A minimum viable product (MVP) is all about continuous improvement and gradual growth of a software product. Whether you are a start-up or a well-established software company, an MVP is your best strategy for launching a new product.
In this article, we present 5 major benefits that MVP development can offer to your business.
1. Low costs that allow easy maneuvering
Cost-effectiveness can be considered the biggest advantage of a minimum viable product. Creating the very first version of your software with only a few, most important features at its core is the entire point of MVP development, which makes it a safe endeavor in terms of budget costs. Moreover, by not investing too much at the start, you leave space for easy maneuvers in the future.
Feel free to refer to our MVP development guide, where we explain how to calculate the right amount of investment for your minimum viable product and tell you why you should strive not to cross the line of $50K.
2. Market test to ensure the viability of a concept
An MVP gives you the opportunity to enter the real market and field-test your research data by observing how your users react to your product’s concept in practice. This allows you to find concrete answers to the following questions:
- Do the product’s features aim at solving an existing and troubling problem or is the solution redundant?
- Are the users willing to try new alternatives or are they content with the existing solutions of your competitors?
- Is the user base for this kind of a solution big enough to justify development costs?
Even if the answers to these questions turn out to be discouraging and you realize that you should pivot, you can do it with ease, knowing that your investments in the test version of your software were minimal.
3. Minimum time-to-market
Often, it’s the product that appeared first that gains an audience and wins the market. Whether your software introduces the features that solve a yet unsolved problem or the features that present an innovative solution to an already solved one, the sooner you present them to users – the better, since anyone else can take your place anytime. As a rule, MVP development takes only a couple of months, which allows you to roll out your product fast and thus have better chances to prosper on the market.
4. Early feedback that helps to zero-in on necessary product improvements
After you release an MVP, your business can receive the most valuable investment in the future of your product – your users’ feedback. By listening to the complaints and suggestions of your customers, you have the chance to evolve your product according to their expectations. However, try to balance the user input with your own product vision in order to avoid feature creep.
5. First quick income and possible exposure to investors
The release of your product’s initial version allows you to get feedback in the monetary form as well. The income you will start receiving most likely won’t be impressive, but it can still be a meaningful financial support for further product development. Moreover, once your MVP is out there, you have the chance to be noticed by investors, who may play a major role in your product’s future.
No matter what type of business you are, MVP development is always a safe and wise way to launch a new product. With an MVP, you significantly lower the risks of investing in the wrong idea or running out of budget. It also allows you to speed up time-to-market, get early feedback and receive your first income that will become a necessary investment in further development.