Do you know what took some startup business ideas to be a successful enterprise? Their stabilized and well-evaluated growth journey!
90% of the startups fail as they miss to check the feasibility of their app ideas in the market, spending huge bucks in the development process, just to get a flop response from the audience.
Most of the startups invest in mobile and web app development with the aim to generate better ROI and user engagement, but what if the business app doesn’t appeal to the target audience?
Building an MVP is the only way out for a startup to check its workability in the real market with less investment prior to getting their finished product to the larger audience.
Before we move further to talk about how building an MVP for startups can bring out some fruitful outcomes for the business, let’s have a look at what the term MVP means.
What is the minimum viable product?
MVP the acronym of Minimum Viable Product in the form of the product without extras. It is the version of the product that comprises only the features that contribute to the app’s goal of solving customers’ problems.
It can also be stated as an intermediate product that consists of a minimum as well as viable components or core components that are needed to form a product to satisfy the early customers and get the essential feedback for app improvement.
Looking towards it from the business perspective, MVP’s are the budget-friendly and faster approach to test the app’s potential and verify the market demand in the premature stage of app development. It helps the startups to understand whether they are moving in the right direction or not.
Precisely stating, MVP is the first version of a product with the right set of features for early market adopters to test its usability.
Moving further, let’s know why starting with a smaller app development initiative is better for a startup by exploring the benefits of minimum viable products.
5 benefits that make the MVP approach feasible for startups
Finding customer viewpoint and response
Launching an MVP for a product can help the business get the right customer feedback. This first version of products is designed with the motto to check whether it solves the customer’s issues with its usage.
It helps the owner get an idea about what the real users of the app think about it and whether the app matches the customer’s expectation.
The feedback collected from them acts as analytics for the developers to find the areas of improvement to enhance them while developing a full-fledged product. Getting the viewpoint from the customer clears the vision of future app success or failure.
Reduces development time and cost
MVP comprises minimum features to be included in the version. It’s very obvious that with minimum features to be incorporated in the app, the time required to develop them also reduces. As the developers only need to focus on adding a set of features, the MVP development time reduces to one or two months adding the advantage of early app release to the business owners.
Moreover, the cost of developing also reduces with only core features into development in comparison to the final product. This acts as the most important advantage for a startup, as the saved money could be utilized for other business aspects like marketing the app.
Validate market demand
You might be having an excellent app idea, but what if the market does not need a solution you are providing to them. Understanding market requirements is crucial for a startup to survive in a competitive world.
Building an MVP solves these issues for a startup by helping them figure out what works and what doesn’t work for the app at the earlier stage.
This helps them discover their selling points and acknowledge them about its need in the market, or availability of the similar product in the existing market. MVPs also guides the business owner to gain an idea about the target audience and loyal customers.
Analyze startup business concepts
The most important benefit that the MVP approach provides to the startup is testing and validating its business concepts. As a startup owner, you might have built some business plans that surround your app success in the market. MVP provides an opportunity for startups to change the product’s direction and the ideation based on their finding during the process.
For example, Instagram was initially built around GPS features but based on the user’s input for its MVP model, the app was later diverted to the photo-sharing app and the rest is history. The model worked to generate millions from the app itself. Another advantage that MVP provides to business is analyzing and building monetization strategies for startups by helping it validate the areas that startups targeted to earn money are actually driving some monetary outcomes or not.
Improve chances of gaining investment
Gaining investment for the startup is indeed a crucial task unless you have a working business app in hand. MVP’s help the startups gain confidence in the ideas they are going to pitch in front of their investors, as they are already aware of the app workability, strengths and weakness and have numbers to show to their investors to trust them with the ideas.
With MVP the fund givers would evaluate your startup with a benchmark that is very clear about their approaches and have workable strategies and demos to present, adding a positive factor to gain the right funds for your startups. The matrices act as the product’s market validity to work and give insights to investors on the ROI that could be expected, without waiting for months to get the ideas executed.
Hope you are clear about how important it is to build an MVP for startups. But what’s next? Don’t make the same mistake that most startups make, choosing the wrong team!
MVP development – An experienced team is what most startups lack!
Successful apps are not built in a day, there involves a great trial, and error, user feedback, perseverance, time, and money. The biggest apps we see today also went through such processes of growth where multiple teams worked upon for several years to give out a polished version of the product.
Building an MVP for startups is one such part of the app development process where choosing a handful of developers and designers is not how you justify the process. An experienced team like ours is what you should rely upon to create an exquisite MVP.
With 1.5 decades of industry experience, our team of developers has a keen knowledge of market requirements and can help you determine the right features for your MVP development for startups along with the identification of the target audience.
We understand the importance of money and investment for a startup and thus help you build a better product that can resonate with business success. Connect with us through email or drop a message in our contact form.