What's an MVP and Why Do Tech Companies Need It?

Startups today are more popular than ever. We hear about them from friends, read on social networks and on the pages of celebrities. Why? Everyone wants to start their own business and earn money.

However, before diving into the development your genius idea (you’re not doubting that it IS, right?), remember that 9 out of 10 startups fail.

How to be the one that will win? You have to remove the moment of "uncertainty" in implementation of your idea.

Usually when you launch a start-up, everything is based on mere assumptions that often don’t work at all. There are constantly changing specs, dozens of brand-new ideas and wishes.

We can name a ton of causes why startups fail, starting from wrong ideas about the project, its low market value, and ending with the lack of investment.

However, one of the principal mistakes is in the desire to submit everything at once. It requires huge costs: time, money, and resources.

That’s when an MVP can help. An MVP is the rapid development of the first version of the app on ideas available, along with further improvement and enhancement.

The process of an MVP creation is simple and includes 5 actions that are repeated around the circle (repeat for each iteration):

  1. Presentation of the idea
  2. Its evaluation
  3. Analysis of the evaluation received
  4. Idea’s adjustment
  5. Implementation
  6. Profit :)

This methodology allows you to show users your idea’s incarnation and get their feedback (suggestions, comments). Based on it, you can add new features and enhance the application capabilities. This approach helps you to find an answer for the question "What does the user really need? What is his pain?"

Also the an MVP method brings you understanding how to spend money, resources, and time. You’ve already reduced the risk of wrong actions and received approval of the idea by users.

But how to present your idea to users? You shouldn’t rush to write code. All can be submitted otherwise. Try running the page/post/blog on social networks with the project description, use special services for survey, make a video, a simple site or a landing page and see how many people want to buy your product. The goal here is to clearly form users’ thoughts, highlight the app features and get it evaluated.

After the idea is presented and the scope is received, it’s time to analyze the results. This will help you to understand the market, find out where to move further in order to achieve the desired results and attract your audience.

At this stage there are a couple of valuable tips from more experienced colleagues:

  • don't delay – the sooner you release the MVP, the more chances you have to be the first
  • learning new information will help you to significantly accelerate your startup
  • "dose it" – don't try to implement everything at once. Focus on one feature and make it
  • refrain from "chips" – the simpler MVP, the better it is

In order to dose and not to stick extra simply, make a description of your product, list all options and define the value of each one on a scale from 1 to 10, given its complexity, uniqueness and relevance to the audience. In the first release only the most significant and popular features should be present. More analysis, less actions.

Now youknow users want to see, and you can deliver it. The first workable version of a product needs to be minimally functional and most stable: this combination enables to get the desired approval. At this point (as well as on any other) do not forget about feedback. The user should always have the opportunity to bring their idea to you: use reviews in the store, comments on social networks, emails, etc.

Why you should say “Yes” to process the MPV? This is your insurance against failure.

It is better one time to see how to push a startup through the MVP. Look carefully and learn: Dropbox, Airbnb, Groupon, Buffer, Zappos, Twitter, Zynga, Foursquare, Spotify, Pebble.

Finally, we should say that the minimum product is a great opportunity to get new ideas from other people's heads. Using this development strategy, at a certain point you are able to just rest on their laurels, sell other people's wish list, and receive money for this.

Do you agree?