A start-up resolves issues by developing or designing a new way of doing something, discovering a scientific breakthrough, or designing a new solution for a prevailing challenge. However, there is this one figure that is popular in most start-up circles. Nine out of 10 start-ups never succeed. Other than the typical reason for lack of funds, most start-ups fail as their product idea may not have been tested in the real world. Most probably, they might not have tested their idea with a Minimum Viable Product (MVP).
What is an MVP and How does it Help Entrepreneurs?
A Minimum Viable Product (MVP) is a working model of a concept that enables entrepreneurs to collate maximum learning about customers with little effort. To put across simply, it is a dry run of an idea that helps test the waters and analyze the market feasibility. It also helps understand more about users, their requirements, and problems by exerting minimal effort. You have to check if the product you are building with the functionalities and features in mind actually works. In a way, an MVP enables entrepreneurs to obtain some amount of certainty that a product idea is feasible before heading into the uncertain market. It enables you to assess and evaluate the market requirements and potential and sheds light on how your target audience will respond to your product.
Scalex Technologies has been at the forefront when it comes to providing strategic support to start-ups with their ideas and end-to-end MVP development across various industry verticals.
Unfortunately, when it comes to doing business – we cannot just simply trust our intuition. Just because you may feel that you understand your client’s needs, it does not mean that you actually know them. Following are a few tips on how you can validate your product idea:
Use social media to build a relationship with your target audience
Social media is an extremely powerful tool when it comes to validating a product idea. It is most definitely time-consuming but also budget-friendly. You can start an Instagram profile or a blog to gather users who are interested in your idea. It provides you with the possibility to interact with your target audience.
Introduce your product without building it and collect the data
Just create a landing page with a CTA button that you want your visitors to click on. Why should you do it? To find out if your idea is good enough. You want data that will give you some insights on whether the product is actually worth developing. Popular companies such as Buffer used this method to validate their idea. All it took for them were two landing pages and a button.
Create a marketing campaign to obtain the data faster
Creating a marketing campaign can also help you validate your idea. This may probably cost you money, but it can offer relatively fast results. You can use Google ads or focus on email marketing. It is usually a combination of a landing page and a campaign because you still need to assess the reaction of the users.
A/B test – Let the users decide which option brings more value
Use the A/B test technique to check which features are more valuable for your target audience. Let them decide what will be built and what your product will look like.
What if I have a great idea but do not have a budget even to create the first version of a product?
If you do not have a budget to implement your idea, then you still have other options. Consider the example of Dropbox. This company designed a presentation displaying how the product would work before they launched it. Dropbox managed to find investors with their presentation and also had their idea validated at the same time.
Trying to launch your product in a big market from scratch can decrease the chances of your MVP’s success. Start-ups need to create a niche market for their product. The narrower your target audience is, the better, as you can resolve their issues better than your rivals. This in no way means that your target audience should be small; it only means that you focus on solving only a particular problem or a limited set of issues. Creating a subset of ideal users is crucial to the success of any MVP, as their requirements are what should push its development forward. Following are three potential groups of target audiences for your MVP:
- Early adopters feel the need for the product most intensely. These users are more forgiving of mistakes and are eager to provide feedback.
- Evangelists in the area of start-up community or MVP’s domain expertise are ready to provide feedback and see the development of the product.
- Potential investors need to validate the business idea so that they can invest their money in your start-up.
There is never a one-size-fits-all success formula available for each start-up, yet the only recipe is to understand and learn from your market iteratively with your MVP. Instead of trusting your own assumptions, you can create an MVP, collate feedback and analyze the response of the customers. The process continues until you attain a complete understanding with users, helping your team develop a feasible product and meet the market requirements.
Following are the salient features of an MVP:
- An MVP should concentrate on a single buyer persona. It works great when it is designed to solve the issues of one person. You should avoid building an MVP for multiple users.
- It should be easy to create and enable a faster launch.
- You should take into consideration feedback from several users though you have built the MVP for one person. It is quite possible that multiple reviews can resolve most of the issues. Ensure to take the feedback more seriously if the reviewer is in the target audience of your product.
- The simplicity of an MVP does not mean that your expectations are more than your effort. It should highlight the problems that can be resolved with the app and how it can do so. This becomes all the more important if you have to succeed in the market.
- It is not possible to make money from a failed MVP in spite of all the hard work. Therefore, MVP testing should be an essential aspect of your development process.
- The aim of an MVP is to collate feedback and identify the inadequacies in the product.
Creating an entrepreneurship empire from scratch does not happen overnight. In fact, most entrepreneurial projects may not even be a success. Why? Because they can get multiple factors wrong. The market is extremely uncertain. It is quite impossible to predict it and so are customer expectations and behavior. An MVP helps entrepreneurs understand what customers need with minimal spending of resources. To put across simply, the only road to success is to learn faster than anyone else and MVP development facilitates that learning.
So, if you are ready to make the big move with an MVP just like Dropbox, Uber, Foursquare, and other successful companies, get in touch with Scalex Technologies. They are experts at understanding your business niche, similar products, competitors and consider several other parameters to develop the right MVP for your idea.