The more features a product has, the better. Or at least that’s the lesson from the market leaders. Apple and Samsung are constantly trying to shoehorn more features into their phones, whether customers want them or not.
However, the reality for most entrepreneurs on the ground is actually the opposite. Most features are pointless, particularly in the beginning. Then, as the product matures, they become more relevant, but not always essential.
As such, MVPs or “minimum viable products” are becoming the rage. Here companies try to shift something that’ll do the job but doesn’t necessarily have all the bells and whistles of the final product.
But why are MVPs rising? Let’s find out.
They Help Firms Generate Revenue Fast
Startups are usually operating under strict time constraints. They need to get products out to market rapidly before they run out of capital.
Before MVPs, that was challenging. Everything had to be perfect and complete for launch. But with minimum viable products, things are changing. New brands can start selling months or years ahead of schedule and begin generating revenue internally. They can then use these funds to develop their ideas more.
They Help Firms Gather Feedback
MVPs are also excellent tools firms can use to gather feedback from their audiences. That’s because it’s a real product with utility. Customers can use it to their advantage and give their opinions on them.
Brands don’t always know which direction to take product development, so putting an MVP out there can help a great deal. Customers can then give their opinions and direct the company’s processes.
They Make It Easy To Decide Which Features To Include
Related to this, MVPs also tell businesses which features to include in their new products. Firms can learn how conjoint analysis works and then deploy it to find out what customers want.
Knowing which features to include is tremendously helpful. It enables firms to move more quickly and accurately in the right direction. It also helps them use their funds more efficiently. They can avoid taking product development opportunities down a blind alley.
They Help With Timing
Sometimes, brands need to get to market quickly to take advantage of an opportunity. If they wait a few months, they could miss the boat and somebody else could come to dominate.
With MVPs, though, the risk of being left behind goes down. Usually, firms can get their core products out to market quickly and then patch them later when new development occurs. This way, it only takes a few months to respond to an opportunity, not years.
They Please VCs
Venture capitalists love the concept of MVPs and want to invest in brands prepared to launch them. That’s great for attracting capital and keeping the business afloat financially. If investors can see that you have something in your arsenal, they’re much more likely to choose you as a result.
So that’s a wrap: MVPs are great for small companies because they make things happen. They put a stop to procrastination and put the firm squarely in business mode.
