3 reasons to use MVP
MVP is a new reality. We hear more and more that startups are taking this path. But what is the reason for this trend and why does your project need an MVP? Let's talk about this in more detail below.
What is MVP?
MVP is a technique often used by startups to minimize risk when entering the market. It stands for minimum viable product. The bottom line is that you do not need to spend colossal money on creating a full-fledged project and hope for its success. An early version of the product with a minimal set of features that creates value in the eyes of consumers is enough.
With the help of it, you will test hypotheses, find out the potential of the product, estimate the real demand and collect the necessary analytics for further work. You will understand that you need to improve and do not release an expensive product that the market simply does not need.
3 reasons to use MVP
- Hypothesis testing
According to Harvard Business School professor Clayton Christensen, more than 30,000 new products are introduced to the market every year. Moreover, 95% of them fail. Therefore, the worst thing you can do for your project is to launch a full-fledged product that the market does not need.
MVP allows you to avoid such an outcome of events. You don't waste time and money acting at random. Instead, you provide a basic set of options at minimal cost. Evaluate the real reaction of consumers and improve the product using their feedback. As a result, you have two options for events, and each of them is good.
If nothing works, you have inexpensively tested the hypothesis and can move on thinking about new ideas. If the product is appreciated, you are working to improve it.
- Attracting investors
An MVP is a great choice if you are looking for an outside investment. You will be much more effective on this issue when you have a tangible product. It is extremely difficult to convey the value of an idea without real data and actual product availability.
The development of a minimum viable product makes it possible to demonstrate the potential of the project and its relevance clearly to the market.
- Reduced time to market
Time for new products is often critical. Your idea may be brilliant, but if you are ahead of the competition, you will lose. Therefore, for startups, MVP becomes the only right solution. Its use in most cases reduces the time to market by several times. Think about it.
MVP is not new, but it remains relevant. In conditions when everything around rushes at the speed of light - this is ideal. Don't waste time, test hypotheses at minimal cost, and bring successful products with high potential to market.
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