What Is a Minimum Viable Product and Why Do You Need It?
In today’s video of Startup 101 series, we will be talking about Minimum Viable Product (MVP), understanding what is a minimum viable product using examples, why do companies need it and what could be some cons of having a minimum viable product in the market.
00:00 Introduction
00:40 What is a Minimum Viable Product?
04:10 Pros and Cons of a Minimum Viable Product
What is a Minimum Viable Product?
As we know the Minimum Viable Product is also known as MVP. This is usually the simplest form of a product or a service that you can develop. An MVP has all the basic features that can help you validate your idea by getting early customers and to also get an investor.
A new startup might not have the resources or the money to build a complete product, which is why they would need an MVP so that they can show the basic idea of their product to an investor which can help them get the necessary funding which can be used to build their complete product.
Take the example of OYO Rooms. When they started, they just had a single hotel on their platform which acted as their MVP. This helped them to show their model to the investor and get the investment which helped them to start expanding and building on their MVP.
Another example is of Airbnb, which was started by Brian Chesky in 2007. There was a design conference that was happening in San Francisco and since there was an influx of guests, there was a lack of hotel rooms in the vicinity. This situation gave Brian the idea of using his own apartment as a hotel for these guests. And that became Airbnb’s minimum viable product.
Then there might be companies that are looking to enter a new market and want to start acquiring customers but do not have enough time to roll-out a complete product. In this case, they would generally work on an MVP which can not only help them to acquire new customers but also get the necessary feedback to build a much better product in the end.
Pros and Cons of a Minimum Viable Product
Pros: Getting an MVP out in the market helps the companies to start getting new customers, getting user feedback which can be used to enhance their final product and gives them the time to work on their final product which might take a lot of time based on the feedback and complexity of the product.
Cons: There aren’t a lot of cons regarding an MVP but when you are a small startup and you launch your MVP, there is a chance that a larger company might copy all your features and build a better product before you can. This can potentially put you out of business.
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