MVP stands for Minimum Viable Product. In simpler terms, building an MVP means creating and launching a basic version of a digital product, such as a mobile app or a website.
Among the main MVP launch tips, one of the most important things to do is to validate an idea, its market applicability, and its acceptance by the public.
An entrepreneur might have a great idea and the resources to implement it, but without an audience willing to embrace it, the success of this early-stage product is impossible.
Every MVP success story (like Twitter, Slack, Spotify, WhatsApp, and LinkedIn) started as a product development process, driven by an entrepreneur with a vision, who developed it with a team and improved it countless times to become what they are today.
Building a successful MVP: The Airbnb case
Understanding what “minimum functionality” means in the context of an app or web platform can be challenging. Let’s look at an example: Airbnb, the world’s largest rental platform operating in over 200 countries, started as an MVP with basic features.
In October 2007, the startup MVP development began by offering air mattresses and breakfast in the San Francisco apartment of its founders. This initial concept, known as “AirBed & Breakfast,” allowed the partners to test whether people were willing to rent a room in a stranger’s home.
At that time, renting rooms or staying in homes was not standard practice, especially through a website. The only options were hotels, hostels, guesthouses, etc.
The early-stage product development website was launched, the idea was tested in the market, and feedback was gathered from the first guests. Over time, the startup refined its product (launching its mobile app in 2010, expanding internationally in 2011 by opening offices in Germany, launching its experiences section in 2016 to offer travel packages, and becoming a public company in 2020, etc.).
While most cases don’t end up like the American company, the key to having an MVP success story is to attract users, test ideas, and gather feedback. At this stage, there is no profit for the entrepreneur; instead, it’s time to invest to see if the idea has growth potential.
How to create a minimum viable product in 3 steps
Creating an MVP involves designing, measuring, and iterating.
The first step in the perfect startup guide is to develop a working hypothesis:
Define what you want to test (for example, in Airbnb’s case, they wanted to test if there was an audience willing to rent a room in someone’s home).
During this product development phase, the app, platform, e-commerce, or game’s, goal is always to have the necessary features to solve a problem affecting an audience. If no problem is identified, there will be no working hypothesis or MVP to develop.
The second business startup step is to define metrics and measure the product’s results (for example, in the case of the tourism platform, you could measure how many people rented the room, for how long, what their concerns were before booking, and how many people were interested in that type of accommodation).
For building a successful MVP, the type of metrics to consider will depend on the type of product, but some to keep in mind are; the number of downloads, conversion, acquisition cost, traffic, rating, views, etc. This will depend on the type of product, industry, and hypothesis proposed.
The last step to consider as a major MVP launch tip is to rely on the analysis of the new information collected to create a new version of the product. This is the time to apply feedback and make necessary adjustments to align with market needs.
For example, if Airbnb’s first users were dissatisfied with the limited availability of similar accommodations in San Francisco, the offer would need to be improved.
Regardless of whether an idea is good or not, the key in the product development world is to launch as soon as possible, with minimal functionality, invest as little as possible, collect feedback, adjust, and relaunch to the market.
Always keep in mind that an early-stage product development process is essentially rebuilding on the foundations others have previously developed. It’s all about constant trial and error.
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