How can startups benefit from an MVP?
The acronym MVP stands for Minimum Viable Product. Frank Robinson first introduced the concept in 2001 before Eric Ries later popularized it.
According to Eric Ries, “the minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”
It slashes costs
High inputs frighten entrepreneurs the most. They often wonder how much does it cost to build an MVP. The figure can be attributed to many factors, since more complex projects need higher expenditures. However, when it comes to an MVP, it costs notably less (within $10,000-$20,000 on average), and a price of a mistake is substantially lower.
Saves your time
Creating a minimum viable product mobile app as well as a web app requires as little time as possible. In addition, one can always adjust the development process. Earlier, custom software was developed according to initial specifications. But customer needs would inevitably change until it was completed.
The first version of an MVP should take about 12 weeks or 3-4 months. Notably, this time includes not only programming but also design stages, that are an integral part of a minimum viable product development
Feedback and tests products
it allows you to collect information about the most and the least popular features as well as improve an MVP correspondingly. The product resolves a particular issue but has no additional functions so far, but early users are able to suggest improvements that might be introduced later.
Attract investors & paying customers
If you are looking for investors to sink some capital into your business, you will get much further if you have something to show them first. However, few businesses have the resources, time, or money to complete a product before they present it to investors.
With a working product and money coming in you can show investors that you know how to manage the development process. The benefits are obvious: your product starts generating money, thereby you can advance in adding new features to your MVP.
Plus, they’ll get a return on their investment much faster because the product is already making money. Furthermore, the revenue from your API will help fund the development of your full product, and as you grow, you can invest more in marketing to further increase sales. Investors know that they aren’t in it alone, and that makes investing in your business more appealing.