MVP (minimum viable product)

Contents

• What is MVP?
• Goals of Using MVP
• Types of MVP
• How to Create MVP
• Mistakes in Creating MVP

What is MVP?

MVP, or Minimum Viable Product, is a product with basic functionality sufficient to attract initial users. It is an ideal way to test the viability of an idea and understand how well it meets market needs.

Goals of Using MVP

The primary goal of creating an MVP is to quickly obtain feedback from users. Often, companies spend significant time and resources developing products that ultimately go unused. Research shows that 42% of startups fail due to a lack of market demand. MVP helps avoid this issue by providing an opportunity to test hypotheses and discard unsuccessful ideas at an early stage.

With the help of MVP, companies can:

• Test hypotheses based on real data and confirm the viability of the idea.
• Reduce the risks of financial losses when launching an unsuccessful product.
• Cut development costs by eliminating unnecessary features.
• Identify customer needs that were not initially considered.
• Optimize the testing process and accelerate the detection of errors.
• Build an initial customer base before the full product launch.
• Attract investor attention by demonstrating interest in the product.

Types of MVP

1. "Fictional" Product

In this case, customers are presented with a product that does not yet exist as if it were ready. For example, the "Wizard of Oz" method implies that the consumer sees a complete product, while in reality, all processes are performed manually. An example is Zappos, where the co-founder tested the idea by posting photos of shoes from local stores and manually fulfilling orders.

2. Concierge MVP

This method is similar to the previous one, but all actions are carried out by a team without the use of technology. For instance, Rent the Runway initially tested its idea by manually offering dresses for rent before launching a full-fledged website.

3. Content MVP

The idea is presented through content, such as an explanatory video or a landing page. For example, Dropbox started with a short video about the functionality of its service, which helped attract 75,000 subscribers before launching the product.

4. Social Media

Using social media to gather feedback. Tim Ferriss, while launching ads for his bestseller, tested several titles through Google Ads, choosing the most appealing one.

5. Fundraising

Testing hypotheses through crowdfunding allows understanding whether the product generates interest. For example, designer Netta Shalgi raised over $120,000 on Kickstarter for her project.

6. Single-Function MVP

This is a common mistake—overloading with features. WhatsApp initially functioned as a single-function product, allowing users only to set a status. Later, the app evolved into a full-fledged messaging service.

How to Create MVP

Creating an MVP requires a clear approach. Here are the main steps:

1. Define the core problem the product should solve.
2. Establish a narrow target audience to avoid information overload.
3. Research the competitive market to understand similar solutions.
4. Conduct a SWOT analysis to identify the strengths and weaknesses of the product.
5. Build a customer journey map to evaluate user interaction with the product.
6. Select key features, focusing on essential tasks.
7. Determine the development method and create the MVP with feedback in mind.
8. Launch alpha and beta testing to gather feedback from real users.

Mistakes in Creating MVP

When developing an MVP, it is important to avoid common mistakes:

• Not setting up analytics to analyze product metrics.
• Spending the entire budget on development, leaving insufficient funds for promotion.
• Failing to set up error monitoring, which can lead to product instability.
• Focusing on secondary features while ignoring the primary ones.

It is important to remember that an MVP should not only be minimal but also viable in order to successfully address consumer problems and attract interest in the product.