What is MVP development? How to create a successful profit-generating MVP!

You will be shocked, but you have got to know this!

10% of startups fail in the first year itself & 70% in their  2-5 years. And the number one reason among the 42% of startups who fail is because — they fail to interpret the market demand.  

Here’s where MVP - a Minimum Viable Product can help you save your startup from big losses by correctly assessing the market demand & paving a path to a successful business venture.

In this article, we will help you understand how to reduce your risk of failing with an on-point tactical product launch through — MVP. Moreover, we will even provide a detailed guide on developing a startup based on MVP. Complimenting it, we will provide the cost of developing an MVP. 

Stay with us till the end. 

Now to answer the big question - what exactly is MVP, and how can you leverage it for your startup product? 

What is MVP? 

MVP is a combination of three words - Minimum-Viable-Product. And as the name suggests, your app based on the MVP approach will be a product based on minimum things, but it would still be viable, meaning one capable of working successfully. 

Didn’t understand it yet? 

In simple words, MVP is the simplistic version of your app, yet a powerful one. It is the 1.0 version of your app, with minimum features, only the super-important ones. 

Let us explain to you through an example:

Building an MVP is like introducing a train, let’s say, from Cliffs of Moher to Killarney, with 5 compartments and one engine. And as the train runs back and forth and the demand increases, the concerned authorities in regards to the market demand add more compartments like the first-class, sleeper coach, luggage compartment, etc. and some alterations are also made in stops in between & further alterations are taken into consideration. 

So this is MVP, which helps in correctly assessing what your customer wants & making changes accordingly. 

To sum up MVP in a few words, Former Twitter CEO & Co-founder rightly said, “Make every detail perfect and limit the number of details to perfect.”

Benefits of developing an MVP

MVP is a great way to make powerful decisions when you are starting out. Here's how an MVP can contribute to the growth of your business.

1. Reduce the risk of failure

2. Get customer feedback in the initial stage itself 

3. Helps you collect feedback from genuine users 

4. Cost-efficient solution - Comparatively less app development cost 

5. Reduce the risk of failure 

6. Quicker launch - less time to market 

7. Get a good understanding of the market

8. Only add features that customers want 

9. Offer a fully-proof functional product to investors

10. Early revenue generation 

11. Acquire a competitive advantage over your customers 

12. Continuously improve your app 

Time to know brands that have tried and tested the MVP approach, leveraged the benefits of an MVP app and are standing the test of time. 

Some classic examples of startups develop through MVP

1. Spotify

Spotify, the most famous music streaming platform, which now hosts 517.69 million people, once was just a landing page - with one unique feature – one could listen to any music without downloading! In 2006, this was something relatively new, and since then, there has been no turning back. Fast-forwarding to 2023, they are the leading music streaming platform, and from songs to podcasts to audiobooks, everything is available on Spotify, the favourite music streaming platform for millions.

2. Airbnb

The year was 2007; the Idsa design conference was going to happen in San Francisco; founders - Brian Chesky, Nathan Blecharczyk, and Joe Gebbia realised that hotels were running out of rooms & attendees were left with nowhere to stay.  They came up with a brilliant idea to rent their own rental accommodation to get some cash flowing in. What they did next was … amazing! They simply put their apartment’s pictures on their one-page website and ended up with 3 paying customers. And guess what? They realised they had tapped into a territory that could make a great business. And this is how Airbnb, Air Bread and Breakfast or the hospitality giant started. 

3. Facebook

Yes, Facebook, now Meta also comes from the MVP group. Founded with a vision by Harvard students to help Harvard students connect, Facebook went beyond the walls of Harvard and today has become a brand name in itself. It had nothing that it has today - no newsfeed, no photo sharing, no messaging app, no status, no check-ins & checkouts, just a universal Harvard University directory that required one to log in with their email, that’s all. Today, Facebook is one of the top social media applications and even has many other apps under its name. Just to tell its success in figures, Facebook's annual revenue is now a whopping $116.6 Billion. From ‘TheFacebook’ in 2004 to ‘Facebook’ in 2005, the rest, they say, is history. 

Each of these startup ventures started small, started with a problem they could resolve, went into running waters, flowed with the current, understood their customers, took the upheavals in their stride and consequently, could catch hold of the market, grew big and made a name for themselves. 

Now, let’s look at the process of creating a Minimum Viable Product. 

How to create an MVP - complete process 

1. Define what problem you are solving 

Focusing on your startup idea is good, but if your startup doesn’t solve your user's problem, then that is not good. As a startup owner, you must take steps towards solving a problem the masses face. 

Take the example of Uber. They identified the need for convenient and on-the-go transportation services. They created a platform connecting drivers and riders and made it easier for all commuters to get a ride with just a few taps on the user's smartphone.

Start by identifying a problem your target audience faces and ensure that your MVP app’s features revolve around fixing that problem since you must build a product your users need rather than a product you want.

Moreover, if you solve the right problem, the app is sure to hit the right chords.

2. Early market research

Remember, MVP is an app based on minimum features, so to launch your app with minimum features, you need the chosen-few rock-hard parts that will work. And that’s why you need solid market research to back your app to the fullest. 

Do early market research — analyse your competitors, gather insights about your target audience, and consider your customers’ pain points, preferences, needs, etc. Your aim should be to understand your target market and be well acquainted with what works and what doesn’t. 

Primarily, early market research will help you find the gaps, make better decisions and get good possible ways of improving users’ problems. Because, in the end, the market decides what will work and what won’t. 

3. Select your features

Based on the market insights you have gained, you should choose the features you want in your app. Prior to moving forward, outline all the feature you aim to integrate into your application. Then segregate it based on the ones you need and wish to have, and select features that will be most relevant to your users. And, oh yes, one of your primary features should be your USP - your USP - Unique Selling Proposition because that will pave your path to victory on your side. 
An important point to note is that the features you select here will form a ground for all future iterations & will lead your app to either succeed or fail in the market and make wise decisions. 

You can also consult your MVP app development company, their experience & expertise in developing mobile apps will surely be helpful for you to make the right choices.  

Try listing the features on paper, as it will help you gain clarity. 

4. Create your MVP

Since you now have a solid understanding of an MVP, the next step is its actual creation.

Developing an MVP is the same as developing a full-fledged app; it is just that the features would be less in MVP. 

It will include all the steps of creating an app - wireframing > prototyping > designing > coding & programming > testing & launching. In this stage, your MVP must be developed by a skilled workforce. Because in the end, if your product is low performing despite all your efforts, it will not reap any results. 

Ask your mobile app development to focus on your prime feature and create an app that looks great and works great.

5. Launch, take in the feedback, and constantly iterate 

Here we come to the most crucial part of building a Minimum Viable Product — launching it in the market and validating your idea. 

Once you have launched the first version of your app - your MVP, it's time to take feedback from your early users, like what they think, is your startup is solving their problem or not, which features to add, what suggestions they have, how can the product be made better - any suggestions, etc. 

Receiving feedback from your customers is an essential step in creating an MVP; it opens the door for further changes in your idea & helps you build a product that is market fit. 

It is noteworthy to note that you should maximise the feedback you receive and constantly update your MVP. However, strategically plan your updates while seeking guidance from your app development company.

Now let’s come to the big question - What is the price associated with developing an MVP for your startup? 

What is the cost of developing an MVP?

Don’t worry. The cost of developing an MVP is not that much, at least not that much of creating a full-fledged mobile app solution. 

The cost of developing an MVP app ranges from €5000 to €50,000. Many things like your app design, the idea’s complexity, and the number of features and functionality will help you determine the exact cost of building an app. 

Your MVP app development cost will also vary based on the means you use to develop your Minimum Viable Product. Are you creating an MVP with an in-house team or outsourcing it to an experienced Minimum Viable App Development company? Or are you going for experienced individuals like freelance app developers and designers? 

Ascertain the answers to these questions first because the cost of each of them varies extensively. 

For instance, the expense could be lower if you opt to create your MVP app with freelance professionals. And contradictorily, the cost will be high if you look forward to an in-house team with highly skilled designers, strategists, developers, marketers, etc. So look around, explore your cost section and choose an MVP partner that is in sync with your budget and your vision too. 

To wrap up, 

We trust that this comprehensive guide will assist you in crafting an exceptional MVP product for your startup. MVP is just the 1.0 version; what will follow after you launch your app is your journey ahead to make a name for yourself.  But though, it’s a 1.0 version of your app, it holds tremendous potential and lets you indeed find your market fit, and yes, all at low cost. 

With our 7+ years of experience, Square Root Solutions can help you create an MVP solution that fits the bill & sets the correct base for your success. And as we assert, we are there for you from planning to launch and beyond, being with you from start to end. 

Moreover, we have a special team of experts dedicated to startups, so that would be a win-win. Think about it, or if you want to consult our experts today, connect with us now. We are happy to serve ambitious people like you. 

FAQs

• How can we check the success of our MVP? 

 There can be different parameters to check the success of your MVP. For some, it might be having many customers on board. For some, it might be a specific number of downloads; for others, it might be to generate a higher Return on Investments (ROI). Find out and define what’s your parameter to test the success of your MVP early on and make decisions accordingly. All-in-all, we believe you will surely get a gut feeling if your MVP is triumphing! Happy MVP app development! :)