MVP Chapter #3: Why is an MVP important?

“Startup” and “Entrepreneurship” have become buzzwords nowadays. And almost everyone we meet these days has a dream of having a successful business to live on his own terms.

Now even though the market suggests that most startups fail, there has been found a group of similar traits in the startups that do succeed. Thus, the good news is that if your business replicates those traits in itself, then there is a much higher chance of it cutting through the gravity.

Here are the top 5 reasons for startup success as per Bill T. Gross in his Ted Talk.

Now, what if I tell you that developing an MVP can help you with all of these startup success factors? Thus, today we are going to discuss in detail what makes developing an MVP such an important step and why you should invest in it.

Why is MVP important?

An MVP (Minimum Viable Product) is your idea brought into life with only the core features. If you would like to know more about MVP, then I recommend you to read our blog post on “What is MVP?”

But why is it important? Is it worth the money and time? Of course! As I said earlier, developing an MVP will help you with integrating all the top 5 factors of startup success in your business. This itself gives you a fighting chance to thrive in this cut-throat competitive business world.

1. Timing

   An MVP helps you mitigate the timing risk which can be a big relief as timing contributes a 42% share in the above graph. Is there any need for your product in the market currently? Are you too early? Are you too late? Your MVP will help you answer these questions.

2. Team and execution

   Your team and execution occupy the second position in determining your startup success with a 32% share. But how does an MVP help with this?

   Once you deploy your MVP, you are bound to get insights that will help you shape your business and marketing strategy. This, in turn, will positively affect your execution.

3. Idea

   Surprisingly, the idea comes third. Is your solution the best out there? Can you expand your idea with time or will it hit the ceiling soon?

   An MVP will help you get feedback on your idea in execution from your potential customers instead of just hoping with speculation.

4. Business model

   Which areas of the market are you going to tap? How are you going to provide your services? These questions and more make up for your business model. Once you start spreading your wings with an MVP, you will eventually be able to build a sustainable business model.

5. Funding

   What can be better than the backup of investors in the business world? But they look for proof that your idea has the potential to give them juicy returns. With your MVP in place, it can give investors the required proof they are looking for.

With the importance of developing an MVP asking for no debate, let’s look at why it is investing in it.

Why should you invest in an MVP?

Following a proven method to guide you on your way to starting a successful business is a better option than relying on what you are feeling. Why? Because it isn’t about you. It is about the people for whom you are trying to solve a problem - your target audience.

An MVP is built to help your vision align with your target audience. But that’s not it! There is more. Here is why you should invest in an MVP: -

• Validates (or invalidates) your idea

  MVP shows you whether there is any steam in your idea. Is your idea feasible? Is the problem you are trying to solve even exists? Is it big enough? This helps you save time and money.

• Reduces launch time

  MVP lets you focus on the most important features of your product just enough to solve the core problem. This speeds up the process to launch your product.

• Attracts investors

  Investors prioritizes the validity from your target audience about the idea you have pitched to them. If they see a good initial response from them, they are more likely to invest in it.

• Provides invaluable feedback on your product

  There is always a gap between expectation and reality. And MVP lets you fill this gap with the real feedback of your product in use from your target audience. You can then make the necessary tweaks for it to be market-ready.

• Helps you create a business and marketing strategy

  MVP offers more than product feedback. It tells you how your target audience sees your product, how they use it, in what situations they use it, etc. This invaluable information helps you build business and marketing strategy for your product.

Want to develop an MVP?

Developing an MVP is definitely worth it if you are serious about your startup. Thus, if you are one of them, you can contact us. We are an MVP development company with a proven track record. We have developed MVPs for startups in various industries such as real estate, healthcare, and finance - just to name a few.