A business always requires making a profit or at least certain revenue to keep the business working. Initially, starting a business means low investment and also low budget expenses so at that particular time if a company experiences loss or failure, it results in the company to either quit everything or try again to work on that same idea and wait for any changes in the customer’s reaction.
What is the Minimum Viable Product?
We are often confused with what is minimum viable product? A Minimum viable product (MVP), is a concept that is based on the Lean Start-up methodology. This concept was first introduced by Eric Ries. It is a really helpful concept if followed in a start-up, it can result in immense market growth for the start-up.
An entrepreneur always tries to work on conventional methods- by doing market research, making a strategy, acquiring a product idea, and hiring a group of teams. They always think about all these factors before starting their business. This is also not a wrong concept, but this concept does not always favour the ones who are going to launch their products for the first time in the market.
They try to give their 100% effort in their work and trying to accomplish it with all their team investing a lot of amount before launching the product. They actually want to deliver their final product to the customers.
Benefits of MVP
When you are launching a new product and also if you have started a new company, you must keep these questions in mind- Will your newly launched product will be trusted by your customers? Is your product ready for your customers and they are going to have positive feedback for your product?
So to know your customer’s reaction, it is really necessary to try the MVP, methodology. Where you can understand the reviews and feedback for your product by your targeted audience.
So what we can do to avoid the risk of failure?
Minimum viable product, methodology asks you to first prepare a viable product for the trial basis. After preparing the viable product to deliver it to your targeted audience to use it. Do inform the customers that this product is just for trial. After a certain period of time, ask for their feedback or reviews about the trial based product.
Now if they give you a positive review of the product, you can start working to deliver the final product to your audience. By adding some more modifications and additional features, if required, after the product has been made, it is now ready for the launch in the market.
But if the feedback is negative for your trial based product from the customers. Then you just need to pivot and try to work on what is wrong in your product or what changes you need to make in the product. Also, it would be preferred more by your customers. Or else if there is no solution, it is better to start working on some other idea.
This way it will help you to have a proper idea of your customer requirement in the market for your product and hence, this way, you can save a lot of money. Especially if the product is not preferred by the customers and then results in market failure of that particular product. It is actually a risk-free investment way to start your business and launch your product with minimal effort and preparation cost- hence saving your time, energy, and money.
In a business, to keep a certain revenue or profit to ensure its growth, certain steps should be taken. The best way to avoid these issues or to recover their business growth is by developing an MVP. Thus, they can achieve immense growth and a good start of their business with low-risk factors.