Why and How Should Startups Build MVP Development? (2024)

Back in 2007, Joe Gebbia and Brian Chesky were struggling to pay rent in San Francisco. They spotted an opportunity to rent out their air mattress space to design conference attendees. They quickly put together a simple website featuring photos of their apartment, a description of the "air bed and breakfast" experience, and a contact form.

Guess what happened next? Three guests booked! This basic MVP not only validated their idea but also helped them refine it based on guest feedback. Fast forward a few years, and they had built Airbnb, the world's largest accommodation platform.

For startups, creating an MVP is one way to quickly and cheaply validate your assumptions about your business idea. This article will guide you through the fundamentals of MVPs, the reasons for building one, and a five-step process of a successful MVP development for startups.

Let's start.

What Is a Minimum Viable Product (MVP)? 

Minimum Viable Product (MVP) development is a strategic approach in product development where startups launch a product with just the essential features to meet early adopters needs. 

There are three main points of this concept that should be cleared from the start:

• Minimum: Only include the core features needed to solve one key problem. Avoid extra details and distractions.
• Viable: Make sure the solution works well for your target audience. It should effectively address their main issue to be considered viable.
• Product: It’s tangible (self-explanatory), and can be built and launched quickly.

Why Should Startups Build MVPs? 

The core goal of developing an MVP is to:

• Validate your concept 🎯
• Gather user feedback 
• Engage early adopters 
• Fine-tune your product for a better market fit. 

Skipping the MVP stage might seem tempting, especially if you're completely confident in your business idea. 

However, building a "test run" version of your product is crucial, even if you believe your concept will undoubtedly succeed in the market.

In the business game, you’re creating this product for your customers and aiming to solve THEIR problems. Their feedback can uncover insights and opportunities for improvement that you might not have considered. Without an MVP, you risk missing out on critical insights that could make or break your product.

Not to mention, investing heavily in a product without validating its market need through user feedback can lead to a huge waste of resources. You may end up with a product that doesn't fully meet user needs or fails to find a market fit. 

This is why developing an MVP is vital for startups. It ensures your product has a real demand, aligns with customer expectations and stands a better chance of succeeding in the market.

How To Plan a Minimum Viable Product (MVP) Development?

To achieve the best out of MVP development for startups, you’d need to define your pre-launch goals. The best way to do this is to stick to the value and purpose of an MVP. Allow us to explain:

1. Constrain the timeframe

MVPs are designed to be built and launched quickly, typically within six months or even weeks for low-fidelity versions like landing pages.

What you’re doing here is a test version, not the full-developed product that requires long-term commitment. Therefore, the goal is to validate your idea quickly without long-term commitment initially. Avoid getting caught up in adding too many features, which can delay the launch. 

2. Satisfy early adopters 

Early adopters are used to trying imperfect products, so initial flaws won’t bother them. What they value the most is a product that addresses their key needs and offers a practical solution.

In short, your MVP should meet the needs of early adopters and solve their main problem effectively. These users provide crucial feedback and can become your product's first advocates.

3. Scope of work

Keep your MVP lean and focused on the key features that solve the core problem, don’t waste resources too much. 

After launching your MVP, engage with your customers to gather their feedback. Understand what they like and what causes them frustration. This feedback is invaluable for refining and improving your product.

How To Build an MVP in 5 Steps? 

Developing a Minimum Viable Product (MVP) involves several key stages, each designed to ensure that your product effectively meets market needs and can evolve based on real user feedback. 

Here’s a breakdown of these crucial stages:

Step 1:  Understand Your Audience and Market

To begin, it's crucial to pinpoint who your product is meant for by conducting thorough market research. This will help you grasp the demographics, behaviors, and pain points of your potential users. 

Developing detailed user personas will further ensure your product is tailored to their specific needs effectively.

Step 2: Pinpoint the Problem to Solve

Clearly define that one main issue your product aims to tackle. Understand the challenges faced by your audience and identify the specific problem your MVP will address. This clarity ensures your MVP has a focused purpose and provides real value.

Step 3: Determine Key Features

With the problem identified, create a list of potential features and prioritize them based on their importance and impact. For example, your MVP is a task management tool, then you need features including: 

• Task creation and editing
• Due dates and reminders
• Basic user profile

Step 4: Develop Your MVP

Create a simple version of your product with the core features you’ve defined. You can build it yourself or hire a professional team to carry out the development. Ensure your MVP is:

• Simple and Functional: Include only the core features necessary to solve the main problem.
• User-Friendly: Ensure an intuitive and seamless user experience.
• Scalable: Build a foundation that allows for future iterations and enhancements.

Step 5: Test with Real Users

Once your MVP is ready, the next step is to launch it to a small group of early users. It's important to gather feedback through surveys, interviews, and usage analytics. 

Taking in their critics allows you to learn what works well and what may be improved. This ongoing process will help your MVP grow and better meet user needs and market demands.

Michael Seibel’s insightful sharing on “How to build an MVP” can also give you an overall view on the process:

Misconceptions About MVP Development (That Every Startup Should Be Aware)

“It’s supposed to be perfect on the first release” 

One major misconception is that your MVP needs to be flawless right from the start. 

The truth is, an MVP is meant to be a starting point – a way to test your idea and learn from real user feedback. It’s perfectly fine if your first release isn’t perfect. The goal is to identify what works, what doesn’t, and make improvements. Perfection comes later, through iteration and refinement.

“Customers won’t be willing to use my product anymore” 

Many founders fear that releasing an MVP might turn away potential customers forever. However, early adopters understand that an MVP is a work in progress. They are usually more forgiving and excited to be part of the development journey. 

As long as you communicate clearly and show that you’re actively improving the product, you’ll retain and even grow your user base.

“The MVP failed, does that mean my business idea is bad and I should quit?” 

If your MVP doesn’t meet expectations, it doesn’t necessarily mean your business idea is doomed. Failure is a crucial part of the MVP process. It provides valuable insights into what needs to change. 

Use the feedback and data to pivot, tweak your idea, and try again! Many successful businesses faced initial setbacks but used them as learning opportunities to ultimately succeed.

Lay down the first brick of your MVP venture today! 

MVP development for startups is about making smart, focused efforts. Understand your audience and zero in on solving their core problem. Launch quickly to gather real feedback, and don't stress about perfection; focus on progress. 

Early adopters will be your guide, so listen carefully to their input. Avoid overcomplicating things and stay flexible as you keep refining your product. This lean and adaptable approach lays a strong foundation for long-term success with a product that truly resonates with users.

However, every MVP venture needs a solid baseline. With Golden Owl’s all-star POC service, never feel lost in doubts and uncertainties again. 

Build up confidence in your business idea through a consultation with our expert tech team, and take a look into the future with intuitive wireframe and UX/UI design. Contact us today and take a giant leap toward achieving your goals with an investor-ready Proof of Concept!

Startup FAQs on MVP Development 

Q1. How much does it cost to build an MVP?

The cost of building an MVP typically ranges from $10,000 to $50,000 (can be less based on the type of MVP), depending on the complexity, features, and development team's rates. More complex projects may cost more.

Q2. How long should it take to build an MVP?

Building an MVP usually takes around a few weeks to a maximum of 6 months, depending on the project's scope and complexity. Focusing on core functionalities and using agile practices can speed up the process.

Q3. What makes a good MVP?

A good MVP:

• Solves a Core Problem: Addresses a specific issue for your target audience.
• User-Centric: Easy to use and meets user needs.
• Simple and Focused: Includes only essential features.
• Scalable: Can be built upon with future iterations.
• Feedback-Driven: Designed to gather user insights.
• Market-Ready: Ready for launch to validate the concept and gather feedback.