Minimum Viable Product

The Minimum Viable Product (MVP)’s Significance For Startup Ventures

Selling and developing ideas is the core foundation of startups Of course, there are more principles, criteria, and actions that separate this field with general businesses. Especially, the process and steps in running a startup or venture are quite different than in running a firm or a corporate company. With ideas to solve problems, the first step might have been fulfilled, but more actions are required.

The following action that is done by the founder usually is finding the market validation. It begins with a problem interview, then a solution interview and finally creating the minimum viable product (MVP). The product and business model will be greatly influenced by the validation gathered from the MVP. Investors and capital venture providers might even highlight this process.

Therefore, the MVP is significant for all startups. Firstly introduced by Eric Ries, MVP has its ideal that is to gain the maximum understanding of costumers with the least work using the prototype product. To build the ‘successful’ MVP, the product should have value and include total customer experience. Also, make sure that it focuses on one market, so the validation will be sharp and clean. Then, teams will get its significances as follow.

1. It prepares the right products most effectively.

The key point of the validation to know is whether the product attracts costumers. The MVP as the ‘tested’ product is not the complete and final product. Hence, the production cost will be effective. If there are some adjustments needed, teams only need to fix the part and it reduces iteration. Moreover, the MVP provides startups resources to scale the final product for the right market and time.

2. It minimizes the possible financial loss.

With the minimum product, the validation can be generated sooner. It helps to prevent more expenses spent on undemanding products for the market. In more detail, an MVP only costs minimally relating to the investment and requires the bare essentials. Marketing even often gets neglected in comparison with market-ready projects.

3. It provides a clearer interpretation of users’ needs and preferences.

As mentioned, an MVP is targeted only to certain audiences. Therefore, the product will not be tested in the real and wide market which takes more time and effort. The wide audience in the market also might be redundant and unclear. That is why the model products are usually given to certain group users or early adaptors. They will give feedback on the overall quality and suggestions of the desired feature additions and changes.

4. It enables the team to make quick changes.

As the validation and adjustment are generated sooner, the teams will know whether their product is wanted. It often happens that some ideas and products do not work out. Then, teams must get back to the plan and make quick changes.

5. It attracts more accelerators.

The finance of a startup is not as big as corporate companies, so it requires startups to join venture or to get some investments. Accelerators could connect startups with bigger investors and might be the investor itself. Startups with prospective MVP appeal accelerators more to support them. For startups who want to avoid venture capitals, accelerators are the best option