Do you know what Amazon, Airbnb, and Spotify have in common? They all started out as minimal viable products (MVP) with just the basic features before they developed into more mature apps that are so successful today.
From testing your product ideas with early adopters to discovering features that actually meet your customer’s needs, there are many advantages of building an MVP. Let’s explore them one by one.
Significance of Building an MVP
The importance of building an MVP cannot be overstated. MVPs are becoming more popular as companies want to test their ideas on the market. The most common use cases of an MVP are:
- To test if there’s enough interest in your product idea
- To validate your assumptions about the target audience, pricing, and features
- To learn how people use your product
- To create a prototype for investors
Top 7 Advantages of Building an MVP
Building an MVP is the best way to test a product before it hits the market. It can be used to validate assumptions, find bugs and make improvements. It also helps understand customer behavior and what they need from your product.
Some of the significant advantages of building an MVP are as follows:
Test the Feasibility of your Idea
When you conceive an idea, it feels like a eureka moment. From that moment on, you tend to work on it in full swing to bring it to reality. However, there’s a catch. Not all ideas can be brought into existence. There might arise technical issues which might throw some limitations to bringing the conceived idea into fruition. This is where an MVP comes into the picture to help test your idea’s feasibility.
Don’t forget to check out our founder’s checklist for building an MVP before you test the feasibility of your idea.
Develop a Monetization Strategy
Once you bring an idea to fruition, it’s crucial to test your monetization strategy. A working MVP will help you analyze your monetization strategy and determine if your plan works.
For example, after launching your MVP, you can make just any one individual feature as a paid functionality and test if your users would purchase it. This helps you iterate and develop better features that make your users pay if your existing ones don’t.
Assess Market Requirements
Every product idea is precious for those who conceive it. Many businesses believe that their product or service meets a specific customer need. However, this may not be the case. An MVP enables entrepreneurs to test market demand before they invest large sums of money in developing a full-fledged product.
Picture Credits – Freepik
Earn the Trust of Venture Capitalists
Even if you have the most brilliant idea, reassuring investors to fund your business idea can be difficult. Investors want some assurance for their money, and every project has risks. A successful MVP can mitigate this risk by assuring them to invest more in your product. Obtaining additional funds from VCs permits you to enhance your product application, making it a more attractive investment for more investors.
Conserve Assets and Expenditure
In the current scenario, mature products in the industry have lengthy product development procedures that come with a high cost. Since these applications have been developed progressively over a long period of time, the total cost is dispersed over time with ongoing reinvestments of the earned income.
Starting your product journey with an MVP is handy as it will help your product development take the best possible route to success as it gains more users and data to facilitate sustained investment proportional to the needs and expenditure.
If you are developing a complex product, delays in the release can result in significant losses. In this case, an MVP is a great way to get started quickly.
Lesser the time a product requires for development, the sooner it can reach the market and gain clients. As a result, a sprint start means higher profits, and you can also attract more funding for further development.
Picture Credits – Freepik
User-Centered Design and Development
Users highly emphasize having simple solutions that address problems or meet their needs. Just making your product look upscale will not significantly increase your users or engagement.
This is where an MVP plays a crucial role. The fact that the product is ‘minimal’ means that the users’ needs always come first. You restrict the features to those that address the problems of the users, leaving out any extra or supplemental functions.
Incidentally, this is also the crux of the user-centered design process in which designers focus on the users and their needs in each phase of the design process to create highly usable and accessible products.
Building an MVP is a great way to get feedback for your product idea. It helps you understand what customers want and determine if your product will succeed in that niche.
We understand that building a good product on your own could be hard. And creating a great product is even harder. That’s where the Siam Computing team comes in. With our MVP development service, you get an expert team of engineers to build an MVP (minimum viable product) that’s perfect for your needs. What are you waiting for? Reach out to us now!