Why MVP is the Best Way To Go
By: Rachel Pollard 02/25/2015
According to Scale My Business, “A minimum viable product is that product which has just those features and no more that allows you to ship a product that early adopters see and, at least some of whom resonate with, pay you money for, and start to give you feedback on.” It is the product which has the minimum of features which is released in order to secures funds and feedback from those early adopters. As Venture Hacks explains, it could be an ad on Google, or aPowerPoint Slide, dialog box, or even a landing page which can, of course, be built in a matter of days. It can also be a small sample of the product. From interviews to prototypes, the MVP is said to be the best way to go when starting a new project. Why? Let's take a look.
MVP Uses Little Resources
When a news or small business does not have theresources that are needed to bring their ideas into fruition, releasing a new product can be a bit premature. If the product does well, of course, then the risk was worth it, but in business, it is best not to gamble any more than absolutely necessary. By releasing an MVP, the business owner can actually sell their idea before investing in the final product. This can save a lot of time and money in the development process later on.
MVP Can Help Secure Investors
For most projects, an entrepreneur and/or small business owner will need to secure investors in order to get their ideas off the ground. How many investors, however, will want to put their time and money into a project which they have not even seen yet? This is where the MVP comes in. When a most viable product is released, the investors have the chance to see what they are investing in. They can offer advice, and set terms, but overall their chances of investing are much greater once they have seen the idea in motion.
MVP Can Help Raise Funds
Releasing an MVP and selling it to customers can help to raise some of the funds needed to complete the final product. It does not have to necessarily be released to the general public, although the more customers who purchase the MVP, the more funds that are raised. If you feel that your MVP will be a let down compared to the final product, then releasing it only to a select group may be the answer. Otherwise, releasing it to the public can help bring in a good deal of needed funds without having to use as many investors.
MVP Can Provide Much-Needed Feedback
Releasing an MVP gives the entrepreneur a chance to open the doors for feedback wide. Not only can investors get the chance to voice their opinions on what the product does and does not need, but customers can actually see the product for what it is...and isn't. The feedback which an entrepreneur can get from MVP can help him or her see where improvements need to be made, and where unneeded features can be cut. An MVP release can be vital in the development process of an overall product if the business owner applies the feedback to completing his or her project.