Building an online product involves dealing with many assumptions, from design to marketing strategy. A minimum viable product (MVP) enables entrepreneurs to test a business plan’s validity before going into large-scale development, saving companies time and money.
Recent studies show that the number one reason why startups fail is that there is no market need for their product. Using an MVP correctly can save businesses from such a fate. Read on to learn more about MVPs and if they’re ideal for you!
Definition
An MVP is an early version of a new product designed to test a company’s vision versus actual market needs. Typically, it delivers just enough core features to stay viable — without all the fancy features and unnecessary add-ons. If the market accepts your MVP, you can start selling it and integrating additional features.
Unlike proof of concept, an MVP is a fully functional product. The MVP approach allows business owners to gain insight into product acceptance, best features, and consumer expectations.
If done correctly, an MVP can prevent companies from launching products that the market does not need.
Success Stories
To better explain the importance of MVPs to businesses, we’re sharing three success stories for inspiration. These companies started small but kept integrating additional features to address their clients’ needs.
Initially called thefacebook, the social media giant we all know today started with an MVP. Mark Zuckerberg developed it to help students from different schools stay connected. Facebook is now worth almost $280 billion.
Amazon
In the early 1990s, Jeff Bezos read a report on potential e-commerce growth. He later made a list of sellable products, including computer hardware, CDs, and books. To test his concept, he started the company selling just one product category: books. Through the years, Amazon grew its product list. Today, Amazon is one of the largest retailers in the world.
Airbnb
Airbnb’s story began in 2007 when roommates Brian Chesky and Joe Gebbia turned their living room into a bed and breakfast to meet their rent. After testing their product’s feasibility in the San Francisco market, the founders found ways to tap more potential users. Despite the pandemic, the company still has assets worth over ten billion dollars.
Build the Ideal Product for Your Market
Using the MVP process provides business owners with many benefits, including:
- Focus on core functionalities: MVPs let entrepreneurs test business concepts using the least amount of time and money possible.
- Engage with potential customers: The first individuals to try a product will tell other people about it and the company behind it. They will also provide companies with valuable feedback.
- Enjoy unmatched flexibility: With an MVP, businesses can develop add-ons based on their audience’s needs.
These benefits all lead to the ability to build the ideal product for your market. At Xicay Technologies, we have a reliable team of designers and developers who can help you achieve your business goals. You can reach us through [email protected] or (617) 671-9292 for inquiries.
