Why Tech Startups Must Start With a Minimum Viable Product

Traditionally, product launching takes place after the completion of the product development process. Though this approach is still incorporated by some businesses, others have opted for a more cost-effective and risk-mitigating approach. This is especially so for startups in the tech industry. Several tech companies started out with basic applications that were further developed into what they are right now. These companies started with an MVP, or Minimum Viable Product.

An MVP is a released product that enables the product owner to validate the idea and test the market. MVPs are usually used for apps and software. When tech startups start with an MVP, they will be able to test the market’s receptiveness and acceptance towards their app idea and service. The generated data could help in the further app development process.

As its name implies, an MVP is a product that is both minimum and viable. It is minimum in a sense that it is nothing beyond the bare minimum. On the other hand, it must still be viable and worth going for despite being the bare minimum. Thus, compared to the all-out app development process, MVP development would take less resources.

6 reasons why tech startups must start with a Minimum Viable Product

Making use of an MVP before going all-out in app development has become an acknowledged strategy. Here are some benefits that tech startups can make the most out of.

1. An MVP helps minimize costs.

Because of the shorter and less complicated process of developing an MVP, costs can be significantly reduced. An MVP is simply the bare minimum. It simply comprises the most basic desired functions. Adding additional features would not be necessary. Thus, developing an MVP first would significantly take less resources and reduce risks compared to developing a full app or software. This need for less time, labor, tools, and other resources implies the need for less funds.

2. An MVP helps grant early entry and validation in the market.

Though apps are initially developed with success in mind, this is not always true to life. Making use of an MVP even before fully developing the product would enable tech startups to get early validation of their idea. This means that tech startups can put to test whether the market truly accepts their solutions or sees that their services are worth opting for. On the other side of validation is invalidation, which entails that the app idea is not worth pursuing. If these assumptions were to be invalidated through a fully developed product, the risks and losses would be significantly higher. However, by making use of an MVP, tech startups are left with room to learn and improve.

3. An MVP helps minimize risks and grants higher ROI.

An MVP enables tech startups to minimize risks while maximizing value. Because an MVP is simply the bare minimum, the risks are significantly less compared to that of a fully developed app. At the same time, because an MVP helps tech startups collect data, this data could help them in achieving greater results.

4. An MVP helps businesses get early adopters.

Each app has a specific target audience. Starting with an MVP would help tech startups be more precise in hitting their desired target market. Having early adopters and influencers go onboard could be significantly helpful for the tech startup. This is because these early adopters tend to be the most serious and passionate about the product or service.

5. An MVP assists in feedback collection and generation.

This is one of the main reasons to go for an MVP. The market’s direct contact with the MVP could enable startups to analyze their behavior and receptiveness of their product. Measurable data can be generated. This feedback could impact the entire app development process.

6. An MVP helps enable data-driven decision-making.

Since the MVP is not the fully developed product, it may become more intricate and complex as time passes. As development progresses, costs get higher as well. Thus, the resources for further development should be spent wisely. With the data collected through an MVP, tech startups can navigate through the app development process strategically and objectively. This would eventually help in navigating through the market successfully.

In general, making use of an MVP would be a less risky move compared to going all-out in the app development process prior to launching the app. Thus, instead of fully developing the product and then releasing it to the market, tech startups — especially those who plan to release a commercial app or software — can start with an MVP instead.

To learn more about MVP development, check out the Ultimate Guide to MVP Building.