The main reason why most startups fail is the lack of market need. Business owners invest a lot in building a good product, marketing it, and onboarding a solid team. But what if there’s no interest?
Often, the expenses on development and maintenance of the business are higher than the potential of the product, which is completely normal. Luckily, there’s a way to prevent unnecessary expenses and detect the lack of market interest in time: a minimal viable product (MVP).
An MVP is a simplified version of the product that fulfills the main need and captures audience interest. It includes enough functionality and interface to test the idea, even in the worst-case scenario. The purpose of an MVP is to provide users with a way to explore the product and understand its main intent, with a well-tested look and feel.
Using an MVP, you can test your ideas in the real market and save time and money. It allows you to identify risks early on, avoid future functional problems, analyze actual user behavior and preferences, increase customer loyalty, predict demand, optimize product development and marketing, and understand how to monetize based on user needs.
Good examples of MVPs include Facebook, Twitter, Amazon, and Uber. These companies used MVPs to test their concepts and validate market demand before expanding their products.
To create an MVP, you need to do market research, get a clear idea of the product’s value, determine the user flow, and make a list of functional and non-functional requirements. Market research helps evaluate the potential number of users, locations, and niches. A clear idea includes clear positioning, defining the target audience, and determining objectives. Understanding the user flow involves creating user personas, prototypes, and flowcharts. Making a list of requirements helps establish necessary features and criteria for evaluating the MVP.
After the MVP stage, there’s the MLP (minimum loveable product) stage. An MLP goes beyond viability and focuses on user experience and emotional appeal. It offers more engagement, personalization, unique benefits, and increased customer loyalty. Building an MLP provides a client-oriented approach, more time spent with the product, and consistent improvements.
In conclusion, both MVP and MLP are essential for developing a valuable product. An MVP ensures essential functionality, while an MLP ensures that the solution stands out for customers. By following this approach, your customers can access the product early and witness its continuous improvement.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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