The journey from an idea to a successful startup is filled with obstacles. And some of the biggest roadblocks for most of them are getting startup funding. You and your investors need to know whether your startup idea will work in the market. But how will you know before launching your startup?
What is an MVP?
A Minimum Viable Product (MVP) is the answer to all your troubles! And, what is an MVP? If your startup were a movie, then the Minimum Viable Product would be like the movie’s trailer. It tells us what the film is about, and we can build an estimate about the movie. Moreover, looking at the trailer tells us whether it is the kind of movie that we will enjoy.
So, MVP is the most basic working model for your idea. For example, if you are building an app, then it can be the beta version of your app that shows all the key features that make it unique. Or, if you are creating a product, then the MVP can be the prototype of that model.
Now the question arises, why do you need to build an MVP first? Why can’t you just launch your startup and then figure out the rest? Well, here’s why.
Building trust for yourself in the market is very crucial for launching your startup and ensuring its success. When you pitch yourself for startup funding in front of the investors, one of the most important factors that sway the decision is that the investors trust you.
Instead of going in with empty promises, when you reach out with an MVP, the investors find it easy to trust you. And since they can already see a product in front of themselves, it is easier for them to invest in something they can actually see and experience rather than trusting someone that doesn’t exist.
Helps in analyzing market-fit
Before you launch your product in the market, it is good to know beforehand whether there is an actual need for it in the market. If you have a minimum viable product, then it helps in surveys to actually see the product and then review it. It also helps investors recognize how it works, whether it fits in the current market, and whether they should invest.
Gives an understanding of the business model
When you make a pitch for your startup idea, there are limitations to how much you can explain something on paper or through a presentation. An actual working model goes a long way in having a compelling pitch.
What would you prefer? Someone is explaining their product on slides after slides of a PPT or if someone actually presents the product along with the PPT. Many of us would choose the latter because we truly understand the product well.
So, these were some of the advantages of building an MVP for your product. If you want to launch your idea, a minimum viable product helps you greatly, from raising funds to market research and even more.