Building a startup! You have an epiphany and say to yourself:
This is a great idea! How didn’t anyone think of it before? I have to build it! Now!
Fair enough but, as I’m sure you’ve heard, there are many hurdles that can lead to startup failure if you’re not careful — and you want to be among the founders that avoid them.
Maybe you’ve already read The Lean Startup. You’re already considering building a Minimum Viable Product (MVP) and getting your idea tested ASAP.
While testing as much as possible (and testing quickly) is vital, should you rush to build the first idea that pops into your mind?
The answers you’re looking for are just a few scrolls away!
In this article, we will cover everything you need to know from the definition of an MVP to the process of building one.
What is an MVP?
Before we dive into the benefits of an MVP and how to build an MVP, I wanted to startup off with a quick definition of MVP.
A Minimum Viable Product (MVP) is exactly what it says on the tin: the simplest version of your product with just enough features to validate your value proposition.
No one has ever created “X”, I want to build “X” because I think it’ll improve the lives of those who use it
Or, in the words of the inventor of the startup MVP & author of The Lean Startup, Eric Reis:
“A Minimum Viable Product (MVP) is the version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”
The MVP is the minimum effort to test if your target market will actually adopt your product.
It’s a simple but extremely effective methodology.
The Origin of the Minimum Viable Product (MVP)
It all started when Eric Ries experienced failure in the startup world. Many months, and many dollars later he was still seeing his colleagues in Silicon Valley failing for the same reason, the features being built into products weren’t being used.
After researching a better solution he found his inspiration in Lean Manufacturing methodology. A process, invented by Toyota, designed to shine a light on what adds value to a product, by reducing features. Or trimming the fat to make it leaner, and removing features that aren’t adding value; only burning money, time and focus.
Ries brought this lean concept from the car industry to the .com bubble, baptising it as The Lean Startup Methodology.
The MVP process falls under the Lean umbrella as the first client-facing version of a product.
Benefits of Building an MVP
In today’s business landscape, releasing your product quickly and within budget is a prerequisite to a startup’s success.
Building an MVP has become the de facto process as it allows you to save time & money whilst reducing your risks.
Here’s how building an MVP can benefit you:
User-Centric Development
Building an MVP forces you to be hyper-focused on solving your users’ key problem.
Rapid Testing
The quicker you can test your assumptions the quicker you can get to market. Not only this but you will save a considerable amount of energy by using the MVP methodology.
Reduced Costs
It goes without saying that building part of a product, with only the absolutely essential features, is considerably cheaper than building an all singing all dancing version.
Market Validation & Protected Credibility
When it comes to building something new you will always be involving other people. From friends & family to investors and other players in your chosen market.
The point is, you build an MVP to test the waters. That way if your product fails it will fail quickly — without spending too much money.
The alternative is pouring any and all budget you have into a product that fails in a year’s time anyway — no one wants to be this founder.
Reduced Effort
I’ve seen firsthand entrepreneurs exhausted after giving all of their energy to a full-featured product. If they miss their mark, and the product lacks any kind of adoption, it drains all inspiration from them — leaving them to never want to go down the entrepreneurial path ever again. Using the MVP approach allows you to test the market months before this exhaustion can set in and uninspire you.
It Beats the Alternative
The alternative is known as the Waterfall Model — building a fully-featured product before validating if people will use your solution.
This is what big corporations and traditional consultants do. It’s also the method that inspired Eric Reis to create a better process.
In my experience, many founders will bring me a laundry list of features to build the first version of their product, despite their awareness of the lean concept and MVP framework.
Unknowingly, they’re trying to build an MBP (Most Beautiful Product), not an MVP; aligning more with the less than optimal Waterfall Model.
It’s a mistake many founders make, here’s why:
As entrepreneurs, we tend to be completely absorbed in the process of building a product. We’re so emotionally invested in our vision that it’s often difficult to take an objective view on what our users’ will adopt, and what they won’t.
It’s important to avoid this. The best way to do that is to keep the user at the forefront of your mind and follow a structured process to build an MVP.
