MVP development for startups: why consider an MVP approach

In the digital world, startups are the perfect examples of resourceful teams that can turn their ideas into reality. In the early stages of a company’s development, the founders often come up with what they think is a brilliant idea. However, almost any concept is ultimately worthless unless and until it can generate a profit. 

On average, it can take from one to six months for the idea to turn into a product and start generating revenue, but the longer the product development takes, the greater the risk that competitors will surpass you. Therefore, instead of aiming for perfection at the outset, baby steps should be taken to avoid wasting time. 

While it may seem tempting to launch a massive campaign right away, you should always start small. Due to the lengthy development period, nearly half the new ideas fail because of their inability to be validated in the early stages. Starting from small steps is also important since premature scaling is to blame for the failure of more than 70% of all startups. 

Success also hinges on getting your product to market quickly, even if it has only a few basic functions, and realizing why your idea matters. Furthermore, if you want to increase your chances of luring investments, you should develop a minimum viable product (MVP), conduct hypothesis tests, and refine your business strategy as well.

In this article, we will review some best practices for startup MVP development in 2023.

What is an MVP?

The MVP stands for ‘minimum viable product’ and refers to the core features of your product that will help you understand if your idea is working or not. In essence, MVP is a bare-bones version of a product or service that is designed to test a concept or market quickly and cheaply.

The goal of building an MVP is not just to make something that works, but also something that users will love. By focusing on quick wins early on in the process, you will be able to use those wins later on when you need them most — when it is time for fundraising or scaling your company up.

MVP development is a critical phase for any startup. In order not only to stay afloat in the competitive startup environment but also thrive in it, you need an MVP, which will be an initial version of your product having all the key features needed by an audience.

Key benefits of using MVP development services for startups

Creating an MVP is a lot like taking a new recipe for a dish you’ve never made before to a potluck. You want to make sure that it’s going to be well-received by your friends and family before you make a big batch for everyone, right? The same goes for business startups. If you’re not sure about your product or service idea, it is best to create an MVP first. Building an MVP gives you a range of valuable benefits as it allows the following:

• Test your idea with real users & learn from their feedback: MVP gives you an opportunity to validate and iterate on ideas before launching a full-scale product, so you can test your assumptions by showing customers what they will get using your product. The sooner you know that something is not working, the faster you can pivot in order to avoid wasting time and resources on features that do not resonate with customers. Therefore, MVPs are a useful tool for determining early on the fundamental requirements of users. 

• Minimize potential risks: Launching an MVP is a low-risk way to test an idea as it lowers the likelihood of failure. If the MVP fails, the financial and time losses are frequently smaller than if the entire project had failed.

• Get the backing of stakeholders & investors: Oftentimes, in order to get a project off the ground, businesses need the support of stakeholders or investors. This is achieved through instilling confidence that the product will fulfill its intended purpose.

This enables businesses to determine the viability of their idea before approaching investors. This will allow them to present a credible business case that demonstrates there is a market for this product.

• Reducing expenses: The MVP approach in product development helps to keep costs down and prevent the product from becoming overcomplicated. By building a product iteratively over a longer period of time, businesses can spread the cost out and reinvest revenue generated from earlier versions back into the product. As businesses gain more users and gather more information to inform the direction of the product, they can begin to invest more intelligently in further development.

• Faster features development: Our MVP development allows speeding up features development up to two times. The fact is that except for 2-3 killer features, every software includes standard features (authorization, media upload, content management, payment integration, etc.). At Jellyfish.tech, instead of constructing these common features from scratch, we have put up an ‘assembly line’ — a starter development kit (SDK) and an automated API technology — to enhance product development pace, making it more predictable and lowering time-to-market.

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Why should a startup outsource MVP development? 

Today’s software development sector relies heavily on outsourcing. Alternative methods for releasing new applications sooner, better, and cheaper make perfect sense in light of rising demand and rising expenses. According to statistics, nearly 78% of organizations worldwide are optimistic about their outsourcing partners. 

Outsourcing MVP development for startups can be beneficial in a number of ways:

Lowering development costs

First of all, outsourcing MVP development saves time and costs for startups. Instead of hiring a team or building the product yourself, you can use the outsourced team’s expertise, experience, and resources to get your idea off the ground faster. For instance, freeing up resources to focus on core business is the top reason for outsourcing IT operations, as mentioned by 49% of companies.

Accessing new expertise

Outsourcing as a business strategy is also a great way to get access to technology that you might not have had access to previously. For example, if you are building an AI-powered platform but don’t have any data scientists on staff yet, then outsourcing helps with this challenge as well. About 46% of businesses indicate that outsourcing gives them access to expertise that is unavailable in-house. This can also ensure that the product is developed according to the latest best practices and standards.

Simplifying project management

Having dedicated resources available from the beginning makes project management simple. You provide the concept, while the agency offers its experience. With both parties present, you can obtain a realistic estimate of the project’s feasibility, length, and deadline. Considering this information enables you to make decisions regarding beta testing timelines, marketing, and promotion strategies, as well as approaches to encourage investment, once you have a competent technical partner.

Providing better scaling opportunities

Hiring a third party to perform MVP development services for startups allows startups to scale quickly without having too much overhead associated with hiring new employees or paying salaries for long periods of time until revenue starts coming in from customers using their MVP product offerings – which could take months or even years depending upon what type of business model they select.

Ensuring quality responsibility

Outsourcing practice ensures that the final product is of high quality and meets the needs of the target market. By working with a proven startup MVP development agency, and a reputable development team, startups can be confident that their MVP will be well-designed and offer a great user experience. 

Challenges of MVP development for tech startups

The first thing to remember is that MVP is not the final product and it won’t be until the user base grows large enough to make it viable for you to invest more in development. It is a learning tool for you as much as it is for users, so do not expect every iteration of your app to be perfect at first.

You also need to understand that an MVP is not about making something that completely meets all requirements from end-to-end, but rather about getting feedback from users on what parts of your idea are most important and which ones are not working out as well as expected (or at all).

In addition to helping entrepreneurs avoid common mistakes in product creation, a good startup MVP development consultancy can also discuss some of the pitfalls that new business owners can fall prey to if they don’t have enough experience building products.

MVPs are usually used in situations where there is little data available on whether or not an idea will work out — and since this can happen when you are just starting out, building your first MVP into something that works well may seem like too much work. 

Although MVP development for a tech startup is a great way to test the market, it can be quite challenging. The most common concerns for startups are:

• Not understand why they need an MVP in the first place
• Not doing enough market research before creating their first product
• Trying to create something too good in order to impress investors

Very often startups cannot properly analyze their target audience or develop a good product that will meet the needs of their customers. According to statistics, 35% of startups fail because of no market need. In such a situation, the importance of product discovery cannot be overstated.

Why do startups need to invest in the discovery phase?

The product discovery phase is a crucial step in the product development process — it is during this phase that companies define the problem they are trying to solve and identify potential solutions. This stage also includes market research to assess the potential for the product and to determine the target market. The product discovery phase culminates in the development of a product roadmap that outlines the steps necessary to bring the product to market.

Startups can gain a deeper understanding of their target market and the actions required to reach them through the discovery phase. This, in turn, is essential for marketing and sales strategies.

Investing in discovery can also aid entrepreneurs in establishing a solid commercial basis. This includes assembling the right team, establishing processes and systems, and getting capital from investors.

At Jellyfish.tech, discovery phase practice includes collaborating with a Business Analyst and a UX/UI Designer, and a Technical Expert to create something that will resonate with your audience. The team’s deliverables will include things like customer personas, user stories, solution architecture, wireframes and UX mockups, a roadmap and backlog for future MVP software development, etc. The more successful you are throughout this stage, the better off you will be in the long run.

How to set up the MVP development process 

The MVP development process is a crucial phase in the startup journey. It is important to understand how it works, and what are its steps and phases to plan a project better. 

If you want to develop a minimum viable product, there are a few things you must keep in mind in order to set up the process effectively. First, you should have a clear vision of what you want to accomplish with your MVP. This entails having a comprehensive understanding of your target market’s needs and desires. Once you have this knowledge, you can begin to map out the essential features that your MVP must have in order to succeed.

Next, you need to find a partner who is enthusiastic about your project and possesses the necessary skills to bring it to life. Choose a company with a proven track record that is not only qualified but also committed to carrying the project through to the end. As soon as this is complete, the development process can begin.

Here are five necessary stages for your startup MVP:

Idea development

The aim of the idea development phase is to come up with a new, innovative product or service idea that can be taken to market and has the potential to be successful. This phase is all about generating new ideas and testing them out to see if they have potential. To do this, MVP uses a variety of methods, including market research, customer feedback, and trend analysis. 

Once a promising idea has been identified, MVP works on developing it further and testing it to see if it can be successfully taken to market. If the idea is successful, MVP will then proceed to the next phase.

Customer journey mapping

The goal of creating a customer journey is to pinpoint and verify places where the customer experience could be enhanced. Customer interviews, focus groups, and surveys are just a few of the methods the development team employs to create initial versions of the customer journey prototypes. During this stage, you’ll be tasked with gathering information that will help you better understand your customers. The findings from this step are leveraged to outline an action plan for future enhancements.

There are three main steps in creating a customer journey map: 

1. Define your goals. What are you trying to achieve with your MVP? What problems are you trying to solve? Once you have a clear idea of your goals, you can start thinking about how to achieve them. 

2. Identify your user’s pain points. What are they struggling with? What do they need help with? By understanding their pain points, you can start to think about how your product can help them. 

3. Create a results-oriented map. This means thinking about how your product can help your users achieve their goals. What steps do they need to take? What do they need to do in order to succeed? By creating a results-oriented map, you can ensure that your MVP is focused on delivering value to your users.

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Prototyping

The main aim of the prototyping phase is to create a prototype that can be used to test the feasibility of the future product. 

The process of creating an MVP prototype can vary depending on the type of product you’re building. However, there are some common steps that all MVP prototypes go through:

• Define the problem you’re solving and your target market
• Identify your core features
• Create a wireframe or mockup of your product
• Build a working prototype
• Test your prototype with potential users
• Iterate based on feedback

Overall, a product prototype is a bit like a trial run. It allows you to test out your product and get feedback from people who would use it. This is an important step in making sure that your product is usable and meets the needs of your audience. The feedback you collect during this phase will help you to improve your product and make it even better before it goes to market.

Implementation

Product implementation involves developing a product that meets the basic customer needs, but without going through all the bells and whistles that may be added later.

During this phase, you should focus on building out your application with the bare minimum features necessary to test your hypothesis. This allows validating market interest in your product before spending more time and money on it.

The goal of this phase is to get feedback from real customers as soon as possible so you can make adjustments to your product if necessary. After all, if no one wants your product after seeing it in action, why would they use it?

Implementing a product can be a perilous period for companies. If the implementation process is not properly managed, there is a chance that the product will not be launched successfully.

With so much at stake, startups must take their time throughout the phase of product deployment. By conducting thorough research and planning in advance, enterprises may boost their likelihood of success and prevent potential pitfalls.

Launch

The MVP product launch phase is a crucial step in bringing a new product to market. The aim of this phase is to validate the product concept with real users and gather feedback to improve the product before a full launch. This phase typically includes a beta test with a small group of users, followed by a wider release to a larger group of users. The results of this phase should be a product that is ready for a full launch and that has received positive feedback from users.

Overall, launching an MVP is a great way to validate an idea. If customers are willing to pay for the MVP, then it is a good sign that there are prospects for the product. 

Besides this, there are a few things to keep in mind when building an MVP. First, the MVP should be affordable and easy to build. Second, it is important to get feedback from customers as early as possible. And finally, don’t forget that an MVP is just a starting point — it is important to continue to improve and iterate on the product.

How much does MVP startup software development?

There is no one-size-fits-all answer to the question of how much MVP development for startups costs, as the cost of development can vary significantly depending on the specific features and functionality required. However, as a rough guide, most MVP development projects will fall in the range of $25,000-$50,000. Of course, if your MVP requires particularly complex features or a high degree of customization, the cost could be higher. Ultimately, the best way to get an accurate estimate for your MVP development project is to consult with a reputable software development company that has experience in creating MVPs that work.

Once you have an idea of the scope and requirements for your MVP, you can start to put together a budget for your project.

If you’re not sure where to start, our team of experienced software developers can help you plan and estimate the cost of your MVP development project.

Successful projects launched as MVPs 

When speaking about MVPs, it is worth mentioning those projects that have grown into large-scale products and are popular all over the world. There are many companies that launched as MVPs and went on to become successful. 

For instance, Uber, Airbnb, Instagram, Dropbox, and Spotify all started as MVPs. So have Etsy, Pinterest, and Twitter. The Gmail team also used the lean startup method to develop its product in 2001 — ultimately launching it in 2004 when they were acquired by Google.

In the case of Uber and Airbnb, they were born out of necessity. The founders were frustrated with taxi services that were unreliable and too expensive for their needs. Their solution was to create an app that allowed them to connect with drivers directly through their smartphones.

As for Instagram, Dropbox, and Spotify, those companies took existing technologies and created new products out of them. For example, Instagram was built on top of HTML5 which enabled users to upload photos from their phones to the web; Dropbox used Amazon’s cloud storage service S3 as its backend infrastructure for storing user data; Spotify took advantage of peer-to-peer technology to stream music files.

The lesson here is that you do not need to reinvent the wheel to launch a successful business. If there are existing technologies or services out there that can help you achieve your goal, then that is what you should use. The important thing is not how much money you spend but rather how well your product solves customers’ problems.

Our team also has experience in developing such a successful project as well — Zeno.PM, which is a project and portfolio management tool. Our expert project management team collaborated with our client to develop a sophisticated tool that streamlines PM/PMO processes and improves the visibility of enterprise-wide change initiatives.

Initially, the client contracted us to develop the Gantt Chart feature. We developed the project’s interface, and it hit the market with the required functionality. Currently, the product has multiple features and more than 13,000 registered users.

Conclusion

The primary goal of the MVP is to provide the user with a working prototype that can be used to initiate a feedback loop on the consumer’s wants, needs, and reactions. Nonetheless, most founders of new businesses jump into somewhat large initiatives at first. They come loaded with extra bells and whistles that are not really necessary for basic operation. The bigger the project, the harder it is to pinpoint exactly what it was that customers disliked.

You can never tell for sure if your new product or service will succeed or fail when you are considering introducing it. Will it be put to good use? It is also difficult to figure out what new features to offer because you don’t have any feedback from your customers yet.

However, there is a way out: building an MVP first rather than a full-fledged product. There are many advantages to doing this before going all in on development, such as testing your business model and getting feedback from customers. The MVP allows you to get a sense of the potential success of your product before you invest too much time or money into it. 

Overall, MVP development has become a strategic necessity for startups. However, it is not always easy to make the right decisions about MVP development early in the startup lifecycle. 

Building an MVP is not something that you can do overnight. It requires a lot of research, planning, and a lot of time to build your product. So, if your startup is looking for the best way to start its journey toward success then hiring an expert team would be the most suitable option for you.