If you're embarking on a mobile app startup journey, it's crucial to understand the importance of building an MVP (minimum viable product). An MVP is a stripped-down version of your app that includes only the essential features, making it relatively inexpensive and quick to develop. This approach has been successfully used by big-name apps like Spotify and Instagram.
To Validate Market Demand
Validation is the top reason you should bother building an MVP. It's always wise to test your app idea first to gauge market demand before investing in development time and cost. In today's saturated market, it's more vital than ever to validate your concept, as the number one factor of app failure is a lack of market need. Even thorough market research may not provide reliable results, as respondents might not always give accurate insights.
Take Dinnr, for instance, a failed startup that allowed users to choose recipes online and receive pre-measured ingredients. Despite positive survey responses and one-on-one interviews, the app only had 12 orders in its first week and never gained traction. The founders used an MVP approach by manually performing background tasks, such as buying inventory and delivering orders, to verify market demand.
To Remain Cost-Efficient
Building an MVP is a cost-effective way to test your app without wasting resources on a full-scale development. Imagine pouring thousands of dollars and hundreds of hours into creating an app only to find out the market doesn't want or need it – this would be both demoralizing and financially devastating.
MVPs are relatively cheaper to develop than the full version, allowing you to avoid the pitfalls of having too much funding. This was evident in the case of Quibi, which received a whopping $1.8 billion in funding but failed due to a lack of focus on providing value at a low cost. A low-cost MVP would have been a better approach.
To Test Monetization Strategies
An MVP can help you test various monetization strategies for your app with minimal risk. You can establish a steady revenue stream early on and gauge user feedback to determine the best approach. For instance, you might think a freemium model is the best option, but user feedback may suggest in-app purchases are a better strategy.
To Launch the Product Quickly
MVPs are essential for launching your app quickly before competitors do. With the market crowded like never before, speed is crucial to success. In fact, there were over 5 million apps in the Apple App Store, Google Play Store, and Amazon Appstore in the first quarter of 2022 alone.
Airbnb is a great example of how an MVP can help you launch quickly. Founders Brian Chesky and Joe Gebbia saw two huge issues in the market – the need for instant and affordable accommodation, as well as difficulty paying rent. They used their own living room as test accommodation and quickly put together a rough website to validate their hypothesis.
In conclusion, building an MVP is crucial for any mobile app startup. It allows you to validate market demand, remain cost-efficient, test monetization strategies, and launch the product quickly. By focusing on the core features of your app, you can avoid unnecessary costs and increase your chances of success in the competitive app landscape.