The Minimum Viable Product, also known by the acronym MVP, is typically the first version of a product or service developed by a startup that wants to validate its business idea.
In this guide you will find a more complete definition of Minimum Viable Product, a list of reasons why you should create one, a detailed explanation of how to develop an effective MVP, a list of successful examples (as well as common mistakes you need to avoid), and all the tips for successfully implementing MVP, as well as a number of resources on the topic that you may find useful.
Let’s proceed in order: first, there needs to be complete clarity on what Minimum Viable Product is.
What is Minimum Viable Product (MVP)
The literal meaning of Minimum Viable Product is likely to lead you astray because it might give you the idea of a minimal product (or service). Well, know that it is not at all.
To understand what an MVP is (really), you need to know the context in which the concept of Minimum Viable Product originated.
MVP: Meaning and definition
The term MVP was first coined in 2001 by Frank Robinson, but those who popularized it were Steve Blank and Eric Ries, who made it one of the pillars of Lean Startup Methodology. This particular methodology aims to get the product/service into the hands of users as quickly as possible through a circular Build-Measure-Learn development process.
Regarding the definition of Minimum Viable Product, according to the aforementioned Eric Ries, MVP is the “version of a new product that allows the greatest amount of validated customer information to be collected with the least amount of effort.”
In more practical terms, as already pointed out, this is the first version of a product (or service) developed to validate an idea and the so-called assumptions of the business model.
Be careful, however, not to mistake the MVP for a prototype (let alone the final product).
Differences between MVP, prototype and final product
The substantial difference between MVP and prototype lies in the fact that the former is a product that has the “only” purpose of validating the business idea and/or the main feature of the product, while the latter requires the development of all (or almost all) of the features that the product must have. For this to be possible, the prototype must, therefore, go through all stages of design, development and implementation.
Regarding, on the other hand, the difference between Minimum Viable Product and final product, you have to remember instead that the MVP is the first (cheaper and faster) version of the final solution of the product or service you intend to offer to customers, which you can get to precisely because of the fundamental step represented by the Minimum Viable Product.
Why create an MVP
Earlier we mentioned one of the (several) reasons why it is important to create a Minimum Viable Product: saving time and money.
Rapid market validation
Even today, many startuppers make the mistake of beginning work on their product or service idea in the belief that it is sure to be a winner. Based on this mistaken assumption, they spend (lose) a great deal of time perfecting the product/service before reaching the market launch stage. By reaching that point, however, the product/service may not achieve sufficient uptake because it is unable to meet the real and concrete needs/desires of consumers. This obviously results in many cases in a huge waste of time and money.
MVP makes it possible to avoid taking this risk, because, in a short time and with little money, it gives the ability to conduct market analysis and access in-depth data directly from possible customers, based on which to stop, change direction, or proceed expeditiously on the path to the final product/service.
Saving time and resources
As mentioned earlier, the Minimum Viable Product is a less expensive and faster version of the final solution, since it allows a business idea to be validated before investing significant capital or wasting unnecessary time on the development of a product destined for failure.
But how much money and time does the MVP save? It is difficult to give a precise indication of the expense involved in creating a Minimum Viable Product and the time required for its implementation.
Generally speaking, it may be useful for you to know that an MVP should cost a maximum of 1,000 euros if made independently or 5 thousand euros if created by an outside agency. As for the time frame, on the other hand, the period required for its creation should not exceed one month.
How to develop an effective MVP
Now that you know why you need to create an MVP to validate your business idea, it is also critical that you know how to develop a Minimum Viable Product effectively. The first step is to figure out what features of the final product or service really cannot be missing in its first version proposed to consumers.
Identify essential features
Before you get to the Minimum Viable Product, you must first collect consumer data through interviews and questionnaires so that you can understand whether or not there is, in fact, a problem to be solved. The MVP, in fact, is used to validate the solution that you think will solve the problem you have identified.
At this point, the question you need to ask yourself is this: what is the key functionality (or, rather, features) that your product/service must have to solve that problem? To address the need to save time and money, eliminate anything that is not a “must have” for your potential customers. Keep in mind that the more complex and feature-rich the MVP is, the more difficult it will be for you then to figure out what really had a positive (or negative) impact on consumer judgment. The rule that should guide you is always to make the least effort to maximize learning.
Test the product with real users
The market launch of the MVP is a particularly delicate phase, because it is necessary to present the Minimum Viable Product at the right time and, most importantly, to the right people. Regarding the latter aspect, remember that it is necessary to conduct product testing only with real users.
Only in this way, in fact, can you really understand, for example, whether the audience is interested in the product/service you intend to develop, whether it works well when it is used by consumers and adds value to their lives, but also whether it is used in the way you intended.
Useful tools and methodologies
To understand whether potential customers liked your solution to their problem (and how, if at all, they did), you can (must!) use some data analysis tools and specific tools dedicated to tracking and monitoring, such as the Facebook pixel or Google Analytics.
Before you even get to this stage, for the design of the Minimum Viable Product from a so-called wireframe (a kind of drawing of the infrastructure design) you can use specific tools such as Balsamiq Wireframes or Mockplus, while for the creation of the MVP your “allies” are different and range from WordPress to Shopify, via Lovable, Brizy Cloud or Unicorn Platform, depending on your needs and the type of MVP.
So far, in fact, we have not yet told you that there are different types of Minimum Viable Product. Generally, they fall into 7 categories:
- Core feature (the MVP is a limited version of the final product with only one feature, the really essential one);
- Demo video (the product/service does not exist, but is presented with a film demonstrating its functionality);
- Wizard of Oz (the product/service is presented as fully functioning software in an automated way, but in reality much of the work is manual);
- Concierge (the MVP is presented by simulating automated operation, but in this case users know that they are actually interacting with a human being):
- Piecemail (the MVP is developed using and integrating different tools and software already available);
- Crowdfunding (platforms such as Kickstarter allow a product or service to be pre-sold at a low price, so as to raise the money needed to develop its final version);
- Pitch Deck and Slide (similar to the demo video, but in this case the MVP is presented directly to investors).
Examples of successful MVPs
After the different types of Minimum Viable Product, you must also know some successful examples of MVPs. The first story we want to tell you is that of Zappos and its online shoes.
The story of Zappos and online shoes
Zappos has chosen the Wizard of Oz mode to present its Minimum Viable Product.
Its origins date back to 1999, a time when online shopping was not yet as widespread as it is today. Because of this, its founder, in order to validate his business idea focused on selling shoes online without having to buy “sight unseen” hundreds and hundreds of shoes, decided to post on a website photographs of shoes he made in stores in his city. Only the moment someone made a purchase would he go to the store to buy that particular shoe and ship it to the buyer.
In this way, the founder of Zappos was able to verify quickly and with very little expense the existence of broad interest in his project, a factor that convinced him to invest in the purchase of his first operations center.
Dropbox: a video to validate the idea
Everyone is familiar with Dropbox, but perhaps not many people know that the idea behind this now widespread service was validated, in 2008, with a simple demo video posted on Hacker News.
What made this choice necessary, which turned out to be successful, was the fact that the founder was aware that the problem he intended to solve was not perceived as such by people. The video, aimed perfectly at early adopters, was aimed precisely at explaining in a quick and simple way that, once Dropbox was tried, it was impossible to imagine life without it. The success was immediate: in just one night, Dropbox’s waiting list subscribers grew from 5,000 to 75,000.
Common mistakes to avoid with MVP
There are several mistakes to avoid when designing, creating and launching Minimum Viable Product in the market. Below you will find the main ones.
Underestimating user feedback
One of the most common mistakes in Minimum Viable Product is to underestimate user feedback.
The MVP, as mentioned above, allows you to ascertain that there is an interest in the product/service you plan to make, but it also gives you the opportunity to see if it is working properly and, more importantly, if it is doing so in the way you intended
Listening to any feedback from users is, therefore, crucial, but be careful: critically evaluate who is giving you their feedback and, above all, remember that customer development is “only” a means to execute your vision and not the ultimate goal.
Creating an overly complex MVP
Creating an MVP that is too complex is a great way to meet with announced failure. Identifying what are the essential functionalities of the final product/service and developing only and only those for the Minimum Viable Product is, therefore, essential.
If you do not follow this important guideline, you are unlikely to be able to figure out which aspect of the MVP your audience really liked and which, on the other hand, was not appreciated. There is an additional aspect to consider: by creating an MVP that is too complex, you run the risk of seeing the MVP’s main advantage of saving time and resources nullified.
Conclusions and useful resources
We have come to the time for the final conclusions in this guide devoted to Minimum Viable Product, but fear not: as promised, we will also provide you with a list of useful readings and resources to explore this topic further. First, though, there are a few more tips for you.
Tips for implementing MVP
In addition to what has already been said in the preceding lines, an important piece of advice for you is not to pay attention to the “beauty” of your MVP: your product or service does not have to please but solve a problem for which consumers are willing to spend money. Art is one thing, business is another.
And remember: as bad as it may look in your eyes, the Minimum Viable Product can really save you a lot of money (and a lot of time), so start without too much delay and get ready to launch more MVPs, so you can spread the risk among all the various hypotheses you need to test.
Useful readings and resources for further study
There is a quote from Eric Ries that you should never forget when preparing to launch a Minimum Viable Product:
“It’s not about being right about your idea, it’s about finding out if your idea is right.”
To read more tips from Eric Ries, who with Steve Blank popularized the MVP concept formulated by Frank Robinson by placing it at the heart of the Lean Startup Methodology, you can check out his personal blog, titled Startup Lesson Learned. The official website of the Lean Startup Methodology, on the other hand, is The Lean Startup.
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