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MVP is Minimum viable product, a development technique in which a new product or website is developed with sufficient features to satisfy early adopters. Here early adopters are the first few customers who will test the product and give the feedback. A minimum viable product (MVP) is the the most pared down version of a product that can still be released.
An MVP has three key characteristics:
- It has enough value that people are willing to use it or buy it initially
- It demonstrates enough future benefit to retain early adopters
- It provides a feedback loop to guide future development
The catch to this development technique is that it assumes that early adopters can see the vision or promise the final product and provide the valuable feedback needed to guide developers forward.
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MVP and the Lean Startup Methodology:
There is a methodology called THE LEAN STARTUP METHODOLOGY. The Lean Startup method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration. It is a principled approach to new product development. The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster.
Ways That An MVP Can Get Your Startup Funded:
The MVP (minimum viable product) is the only version of your startup that you need to worry about getting funded. In fact, sometimes the issue here is not even funding but validated learning about the assumptions of your startup. If your startup idea cannot generate interest, engagement, and/or sales in its Minimum Viable Product version, then you seriously need to consider whether the venture is worth pursuing at all. This will save you resources, energy, and the time to move on to your next great idea.
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MVP is already generating revenue, that’s a good start!!
It shows that consumers are willing to pay for even the basic elements of a product. And if they’re willing to pay to use the MVP, then the chances that more consumers will hop on board once the product has been fully invested in and released with much greater functionality are good.
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Personal savings into its development:
When an entrepreneur invests in his or her own startup, that signals to investors that they believe in their idea and are willing to take on financial risk in order to make it a reality.
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The early consumers of a product:
Early adopters are important at the MVP stage. These are all good signs to investors that startup has a bright future. See what are they-:
- Take a look at mentions of the product on social media and see what kind of profiles those that are talking about it have.
- Do they fall in the target market?
- Do they have a significant number of followers?
- Did their mention of the product generate many shares, likes, favorites, retweets, or upvotes?
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Investors look for a functional product:
If a startup is yet to put together an MVP, VCs and angel investors have no proof that the startup can actually generate anything tangible. When a new enterprise has a working Minimum viable product, however, that demonstrates to investors that it was able to execute on a plan and deliver real results.
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Swiftness Matters:
Swiftness is key because the market is constantly evolving; consumer tastes change so rapidly that today’s ventures needs to continuously adapt in order to stay relevant. This is where an MVP can help. A startup can demonstrate agility with an MVP that is innovative and ahead of the curve. If it is a product or service that is on the way out or has already been done, then that doesn’t signal to investors that the company is particularly agile. But if the MVP is new and cutting edge, it shows that the startup is able to beat the competition to the market.
Minimum Viable Product for Startups is the key strategy used for fast and quantitative market testing of a product or product feature for startups. After your Startup idea is created, but before you fully developed it, this critical step creates the strategy to avoid building products that customers won’t want in the long run.