What is an MVP and Why You Need It

Launching a startup company is a risky proposition that requires adequate research and thorough planning. An MVP is a product that assists in this research and ensures the entrepreneur does not make a mistake by deploying its business idea in the wrong market.

An acronym for Minimal Valuable Product, an MVP is a base product with all essential features required to perform the primary function(s). This type of product is used to validate the consumer demand in a market and collect consumer feedback for further improvement.

MVP is not to be confused with a prototype, which is a sample product required for feature testing and demonstration purposes. MVP on the other hand especially assists in testing the business potential of a service and a product in a specific given market.

Below are some benefits of using MVP that will help you understand why launching an MVP can be beneficial for your firm:

Cost efficiency

As an MVP consists of only the bare minimum features required to make the product functional, it is a lot cheaper to build. Based on the cost of MVP development, businesses can also evaluate the cost of final production and formulate cost-reduction strategies to maximize their profit margins.

Tests Viability

Several companies fail to establish a strong foothold in a new market due to poor market validation. They do release the product and get a decent amount of sales in the beginning, but in the long run, the product fails due to poor viability. Releasing an MVP first, on the other hand, not only assists in validating market demand but also vaguely indicates how the product will perform in the long run.

Accelerates Development

The market validation of a product via an MVP pinpoints the essential features required to earn a profit. This reduces the back and forth that usually happens in finalizing the features and specifications. Another way MVP accelerates the overall development is by identifying the key development problems beforehand.

Brings Agility

MVP is based on the real market conditions, consumer behavior and industry dynamics. Thus, when observed for the long term, MVP can help you identify and predict the ongoing and upcoming market trends. Based on the collected information, you can make your product market and future-ready.

Helps in Securing Funding

MVP is an essential part of the proof of concept, which is often required in various funding programs. This means that having an MVP alone makes you eligible for several funding options. Even when MVP is not a requirement for the funding, developing one can assist you to leave a positive impression on investors and depict your dedication, thus, resulting in higher chances of success.

Minimizes Risk

Suppose if your product or business idea fails, then with an MVP, you won’t be incurring huge losses. This is because of the low development cost of an MVP. On the flip side, rushing to market launch with the final product may result in heavy losses in case the product fails.

Final thoughts

MVP development provides numerous privileges to your business both in the long and short term. It enables you to recognize your unique value proposition, lessen the cost of custom software development, and get the required funding. The feedback from the early adopter further assists in improving the product and enhancing the overall quality.

FATbit Technologies is an MVP development company that assists entrepreneurs in launching innovative eCommerce businesses. Some of its readymade MVPs that you can quickly launch in your desired markets include cab booking solution, food delivery solution, online tutoring solution, gigs marketplace and rental marketplace. Reach out to FATbit’s industry experts to schedule a free demo for their MVPs.