Products and services always accompany productivity, performance, and competition issues. Today every startup is struggling to perfect their products and sell their brand. All their marketing efforts are direct towards selling the perfect solution for your need or problem. Product management has made these efforts concrete by introducing the concept of MVP. MVP for startups is a cash cow that is very profitable and advantageous in making meaningful decisions regarding a product’s future.
What is MVP?
MVP, or minimum viable product, is a popular development technique that refers to a product’s primary and most organic version. It usually targets the early adopters of the new product. Early adopters use and test it to provide their valuable feedback. The feedback then improves the prototype and helps to make amendments wherever necessary. The minimum viable product undergoes multiple iterations and repetitive procedures before it completes.
The MVP Approach
The MVP approach follows the next trail and steps to reach completion:
- An organic form of a product comes to the market and makes the early entry for early birds. It paves the way to a competitive advantage
- Actual users test to check whether the product works for them solves their problems and meets their needs.
- Product feedback is retrieved from the early users that integrated with the suggestions and constructive criticism.
- The team works effectively toward further development and improvement and manufactures a full-fledged product entertaining all the feedback and suggestions.
Primary Elements of MVP for Startup
The MVP findings and aim should align with the business strategy. With its limited functionality, MVP for startups aims to achieve rapid, with the least amount of work. One has to be frugal in deciding how to acquire the most with limited functionality. It could be done with the help of these primary elements of MVP.
User research means analyzing and understanding the target audience and the market. It requires extensive research and communication with the end-users to evaluate their interests. The market involves studying different parameters, including:
– Customer behavior
– Buying power
– Disposable income
– Demographics, etc.
The company assesses the market situation by calculating the total available (TAM) and then figuring out Serviceable Available Market (SAM) and obtainable market (SOM). Obtaining the market share can help us decide the viability of one’s business model.
Competitive analysis is also a subset of market analysis. Here are specific ways of conducting competitive analysis to determine how the startup needs to proceed with its MVP offer:
– Identify competitors of homogenous products (Evaluate their position in the market regarding their customer segment, niches, etc.)
– Form a perceptual map highlighting different facets and attributes like pricing etc.
– Study how the customer responds to their product and the respective feedback
– Price analysis tells you how you should position your product and what should be your pricing strategy and midpoint method of elasticity
– Find out what are your competitor’s distribution channels and then identify your mode of sales
– Lastly, pay close attention to their marketing efforts
These are some of how you can conduct a fruitful competitive analysis that will help you build a better MVP, decide its price, market it, and manage its distribution channels
Costing is a sensitive subject for most startups. In the preceding years, there were several types of costs. It includes the raw material cost for MVP app development, variable, fixed, and miscellaneous costs. The management is careful regarding their spending. The most prominent ones to put a strain on the business model include:
– IT infrastructure and subscriptions
– Office space, setup cost, and gear
– Admin and legal cost
– Financial advice
– Consulting services cost
– Payables and liabilities
Depending on the capital available and the expenditures, the MVP is often lacking. These are specific considerations for managing the finances and taking care of the MVP. Fund distribution should be optimal because startups often depend entirely on the outcome of their MVP.
Once these preliminary elements settle, the startups begin experimenting with their MVP. The success of MVPs relies strongly on these elements and how they are performed. In the end, customer feedback helps strengthen the product further.