Startup companies are emerging at a phenomenal rate. So much so that now there is a healthy competition between Startups itself! In other words, the survival of the fittest is now applicable in a broader way for emerging companies too! However, amidst all the challenges which keep confronting Startups, in its incumbent stages, there is a positive way ahead and that is, by thinking of a Minimum Viable Product or MVP as it more popularly referred as.
Before we get into the significance of MVP with respect to a Startup, it would be good to know what exactly an MVP is, in the first place.
About Minimal Viable Product (MVP)
In simplest terms, a Minimum Viable Product (MVP) can be considered similar to a prototype product, of the actual product or in other words, the most basic level at which a product can be introduced to the market. It is an initial product, which has just enough features, to satisfy a customer, with respect to his project requirements. It’s an experiment to determine if the idea by itself has enough marginal utility to make or improve profits.
MVP acts as a very effective tool for any developer because it is easy to manipulate and rework into a better version before the final release. Though a Minimal Viable Product is never the final product, it gives you an initial insight into what people desire, what they’re willing to pay for and what method of delivery is best for your product to achieve growth.
The MVP model is seen to benefit Startups of new companies a lot more as compared to established ones, though it is a highly useful approach, which a company at any stage, can think of. However, as we are discussing its significance for Startups, in particular, let’s try to understand how MVP can help startups meet initial and sometimes stringent challenges.
Why Minimum Viable Product (MVP) for Startups?
We all know that by the term Startup, we actually refer to beginning a new business venture or a company, which either brings in a new innovative product or a service, to consumers or develops a creative process, to deliver existing products or services, to consumers, in a more efficient manner and an affordable cost.
The initial phases for a Startup company are nothing short of tests and challenges at every juncture, right from its inception as it is uncertain about most of the things, like market visibility, potential customers, business promotion approach, growth prospects and even its nearest and strongest competitors. It is therefore very critical from a Startups point, that it has done a thorough analysis of all the critical parameters, mentioned above, before thinking of investments.
Most of the Industry experts have therefore suggested Startups, to begin with, something small and then think of a phased growth prospect. This is where MVP (Minimum Viable Product) comes in.
MVP is seen as a huge potential, especially for Startup companies, who are eager to convert their creative ideas into reality, in quick time. Most of the Startups could do really well, to begin by developing the MVP, before moving on to the full-fledged web product. This could be the best beginning as an MVP is basically a minimalistic version of a startup’s envisioned product. An MVP can be the most professional approach to sharing your vision of the actual product with your customers.
This can help increase your customer’s faith in you as a professionally competent vendor. In addition, this is how an MVP actually supports Startups in particular with their development programs.
- Curtain Raiser: The Minimal Viable Product acts as a curtain-raiser when the Startup Company can display their core idea, as quickly as possible. This will help the company to examine all the parameters with respect to operations and market stability. With the changing technology and a highly competitive market, it will be in the Startup’s best interests to act swiftly and give the best presentation of what’s coming
- Reduced cost: With Startups having a limited budget in mind before commencing their business ventures, it would serve them well to begin with an MVP as it will ensure that they are investing only on the basic features of the actual product as well as hire a small development team. This can help them reduce costs and strategize better.
- Customer validation: What better than get the pulse of the customer in the initial stages itself? MVP helps in understanding customers’ needs and wants, and whether or not the product is useful to them and they would invest in the same. If the idea is innovative and solves a problem, customers are highly likely to use it. This also helps the Startups to establish good relations with the customer from the beginning itself.
- Phased approach: MVP helps Startups approach every development phase as an independent target and prioritize those phases of a project that, based on feedback, might need further development. This allows them to plan and build the product in an efficient and timely manner.
- Helps in testing Marketing skills: The biggest challenge, Startup companies continue to face is, on how to introduce the product with limited features, into the market and try to find out its sustainability. Going with an MVP is a good solution towards finding this out as it helps you to analyze your upcoming product with respect to compatibility and competence.
- MVP Saves Time: MVP is a big asset, for Startups, as it can help them gain time to enter the market.
It’s not about just being different to face stiff competition for Startups while entering the market. It’s also about how skillfully and tactfully, they can win over the customer in a short span of time. An MVP helps in doing just that. It would do a world of good for Startups to start small and start smart. The path ahead will take them to their desired destination, albeit in phases.
Experienced Digital Marketing professional with a demonstrated history of working in the information technology and services industry. Skilled in Search Engine Optimization (SEO), Landing Page Optimization, Adwords, Search Engine Marketing, HTML, CSS, WordPress, and Social Media Optimization (SMO). Now working with DeveloperOnRent a fast growing IT outsourcing Company