Doing business means facing the risks. When you launch your product you always have a chance to fail. There are many reasons for that. So why not to focus on creating a minimum viable product (MVP) at first and minimize your risks? In this article we will show you 7 considerable points, why do you need an MVP.
Imagine that you can try something before buy. Isn’t it awesome? You can decide whether you really need it and how quality it is instead of wasting your money on something you will regret. This analogy can be not the best example, but this is very similar to what you will feel in MVP product development.
Whatever the idea you have, – web or mobile application, website or even a game, – you need to deliver you minimum viable product to users so they could decide if they really need it. With this approach, you will test what features are the must and fix the mistakes with minimum expenses. MVP development is the way many famous services started with.
These good practices will make you consider MVP for your project:
1. Continuous feedback loops (of build, measure and learn)
This continues ad infinitum, or until you realize that you need to pivot. The quicker the loop closes, the faster you learn and the quicker you can act.
You need real data to back up your hypothesis, start collecting as much as you can now. Avoid vanity metrics; instead, favor innovation accounting. If you don’t measure what you’re doing, you can’t tell what direction you’re going in.
3. A way to test a hypothesis
Using the data you’ve collected you can validate a single hypothesis. Understand whether your hypothesis has been proven, and then iterate. Again, write down your hypothesis first!
4. Attract investors
A minimum viable product is a presentation of your idea for investors. If they like what you’ve already built and what you are planning to develop, they may become your first investors. (Anyway, if there are no investors expected, check our article about bootstrapping your business).
5. Attract early adopters and get your first earnings
Launching an MVP is a good way to get first users before the final version of the product is ready. Moreover, it enables you to receive initial earnings.
6. Pivot the time
Your product is not exactly what the users need? In this case, the MVP experience allows you to slightly or radically change the direction of your business without significant loss.
7. Early fail
Most startups postpone the release, make endless improvements, and want their product to be perfect because they are afraid of failure. Even if this sounds weird, failing early is one of the best things that can happen to you. If your idea fails at the MVP stage – good for you. You managed to save months or years of hard work, as well as thousands of dollars that you must have spent on the project without any prospects. At the same time, if you really believe in your idea, you can find another solution to impress the users and the investors.
Check our Ruby on Rails MVP development guide which will definitely be very useful for any MVP project!
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