SHARE
Starting a new business or launching a product can feel overwhelming, especially when you’re unsure if people will actually want what you’re offering. That’s where a Minimum Viable Product (MVP) comes in handy. Think of it as a simple version of your product that focuses on just the core features—enough to solve a problem for early users while you figure out what works and what doesn’t.
Here’s the deal: 42% of startups fail because there’s no real market need for what they’re building (according to CB Insights). That’s almost half! By starting with an MVP, you can avoid wasting time and money on features nobody wants. Instead, you’ll get feedback early and adjust your product to meet real customer needs, without the unnecessary guesswork.
In this article, we’ll break down what an MVP is and walk you through the steps to create one, so you can launch smarter, not harder.
A Minimum Viable Product (MVP) is basically the simplest version of your product that still solves a real problem for your users. It’s not fancy, and it doesn’t have all the bells and whistles, but it’s good enough to launch and get feedback from real customers. The point is to get your idea out into the world quickly without spending too much time or money upfront.
With an MVP, you focus on the most important features that people need and then see how they respond. It helps you figure out if your idea actually works before you invest a ton of resources into it. Think of it like a “test run” for your product—if people like it, you can build on it; if not, you can make changes based on what you’ve learned. Big companies like Airbnb and Dropbox started this way, and it worked out pretty well for them!
For pre-seed startups, MVP development is basically your best friend. At this early stage, you don’t have tons of money or time to waste, so you need to keep things simple and focused. An MVP is the most basic version of your product that solves a problem for your target audience, just enough to show people what you’re building.
The point of an MVP at this stage is twofold:
At this stage, your MVP doesn’t need to be perfect. It just needs to work well enough to give you valuable insights and prove that your idea is worth pursuing.
Building an MVP is super important, especially when you’re starting out. Here’s why:
First, it helps you test your idea early. Instead of spending a ton of time and money building a full product, an MVP lets you see if people actually want what you’re offering. You’ll quickly find out if your idea has potential or if it needs some adjustments.
It also helps you save time and money. By focusing only on the basic features, you avoid wasting effort on things that might not matter. This way, you can launch faster and spend less money—crucial when you’re just getting started.
Plus, an MVP gives you the chance to get real feedback from actual users. This feedback helps you figure out what’s working and what’s not, so you can make improvements based on what people actually need, instead of guessing.
Having an MVP can also attract investors. It shows them you’re serious and that your idea has potential. Investors are more likely to get on board when they can see and use even a basic version of your product.
Finally, an MVP allows you to make changes faster. If something isn’t working, you can tweak it quickly without the headache of reworking a fully finished product.
Creating a successful Minimum Viable Product (MVP) involves a few important elements that can really make a difference:
Start by figuring out the specific problem your product is meant to solve. Understanding what your target audience struggles with will help you create features that genuinely address their needs.
Keep it simple by focusing on the essential features that deliver the main value of your product. These should be the things that directly solve the problem you’ve identified, without any extra fluff. The goal is to make something functional and straightforward.
Even with just a few features, the design should be easy to use and intuitive. A good user experience is crucial for getting people to use your product and provide feedback.
Make it easy for users to give you feedback. Whether it’s through surveys, direct interviews, or options within the app, gathering insights from users is key to understanding how they feel about your product.
Once your MVP is out there, be prepared to test it and make adjustments based on user feedback. The more you learn from your users, the better your product will become.
Do some homework on the product market fit before diving in. Understanding your competition and what makes your product unique can guide your development and help you stand out.
Decide on what success looks like for your MVP. This could be user engagement, how many people sign up, or how satisfied users are. Tracking these metrics will help you see if you’re heading in the right direction.
While your MVP should be minimal, think ahead about how it can grow. Design your product in a way that makes it easy to add features or improvements later on.
Starting to build an MVP can feel overwhelming, but breaking it down into manageable steps can make the process easier. Here’s how to get started:
First, figure out the specific problem you want to solve. Talk to potential users, do some surveys, or just have conversations to really understand what they’re struggling with. Make sure you’re addressing a real need.
Know who you’re building for. Create profiles of your ideal users, outlining their characteristics, behaviors, and needs. This will help you tailor your MVP to meet their expectations.
Make a list of the must-have features your MVP needs. Focus on what delivers the most value to users. Try to keep it simple—avoid adding unnecessary features at this point.
Sketch out how users will interact with your MVP. You don’t need fancy design tools; just draw some rough wireframes to visualize the layout and flow. This helps you see how everything fits together.
Now it’s time to start building! If you have the skills, you can do it yourself, or you might want to hire some developers. Focus on getting those core features up and running first.
After building your MVP, get it in front of actual users. Pay attention to how they interact with it and gather their feedback. This step is super important for understanding what’s working and what isn’t.
Use the feedback you get to make improvements. This could mean tweaking features, fixing bugs, or even adding new ones based on what users suggest. Keep refining your MVP until it really meets their needs.
Once you’re happy with your MVP, it’s time to launch! Share it with your target audience through social media, emails, or other channels. Let people know it’s available and encourage them to give it a try.
After launching, keep an eye on how your MVP is doing. Look at user engagement and feedback to see if it’s hitting the mark. Use this information to guide future updates and improvements.
As you gather more insights, think about how to scale your product. Consider what features to add next and how to enhance the user experience based on what you’ve learned.
Here are some relatable examples of Minimum Viable Products (MVPs) that show how companies tested their ideas before going all in:
Instead of launching the full product right away, Dropbox created a simple explainer video that showcased how their file-sharing service would work. This video attracted a lot of attention and helped them gauge interest. The positive response validated their idea and motivated them to develop the actual software.
Airbnb started out by renting out air mattresses in their apartment during a conference in San Francisco. They set up a basic website for this and used it to see if people would be interested in paying for a room in someone’s home. The success of this simple setup encouraged them to create the full platform we know today.
Before building a complete online shoe store, Zappos’ founder took pictures of shoes from local stores and posted them online. When customers placed orders, he would buy the shoes and ship them out. This way, he tested whether people were actually willing to buy shoes online without investing heavily in inventory.
Buffer began with a straightforward landing page that explained what their social media scheduling tool would do. They collected email sign-ups to see if people were interested. The number of sign-ups gave them the confidence to go ahead and build the actual product.
Initially, Facebook was just for Harvard students and went by the name “TheFacebook.” The founders launched it to test the idea of connecting college students online. By starting small, they were able to refine features based on user feedback before expanding to other universities.
In wrapping things up, creating a Minimum Viable Product (MVP) is an essential step for any startup wanting to test their business idea without diving in headfirst. By concentrating on the core features and getting feedback from real users, you can save time and money while ensuring your product actually meets what people need.
The aim isn’t to have everything perfect from the get-go; it’s about learning from your users and validating your assumptions. The insights you gather during this phase will be super valuable as you refine your offering and gear up for a full launch.
Think of the MVP approach as a way to build confidence in your idea and lay a solid foundation for your startup’s growth. With the right mindset and a willingness to adapt, you’ll be on the right path to creating a product that really connects with your audience. Keep it simple, listen to your users, and let their feedback guide you as you move forward.
To gain a deeper understanding of the VC investing landscape, check out Eximius’ investment thesis today.
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
