The term MVP is one of the first terms an entrepreneur learns. MVP means Minimum Viable Product and it reflects the most basic and minimalist version of the product we want to expose to our target audience.
Naturally, the first question that comes to mind is what the minimum with which we can achieve our results. MVP allows the initiative to sustain based on the goals that were set for it. Clearly, the MVP is not supposed to include all the final product’s features and design, but just the most critical characteristics. So how to determine what are these characteristics?
The answer to this question is simple to define but difficult to implement. An MVP should match its goals, which are called KPIs (Key Performance Indicators) – these are quantitive measures which consist the corner stone for the product development life cycle, as well as for fund seeking. KPIs should provide an indication about the success of the product, such as capacity of users, user behavior, conversion rate, etc. There are various software tools that can be integrated into the product to measure KPIs.
Most entrepreneurs struggle to keep up tight timelines and budget constraints in a dynamic world that emphasizes schedules – Time To Market is the name of the game. This is why a central part in defining the scope of an MVP is defining the goals and the target audience which will participate in the alpha version of the product. Defining the correct KPIs will lead to a proof of concept and assist the initiative next phase in raising money and continuing product development.