The Minimum Viable Product (MVP)’s Significance For Startup Ventures

Selling and developing ideas is the core foundation of startups. Of course, there are more
principles, criteria, and actions that separate this field with general businesses. Especially, the
process and steps in running a startup or venture are quite different than in running a firm or a
corporate company. With ideas to solve problems, the first step might have been fulfilled, but
more are actions are required.
he following action that is done by the founder usually is finding the market validation. It begins
with a problem interview, then a solution interview and finally creating the minimum viable
product (MVP). The product and business model will be greatly influenced by the validation
gathered from the MVP. Investors and capital venture providers might even highlight this
process.
Therefore, the MVP is significant for all startups. Firstly introduced by Eric Ries, MVP has its
ideal that is to gain the maximum understanding of costumers with the least work using the
prototype product. To build the ‘successful’ MVP, the product should have value and include
total customer experience. Also, make sure that it focuses on one market, so the validation will
be sharp and clean. Then, teams will get its significances as follow.

1. It prepares the right products most effectively.

The key point of the validation to know is whether the product attracts costumers. The MVP as
the ‘tested’ product is not the complete and final product. Hence, the production cost will be
effective. If there are some adjustments needed, teams only need to fix the part and it reduces
iteration. Moreover, the MVP provides startups resources to scale the final product for the right
market and time.
2. It minimizes the possible financial loss.
With the minimum product, the validation can be generated sooner. It helps to prevent more
expenses spent on undemanding products for the market. In more detail, an MVP only costs
minimally relating to the investment and requires the bare essentials. Marketing even often gets
neglected in comparison with market-ready projects.
3. It provides a clearer interpretation of users’ needs and preferences.
As mentioned, an MVP is targeted only to certain audiences. Therefore, the product will not be
tested in the real and wide market which takes more time and effort. The wide audience in the
market also might be redundant and unclear. That is why the model products are usually given to
certain group users or early adaptors. They will give feedback on the overall quality and
suggestions of the desired feature additions and changes.
4. It enables the team to make quick changes.
As the validation and adjustment are generated sooner, the teams will know whether their
product is wanted. It often happens that some ideas and products do not work out. Then, teams
must get back to the plan and make quick changes.
5. It attracts more accelerators.
The finance of a startup is not as big as corporate companies, so it requires startups to join
venture or to get some investments. Accelerators could connect startups with bigger investors
and might be the investor itself. Startups with prospective MVP appeal accelerators more to
support them. For startups who want to avoid venture capitals, accelerators are the best option