Facebook, Twitter, Dropbox, Airbnb have something in common – These company started with a Minimum Viable product (MVP). An MVP is the foundation for many successful companies. It helps you to start the learning process. Basically, it’s an initial version of developing a complete product. It’s released in the market to test – Acceptance, Viability and to solve core problems for the targeted audience.
How to make MVP a real caliber one?
Many startups spend months in building and perfecting a product without testing in the market. They fail to measure product feasibility, desirability and viability among its potential audiences.
It’s similar to writing a book. Several drafts are created and continuous editing brings the best version of the book.
Below are the steps for building a successful Minimum Viable Product (MVP):
- Build the product
- Launch prototype/service
- Take feedback from potential customers in identifying weakness, flaws, and missing features
- Improvise the product keeping the user feedback in mind
Let us explain with an example which made it to the list of a successful company- Airbnb (Airbed and Breakfast) company.
Brian Chesky and Joe Gebbia couldn’t afford to pay rent of their apartment in 2007. So to make their living, they decided to convert the loft into lodging space. The core values were cheap accommodation and a little more personal space. They made a simple website and uploaded the pictures of the room. They used their own apartment to test their MVP or core values. They successfully completed their test as 3 people applied for rent and become a customer. They did further market research by discussing with people to understand what they want. Thus they started pursuing their idea to make it better and bigger.
MVPs are created to test the demand and not to test too many features of the product. Test core values and check if users got the value right. The goal of MVP is not to get the product right at the first go. Basically, the motive is maximizing the learning with minimal efforts.
To increase chances of success, follow the below points:
Define your market clearly
Avoid generic idea or concentrate on a market which is facing some disadvantages with its existing offerings.
Your target market shouldn’t be too narrow. You should be able to reach to mass or specifically focused groups who require consistent service.
Create a compelling choice for your product
Compare your product with competitors offering. Check what makes your product unique and appealing to the customers. How your product benefit can draw audience attention toward yourself?
Create a better deal
Any buyer will compare price and benefit. People don’t buy if it’s unaffordable. So offer a competing price. You should consider that company is able to deliver profit with the competing price. Genuinely lowering the price for product acceptance can make the company go into losses.
Focus on Market need
A product is created with many assumptions. It’s important to test assumptions and create a product that market needs. Many times, a great product fails. Design the product to make it an integral part of your customer‘s daily life and not just nice to have a solution.
Minimum Viable Product (MVP) is a not a product by itself but more of proof of concept. There is a difference between what we think will work in the market and the actual market demands. MVP is not something that is built once and the job is done. It’s a gradual process that can be repeated over again to make a worthy product.
Contact us if you are looking for support to develop your minimum viable product.