Why Start Business With MVP Is a Good Idea

Starting a new business is always a risk. Statistically, 9 out of 10 startups fail. The main reasons for this are lack of market demand, running out of cash, and a wrong team. To increase the chances of success, you need to know what users want and correctly calculate your budget. Besides, it is necessary to select an experienced development team and draw up a detailed plan before launching a project. At Softensy, we always recommend that novice companies start with a minimum viable product (MVP) and only then move on. This approach helps save resources and choose the right vector of development. This article will take a closer look at what MVP is and why it’s a win-win solution for startups.

What Is MVP?

After launching MVP, the stakeholders expect to gather feedback from the target audience and understand whether it is worth investing more. They may also decide on possible changes in the current strategy taking into account the wants and needs of the clients.

The MVP model has long been proven to be effective. Many strong brands applied it to test their products at the infancy stage to add more sophisticated features in the future. The prominent examples are Spotify and Airbnb. They started as one-function services — music streaming and apartment renting, respectively. Today, they are global companies with millions of active users and huge incomes. You can compare how their software looked like at the start and now at the picture below.

Spotify evolution
Airbnb evolution

10 Steps To Build MVP

Step 1. Learn Market Needs

Step 2. Set Goals

Step 3. Define Success Criteria

Step 4. Compose Personas

Step 5. Highlight User Pains

Step 6. Offer Relevant Gains

Step 7. List Key Features

Step 8. Work Out User Journey

Step 9. Design, Develop, Test

Step 10. Release And Watch

How to make MVP

What If MVP Fails?

Moreover, the unpopular app should not be immediately thrown aside. There is a high chance the reasons for the failure lie on the surface and are easy to fix. Based on our experience, we recommend that you pay attention to the following points:

Target markets and users. Perhaps your app will do its best in other regions and with other user groups. Reconsider your target audience and try launching the product elsewhere.

Price policy. Setting prices is a challenging task. An expensive subscription can scare the users away and discourage further use. On the other hand, low cost raises questions about product quality. To establish fair prices, collaborate with business consultants, economic experts, and marketers. Find the offer that will be most attractive to your users.

Wrong priorities. If hundreds of similar apps are on the market, it’s useless to come up with basic functionality only. You need to introduce a definite perk that your competitors do not have. Getting back to our retail app, it may be super fast delivery, attractive cashback, or a big bonus for a subscription. Thus, coming up with something different, you can still offer a standard set of functions.

Round-Up

This article was originally published at Softensy.

Softensy specializes in fintech development and enterprise-level apps. Our team helps companies automate business processes by developing software solutions.