The main goal of MVP is to test the demand for the product and the viability of the idea in practice, as well as to confirm that the direction of work is correct. But this tool also helps in other matters:
- Saves resources, reduces time and effort for product creation and testing.
- Allows you to receive feedback from the market, identify unaccounted for audience needs, analyze points of contact with them and subsequently adjust your strategy.
- Reduces risks, protects against obviously unsuccessful ideas.
- Provides preliminary information about the product’s business metrics , including customer acquisition cost and conversion at different stages of the sales funnel.
- It helps to attract investors, because it is easier to get money for an existing product than for a hypothesis.
- Reduces the cost of developing the final product by eliminating unnecessary functions, which means you don’t have to spend extra.
- Helps build an initial customer base before a large-scale launch.
In some cases
MVP also allows you to quickly enter the market, open a gambling data usa business and get ahead of competitors who are developing a similar product, but with full functionality. If the countdown is in months, then MVP will give you an advantage in this competitive struggle.
When to Use MVP
According to Forbes statistics , 92% of startups close and learn how knowing the types of products can help you with your marketing strategies only 8% remain on the market. The main reasons for this were identified by the research agency CB Insights . Thus, in 35% of cases, startups fail due to low demand for the product, and in 19% – due to errors in the business model.
Sometimes an idea seems brilliant, and the founders of the company have an inner feeling that everything will work out – and the work begins with global anhui mobile phone number list plans. But later, in reality, it turns out that the model is raw, unfinished, or even wrong. It is worth knowing about this before starting large-scale development and before you have attracted investments and decided to spend a significant amount on the project.