Startup ABC #2: MVP
MVP - Minimum Viable Product
In the startup world there are countless abbreviations. One you've probably come across before is MVP. What MVP stands for and what is behind it, you can find out in the following article in our blog series "Startup ABC".
What does MVP stand for?
MVP is short for Minimum Viable Product. However, this does not mean that it is short-lived junk. Rather, the MVP is the first realization of your product idea, with which you can test whether there is a market for your product idea at all and what requirements potential users of your product have for it. The MVP helps you to avoid investing a lot of time and money in the development of a perfect product that in the end nobody needs or wants. It is important that the MVP already has the core functions of the final product, because this is the only way to find out whether the product ultimately meets user needs or not.
So is MVP just another term for prototype?
No, MVP and prototype are not the same thing. A prototype is an early version of the final product, is usually only used for internal development purposes and does not reach the end customer. Also, a prototype doesn't have to have all the core features of the final product yet or actually work. It is sufficient if it illustrates how it works and the individual functions can be integrated one by one from version to version. The MVP, on the other hand, is aimed directly at the end user and is discarded or modified based on feedback from the end user. Also, as already written, it must already have all the core features of the final product and actually work.
What is the benefit of an MVP?
In addition to the advantages already mentioned regarding development time and costs, the use of an MVP can help to assess the chances of success of a product at an early stage through early and continuous user feedback and ultimately to launch a product that is ideally suited to the needs of the end customers. The rapid release of a product that is not yet fully designed but already covers the desired core functions of a user can also generate initial revenues. And an MVP can also be important for attracting investors. Convincing investors is much easier when they can see that the product already works and only needs to be improved and embellished.
If you have any questions about MVPs and product development, feel free to contact us directly for a consultation.