Ultimate Guide on How to Build an MVP in 2024

A Minimum Viable Product (aka MVP) is a new software product having a minimum of crucial features. Minimum Viable Product creation should help to identify the viability of the entire system and conduct an audience response testing.

MVP aims to validate the core idea of the product with minimal resources, reducing the risk of investing heavily in a concept that might not succeed. Moreover, it allows businesses to gather real user feedback early on, which is invaluable for making data-driven decisions and iterative improvements. It also assists in understanding the market demand and user preferences, enabling a more focused and effective product development strategy.

Let us discuss challenges the startups typically face when they do not start with MVP development.

• About 35% of startups fail as they don’t find enough product-market fit
• Nearly 38% of startups crash due to running out of cash
• As it’s counted during many surveys, 14% of startups fail due to unstable economy, and 12% due to marketing issues

By focusing on building a Minimum Viable Product (MVP), startups can validate their core assumptions about the market demand and user needs. This early validation of the product idea helps startup companies ensure that they are developing a product that meets market requirements, thereby increasing their chances of achieving product-market fit.

MVP development is an instrument capable of helping you both spark the interest of users, or prevent your business from suffering damage. Let’s get through each MVP advantage in detail.

Launching your product to end-users early not only allows you to gather and analyze their feedback swiftly but also plays a crucial role in refining your MVP through validated learning about customers. The simplicity and small scale of the codebase for Minimum Viable Product (MVP) further enhance the efficiency and manageability of this process. Furthermore, user engagement with your MVP provides clear validation that your developed features meet their needs and desires, increasing demand for further updates.

By focusing on a limited set of core features, an MVP allows you to gauge consumer response effectively. If these features are well-received, you can introduce new functionalities tailored to user preferences. This cost-effective approach ensures that additional features are implemented without incurring the higher expenses of developing a comprehensive software solution.

Developing cross-functional applications requires substantial time and financial investment. However, an MVP development process allows for a more economical path by focusing on incremental development. You can significantly reduce initial costs by releasing a simplified version of your product.

If you are a startup company seeking to get funding for app development, an MVP can be a robust tool for you to attract investors. Demonstrating a working prototype or initial version of your product shows tangible progress, which is often more compelling than a theoretical concept. This trust-building aspect makes investors more likely to trust and support a startup that has moved beyond the idea stage, making them feel secure and trusting in their investment.

The role of an MVP in project development cannot be overstated, as it helps you prioritize essential features and functions for your future fully functional product. By focusing on core functionalities, you can plan your finances more effectively, ensuring that resources are allocated efficiently throughout the building process. This approach not only helps in reducing unnecessary expenditures but also accelerates the launch of a fully-fledged product, giving you a competitive edge in the market.

An MVP product development process enables you to bring your product to market much faster than a full-scale development process would. By concentrating on essential features, you can launch a functional version of your product in a shorter time frame, allowing you to start building your customer base and gaining market presence early on. This swift market entry can be crucial for gaining a competitive advantage and starting to generate revenue sooner.

Let’s dive deeper into the most well-known types of Minimum Viable Product you want to build and what of them will help you benefit more for your business.

This type of MVP is particularly useful when you need to validate complex ideas without investing in full-scale automation. Instead of automating processes, you directly interact with users to provide the experience. This allows you to gather detailed feedback and understand user needs intimately. For example, a travel planning app could start by having a team of travel experts create custom itineraries for users.

The key advantage of this MVP is the ability to pivot quickly based on direct user feedback. This type of MVP creation a low-cost way to validate your assumptions and build relationships with early adopters.

This MVP type helps you validate user interest and behavior before investing in automation. It’s ideal for testing user interfaces, workflows, and overall feasibility. You can quickly iterate based on user feedback and performance metrics. For instance, an e-commerce site might display products and handle transactions manually while appearing automated to the customer.

However, it requires careful coordination and can be labor-intensive. The ultimate goal is to transition to a fully automated version of the product or service once you’ve validated the concept.

A Piecemeal MVP leverages existing tools and services to create a functional product. Instead of building from scratch, you combine various off-the-shelf solutions to deliver the core experience. For example, a new marketplace might use WordPress for the website, Stripe for payments, and Mailchimp for email marketing.

This approach to build the MVP minimizes development time and costs, allowing you to focus on market validation. It’s useful for startups with limited resources who need to get to market quickly.

This MVP type is highly effective for testing demand and gathering potential user data. It requires minimal investment and can be set up quickly. The feedback and data collected can guide future development and marketing strategies.

For instance, a SaaS company might use a landing page to collect email addresses from interested users before developing the software. While it doesn’t provide a full product experience, it’s a powerful tool for validating your concept.

You should pass through the following steps of MVP development process:

• Step 1. Conduct market research
• Step 2. Clarify your vision
• Step 3. Select a reliable IT vendor
• Step 4. Engage in strategic planning
• Step 5. Develop and launch the MVP
• Step 6. Gather and analyze feedback
• Step 7. Advance your MVP based on insights
• Step 8. Consider growth strategies

And now we’ll talk more about each of MVP development steps.

Market research is the cornerstone of any successful project. To ensure your MVP website or app captures user interest and delivers value, thorough analysis is essential. Utilize additional platforms that conduct paid surveys, such as SurveyMonkey, Google Surveys or Qualtrics, to create a comprehensive customer profile.

These tools provide valuable insights into user preferences and behaviors. Additionally, keep a close eye on your competitors and meticulously study their approach to developing minimum viable products. This competitive analysis will inform your strategy, helping you refine your MVP to meet market demands effectively.

To effectively build an MVP, every business owner must conduct a thorough analysis of their project by addressing the following key questions:

• What specific problems can my platform solve?
• How will it be beneficial to the end consumer?
• Why would users choose this solution over others?

Answering these questions will provide a clear understanding of the core qualities of the product. Once the problems and pain points, along with their solutions, are clearly defined, you can proceed to develop the MVP version of your future product. This foundational analysis ensures that the MVP is aligned with user needs and market demands, setting the stage for a successful product launch.

A strategic decision in product development involves choosing between an in-house team and outsourcing to a reliable technical partner. While establishing an in-house team offers control, it often entails substantial costs and resource limitations. For example, software development services in North America or Australia command higher hourly wages, typically ranging from $100 to $200+ per hour. Yet, cost does not always equate to quality.

Outsourcing MVP product development process to Central and Eastern European companies presents compelling advantages, notably in quality and cost-effectiveness. These regions offer competitive hourly rates, typically between $50 to $80+ per hour, without compromising expertise.

For example, you can hire dedicated developers in a vendor's product development company to accelerate time to build an MVP. This will also provide you with access to specialized skills crucial for innovative solutions.

To achieve great results and avoid misunderstanding, you must clearly explain all product requirements to your IT provider. This is where Discovery phase services come into play. At this stage, the team details all the requirements regarding your app idea, including feature list breakdown, design concept, timelines, and detailed product development price.

Keep in mind that MVP means that you don’t have to implement complicated frameworks and fancy design at once. Leave only the features essential for creating a Minimum Viable Product concept.

The vendor’s team can help you start the development phase by creating a prototype or wireframe to visualize the product. You can also focus on building the core functionality of your product that address the primary needs identified in your research.

Moreover, the vendor’s IT experts will conduct regular reviews and testing throughout the development process to identify and fix any issues early. It’ll help you prepare for the launch by developing a marketing and user acquisition strategy.

Before the product release, the outsourcing software development team will help you ensure that your MVP is user-friendly, functional, and delivers value to the target audience. Then, they’ll help you launch the MVP to a select group of early adopters or beta testers, as well as monitor the launch closely to address any immediate issues that arise.

Achieving positive feedback during MVP development is critical to its success. It serves as a vital tool for gathering insights into feature prioritization and bug identification. Early adopters not only validate your concept but also play a crucial role as both idea generators and testers for your MVP. This initial alignment ensures a solid foundation for continuous development and enhancement based on user feedback and analytical data.

Use insights gathered from user feedback and performance analytics to iterate and enhance your MVP iteratively. Prioritize features and functionalities that drive user engagement, retention, and satisfaction. Collaborate closely with your development team and IT vendor to implement iterative improvements and updates based on user feedback.

You should also continuously monitor performance metrics to track progress and measure the success of implemented changes. Effective feedback analysis ensures that your MVP evolves to meet user expectations and market demands.

Many startups find alternative ways to grow and sustain their business without relying solely on external investment. Here are some strategic approaches to consider:

• Expand the user base. Utilize marketing channels to acquire new users and expand your reach.
• Increase user engagement. Implement strategies to boost user retention.
• Monetization exploration. Explore different monetization models (e.g., freemium, subscription, in-app purchases) to generate revenue.
• Strategic partnerships. Collaborate with complementary businesses to expand your market reach and offer additional value to users.

After we studied how to create a Minimum Viable Product, it’s time to define the prices for the minimum viable product development as well as its timing. The exact MVP development cost is hard to define at once due to the following cost-forming reasons for minimum viable product building:

• Scope and complexity of features
• Technology stack and tools required
• Design and user experience considerations
• Development team size and expertise
• Integration with third-party services
• Geographic location and rates of the development team
• Timeframe and deadlines for the project

Cleveroad provides app development services in different spheres, and travel and hospitality is one of them. Thus, considering the said price-forming factors, we’ll discuss minimum viable product costs on the example of hotel app development.

! Bear in mind: cost and time estimation is rough, depending on the uniqueness of every app, even in the case of features similarity. To get more accurate information, you can book a consultation with us.

Firstly, we estimated the development time of MVP essential features for both Android and iOS. The results of such evaluations are presented below.

So, we listed the approximate MVP features timing necessary to develop a minimum viable product for the hotel booking platform. In common, the programmers need about 1500-1800 hours to make an MVP app version both for iOS and Android.

Thus, regarding the workflow details and team composition, the rough price will range from $155,000-$165,000+ for such a complex product. Rendering development services, we can also guarantee on-time delivery of the built products if all the specialists are necessary for the creation process. Your team should also contain frontend and backend developers, QA engineers, designers, business analysts, project managers, DevOps specialists, and team lead. This way, the questions on how to design MVP will be fully solved.

This section will provide you with prominent MVP examples. These well-known startups founders that turned their companies into famous ones worldwide can teach business proprietors a lot. They definitely know how to make an MVP and turn it into a successful business.

Airbnb platform history dates back to 2007 when two San-Francisco men wanted to establish their business, being on a tight budget. Once, there was a design conference in their town, so they decided to rent out the top floor of their apartment to visitors with no rooms at the hotels. They made up a basic landing page with their housing pictures on it. Three primary clients came first and rented the rooms during the conference.

The entrepreneurs defined their target audience and confirmed their concept viability thanks to communication with guests and the MVP marketplace. As a result, the Airbnb platform for short-term housing rent appeared. Today Airbnb is a commercially successful project that earned $9.917 billion profit in 2023.

Spotify story takes its start in the mid-2000s, when illegal music downloading was rampant. Daniel Ek and Martin Lorentzon, the founders of Spotify, saw an opportunity to create a legal and user-friendly way to access music online. Instead of building a complex music streaming platform right away, they focused on a super minimal viable product in 2006.

This MVP wasn't even a functional app or website. It was a simple landing page with a clear product description, subscription plans, and a sign-up form. They launched this landing page and shared it strategically online. Here's how it helped:

• Gauging user interest. The number of email signups indicated potential demand for their service.
• Creating an early adopter base. The email list allowed them to connect with early adopters interested in the concept.
• Refining the product. Feedback from potential users could inform the development of features and functionalities for the actual music streaming platform.

Spotify's focus on a minimal viable product first allowed them to validate their idea, gather user feedback, and build a user base before investing heavily in development. Today, Spotify is a global leader in music streaming with over 615 million users and 239 million premium subscribers in 2024.

Pebble (now united with Fitbit) is known for the launch of smart-watch ancestors — e-paper watches.

Company founder, Eric Migicovksky, established the most efficient Kickstarter campaign of all time. The total investment amount was up to $10,000,000. Eric attracted the audience with a video demonstrating an MVP version of his upcoming project. This way, he asked for funds. In a 2 hours period, $1 million was gathered. By the end of the first week, there was $600,000 on a project’s bank account. At the end of the investment round, the total amount figured up to $10,200,000. Unfortunately, this project was out of business and then changed, joining Fitbit.

We gave you some well-known examples of when the founders knew how to create Minimum Viable Product. Now, we’ll discuss the instruments and actions they used on their way to success.

After all the stages on how to create MVP product have been investigated, let’s discuss proper dealing with it. We’ve prepared a set of advice that will help you during the development workflow.

By understanding your competitors' strengths and weaknesses, you can identify opportunities to differentiate your product. Conduct and continuously update your competitive analysis to keep abreast of market changes and innovations. Utilize tools and software for competitive analysis to streamline the process. Ultimately, this research will guide you in positioning your MVP in a way that attracts and retains users.

To effectively target your MVP, create detailed buyer personas by conducting opinion polls and gathering information from the right demographic. This data should include both personal information (such as gender, age, and marital status) and professional details (such as job title and work challenges). A well-crafted buyer persona allows you to tailor your messaging and content to resonate with your target audience precisely.

Depending on the size of your business, you may need to develop multiple buyer personas. Therefore, segment your market and conduct thorough target audience research to identify groups unified by common interests and behaviors.

This segmentation allows you to tailor your MVP to meet the specific needs of different user groups more effectively. Use surveys, focus groups, and market reports to gather relevant data. Analyze this data to identify trends, preferences, and pain points within your target audience.

Creating a story map is essential to outline your goals, user stories, and tasks for the MVP. This tool provides a clear visualization of the user journey and helps in identifying key features and functionalities required for the MVP.

By mapping out user stories, you can prioritize tasks and focus on delivering the most valuable features first. A story map also facilitates better communication and collaboration within the development team.

The MVP launch marks the beginning, not the end, of your product journey. Your product must continuously evolve as you check, learn, and measure its performance. Remember, an MVP differs from the final product and finding the right internal MVP characteristics is crucial to determining its success within the broader product vision.

What's the next stage after you create an MVP app? If you ask yourself this, let us tell you what is further.

We'll enlist some of the most prominent Key Performance Indicators (KPIs) you should pay your attention to answering questions like how to make a MVP and how to help it remain popular.

• The retention rate shows whether your MVP offers something unique that no one else does, causing customers to return to your service again.
• Activation rate is aimed to illustrate the customers' impression from your created Minimum Viable Product: they actively apply to it, read your materials and fill in the contact forms intended.
• The churn rate depends on the percent of customers that can quit using your MVP software or delete it entirely. This KPI should be checked to ensure that your MVP is free of obvious defects and is regularly gaining new users.
• The net promoter score is an approach to assess the performance of an MVP and emphasize users' opinions on it.

A well-structured and skilled development team is crucial for sustaining product growth and innovation. But as your product evolves, scaling your development team becomes essential. That’s why you should assess your current team's capabilities and identify skill gaps that need to be filled. Hire web developers, designers, and product managers to meet the increasing demands of product development.

You should also consider outsourcing certain functions to maintain flexibility and control costs. Moreover, implement effective onboarding processes to integrate new team members smoothly and invest in continuous training and development to keep the team updated with the latest technologies and methodologies.

Once your MVP comes to life and your product resonates with users, it's time to think about expanding its capabilities. Before adding new features, you should ensure there's a genuine market demand for them. Avoid building a product without a clear understanding of what anyone using your product needs.

Moreover, you need to conduct thorough market research to identify trends and gaps your product can fill. Prioritize features based on user feedback and strategic business goals. Work closely with your software development partner to implement these features incrementally, ensuring product stability and avoiding costly overhauls. Rigorously test new features before releasing them to the public.

All that can be done by your own, but if you pass this way choosing an offshore outsourcing software development vendor who can make your solution beneficial and profitable for your business as well as interesting for customers, it will simplify your job and change your product to better.

Implementing your MVP concept, you should focus on retaining existing users to ensure long-term success and growth. This is the list of strategies you may use to retain your existing customer (as well as attract new ones):

• Develop loyalty programs, incentives, and rewards to encourage continued usage.
• Implement personalized communication strategies to keep users engaged.
• Offer excellent customer support to address issues promptly and effectively.
• Gather feedback regularly and act on it to improve the user experience.
• Create a community around your product to foster user engagement and advocacy.
• Monitor retention metrics and identify churn risks.

Our Cleveroad team is well-acquainted with the question of how to make a minimum viable product. Let us share some of our successfully delivered software development projects with you.

One of our last projects was a solution for our client from Singapore — Web Platform for Searching Travel Activities and Accommodation. The solution had to incorporate the original Minimum Viable Product (MVP) with an advanced UX, allowing it to gain a competitive edge and make the platform attractive for hospitality and activity providers.

Due to the high-quality and fast MVP development, our client launched the service fast, received positive feedback from target users, and has attracted additional funds and international investors for further project advancement.

Here is what Sylvain Labattu, Founder of Koralgo, tells about their cooperation with Cleveroad on MVP product development.

Now, let us acquaint you with our company and how we will be of value to you.

Cleveroad is a qualified outsourcing software development company with headquarters in Estonia. We've been assisting startups and organizations of all kinds in acquiring cutting-edge technology for 12+ years. We specialize in a wide range of IT services and bespoke software solutions that improve workflow efficiency, address business issues, and aid in the acquisition of competitive advantages.

Turning to Cleveroad, you can get a bunch of benefits during MVP building, like:

• Unlock the potential of your product with our comprehensive MVP development services
• Expertise of developing software for nine business domains including Logistics, Healthcare, Entertainment, Education, and so on
• A complimentary consultation with our Senior Business Analysts experienced in your particular business domain about your MVP development
• In-depth Discovery Stage to match your MVP app concept with its technical implementation
• On-demand software development services: custom software building, maintenance, legacy system modernization, IT consulting, UI/UX design, etc.
• Reliable technology partnership in software development and IT consulting certified
• Supervision and control of product quality by our Project Management office at all development stages to deliver your product on time and within your budget
• Innovative building approaches and a cutting-edge technology stack: web: (React, Angular, AWS, Azure, .Net, JS, TypeScript, etc.) and mobile (Flutter, Swift, Kotlin, GraphQL, ARKit and ARCore, etc.)

MVP creation is more about strategy and analysis rather than complicated product development. Remember, if you wonder how to develop MVP, such stages as concept building, choice of an MVP development company, testing, and prototyping should be taken very seriously.