Decision making plays an important role in success or failure of a business. A good decision can raise your business to sky heights whereas a poor or bad decision can ground a flying plane.
With the progress and advancement in the corporate world, the thinking style of entrepreneurs have also shifted towards effective and efficient decisions in terms of their cost and benefit for business survival, performance, progress and growth. The MVPs are the true reflections of smart decisions that set the directions for the business with their entrepreneur-friendly features bringing happiness and satisfaction for them at the end of the day.
Before going through the benefits of MVPs, we must take an overview of what actually an MVP is? “An MVP (Minimum Viable Product) is basically a test version of a product with just enough features at least possible cost, that is presented to the early users for testing and feedback so that it can be converted into the final product in an accomplished form to bring 100 % results for both the entrepreneurs’ expectations and users’ requirements”.
The creator of the concept, Eric Ries, describes MVP as “The version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least amount of effort”
The MVP brings a lot of benefits for the entrepreneurs. However you must consider these benefits by comparing with the development of final product.
Less time for development and availability to the early users
Since MVP is the test version, it takes less time to be developed and be available to the early users for testing. So they can give their reviews about it and you may have clear idea about what should be added or subtracted when it comes to finalizing the product.
Saves Money and other resources
MVP is proved to be an important tool for saving the resources from wastage. Suppose you are done with the final product and it simply fails to attract users towards itself, funds will be all sunk for you in terms of development and marketing cost. Choosing an idea of MVP will certainly lead you towards minimum possible loss as the development and deployment cost is much lesser than that of a fully accomplished product.
In addition to saving the money, the MVP also saves your valuable time and it is easy for you to make a better decision whether to refine the same product and re-launch it or to go with some new business idea.
Attracts people to invest
Consider a scenario that you have a unique idea in your mind but you need an investor to transform this idea into reality. Keep it in your mind that “humans only believe in what has physical existence” and MVP best fits this phrase, making things simple and easy for the potential investors to understand and realizing that their investment will return them positively. An idea in mind can neither be conveyed properly nor convince a person to invest into what has no clear dimensions.
As a bottom line, MVP comes in a small package with huge benefits for an entrepreneur who is going to start up a new venture or expanding the current one by adding some new features or tools.