A Step-by-step Process To Build An MVP In 2024

Who wants to spend money on a product only to discover it has no market? If you have a great idea for a product and are confident that it will be successful, it’s better to validate it by developing an MVP. 

The CB insight report shows that one of the reasons most startups fail is not building an MVP and ignoring the market’s needs. Dropbox, Spotify, Amazon, and Twitter are some billion-dollar companies that have built MVPs, tested their business ideas, and become successful today. 

By creating a minimal viable product, you’ll get an idea of the market, which will help you obtain feedback; after gaining confidence, you can invest in full-fledged product development. 

Jeff Bezos started Amazon as an online bookstore. He then found a report stating a boost in e-commerce in the future and started working on the minimum viable product. 

He created a list of the top 20 products that he could sell on the internet, which was narrowed down to five. We all know the story of how it started in the garage and is now the third-largest retailer in the world. 

If you are considering a full-scale product, ask yourself, are you ready to take risks? Isn’t it best to shift gears and choose the safest option? 

In this blog, we will discuss why minimum viable product development is the best approach, the steps to create MVP, its cost, and the challenges you’ll face while developing MVP.

What Is A Minimum Viable Product (MVP) Development?

First, understand a minimum viable product (MVP). An MVP is a version of a new product that includes only the essential features necessary to meet the needs of early adopters. 

The primary goal of MVP development is to validate the product idea with real users, gather feedback, and make informed decisions for the future. 

While considering a minimum viable product development approach, ensure your product doesn’t lack essential features; it should also be viable. 

Therefore, this approach can significantly benefit startups and businesses exploring new ideas. Focusing on essential features can reduce costs and risk while enabling faster market entry and user feedback.  

In the current market trend, you can create an MVP by harnessing the power of AI and ML. This approach is a game changer as it can quickly adapt to the market and align with the business goals. 

So, why only the MVP approach?

There are several reasons why companies should opt for minimum viable products. There are no single reasons, but many:

• When you have a new product idea related to app ideas or website ideas, you want to validate your idea before committing significant resources. 
• You have a budget and time constraint and want to check before investing in a full-fledged product. 
• When you want to launch a product but need to familiarize yourself with the market or target audience, gather insights and data on user preferences.
• You want to pitch to investors and gain investment by presenting MVP. 

With this being said, let’s discuss why businesses should invest in minimum viable product development in the next section.

“The term product/market fit describes ‘the moment when a startup finally finds a widespread set of customers that resonate with its product.” Eric Ries

Why Should Businesses Invest In Minimum Viable Product Development?

The main purpose of a minimum viable product is to test the core product idea with minimal resources, gathering feedback from early users to validate assumptions and include it in future iterations. This development strategy is mainly used by startups and new product launches. 

Moreover, MVPs are developed and launched quickly, enabling businesses to enter the market faster than their competitors. Developing MVPs will not only give a competitive advantage but can also save time and money. 

Let’s understand why businesses need to invest in MVP:

• According to a report, 42% of startups fail because their product is not market fit. Developing an MVP helps validate market demand before it is time to market.
• A report from McKinsey highlights that companies that can bring products to market quickly can capture a larger market share, potentially increasing revenue by 20%.
• Research from UserTesting indicates that 70% of companies prioritizing user experience see improved customer satisfaction and loyalty, emphasizing the importance of early user feedback from MVPs.

According to Salesforce, 80% of customers are more likely to suggest a product if it provides a good user experience. 

These stats validate the importance of MVP development for businesses. However, there are many benefits to building an MVP. Let’s explore them in the next section.

Benefits Of MVP Development For Startups

Startups that invest in developing MVPs are likely to be successful. The amount of research needed to create an MVP is the same as that required for full-fledged product development. 

For startups, investing a considerable amount in the initial stage could be risky, so building an MVP will give them market insights and allow them to validate their product idea.

However, there are several benefits of developing an MVP for startups:

1. Validate Ideas

As discussed, an MVP allows businesses to test their core product idea with minimal resources. By gathering feedback from early users, companies can validate assumptions and confidently move to a full-fledged development process. 

2. Reduce Time to Market

In this fast-paced market, hitting the market first will give you a competitive advantage. Focusing on essential features allows an MVP to be developed and launched quickly, enabling businesses to enter the market faster than competitors.

3. Cost Efficiency

One of the best benefits of an MVP is cost efficacy. You need to develop core features more than you need to build a competitive product. Therefore, creating an MVP minimizes initial investment by avoiding the costs associated with building a full-featured product before understanding market demand.

4. User Feedback

Launching an MVP means catching early adopters who provide valuable insights and feedback. If your product exceeds user needs, users will refer to other users, which helps you grow your user base. And you can refine the product based on real user experiences and needs.

5. Investor attraction

When presenting an MVP, you are not just presenting your idea; you are discussing the potential of your product. In recent years, venture capitalists have increasingly favored startups that demonstrate a clear MVP and user validation, with 70% of investors looking for evidence of product-market fit before investing.

6. Iterative Development

The MVP approach focuses on bringing the most value to the users and team devotees, who are fully dedicated to building the most valuable thing. An MVP supports an iterative approach, allowing teams to make incremental improvements based on user feedback, which leads to a more user-centric final product.

7. Market Fit

Many brands reap the benefits of developing an MVP rather than building a full-scale product. Testing the MVP helps determine whether there is a viable market for the product, facilitating adjustments before a full-scale launch.

8. Risk Mitigation

Most startups fail because they run out of money, so developing an MVP will mitigate many financial and time-related risks. By validating the concept early, businesses can identify potential issues and pivot if necessary, reducing the risk of product failure.

You can leverage these benefits at the early stage of product development, where you can access data and feedback and iterate later in the full-scale development approach.

10 Steps To Build An MVP For Any Business

The MVP development has various stages, each with its challenges. To create a successful MVP, you need to overcome these challenges. Here is the step-by-step process of building MVP for business: 

1. Market Research 

Market research is the most crucial part of the process. Conduct a deep analysis of the market before entering into it. You must find the answers to the following questions: 

• What are the market needs?
• Who is my target audience?
• What is the price level and the rate of return?
• Market risk and loopholes

During this stage, you must cover POC (proof of concept ) to make your idea feasible. This will help you determine how your product will stand out in the competition. 

2. Deciding on the Target Audience

After the above process, you have decided on the target audience. It’s time to break them down into targeted groups. Decide on the groups you want to serve with your product services. Covering the entire population will maximize the risk of failure. 

Factors to determine your target audience:

• Analyze their age, sex, occupation, and living place
• Spending criteria
• Gadgets they use
• How is your product directly solving their issues?

To decide on the target audience, you must deeply analyze those who benefit from your services. By analyzing these factors, you’ll find your average product customers. However, choosing the viable option that will save you from major losses and burnout is better. 

3. Competitor Analysis

Competitor analysis must be done very carefully. You must work continuously until your product provides services to your target audience. Although every product is unique, people come up with new ideas every day, and copying one’s idea is not new. 

Everyone wants to secure their place in the market. What you need to know about your competitors before creating your USP. 

• Competitor product analysis
• Website analysis 
• Social sites pages
• Monitor their media presence 

This will give you an idea of the product’s loopholes, which you can fill while developing your MVP.

4. Creating USP

After deciding on the target audience, you must create your MVP’s USP. Your product should solve pain points or elevate your target groups’ current experiences to a new level. It should answer what your product does, for whom, and why it’s better. 

You can gather feedback from potential users about their challenges and determine how your MVP effectively addresses these issues. Moreover, focuses on emotional and practical benefits and creates a unique value proposition statement. Craft a clear statement that encapsulates your USP. 

5. Deciding MVP Features

Features will decide how successful your MVP will be in the market. So choose them wisely and include the most necessary features. While choosing features, keep ‘M’ and ‘V’ both in mind. Most businesses focus on the minimum but forget to make their product viable, which could create obstacles to MVP success. 

For MVPs, the rule is to choose the minimum features that provide the necessary functionality. Look at the table and select accordingly. 

6. Document your Project Vision 

Discuss all the significant aspects of the MVP while starting the development work, schedule meetings, and define the major principles of your project. This will help you create a blueprint to facilitate the MVP development process. 

Focus on the cost methodology and revise your strategy using reasonable quality time, effort, and funds. Moreover, stick to the key features and use the most resources in their development. Also, collecting client feedback will impact your end product, so collect it beforehand.

Lastly, consider the marketing and promotion aspects that will boost your product. Make sure each of your team is involved in the discussion. 

7. Plan the Work Ahead

It’s time to break down the project into manageable tasks and milestones. This could include phases like research, design, development, testing, and launch phases. Just clearly define the roles and responsibilities of each team member. 

This will ensure accountability and help streamline the development process. Also, set deadlines and establish realistic timelines for each phase and task, helping you to keep the project on track and allowing for adjustments if needed. 

8. Designing MVP 

Understanding the core problem your product solves helps you determine how your MVP will address it effectively. To streamline the process, create a user map or build a User flow diagram. 

Moreover, visualize the product through wireframes or mockups. This helps you understand the user interface and user experience so that users can easily navigate your MVP. For MVP design, you need not make it perfect; just make it simple and intuitive. 

9. Develop and Testing 

In this stage, start developing your MVP; ask your team of developers to begin coding based on the planned tasks. Use agile methodologies to allow for flexibility and iterative progress. Ask them to develop features in small increments, focusing first on the most critical ones so you can quickly release user feedback. 

Integrate testing throughout the development process, including unit tests and integration tests, to ensure components work together. Encourage team members to provide feedback on the product as it develops. This helps identify issues early and fosters collaboration. 

10. Launch Solution and Work Feedback 

After successful development and testing, if you are satisfied with the results, deploy the MVP. Release the minimum viable product to a select group of users, i.e., your decided target audiences. Ensure the deployment process is smooth and users can easily access the product.

Eventually, use analytics tools to track user interactions with the MVP and gather data on user behaviour, engagement, and any issues encountered. 

Conduct surveys, interviews, or direct communication to collect user feedback. Ask about their experience, what they liked, and what could be improved. 

How Much Does It Cost To Build An MVP?

We hope you understand the importance of developing an MVP before investing in full-scale development. Developing an MVP costs less than building a full-scale product, and according to a report, many startups fail because they need more money.

However, there is some cost uncertainty; companies want to understand the cost-related factors before investing in full-scale development.

Depending on various factors, the MVP development could range from $15,000 to $150,000 or more. These factors include the project’s complexity, timeline, development team’s location, and app functionality. 

Let’s understand these factors down below:

• Complexity

Project complexity affects the cost of MVP development. The more complex your project, the higher the cost. 

• Timeline

Timeline is another factor that affects the cost; the complexity of your MVP will accelerate the development timeline, eventually raising the cost. 

• Features and Functionality

Choosing the right set of features and functionality will significantly impact your development cost. However, only necessary features and functionalities are included in MVP, so the cost will be according to them.

• Developer’s location

Another factor that majorly affects the cost is the developer’s location. Developers from Eastern European countries and the USA will charge more than those from Asian countries. 

Note* that these are rough estimates; if you want an accurate price, contact our expert team. They will provide you with a detailed quote according to your project requirements. 

MVP Developing: What Is After?

So, you have successfully created an MVP and achieved a Milestone. Launching an MVP is just the beginning. The real work starts after you’ve released your MVP. Now, you might be wondering what comes after MVP. 

The next phase following MVP is MMP (minimum market product), where MVP works as a testing modal and helps us understand user preferences and needs. 

On the other hand, MMP works as a catalyst in determining whether your idea has the potential to succeed in the market. This step involves gathering user feedback, analyzing product performance, and iterating based on the data. 

MMP is critical for startups as it helps them determine the product’s feasibility and longevity. 

MMP Approach

MMP must cater to the market demand, offering sufficient value to the target customers and helping you retain early customers. Let’s understand the vital aspect of the MMP:

• After gaining the feedback from the MVP, MMP should have some bugs and errors and need to be polished to enhance its quality. 
• MMP stability and performance are critical to prevent early adopters from turning away.
• It should meet the legal and compliance standards to gain a target audience. 
• MMP should be marketed in such a way that it resonates with the target audience. 
• This approach will help you establish a viable, market-ready product that contributes to short-term ROI and the groundwork for future growth.

You can achieve all of this by partnering with an experienced development company that can understand valuable insights and make meaningful changes to your product accordingly. They can also contribute to your MVP so that it resonates with your target market.

Common MVP Development Challenges and Their Solutions

Creating an MVP is crucial for newly founded startups, but many founders face several challenges during development. To build a successful MVP, one must overcome these challenges. Let’s understand some of the common challenges and their solutions.  

1. Lack of Understanding 

Teams may struggle to define the core problem of the MVP addresses, leading to feature bloat or misalignment with user needs. 

To overcome this, thorough market research and user interviews should be conducted to identify user pain points clearly. Establish a concise vision statement that guides development. 

2. Feature Creep 

The temptation to add unnecessary features can dilute the MVP’s focus and delay the launch. So, it’s essential to conduct market research and identify the core features in your MVP. 

Just stick to the core features identified during the planning phase. Use a prioritization framework to categorize features as must-have, should-have, and could-have. 

3. Insufficient User Feedback 

Sometimes, MVPs fail to gather meaningful user feedback, which can result in a product that does not meet market needs. 

Implement a robust feedback mechanism post-launch, such as surveys, interviews, and analytics, that continuously engages users to understand their experiences. 

4. Technical Challenges

Sometimes, unexpected technical issues can arise during development, leading to delays and increased costs.

To overcome this situation, you can choose a technology stack the team is familiar with and ensure proper testing throughout development. 

5. Time Management 

Due to the above factors, teams may struggle to meet the deadline due to unforeseen complications or scope changes. 

Setting realistic timelines with buffer periods for unexpected issues allows you to use project management tools to track progress and maintain accountability. 

6. Resource Constraints

Most of the startups fail due to budget constraints. Limited budget or personnel can hinder the development process.

Focus on essential features and consider outsourcing specific tasks if needed by prioritizing tasks that deliver the highest value within resource constraints.

What Are Some Successful Products After MVP Development?

As we have discussed, MVP is the best approach for validating an idea. Several companies have benefited from this approach. 

We have created a list of famous brands that have started their journey with minimum viable products.

1. Facebook

Launched in 2004 by Mark Zuckerberg while he was a student at Harvard University, Facebook began as “Facebook,” a social networking site for Harvard students. The initial MVP allowed users to create profiles, upload photos, and connect with friends.

Current Position:

Facebook has grown into one of the largest social media platforms globally, with billions of users. Its features have expanded significantly, including messaging, groups, events, and marketplace functionalities. Now part of Meta Platforms, Inc., Facebook continues to evolve with a focus on virtual reality and the metaverse.

2. Zappos

Founded in 1999 by Nick Swinmurn, Zappos started as an online shoe retailer. The MVP was a simple website that showcased shoes from local stores. Swinmurn would take pictures of the boots, list them online, and only purchase them from the store after receiving an order.

Current Position:

Zappos has become a leading online retailer known for its exceptional customer service and vast selection of shoes and apparel. Acquired by Amazon in 2009, Zappos continues to operate independently while maintaining its unique company culture and customer-centric approach.

3. Uber

Launched in 2010 by Garrett Camp and Travis Kalanick, Uber began as “UberCab,” an MVP that allowed users to request a ride from a black car service via a mobile app in San Francisco. The initial focus was on luxury car services to gauge market interest.

Current Position:

Uber has transformed into a global transportation network, offering various services, including ridesharing, food delivery (Uber Eats), and freight logistics. It operates in numerous countries and continues to innovate with features like self-driving cars and air taxis.

4. Turo

Founded in 2010 as “RelayRides” by Shelby Clark, Turo started as a peer-to-peer car-sharing platform that allowed individuals to rent out their vehicles. The MVP focused on connecting car owners with renters in local markets.

Current Position:

Turo has grown significantly, rebranding itself and expanding its services to include many vehicles. It operates in multiple countries, allowing users to rent cars directly from other individuals. Turo has established itself as a significant player in the car-sharing industry.

5. Dropbox

Launched in 2007 by Drew Houston and Arash Ferdowsi, Dropbox began as a simple file-sharing service. The MVP was an essential product that allowed users to store and share files in the cloud. Before developing the product, the founders initially tested the concept with a demo video that garnered significant interest.

Current Position:

Dropbox has evolved into a comprehensive cloud storage and collaboration platform, offering tools for file sharing, document collaboration, and project management. It serves millions of users and businesses worldwide, continually adding features to enhance productivity and collaboration.

How Can EmizenTech Help To Build MVP For Your Product?

The CB insight market report states that 9 out of 10 startups fail, and there are several reasons behind this failure. Whether you are starting mobile or website development, it’s better to validate your idea for this; you need to invest in an MVP.

However, building a successful MVP is not easy, but it is worth investing in, and finding the right partner to start your MVP is crucial to making it successful. 

EmizenTech is a top- notch software development company that can play a pivotal role in helping startups build a minimum viable product (MVP) by leveraging advanced technology and product development expertise.

For startups, developing a well-crafted MVP is crucial for testing and marketing ideas with minimal investment. Our experienced team guides founders through each stage of the MVP development process. 

By partnering with us, startups can benefit from a streamlined development process, reduced time to market, and a solid foundation for scaling their product. 

Conclusion

Developing an MVP is the best approach currently because the market is competitive, and validating your idea before investing in mobile app development could be risky. This approach encourages iterative development, allowing teams to learn from honest user feedback and make informed decisions about future enhancements. 

Due to technological advancement and consumer preferences, the importance of agility and responsiveness cannot be overstated. Therefore, a well-executed MVP will save time and lay the foundation for building a successful and scalable business. 

It provides competitive benefits for startups, immediately meets users’ needs, and drives sustainable growth in a competitive market. 

Frequently Asked Questions