Developing a Minimum Viable Product: Expert Guide

The idea of MVP came about when a young boy decided to open his own online business. It was a pretty basic business model, just a simple startup. He did not conduct much market research or try to understand the customer's needs.

This worked as a trial business model, a simple buy and sell, but it kicked off for him. Although the profits weren't too high initially, it was a good model he further developed.

Today the work is much easier for startups, thanks to Xpeer. With Xpeer, you can quickly find a partner to help you market your products and business ideas before going all-in with your investment. Xpeer connects you with the best fit partner for your products and business.

What is MVP?

MVP or Minimum Viable Product is a test to see if the initial business calculations hold true in the actual market. It is to see if the market responds to the offering and gauge demand for the software or product at minimal costs.

All kinds of business plans, product ideas, and services can be put to the MVP test so businesses can design the right model and plan for the future.

The software comes with features to test the main business idea. Then the market feedback is incorporated into it to give the businesses a final, tested plan to work on.

MVP holds actual value for companies with limited budgets and investments. It gives them a chance to work through the loopholes and issues before investing and launching it in the market.

Why is MVP Development Important?

MVP is typically important for small businesses or entrepreneurs. Since they are just starting with their business, they often do not have enough to invest in test marketing. MVP allows them to test the waters before they go with the complete and final launch.

It helps:

• Businesses to save up on costs and investment in the wrong product ideas.

• MVP enables you to get end-user feedback and suggestions at the lowest costs. It keeps your business repute intact as well.

• Allows businesses to tweak product changes based on what the market actually demands and wants.

• Enables businesses to enter the market with the idea first or at least before the competitors.

• It gives you a startup model for enabling focus groups or target audiences to freely discuss and get clarity on how the business will help them.

What Does MVP Development Include?

You can understand MVP development based on its definition. There are two parts of the basic term MVP:

1. Minimum

It only includes the important aspects; there's no extra information or useless feedback in MVP. So there is less wastage of time and resources, which helps the business focus on what's important without filtering out the unneeded feedback.

2. Viable Product

MVP is real, an actual product that you work on. So it shouldn't just be an idea that wouldn't work in real-world scenarios. It must be:

• Usable

• Operational

• Saleable

So while you can sell the initial offering at a lower than the actual price, it has to be the best product you offer to the market that provides value. Now MVP development can be divided into two parts:

Business Marketing

With MVP, businesses can test the market via surveys for promotional activities. For instance, if the target audience doesn't respond to ATL, there's no need to invest huge sums into TV, radio, and print advertising. BTL would deem it more subtle in this case.

Concept

MVP gives essential technical foresight via its set of features and programming. Each app for business is unique and comes with features the business plan requires to work.

How Long Does it Take for MVP Development?

If we talk about the average, it will take between three and four months to design, develop and launch the MVP. But that is contingent on several factors, and timing also varies for each business and product.

What Do You Need in Order to Get Started With MVP Development?

If you wish to take on MVP development for your business idea or plan, there are many considerations you need to keep in mind if you want it to work.

Market Research

Usually, when a product or business idea fails, it is because the market doesn't need the product. New businesses often make incorrect estimates about the demand assessment. When the product is introduced, the target audience doesn't respond.

So you need to have a thorough understanding of the market. The demographics, interests, lifestyle, and general market insights before you begin with the product design.

Competitor analysis

Another thing to keep in view is the competitors. You have to gauge if you can make a place in the industry. So check how the competitors are doing.

Is there a monopoly you need to break to enter? What are the threats of substitutes? You need to consider all these aspects beforehand.

Product Value

Next, check what the product offers to the users.

• Why would the market buy your product?

• What value does it offer?

• Which problem does it solve for them?

These are important questions your offering has to answer to succeed.

MVP Features

Next, you need to look into the features of the product, i.e., what the market needs from the product.

The MVP should be in line with those features. In addition, it should support all the high and low priority features of the product.

It would make it more understandable if you prioritize and shortlist the exact features you are looking for in the product.

What Should you Consider When Choosing a Partner for MVP Development?

When you are considering selecting a partner for developing MVP for you, there are a few things you need to be mindful of.

For starters, make sure you opt for a reputable company that is equipped to handle all the business requirements.

Furthermore:

• There should be complete transparency in communicating and understanding the business requirements between you two.

• The partner must be able to work within the given timelines and structures.

• Check their work between the tasks instead of waiting for them to complete the job.

• Give continuous feedback while they are developing the MVP for your business.

• Check out their company portfolio to gauge their competence and experiences in the specific field.

• Discuss and decide the overall expenses for the project.

• Look into the available tools and technology the team uses to develop MVPs. See if they are enough to handle the key features you want in your MVP.

• Look up the team members assigned to work on your business idea. Check if they are equipped and able to handle the task.

• Finally, when you chart out your Service agreement with the outsourced partner, make sure everything is in writing from the start. Nothing should be deemed 'understood.' Put it all in black and white to avoid future conflicts.

In a nutshell, your partner should require minimal supervision and support once they've begun developing the MVP. Since they are in charge of creating it for you, you shouldn't be required to spend too much time assisting them later on. Instead, use that time to work on other important business matters.

What Efforts Are Required From Your Side When Outsourcing MVP Development?

Before you take an outsourced team on board with the MVP development, there are certain things you need to have in place.

Consider it as homework that you need to complete by yourself. This will smoothen the process and pave the way for a successful launch of MVP and hence the final product.

• Competitor Analysis: It is very important to know how deeply entrenched the competitors are in the market. You need to plan and know what you are up against if you wish to succeed. There will always be competition, similar or substitute products. So your product should be positioned from the beginning against them.

• Decide the Target Audience: You cannot simply target the masses for every product. It is best to know the end-user profiles; in fact, it is an even better practice to segment the market based on sex, geography, age, and other demographic factors.

• Communicate: Always be open and frankly discuss every aspect of the business with your MVP developers. It can only work if there are no ambiguities and the team knows exactly what you expect from them.

• Hire a Project Manager: One thing that can certainly help is to hire a project manager. The person will be responsible for carrying out all the communication and liaison with the developers' team in every aspect. So you will be less troubled, and the team will remain under supervision at all times.

How Much Does it Cost to Develop an MVP?

The cost of the whole project is contingent on a number of factors such as:

• Product features

• The complexity of the project

• Product design and size

• Time limit

• The number of team members working on the particular project

When we talk about the number of people you should have working in place on one MVP, it includes the following people in different domains working together:

• A project manager

• One or two UI/UX designers

• A frontend developer

• One or two iOS or Android developers

• A back-end developer

• An analyst

As far as the costing goes, it can be divided into the following phases of MVP development.

• UI/UX Design and Estimation Research - 280 hours and an estimated $8,400.

• Development phase - 640 hours and estimated $25,600.

• The final launch and testing - 240 hours and $6480

• Documentation and technicalities - 40 hours and $1,600.

So we are talking about an overall project that will cost you between $25,000 and $45,000. It also depends on the level of complexity and additional features to determine the final cost for your business.

Mistakes to Avoid When Outsourcing MVP Development

Many times MVP fails to yield the desired results for the business. However, some common mistakes can be avoided to ensure the same does not happen to you and your venture.

These basic mistakes include:

No Market Research

One of the most common reasons for MVP to fail is the failure to do market research.

It is very important to analyze the market's needs and trends before designing the MVP.

Hiring an Unprofessional Team

Another reason MVP doesn't work is when you hire an unprofessional or unskilled workforce for the job.

You need to have a solid team with experience and skills for developing the MVP.

If issues like budgetary or time constraints pressure you to go for a less reputable company or team for the job, it is better to wait than waste your money and other resources.

Unsuitable Technology

Often new MVP developers or those with less experience in the field might use expensive technology for developing MVPs.

Such may often be unnecessary in your case when the project is not as complex. However, that may raise the project's overall costs and may not yield the desired results either.

Skipping Important Development Stages

Developers may skip certain important stages in developing the MVP. This may be due to budgetary or time constraints, lack of experience, or other factors. But that is bound to affect the final model and make the MVP a failure.

Overlooking the Prototype

The MVP is a prototype of the final product, but it itself needs a prototype to work! So, you need to have an idea in place before you start a new project. Work out how it should look, its features, and how it will fit in the market before starting with the MVP development.

Leaving out Monetary Matters

At times the MVP and your product may be a success, but still, the product may fail once launched. Although the target audience well receives it, people would still be less willing to spend money on it.

So you need a pricing plan in place, so there are no losses later on.

Hire Top Developers from Xpeer

MVP connects you with the end-user. It helps you know about their needs and requirements and how you should tailor your product to meet them.

Xpeer connects you with an experienced, efficient, and resourceful team of experts who can work with you to develop MVPs for your products, services, or business at low prices and within your timeframes.

The outsourced partners are carefully selected before being put on the list of Xpeer's panel. So you dont have to worry about finding reliable and experienced partners yourself. Xpeer will support you through the process to connect you with the right people.