MVP creation: what every startup needs

The main reason why startups fail is wrong (or even non-existent!) understanding of market needs. In order to avoid developing products that no one wants, startups first test their business ideas on the market with a Minimum Viable Product (MVP) – i.e., a minimally functional product. In this article, you will learn what an MVP actually is, what advantages an MVP brings to your startup, and what you should consider when developing and implementing it. Every startup should consider MVP development.

Too many startups blindly develop products in order to realize too late that no paying customers can be found under real, tough market conditions. Maybe you already have a great vision of your idea or even want to revolutionize an entire industry with your startup.

But before you invest a lot of money in developing your ideas, as a founder, you should break down the vision of your product or service into smaller steps and, above all, test your ideas with an MVP on the market!

The magic word is Minimum Viable Product (MVP)

So now the time has come: you have researched everything you could in the idea phase, and now you have to take the risky leap into the next phase.

Strategically, you should now invest your energy and your – probably limited – budget in what creates real added value for your customers!

For a startup to become successful, it must quickly learn what moves its target group and how the product must be designed so that it is really accepted on the market.

But always remember: you are not the market! As a human being, you are unique and, therefore, unfortunately, not representative of the large market mass. This is where the Minimum Viable Product (MVP) comes into play.

MVPs are created to test hypotheses about the designed product and thus empirically check whether it will be valuable and in demand on the market.

An MVP is a pre-version of a planned product that is built with the aim of learning in the real market. An MVP, therefore, contains only the core functions relevant to the purpose and use. Everything else is initially omitted.

The goal of an MVP is to find out whether there is a need for the market and whether it is sufficiently large so that people can also pay money for it (and you can thus operate profitably with your planned business model).

What are the advantages of an MVP?

This brings us to the advantages of an MVP, which should be practically clear:

• Speed: with an MVP, founders with little capital can quickly start on the market and achieve immediate, first results.
• Security: a good MVP shows whether the selected technology is reliably used on the market and thus proves that the product and the underlying business model work.
• Cost savings: those who pursue the MVP approach reduce the overall financial risk for all parties involved – after all, nothing is developed that is not important! Successes and problems are quickly apparent and can be influenced before it is too late.
• Customer acceptance: since an MVP is continuously tested by real customers and further developed based on their feedback, a product is ultimately created that is understood, accepted, and loved.

What can I learn if I follow the MVP approach with my team?

In addition to all the advantages that an MVP brings, an MVP is also a personal test for the founders and their startup team.

It is not easy to successfully launch a product – not even a basic version. An MVP shows who has enough bite (or at least already has the potential) and which skills are needed or which are still missing so that nothing stands in the way of successful scaling.

Founders and their teammates also learn a lot in the development of the MVP that will be important for further startup construction:

1. Only customers generate real feedback: the problem and the associated “pain” addressed by the product exist (usually) only in the imagination of all employees. Since they deal with it daily, they automatically tend to be biased – and that’s dangerous!
2. Only when it comes to money does it get down to business: early adopters and innovators often buy products for reasons other than the real added value generated by the product. Such “friendly customers” are helpful, but only paying customers can tell you what is good and bad. Surprisingly, it doesn’t matter how much they have to pay – as long as it’s more than 0, everything is fine.
3. The demand for perfection is good but dangerous: the demand for perfection delays the release cycles and, thus, valuable customer feedback. It is rarely good if something is developed for too long. Good enough is better than perfect, especially in the early phases!
4. An impressive budget does not automatically lead to a good product: large teams seem busy and supposedly testify to the success, but they can also distract from customer focus. Shorter runways force decisions – and a consistently agile approach even increases the value of a startup.

Conclusion on the MVP: Done is better than perfect!

Now that you know what an MVP is and what advantages this lean startup approach brings, all you have left is one thing left: roll up your sleeves and get started! Your MVP can come in different shapes: be it a website with Node js or any other option, a professional development team will help you with anything.