What is MVP or Minimum Viable Product?

In the world of entrepreneurship and product development, the term “Minimum Viable Product” or MVP has become fundamental. According to a study by CB Insights, 42% of startups fail because there is no market need for their product.

This is where the MVP concept becomes relevant, helping companies validate their ideas with the least effort and resources possible before a large investment.

What is MVP or Minimum Viable Product?

The MVP or Minimum Viable Product is a simplified version of a product that includes only the essential features needed to satisfy early users and provide valuable feedback for future development.

This approach allows companies to test their ideas with the least possible expense and adjust their strategy based on actual market reactions.

What is the purpose of MVP?

The main goal of an MVP is to learn about the market and customers with a real but basic product. By releasing an early version of the product, companies can:

• Validate hypothesis : Confirm whether there is a real demand for the product.
• Receive feedback : Obtain feedback from early users to improve the product.
• Save resources : Avoid large investments in products that may not be successful in the market.
• Reduce risk : Minimize the risk of failure by identifying problems early and addressing them before further investment.

How to develop an MVP?

What steps should be followed to create an MVP?

1. Identify the problem : Clearly understand the problem that the product aims to solve.
2. Define essential features : Determine which features are absolutely necessary to solve the users' problem.
3. Create a prototype : Develop an initial version of the product with the essential features.
4. Launch the MVP : Put the product in the hands of early users to collect their feedback.
5. Measure and learn : Analyze feedback and usage data to make continuous improvements.

What tools can be used to develop an MVP?

There are several tools that can make the process of creating an MVP easier, including:

• Wireframing and prototyping : Tools like Sketch, Figma, and Adobe XD help create visual prototypes of the product.
• Software Development : Platforms like GitHub, GitLab, and Bitbucket are essential for code management and team collaboration.
• Testing and analytics : Google Analytics, Mixpanel, and Hotjar allow you to track user behavior and gain valuable insights.

What are the benefits of an MVP?

Why is an MVP important for startups?

An MVP offers multiple advantages, especially for startups that operate with limited resources and need to quickly validate their ideas.

1. Rapid market testing : Allows companies to quickly enter the market and assess product demand.
2. Early Feedback : Facilitates obtaining feedback from real users, which is crucial for future product development.
3. Lower initial investment : Reduces the need for a large initial investment, allowing companies to allocate resources more efficiently.
4. Agile adaptation : By receiving feedback, companies can make quick and necessary adjustments to improve the product.

How does an MVP help reduce the risk of failure?

By focusing on developing only the essential features, companies can quickly identify whether a product has the potential to succeed without spending large amounts of time and money. This significantly reduces the risk of launching a product that does not find market acceptance.

MVP success stories

What are some successful MVP examples?

Many successful companies started with an MVP before becoming industry giants.

• Dropbox : They started with a simple video explaining their value proposition, which helped them validate their idea and attract early users before investing in full product development.
• Airbnb : The founders launched a simple website for renting out their own apartment during a conference in San Francisco, allowing them to validate the idea before scaling up.
• Zappos : Started by buying shoes from local stores and selling them online to validate demand before investing in inventory and logistics.

Written by Moises Hamui Abadi : I am an entrepreneur, founding partner of Viceversa and SoyMacho. After leading several digital businesses and advising several other businesses, I decided to form MHA Consulting, a digital marketing consultancy dedicated to growing and empowering digital businesses in more than 7 countries and generating more than 1,500 million pesos.