According to a report from CBInsights, more than 70% of tech startups usually fail after 20 months of successfully raising enough funds to sail ahead swiftly. Well, when it comes to the reasons it can be no market need, low cash flow, pricing/cost issues, lack of suitable business model, market competition, and so on.
But the question is, is there any possible solution to reduce this percentage or will this scenario continue at an increased pace?
Well, although there are many solutions that can minimize this failure percentage, the best among them is building a minimum viable product (MVP).
You might be wondering what this MVP is all about, how it can prevent startups from failure, how it can help to maintain finances, what is the cost to develop an MVP, where to find the best MVP development services, and so on.
Well, this blog will let you know all you are looking for.
A Minimal Viable Product, as the name suggests, is simply the most basic but still useful form of your product. It is the absolute bare minimum you require to verify your business concept. Consider it as a soft launch when you introduce your product to a small audience and gain insightful feedback from them.
Then you further address the issues, enhance the essential components, and eventually introduce your product to a larger market.
In simple words, MVP is a fully-operational web or mobile app that contains enough functionality to meet users’ early demands and to collect feedback. Developing an MVP is a wise way for entrepreneurs to test their concepts, save money and effort, and ultimately improve their chances of market success.
If we talk about entrepreneurs, their ability to be creative is constrained by their financial means. This is where MVP can prove to be a great choice. It can benefit your firm in a lot of ways. A reduction in development expenses is one of the MVP’s most significant advantages. Let’s see how it helps to reduce costs and provides you with the financial strength to move ahead.
1.Reduces Risk of Failure
MVP development is a great way to test your idea and see if the market will support it. It guards you against investing a lot of money in goods that have little to no market demand. Your MVP performance will indicate whether you should continue working on the project or not. In simple words, it helps to avoid financial loss. Therefore, MVP development solutions are quite helpful for startups in lowering the cost of development.
2.Feedbacks for Improvement
Through a continuous feedback loop, the entire MVP development process enables a firm to have access to customer-related data. MVP provides a channel for users and startups to communicate.
You may create a product that is tailored to the individual needs of your users, thanks to ongoing client feedback. Once you have determined the key elements, you may quickly create an MVP without the extra cost-consuming nonessential features.
Additionally, customer insights are a crucial component in further refining and improving your MVP. You can learn more about what functions well for your users and what doesn’t by reviewing versions of a mobile or web app.
Most importantly, it clarifies how you may raise consumer satisfaction and increase the profitability of your product. The final product is then constructed using all of this information as input. Therefore, an MVP aids startups in saving a lot of money on things like customer support and software upgrades.
MVP enables you to obtain the investment capital required for expansion. The majority of proposals fail because of a lack of money, however, an MVP can convince investors. Investors will only give you money if they think your product can solve their problems.
Making an MVP helps potential investors comprehend the concept and makes your vision a reality. Investors will believe you and invest in your project if they discover that you have already released a workable physical product.
MVPs have been often seen as a key to success. So you will easily find a lot of examples where the brand started with an MVP and has earned a solid market reputation. Some of the top brands are.
Airbnb has emerged as the most successful startup MVP example that has motivated other brands to follow the same path. Since its debut in 2008 as a simple one-page website it has become home to many achievements. When product designers realized they couldn’t maintain the apartments they chose to make additional money by renting them out. Needless to say, the idea was impressive.
They received their first visitors quickly after creating a basic website and posting a few pictures of their location, and they soon realized there was a high demand for the service, which gave them the go-ahead to expand.
But the credit for its huge success goes to the Airbnb Business Model. Although it was simple but was able to leave a mark on the global business community.
Another well-known startup that began as a straightforward MVP is Uber. The app’s goals included facilitating communication between passengers and drivers as well as improving the convenience and cost of travel for users.
Uber was able to swiftly build traction and disrupt the taxi business by concentrating on a straightforward, and intuitive user experience. If we talk about Uber’s Growth Strategy, Uber initially allowed its users to ‘hire’ a car (the only car owned by Uber) during those days with basic features like location, booking via SMS, and so on. But with time and user feedback, it now has a large feature list that has earned it a solid global reputation.
In simple words, if we talk about its advanced feature listing live-tracking of drivers, fare splitting, automatic credit card payments, fare estimates, and so on make it stands out from its market competitors. One of the reasons why it is the first choice of people from around the world.
The tale of Canva’s success is rather straightforward. Sydney-based product designers took a different route as the industry grew with the introduction of new complex design technologies. In contrast to the competition, they developed a straightforward visual design tool with a variety of templates that was simple to use even for non-designers. The secret to their success lay in the same.
Canva has expanded significantly since 2013 when the company’s MVP was introduced. According to Fast Company, it has also been acknowledged as one of the 50 most innovative firms in 2023.
You must be familiar with HubSpot. But did you know that what is today regarded as one of the most popular CRMs used by companies to increase sales began as a straightforward blog? Yes, you heard it right. HubSpot was able to swiftly acquire user input by developing a product that concentrated on content marketing and lead creation, which inspired them to develop a CRM platform.
Buffer is a unique & well-known MVP software example that merits discussion. The business’s founder, Joel Gascoigne, began Buffer by developing a number of navigable landing pages. Though he wasn’t sure if his software would be a hit, the only way to find out was to observe how users would react, which he did by marketing his page on social media.
He knew what he accomplished was good and what people wanted because of their favorable responses and the initial sign-up forms.
Also Read: This is How to Build an MVP in 2023
When it comes to MVP development cost, it varies from software development company to company. But yes there are many factors that remain the same and affect the overall cost by a huge margin. Some of the major factors are
MVP becomes handy for entrepreneurs aiming to reach the market quickly and affordably. Whether we talk about early customer feedback, lower development costs, and a quicker time to market, all these advantages make MVP development a priority, especially for start-ups.
So, if you want to build a successful business, you are in need of top MVP development services that can help you excel in your business. Apptunix is a seasoned MVP development company that offers cost effective product development. We are a flexible organization working to give you the finest assistance possible for a decade now. But what makes us unique is our special discount rates for startups.
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