A simple overview
What do you do when you have a great idea but you just aren’t sure how or if it’ll work? Should you really risk spending time and money building something that could potentially completely fail? How can you increase your chances of success? Establishing a tech startup is exciting, but some of these questions and the risks associated with them can be quite daunting!
It’s true that no great success comes without its risks, but these can be well calculated. The idea of a minimum viable product, or better known as an MVP, is one of a number of concepts introduced by Eric Ries in 2008 to address exactly this concern; building better products, quicker, and with confidence in their success.
The definition of an MVP is pretty much in its name. It has to be minimal, so it’s quick to build and launch, while still being viable, so it serves its purpose and can properly satisfy the test criteria. In essence, both ‘minimum’ and ‘viable’ are opposing forces, and a good MVP is able to get this balance right. So in other words, don’t build something that is overly complex to start with and will require excessive time and resources to achieve. At the same time, don’t scale back so far that the product can no longer serve its core purpose.
The idea behind an MVP is to test the product early on and answer some very important questions;
1. Is there a demand for it?
2. Does the interest justify scaling the product further?
3. What changes should be made when scaling?
4. Should you pivot?
Knowing the above can save both time and money and provide guidance for building a product that has a much better chance of succeeding, or provide a warning in case a potential disaster may be likely. In either case, this establishes the foundation of an iterative approach to development and promotes the use of the concept of build-measure-learn when scaling the product further.
What to include?
What should or shouldn’t be included in an MVP depends on what is attempting to be achieved. For example, if the purpose of the MVP is to prove there is sufficient demand for the product and the aim is to raise funds for further development on that basis via investments, it may be a good idea to define the appropriate metrics that will reinforce the hypothesis and ensure they are accurately measured. On the other hand, if the aim is simply to gauge the level of interest, a simple web page detailing the idea and encouraging early registrations may be sufficient.
TIP: When defining metrics, ensure they are actionable and not simply vanity metrics that may look good on the surface but not fit for purpose. For example, if the product is a mobile application that is based around a social engagement on a platform for a specific niche, simply measuring the number of downloads and new users may not be sufficient. Instead, measuring the amount of time users spend on the platform, and how often they interact with the application, may better demonstrate a good product-market fit.
How long should it take?
Even though many MVPs builds can range between 1 and 6 months to complete, there’s no specific defined timeframe. The aim should be to get to the market as soon as possible with the most appropriate product. Not only does it result in obtaining early feedback to base important decisions on, but it also keeps the process on track in a fast-paced world where it’s easy to be overtaken by a competitor or someone with a similar concept.
How much should it cost?
This is a common question entrepreneurs have on their mind as they want to know if the idea is something they can afford to pursue. Unfortunately, there is no right answer. If funds are a limitation, it may be worth investing time instead and learning the skills needed to bootstrap the build. However, this can be a risky approach as it can take significantly longer to go to the market and can often deprive the project of useful expertise. Alternatively, finding the right development partner can be much more economical and beneficial in the long run.
It’s tempting to seek investments early on and reduce (or even try to avoid) the financial risks, but this can also substantially reduce the reward. Investors don’t just look at a great idea, but also like to see opportunities where the entrepreneur has a significant amount of skin in the game. It demonstrates their belief in their own product and provides confidence to the potential investor.
TIP: Delay the need for external investment for as long as possible. A proven product establishes a strong position for negotiation and attracts the right investment partners that can share the long term vision rather than just focus on the bottom line.
Need help with your MVP?
Digiryte has helped a number of tech startups launch and scale successful products. We can help provide the consultation and development services needed get your idea off the ground and in the market.
Get in touch today and see how we can help https://www.digiryte.com/
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Author: Shoaib Akhtar, Tech entrepreneur, Executive Director and Digital Transformation Consultant, passionate about technology and it’s applications to solve modern-day problems.
