Business, Case studies,

What is a Minimum Viable Product and how does it work ?

by Veronica 23/07/2020

Definition of MVP

Minimum Viable Product is a product in early development, with a minimum set of kits that is sufficient to launch it on the market for customers seeking an initial evaluation. The whole concept is based on testing your business ideas against real, hard numbers generated by real customers, rather than on hypothetical values.

MVP is a product in a broad sense. It also means a service, application, or any other technological solution. Minimum Viable Product could be a website or so-called landing page with a description of functionality, a film, drawings, or graphic visualizations. Also, the Minimum Viable Product is a prototype or an already running application.

MVP goals

The main goal of MVP is to create a product with minimal functionality and release it into the world. This is to get concrete, real data from people interested in a given product. In other words, it is about testing the product under market conditions and gathering opinions about it as quickly as possible.

By applying the MVP assumption, you collect the necessary data that will help in the implementation of the project. You will learn what else you can add to the product or what things should you eliminate. What is redundant, how else can you solve certain aspects related to a given product?

Advantages of MVP

MVP has some very important advantages. First of all, short time required to release the product. Facebook, Google, or any other service, even the blog you’re reading right now, didn’t look like this when it launched. These products looked completely different at first! After releasing MVP, these products evolved, got new functionalities, improvements, and bugs were patched.

Another advantage of the Minimum Viable Product strategy is also the fact that you receive an answer to the question of whether it makes sense to create a given product, whether there will be buyers for it, or someone will be interested in purchasing it. Another advantages is often the small financial outlays that we have to incur for our product to meet the minimum assumptions.

MVP – Real-life examples

Time for real-life examples. Below are a few initiatives that started their adventure with MVP.

Twitter

Let’s start with Twitter. The originators created key features for the idea and tested them on a limited group of users. In 2006, the Odeo company created a prototype of a social network that allows employees to send messages called “Twitts” of max. 160 characters long. After successful tests, the website was released to the market in the same year. Known as a social networking site for microblogging, with time it turns out to be primarily a platform enabling fast and concise information exchange.

Facebook

Mark Zuckerberg, the initiator, and founder of Facebook, similarly tested his idea in 2004 by building The Facebook for Harvard University students. The enormous popularity of the platform made it available to students of other universities – Stanford, Columbia, and Yale, and in the next year to universities in Great Britain, Mexico, Australia, and New Zealand. And you probably already know the further history of the portal 😉

Dropbox

The founder of Dropbox, a virtual place for storing and sharing files, also benefited from the idea of ​​MVP. To check whether people will benefit from such an idea, he created a one-minute movie showing the functionality of a dropbox. The video was published on the Hacker News website – an integrator of news from Social Media, devoted to topics related to start-ups and technology, where potential first users of the service look. The popularity of the film and the interest in the service exceeds the expectations of Dropbox’s creators. The list of waiting for the beta version of the service quickly increases from 5,000. up to 75 thousand.

Groupon

Another example of a company that also started from the Minimum Viable Product is the Groupon. At the very beginning, they set up a very simple blog on WordPress. They didn’t invest in huge servers or huge infrastructure. As the interest in the site increased, its operation was automated.

Finally, we show off our MVP! We are planning to launch a completely innovative application soon. It will be addressed to people practicing sports who are looking for the same sports freaks.

Pladdo is the user-friendly app designed to help you find people and sports facilities, and let it set everything up for you in a couple of seconds. With Pladdo you can find the same sports freak like you! PLADDO knows user’s sports preferences, availability, and favorite locations. You can find a sports facility in the blink of an eye. Our algorithms connect you with best-matching places and their owners with no hassle. You can make quick payments and split bills. You know all the fees upfront and after the game. Our app will calculate the total cost and divide it among all participants. 

If you like the idea of ​​Pladdo, let us know. Sign up on pladdo.com