Welcome to the heart of our startup journey – understanding what an MVP is and why it’s essential. Let’s go through a quick overview of the MVP concept!
Objectives and Expected Outcomes:
- Definition: Clearly understand what an MVP is.
- Purpose: Learn the main reasons for building an MVP.
- Benefits: Discover the key advantages of starting with an MVP.
- MVP vs. Full Product: Differentiate between an MVP and a full product.
What is an MVP?
An MVP, or Minimum Viable Product, is a version of your product with just enough features to be usable by early customers who can then provide feedback for future development. Think of it as the smallest thing you can build that delivers customer value.
Purpose of an MVP:
The primary goal of an MVP is to validate your business idea quickly and inexpensively. By launching an MVP, you can learn what your users truly want and iterate based on real-world feedback, saving time and money.
Benefits of an MVP:
1) ✅ Validation: Quickly validate your idea without heavy investment. 2) ✅ Feedback: Gather valuable feedback from real users. 3) ✅ Learning: Understand user behavior and preferences. 4) ✅ Flexibility: Adapt and pivot based on early insights. 5) ✅ Resource Efficiency: Use minimal resources to maximize learning and progress. MVP vs. Full Product: While an MVP includes only the core features necessary to solve a problem or deliver a value proposition, a full product is more refined, feature-rich, and polished. The MVP is your starting point; the full product is the end goal. Imagine your MVP as a bicycle that later evolves into a car as you add more features and improvements based on feedback.
Different Types of MVPs
Did you know that there are types of MVP models that you can create? Different types of MVP models can help you test your product concept efficiently without fully developing the product. Here are some common MVP models:
1) Landing Page MVP:
A landing page MVP involves creating a simple webpage that describes your product or service and includes a call-to-action, such as signing up for a newsletter or pre-ordering the product. This approach allows you to gauge interest and collect contact information from potential users.
Example:
Buffer used a landing page to test the demand for their social media scheduling tool. Visitors could sign up to receive more information, providing early validation before the product was fully built.
✅ Pros:
- Low cost and quick to set up.
- Effective for gauging initial interest.
- Collects valuable user contact information.
❌ Cons:
- Limited interaction with the product.
- May not provide deep insights into user behavior.
2) Explainer Video MVP:
An explainer video MVP involves creating a short video that explains the concept of your product or service. This video can be shared on social media, websites, and other platforms to gauge interest and gather feedback.
Example:
Dropbox initially created an explainer video to demonstrate how their file synchronization service worked. The video generated significant interest and helped validate the product idea before development.
✅ Pros:
- Visually demonstrates the product concept.
- Can reach a wide audience quickly.
- Generates buzz and interest.
❌ Cons:
- Production quality can impact effectiveness.
- No hands-on user interaction.
3) Wizard of Oz MVP:
In a Wizard of Oz MVP, you create the appearance of a fully functional product, but behind the scenes, the operations are manually handled. This approach allows you to test the user experience and gather feedback without building the full technology.
Example:
Zappos tested their online shoe store concept by posting pictures of shoes online. When a customer placed an order, the founder would buy the shoes from a store and ship them, validating the demand before building the full e-commerce platform.
✅ Pros:
- Provides realistic user experience.
- Can test complex interactions without full development.
- Gathers detailed user feedback.
❌ Cons:
- Labor-intensive and not scalable.
- Users may eventually expect automation.
4) Concierge MVP:
A concierge MVP involves providing a personalized, high-touch service to a small group of customers manually. This approach helps you understand user needs and preferences in detail before automating the process.
Example:
Food on the Table started as a concierge MVP where the founder personally helped families plan meals and shop for groceries. The insights gained from this process informed the development of the automated platform.
✅ Pros:
- Deep understanding of user needs.
- Builds strong relationships with early users.
- Provides high-quality feedback.
❌ Cons:
- Not scalable in the long term.
- High time and resource commitment.
5) Piecemeal MVP:
A piecemeal MVP involves combining existing tools and services to deliver your product or service. This approach allows you to quickly test your concept without developing custom technology.Example: Groupon initially used a piecemeal approach by creating deals manually, emailing PDFs to customers, and using off-the-shelf software for transactions. This allowed them to test the concept and refine the business model before scaling.
✅ Pros:
- Quick and cost-effective.
- Leverages existing technologies.
- Flexible and adaptable.
❌ Cons:
- Limited by the capabilities of existing tools.
- Integration challenges may arise.
- Limited by dependencies on other tech that you cannot control from the back-end. If one piece fails, everything else could cease working.
Section Conclusion
Pick out the right type of MVP that suits you best. But if you’re taking the course, the chances are you’re looking to build a customized solution. If that’s your goal, you can have multiple MVPs, starting with the cheaper, easier, and quicker solutions above, and gradually building your functional custom solution.
Tools:
- Lean Canvas: Use tools like Lean Canvas or Business Model Canvas to quickly sketch out your startup idea, identify key components, and iterate on your business model.
- Tech Startup Canvas: Similar to the lean canvas, and created by us, is a practical canvas that sheds light on even more important information for your startup. It’s not a tool (yet) but you can write over the fields easily with an image editor.
Real-World Insight:
Remember, even giants like Facebook and Amazon started small. Facebook was once just a simple directory for college students, and Amazon began as an online bookstore. They used their MVPs to learn, grow, and eventually become the tech giants they are today.
Key Takeaway:
An MVP is not about launching a perfect product; it’s about learning what your users want and need with the least amount of effort and resources. It’s your first step towards building something amazing! Excited to discover how to plan your MVP? Let’s move on when you’re ready!