Believe it or not, giant apps like Uber and Instagram did not capture the market and the hearts of a multimillion-dollar audience overnight. It may come as a surprise, but these services didn't get underway with the excellent design and functionality they're known for today. Take Twitter, for example, which began as an ordinary site with a small number of visitors back in 2006. However, through gradual improvement and development, these services managed to achieve a capitalization of billions of dollars.
Eric Ries, a renowned entrepreneur, introduced an innovative approach to launching a startup prosperously in 2013. His idea advocates for reducing errors by tailoring development cycles to meet the necessities of the intended users, thereby minimizing monetary and reputational vulnerabilities. For any startup, it is crucial to develop an MVP in order to succeed.
What is an MVP?
In the realm of business, MVP signifies a workable iteration of a product that comprises only the fundamental characteristics demanded to tackle the issues faced by its target audience. It is crucial to realize that despite its simplicity, MVP is an important tool for gauging the audience's reaction and minimizing risks. So, if you are unsure about the importance of an MVP, the response is yes, it is essential to have one.
It's a misconception to consider the MVP product as basic or unfinished. Its range of capabilities is crucial. The MVP approach enables startups to assess the needs and opinions of possible users and tune the product, ultimately presenting it to the intended market.
Have an exciting project on your mind?
We're ready to help! Get consult with our specialist right here.
The Advantages of MVP Development
Starting the creation of an MVP startup presents a great opportunity to test the product on the market and address any issues that may arise. Starting an MVP development brings with it five other compelling reasons that make it a crucial decision. It is crucial for prosperous, high-earning startups to acknowledge and prioritize the advantages of MVP product development that may not be immediately noticeable.
1. Gain the Upper Hand Over Rivals With the Power of MVP, Allowing for an Early Entry Into the Market
Achieving perfection in a product is an impossible feat, and as such, waiting for the perfect product is not advisable. Instead, the best way to improve the weak points of a project is by getting user feedback. This not only gives you an insight into the opinions of your target audience but also puts you ahead of your contenders.
Those companies that can fulfill customers' needs beforehand are usually preferred by them. It is crucial to note that the likelihood of a successful transaction increases by 7 times if the seller responds to the client's inquiry within the first hour. Similarly, when establishing an MVP business, the one who can provide the quickest quality solution to meet market demands is the winner.
2. MVP is a Time-Saver
Developing a comprehensive project plan that takes into account all the details requires more time than rendering MVP app development services. It is crucial to comprehend that creating a software product involves a significant amount of time and effort from the developers, which can span over several months but also gathering and analyzing data, designing visually and technically, and modeling all possible functions in great detail. Wouldn't it be wiser to enhance the product gradually over time? That's why to build MVP is the most effective way to enter the market.
Reducing the development time isn't as simple as some "experts" claim it to be, especially for non-trivial products. Over-documentation can potentially harm the project's future implementation. It's important to remember that victory in a battle is determined by the one who takes responsibility for executing the plan, not just the one who devises it - as Napoleon once said.
3. Is the Go-to Option to Show to Investors
Investors often require more than just an idea before they invest. This is why a vast majority of startups fail before reaching the investment stage. Successful investors are savvy in their decision-making and will only invest in a project that is both functional and convincing.
Another advantage of MVP product development! It permits you to showcase a functional product rather than just ideas and commitments. Investors are less likely to take a chance on a mere "concept" without a tangible product. By doing so, your likelihood of obtaining investment funding increases substantially!
4. MVP Is an Efficient Use of Your Resources
By using MVP, you have the opportunity to evaluate your idea with the help of real users and can persist in improving the product until it reaches the "Ready" stage.
The creation of software goes through various stages, so it's important to avoid delaying the presentation of the project to a broader audience. It is advisable to find reassurance and select the ideal moment to showcase it. Do you believe it's better to enhance the product after it's finished? It is possible that this particular method could result in squandering both time and funds, all while providing no guarantee of the product's triumph.
The process to create an MVP is more time and cost-efficient than developing a full-fledged product. In addition, user feedback and potential investments can help mitigate risks and facilitate the project's progress in the right direction.
5. MVP Provides Facts, Not Suppositions
It is impossible to predict the future, and your team is no exception. Therefore, there is no point in trying to anticipate all the problems and needs of users right from the start. Predictions are not reliable as the market, trends, and users are constantly changing. To develop a complete product that meets the users' needs, practical testing with an MVP is essential. However, it's important to keep in mind that during the project development process, the market, trends, users, and their interests can shift.
Real-Life Success Stories That Started With MVP
Have you ever thought the apps that are so commonly used nowadays were started as MVPs? Their examples show how wise it is to start a big thing with MVP and gradually scale it. Let’s discover a few cases.
Spotify's MVP development exemplifies a successful product launch aligned with their vision, all without risking financial strain. Their vision, delivering personalized music and incentivizing artists through shares, was achieved using an iterative approach that integrates Lean Startup, Agile, and MVP methodologies.
In a 4-stage iterative product cycle—Think It, Build It, Ship It, Tweak It—Spotify efficiently progressed through the development phases:
- Think It: Strategize the product, create prototypes, and internally test viability.
- Build It: Develop a tangible MVP ready for user testing.
- Ship It: Gradually release the MVP, gather user data, and make improvements.
- Tweak It: Continually iterate relying on feedback until revamping or closure, leading back to the Think It stage.
This process, emphasizing small teams or 'squads' working on compact batches, integrates practices from Lean Startup and Agile Methodology. Spotify's roadmap focused on cost-effective prototyping, launching when a quality baseline was reached, and evolving based on user feedback. This strategic approach fueled Spotify's impressive growth from zero to over 1 million paying subscribers in the competitive U.S. market, showcasing the effectiveness of their innovative development strategy.
Uber's inception traces back to 2008 in Paris when Travis Kalanick and Garrett Camp, unable to hail a cab after a tech conference, conceived the idea for a timeshare limo service accessible through an app.
Garrett Camp initiated the development of UberCab as a side project in 2019, testing the service with just three cars in New York in early 2010. The official launch unfolded in San Francisco in May 2010, with UberCab's popularity soaring due to its simple and efficient car ordering process.
Uber strategically recruited limo drivers with existing livery licenses, targeting those who were already successful in their businesses. The initial focus was on the tech-savvy community in San Francisco, enticing passengers with free rides at local tech events. Recognizing the city's tech-centric atmosphere, Uber aimed to regularly engage with a community eager for innovative tools and services.
Within 18 months of operation, Uber secured $32 million in Series B funding, had 60 cars on the streets, expanded to Paris, and ventured beyond San Francisco to Seattle, Chicago, New York, Washington D.C., and Boston.
The evolution of Uber's MVP development is a captivating narrative illustrating how a straightforward concept can evolve into a worldwide sensation.
In 2007, Airbnb's journey kicked off when two designers, facing the challenge of affording their San Francisco loft's rent, hosted three travelers in their living room. Converting it into a makeshift bed and breakfast for attendees of a local design conference, they established the early version of Airbnb, initially named "AirBed & Breakfast."
This marked Airbnb's MVP phase—a basic website offering air mattress stays. This simple platform served as a testing ground, enabling the founders to collect feedback from early users.
The founders, committed to improvement, iterated on their product based on user feedback. Introducing features like professional photography and user reviews significantly enhanced the platform's user experience and trust.
Airbnb's MVP strategy allowed them to start modestly, validate their business idea, and understand user needs before substantial product development investments. Today, Airbnb stands as a global platform connecting those renting out their homes with individuals seeking accommodations.
The benefits of MVP development, such as time and effort savings for the team, along with the guarantees provided by MVP, can be found in this material. In short, MVP is crucial for the success of your startup. It enables you to oversee every phase of development meticulously and scale the project over time with minimal risks.
Are you still contemplating the pros and cons of creating a minimum-viable product? It is of significance to make a remark that the benefits of MVP creation greatly outweigh the risks and efforts required to develop a fully-fledged product. If you're striving for success, why not take the proven path used by others?
Contact Celadonsoft to start MVP product development and scale until it’s big.