What is an MVP and Why Does It Matter?
MVP stands for Minimum Viable Product. Eric Ries in The Lean Startup defines it as: the version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.
An MVP doesn’t always have to be software. It can take many forms, such as:
- Landing page
- Concierge service: Manually deliver what you plan to automate later. Example: Zappos initially sourced and shipped shoes themselves to validate demand before automating.
- Wizard of Oz MVP: Customers think they are using the final product, but backend functions are performed manually.
Simply put, an MVP is the smallest thing you can build or show to test whether your idea has potential, minimizing wasted time and resources.
Minimizing wasted time and resources is a core reason why MVPs are important. This approach ensures that you do not invest significant time, money, or other resources into a concept that lacks market demand. Instead, the MVP serves as a validation tool.
While most founders agree with these principles and want to maximize returns, it’s important to recognize that building an MVP comes with its own pitfalls. There are still many mistakes founders commonly make during this stage.
Common Mistakes Founders Make When Building MVPs
- Overbuilding instead of keeping it lean An MVP isn’t just a smaller product. Its goal is to minimize effort and maximize learning. Teams often overbuild by trying to make it too polished or complete. As Eric Ries notes in The Lean Startup: “If you are not embarrassed by your first release, you waited too long.”
- Using MVP to “prove” rather than to learn Many founders want the MVP to instantly “succeed,” but the true goal is to test risky assumptions and learn—even if your idea doesn’t work. A true experiment is one where failure is a legitimate outcome.
- Hiring full in-house dev teams too early Hiring a full in-house team brings high fixed costs. If customers don’t want your MVP, you’re left with unnecessary expenses. Bigger teams also add communication and management overhead. Big teams often slow things down with long development cycles and large launches. This is exactly what you want to avoid when building an MVP. At the MVP stage, the main challenge is not how fast you can code, but how quickly you can learn from your customers.
Key takeaway: At the MVP stage, speed and learning are the most important factors. Test assumptions with the simplest tools available, without overcommitting resources or code.
How to Build an MVP Quickly and on a Budget
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Prioritize core features
This is crucial. Focus only on what makes your product unique. For example, in a food delivery app, prioritize the ordering system over additional features like user profiles. In a fitness app, concentrate on the exercise tracking function rather than social sharing features. Remember, a login isn’t distinctive, but the core engine is. Stick to one or two main features that provide value. Don’t add extras until you know customers care.
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Use Open-Source Frameworks and Cloud Platforms
Frameworks like React (front-end) and .NET (back-end) and platforms like AWS or Firebase allow fast, low-cost MVP launches.
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Leverage Outsourced Development Partners
Instead of hiring a full team, use experienced outsourced developers. This lets you scale, get to market faster, and save costs. For example, nearshore partners in places like Kosovo provide strong talent and good rates, making them ideal for startups. When selecting partners, assess their qualifications through their portfolio and references. Consider starting with trial projects to evaluate their capabilities and ensure alignment with your needs.
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Follow the Build-Measure-Learn Loop
Quickly iterate to validate your idea:
- Build: Create the simplest version of your MVP.
- Measure: Collect feedback through surveys, interviews, or analytics.
- Learn: Adjust based on insights and iterate quickly.
Choosing the Right Development Partner
Once you have a plan for building your MVP, the next challenge is picking the right development partner to bring your vision to life.
Outsourcing your MVP development can make a big difference for startups, but picking the right partner is key. A good development team does more than just write code. They help you test your ideas quickly, keep costs down, and lower your risks.
- Start by choosing a partner with relevant experience in your industry and proven technical skills. They should follow modern practices like Agile for efficiency.
- Choose a partner who communicates well, is responsive, transparent, and works well with you in your time zone. Flexibility is important too; they should be able to adjust easily based on your feedback.
- Cost is important, but not at the expense of quality. Seek partners with clear pricing and a startup mindset focused on speed and learning.
- Check references or reviews before choosing. Many startups start with a small project or MVP to test the partnership first.
- The right development partner brings experience, good communication, flexibility, and a strong cultural fit. This helps turn your MVP into a product that is both validated and useful.
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