What is MVP

Usually the term is used in relation to programs and applications, various startups. For example, an early version of some Internet service, which does not yet have all the declared functions, but which is already capable of working and bringing benefits, is an MVP. This is a kind of test: this is how the creators check how much the product is needed by the audience and whether it has potential. Usually, an MVP is a very simple product: it performs one or two functions, it does not have a beautiful design and additional features. But the function that is there is the main one: if it turns out to be necessary and useful for people, the project can become successful. And successful projects can be improved.

Why does a business need an MVP

MVP is often used in the early stages of product release: it helps to assess the potential, reduce risks, save money and determine the direction for further development.
Potential assessment. With the help of MVP, creators can assess how viable an idea is: how the audience perceived it, whether people needed the product, whether it is realistic to support it and how best to do this. Based on the results, you can conclude whether the project is worth developing further.
Risk reduction. MVP is cheaper than the final product. If users did not appreciate the idea, you can change the direction of development immediately and not go into the red due to huge expenses on an unnecessary product.
Cost savings. MVP is relatively inexpensive, and you can start making a profit from it right away. The product enters the market not quite ready, but it already works and can generate income. And it is also a way to save on analytics: instead, you can immediately see how the idea works directly on the market.
Direction of development. MVP allows you to immediately see where it is worth developing further, where the idea has weak points that are better to close first, and what should be left as is. A real example: during the testing of the Airbnb MVP, the creators quickly realized that people were put off by low-quality photos of rental properties. So they introduced a rule that the photos had to be high-quality — and they themselves began to help take such photos.
Attracting investors. Thanks to the MVP, investors may become interested in the project. For them, it is more promising to invest in a product that is already working than in an abstract idea that has not proven its viability. And with the help of investments, you can attract funds for further development of the product. An example is the SberMarket grocery delivery service: initially, it was a startup called Instamart, but thanks to a successful MVP, Sber became interested in the project.

Examples of successful MVPs

Many products that are now world-famous once started as MVPs with modest functionality. Some examples:
  • the Airbnb housing search service started as a simple one-page website, with the help of which the creators rented out their own attic;
  • the Spotify music app was once a simple MVP that could only stream music. Now the program is known for its smart algorithms for selecting melodies and numerous other features;
  • the popular WhatsApp messenger also started as an MVP - a kind of phone book, where it was shown whether a contact was online;
  • the Russian marketplace Wildberries grew out of a primitive online store of clothes from abroad, which were sold with a smaller markup than usual.

Who creates and develops MVP

The product itself is created by a team of developers, testers and other specialists. The process is managed by product managers, whose task is to decide what the MVP will include and how it will look. However, startups rarely assemble a team of specialists with clearly defined responsibilities: often the entire company consists of 2-3 people, each of whom takes on several roles. And some startups are even one-man projects.
icon - /uploads/s/h/h/p/hhp2lczs67ji/img/full_PNPko9cb.png
StartUp Academy – a space for growth and development of startups
With support from the USAID’s Future Growth Initiative