As a startup or business, there would be a business plan focusing on a particular product or service to launch in the market. But to test the waters, minimum viable product (MVP) is the product development strategy that assists in optimizing a new product or service before developing a full-featured one.
An MVP will create a basic version of a product or service with the core features. It can validate customer needs and gather user feedback to improve the product before investing a lot of time and resources into its development.
It offers minimum functionality for a workable client solution, reducing development time and effort. MVP worked for big brands such as Uber, Airbnb, and Dropbox.
The MVP approach helps to minimize the risk of developing a product that does not meet the needs or desires of the target market.
Generally, people need clarification on a minimum viable product and a prototype. But both of them are different. A prototype is used to test a product's core concepts and presumptions. On the other hand, an MVP is a usable version of the product that only includes essential functionality. It is perfect for testing because it yields feedback and valuable data while requiring the least effort and money investment.
The goal of MVP
The goal of building an MVP is launching a product rapidly, on a budget, and based on a proven notion. Businesses can get user feedback for the core product using MVP development methods and incorporate that data into subsequent iterations.
The idea behind MVP is that entrepreneurs can quickly test crucial ideas, fail, and pick up again. It assists in speeding through the iteration and development process rather than having to create a complete programme and start over from scratch each time it turns out to be an error.
Reasons to develop a Minimum Viable Product (MVP)
1. An initial MVP can provide a discussion point and offer distinct visual reference points.
2. Analyze user behaviour to determine the products and strategies to launch in the future from the data.
3. Sharing the product or service with selected customers and testing it with potential users are part of conducting initial idea approval. As a result, it is easier to comprehend any product problems.
4. Get a pre-launch customer base.
5. Save time and capital.
Three Qualities of a Minimum Viable Product
lIt must be worth it for people to use or purchase it at first.
lIt must offer enough evidence of potential future benefits to keep early users.
lIt must provide a feedback option to direct subsequent product or service development.
How to create an effective MVP: A step-by-step guide
1. Market research and a value-adding strategy
Identify the core value of the product or service: Understand the product's problem and value to provide a solution to the customers.
2. Target users
Define target market: Understand customers' needs and pain points and how MVP will address them.
3. Establish MVP feature priorities
Prioritize features: Determine the minimum attributes necessary to deliver the product's core value that will attract early adopters.
4. Test the MVP
Validate assumptions: Test MVP with a small group of users to validate the assumptions about the product and gather feedback. Based on feedback, iterate and improve MVP until it meets the target market's needs and delivers the desired value.
5. Perform the "BML" (Build, Measure, Learn)
Measure and Analyze: Measure the success of MVP using key performance indicators (KPIs) and analyze the data to understand how to enhance the product.
6. Launch and Scale
Scale it up by adding more features once MVP is validated, eventually increasing the customer base and expanding to various markets.
How to create a minimal viable product?
• Check the MVP compatibility of the objectives of the business plan.
• Start by identifying the issues or enhancements that the user persona needs.
• Create a development action plan using the capabilities of MVP.
• Analyze the industry.
• Try to outrun competitors regarding quality, price, or user satisfaction.
• A successful approach is to have a specific emphasis. It is best to have a restricted group of target consumers.
With the user experience, lifetime value, and engagement rates, an MVP will assess the product's viability and how consumers captured the functionality.
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting and bookkeeping and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.
With a combined experience of 50+ years, our expert consultants provide reliable and unparalleled guidance throughout all strategic phases of a business’ evolution.