MVP: definition, importance and why it is essential to your company
For entrepreneurs, it is essential to be aware of the formulas, procedures and trends used by the largest companies in the market, especially when it comes to starting a new project.
This way, one of the techniques that has helped giants like Facebook, Apple and Amazon to consolidate in their segments has only 3 letters: MVP.
MVP is one of the best known methodologies for developing new products or services. Want to know more? Read on and understand all about MVP and how it can make a difference in your business:
What is MVP?
MVP, the acronym for Minimum Viable Product, is the action of building a lean and simple version of a product, using the least amount of time and money possible, to deliver the value proposition of the idea.
In practice, MVP’s function is to carry out primary tests and validate the viability of the business even before its official launch. This means that the entrepreneur offers the product with just a few features to understand the reaction and receptivity of the market.
Qual is the role of MVP?
The main function of MVP is to validate the return of a given idea, even before the product is released in its finalized version.
Thus, based on the feedback received, the company is confident that the product meets the needs of customers, and if not, the team can improve its development.
The importance of MVP for companies
You probably know that for businesses it's very difficult to get it right on the first try. And as no entrepreneur likes to lose money on a risky guess, MVP can be an excellent strategy when designing new projects.
MVP makes it possible for customers to detect product flaws even before the complete launch, as well as optimizing the purchase process, promotion methods, among others.
3 Steps to create an MVP
There are three simple steps to create or improve an MPV. Check each one of them:
Step 1: Define a value proposition
The value proposition consists of the main output of the product or service. Therefore, you, as an entrepreneur, should think of a way to convey your idea to the market, in a concise, clear, and transparent way, without forgetting the strategic side. In short: reinforce how your product will solve customer pain.
Step 2: Get feedback from the market
After developing an MPV in line with the value proposition, it's time to assess the market's reaction to the product so you can justify the investment.
There are several ways to validate the idea, but the most important thing is to understand the audience's level of receptivity and learn how the idea can be improved to achieve better results. In short, carefully interpret the feedback after the tests!
Step 3: Repeat the process
After providing the MVP and receiving feedback, reassess if your idea needs further testing.
In case you are confident that the product meets the value proposition and customer needs, move towards the official launching. Otherwise, use your skills to redesign the idea according to the market aspirations.
Real examples of MVPs in large companies
As we mentioned at the beginning, big techs and commerce businesses have already bet on MVP to validate their ideas. Take a look at how these companies did it:
Amazingly, the launch of the iPhone 1 happened when he was still an MVP. The device did not have some functions, such as copy and paste. Still, Apple decided to test customer responsiveness, make adjustments and launch new functions in subsequent versions of the equipment, generating anxiety and euphoria in the market.
Mark Zuckerberg's network is another example of a successful MVP. Before it was even known worldwide, Facebook was tested within the walls of Harvard University. Only students from the university community had access to the release, which allowed Mark to make fundamental modifications based on what was necessary during the validation process.
One of the largest e-commerce in the world started as a bookstore looking for more practical solutions for customers. At the time, the market was dominated by physical bookstores. To test the segment, the company created a simple website and sold books at earned prices. You already know the result of this, right?
Easybuilder as a tool for MVP creation
If you've come this far, you might have been wondering: how can you optimize the process of creating an MVP? We have the answer and that's what Fernando Magno, founder of Easy, talks about in the video below:
So, does your company make use of MVP for new products or services? If not, it's time to apply MVP to your business strategies!
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