What's an MVP and why should startups go ahead with them?
As individuals, we often generate a lot of ideas and those ideas get filtered resulting in the best and most feasible ideas. These feasible ideas eventually materialize into businesses. This process may sound simple but in reality, it is a daunting task. Starting a business is considered a difficult task mainly because of the immense capital expenditures that go into it, for example, advertising cost is highly essential to make the consumers aware of the product. Capital expenditure is indeed a massive barrier but more than that, it is either the fear of failure or the search for perfection that stops potential entrepreneurs from starting a business. Taking all these into consideration, an MVP (Minimum Viable Product) approach could be considered as the ultimate launching pad for upcoming entrepreneurs to validating an idea that will eventually end up in a business if the idea is worthwhile. What is an MVP? An MVP is a product with only a basic set of features that are released to capture the attention of early adopters. Companies such as Uber, Dropbox, and Zappos have become successful by adopting this method.
MVP is a simple yet futuristic business concept and such concepts are most likely to be used by millennials, Gen Z, and by individuals with modern thinking, mainly because the mindsets of those individuals are compatible with the contemporary world.
When using an MVP approach the most important aspect to remember is that each newly added feature should be able to offer a better solution to the customers. Also, there are 3 different types of MVP’s which entrepreneurs could try based on what suits the most:
This approach requires only a minimum amount of monetary investment. Also, existing tools and services are used to deliver a functioning product.
In this approach, an entrepreneur’s business idea is validated by gathering and analyzing data from an identified set of consumers who are willing to test the product.
Wizard of OZ MVP
The entrepreneur creates an extremely good impression of the product by making it sound very appealing, while the product is still in the development stage.
Use of an MVP approach can be deemed as a smart strategic move for many reasons such as:
It helps to launch products into the market within a short period of time.
It helps to identify the actual demand for the product before committing a large investment in product development.
It provides invaluable insight into the target market hence allowing to make necessary amendments before the product is launched into the market.
These reasons also act as advantages as well. The mentioned advantages provide great value to entrepreneurs. Meanwhile, entrepreneurs also commit fundamental mistakes while implementing the MVP approach. They tend to provide too many features which eventually reduces the core value of the product.
Therefore, it is evident that companies require proper consultancy and skilled teams to build their MVP to steer away from risks and arrive at a great market-fit. This is where companies such as Visionstellar comes into play through insightful and meaningful consultation as well as solutions development that helps entrepreneurs to avoid basic yet costly mistakes and ensure that the goals are achieved.