Something that all creators should consider is their MVP. Understanding what is MVP and knowing how to apply it in practice is critical to ensuring a good customer experience.
To that end, we’ve put together a complete guide to help you fully understand the concept of an MVP. You’ll be able to test and improve your product even before launch, and save time, money, and effort.
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What is MVP? This acronym stands for minimum viable product.
An MVP is not a final product. Instead, an MVP is a product that has all the basic features, is functional, and meets the minimum requirements defined by the entrepreneur.
This strategy allows you to launch your products with minimal effort and development, to test hypotheses, assess the market, and the feasibility of launching to a broader audience.
A minimum viable product::
- has value to be used immediately by people;
- can attract users, even in its early stages;
- allows creators to follow up on feedback that helps in the completion of the finished product.
The great advantage of creating an MVP is the possibility of testing product ideas without having to spend a lot of money and effort.
The feedback received from customers who come in contact with your MVP serves as a parameter for making adjustments. These adjustments in turn allow you to offer a product or service more in line with market expectations and increase your chances of financial return.
Feedback about your product won’t always be positive. In any case, you win, since you’ll have time to make adjustments or even rethink your product before its launch date.
Although most commonly used by companies in the tech industry, the MVP concept can be used by any entrepreneur, and can be applied to both digital and physical products.
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Below is a complete step-by-step guide to help you create your MPV.
1. Define the value proposition
The value proposition is related to the product, more precisely its ability to attract consumers’ attention. It’s important to think of an MVP that is useful, attractive, and at the same time viable.
2. Set deadlines
One of the main characteristics of an MVP is that it takes less time to create.
In an increasingly competitive market, with innovative ideas emerging all the time, you cannot afford to miss opportunities.
With this in mind, you should create a schedule of tasks, from planning to product launch, and establish possible deadlines to complete each one.
3. Define your MVP’s basic features
Now is when your MVP really emerges. If you have a potentially profitable business idea, it’s time to start development.
It’s important to note that your MVP needs to be cheap, practical, and built in the shortest time possible. So, it’s essential that you work towards delivering a minimally functional product to the public, with all of its most basic features.
There’s no use, for example, in giving customers a wheel, and telling them that the company’s next step is to produce the car. The wheel itself doesn’t perform any of the basic functions of a car.
4. Earmark your budget
The development cost of an MVP tends to be exponentially lower than the finished product. The finished product, however, must meet a minimum set of expectations, since it must please the public.
In other words, it’s important to develop your MVP at the lowest possible cost, but without giving up on the minimum features to make it commercially viable.
Map all the necessary costs for the creation of your MVP, such as materials, labor, and distribution costs. Next, make a projection of how much you’ll need to sell to recover your investment.
5. Create a specific support channel
When it comes to developing your minimum viable product, it’s important to think about strategies for tracking its impact. An MVP that fails to capture feedback doesn’t serve its purpose.
6. Test the market’s response
Eventually, you need to make your minimum viable product made available on the market. Below, we’ll give you tips regarding to whom you need to send your MVP.
The market response, i.e., the level of people’s interest in the product must be taken into consideration, because it’ll help you determine if your idea is worth investing in or not.
7. Analyze the data obtained
Finally, the data obtained through tests must be analyzed carefully and systematically.
This applies in the interpretation of feedback, access tracking, time on page, among other factors that will serve as a basis for adjustments to the product before its launch.
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A common question among entrepreneurs is related to the audience for the minimum viable product.
Since it isn’t the finished version of your product, to whom should it be sent?
The answer is simple: to everyone who shows interest in the idea.
Several consumers in the market only demonstrate interest in engaging with products in their final stages of creation.
Others prefer to be part of an exclusive group and have access to new features before they’re even released; they’re beta testers.
They not only use the product, but also analyze its characteristics and peculiarities, providing useful insights.
Look for users who engage with you constantly and show real interest in your products, they may already be in your follower base and email lists.
Another tip is to share your MVP with friends, family, and customers who are already familiar with your brand. These people tend to want to try minimum viable products, and are usually quite open to making honest comments.
This question requires a case-by-case analysis.
In many situations, it can be advantageous for you to provide your MVP, to a limited group of people, for free.
This strategy is based on the premise that the product, having been created inexpensively, does not yet have all the features of the final version. The goal of the MVP is purely and simply to test your product idea
Or, you can charge for your MVP.
In this case, the trick is to price it well below the price that will be charged for the finished product. This way, you motivate consumers to purchase the trial version of your product to save money and be among the first to try it.
As we’ve shown in this post, a minimum viable product is a strategy widely used by entrepreneurs to test product ideas.
Entrepreneurs who use this strategy are able to reduce costs and get the best out of their products. Knowing ‘what is MVP’ and building one is a worthwhile investment to obtain better results, either with your physical or digital products.
After creating your MVP and validating your product idea, it’s time to launch it on the market. To help you further in this process, read our article with great tips for product launches!