06 Best Reasons Why You Need an MVP for Your Startup (2023)

It may appear that apps like Uber and Instagram rushed into our lives and quickly gained worldwide popularity and thousands of users. Few people remember what these apps looked like when they first launched. It isn’t easy to believe that Foursquare and Twitter were once obscure apps that few people knew about. And it can be even more difficult to imagine that they achieved success through gradual growth as MVP development сompany.

Furthermore, recent Go-Globe statistics confirm this:

• 74% of high-growth internet startups fail due to premature scaling; however, startups that scale properly grow 20 times faster.
• 29% of startups fail before they reach their full potential.

Eric Ries suggested a simple way to avoid these errors. His “lean startup” methodology has proven effective and is now widely used worldwide. It aims to reduce risks and outlays by shortening product development cycles and building startups based on the needs of early customers. That is precisely why MVPs are required.

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What is an MVP?

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What is MVP? Eric Ries introduced the Minimum Viable Product (MVP) methodology in 2011. The MVP is a core component of the Lean Startup method that teaches you how to steer a startup—when to turn, when to persevere, and when to grow a business with maximum acceleration. The MVP concept states that an early product version solves at least one critical customer problem and covers only the functionalities that correctly demonstrate your product. The primary benefit of MVP is that it allows you to realize your product idea, saving you time and money on the design and development of a full product.

MVP gives the development and design teams direction on where and what MVP does to improve. You now have a basic understanding of what MVP is. The team is responsible for creating the product’s first version available to customers. For example, it could be a simplified mobile or web app version. A well-crafted MVP allows you to gather all necessary information about user interactions with the product.

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How can you benefit from developing an MVP?

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1) Test your business project

Building a digital product entails more than just coding. Every product is a business project that should attract customers and generate a profit for its creators. But does your concept have a bright future?

You can develop a minimum viable product to obtain the most precise answer possible. Even if your app has an appealing design and many features, users may be uninterested in it. Because there are other well-known apps in the same category, or they do not require it.

An MVP allows you to determine how interested users are in your app and whether they are willing to pay.

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2) Get feedback

Feedback is one of the main reasons why experienced developers recommend creating an MVP for startups. It is critical to understand your customers’ perspectives on your product. With its assistance, you can determine which features are most desired, expected, and undesirable.

Keep in mind that any app should solve a specific user’s problem. The best way to determine your app’s performance is to solicit feedback directly from users. So use this information to your advantage.

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3) Save your time

Imagine you spent weeks and months of sleepless nights developing your mobile app, only to have nothing spectacular happen when you released it. Without popularity, there is no profit. Doesn’t that sound like a nightmare? You could use this time for something more productive.

You will need as little time as possible to create an MVP. Users’ feedback will assist you in developing MVP, a highly demanded and engaging app.

Which would you prefer: spending months developing an app that may fail or spending the same time creating an app that is more suitable and friendly to its users? The answer is obvious!

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4) Don’t waste your efforts

Finally but not least. It’s been said enough about the benefits and costs of MVP development for a startup, but what you also save is your time. An MVP is a critical step that will assist you in wisely planning your startup and scaling your business.

Don’t be surprised if you spend more time tailoring your app to user requests and dealing with risks than launching MVP. So why not take the simplest route?

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5) Attract investors

If a new and unique idea is compared to the heart of every startup, then the money is the blood that keeps this heart beating. Consider yourself lucky if you have a few million dollars and can do whatever you want. Otherwise, look for someone willing to invest in your concept.

However, when you only have an idea in your head, it may not sound very promising to investors. One of the advantages of developing an MVP for startups is that you will have something more serious and focused than just your thoughts and words. It significantly improves your chances of being noticed and heard.

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6) Minimize development costs

Never forget the rule: more complex startups necessitate more significant investments. You will have to pay for each additional feature or more beautiful design. However, you will need minimal resources to create an MVP (which is still a product, even in its most basic form).

We’re sure you have one question in mind: “How much does it cost to create a minimum viable product?” The cost depends on various factors, but the average ranges from $10,000 to 20,000. Of course, it can be less and more at other times.

Even if an MVP for startups proves to be a failure, the cost of the error will be significantly reduced. Then you can use the resources you saved to try again or choose another business idea.

You can reduce mobile and web development costs by choosing between fixed price and time and materials contracts.

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Summary

What is MVP? An MVP is the best choice to make when starting a startup. Here are three reasons why:

• It’s ideal for first-time entrepreneurs and a tried-and-true method of determining whether your vision matches the actual needs of your market.
• It’s inexpensive. A low-cost launch MVP can help you save money by preventing you from wasting money by getting off track.
• It caters to customers. The MVP process is simplified because it focuses on a specific pain with a specific solution. Users value and appreciate simplicity.

However, an MVP process is only the starting point for building a business, and it is critical to budget ahead of time. You can also better understand your core idea and highlight your startup’s most important tasks and features by creating an MVP. Good luck turning an MVP into an advantage for your startup!

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