become the next generation Facebook by testing your idea until it is perfect.
The MVP method is the best and easiest way to quickly and efficiently test your startup idea. Once you have gained the trust of early adopters, it is possible to gain traction and more customers and make your product a marketable product.