Why MVP Development Services Are Perfect for Startups
Daria Lymanska
CEO & Founder
July 16, 2024
2
min read
If you have an idea for implementing a digital solution, but its business model is not yet clear, you may need a lot of resources to find the right one. But how can you test the effectiveness of this idea in practice when each of the potential target audience’s representatives may perceive it differently? The answer is simple: you should consider minimum viable product or MVP development for startups. Below, we will explain its peculiarity and analyze the advantages of this approach.
What Is an MVP for a Startup?
An MVP for startups is a software solution with a basic set of functions and a simplified visual that clearly demonstrates its unique selling proposition (USP) and does not have any additional features (that is, if you remove something from its functionality, it will lose this USP).
The Importance of MVP Development for Startups
The main purpose of MVP development for startup is simple: since early-stage startups do not have clear, verified business models, it is important to make sure that they will be accepted by their target audiences. Otherwise, their owners risk losing a lot of financial and time resources on something that “does not work” for the end consumers. So, to avoid this, it is better to implement such projects gradually, optimizing and expanding them, taking into account feedback obtained from real users.
MVP Development Process
Here are the main stages of the MVP development startups process:
Defining the problem or goal of the target audience that you are going to help them solve/achieve with your product;
Conducting market demand analysis, which consists of a detailed study of the target audience, market trends, similar software solutions, etc.;
Rapid prototyping of the future solution and defining its key features that form the USP;
Agile development of an MVP;
Collecting feedback from real users;
Continuous product iteration after the MVP launch aimed at tailoring the product to the needs of its target audience.
Top 9 Benefits of Building an MVP for Startups
In this paragraph, we would like to introduce MVP benefits that are valuable for each startup owner.
Cost Efficiency
Creating a minimum valuable solution is, first of all, much cheaper than in the case of a full-fledged one. This means that the initial budget for your project will be moderate, and you will not have to sacrifice anything important – for example, the budget for marketing, the salaries of your full-time specialists, and so on.
Faster Time to Market
No matter how unique your idea is, there is always a risk that someone will follow your example before you. In turn, the implementation of the MVP will allow you to reduce the time-to-market and, thus, gain an additional competitive advantage.
Market Validation
A quick launch of the MVP will help you validate it in real market conditions as fast as possible. In the future, you will be able to optimize it based on real feedback from its users and then improve it with each iteration and make it more and more valuable to them.
Risk Mitigation
Getting a working solution up and running quickly will help you identify its hidden issues early on, all thanks to the fact that it will be accessible to users from all over the world. In fact, no other type of testing, no matter how many resources are involved, can provide the same thoroughness in identifying errors and inconsistencies.
Investor Attraction
By launching a “raw” but functioning product to market early, it will be available to potential investors, too. Agree that this approach to demonstrating your idea looks much more viable and capable of achieving your goals than presenting a business plan only.
Customer-Centric Development
Generally speaking, creating a minimum viable solution is one of the key startup success factors since its entire development cycle is tailored to “please” its target audience. Indeed, since user feedback has to be taken into account long before the solution is released (first, it is tested by the project team and then – by representatives of focus groups), it turns out to be truly focused on the needs of the end users.
Enhanced Learning
MVP in startups helps to conduct an end-to-end assessment of market needs and make decisions based on the data obtained. This way, you can use the obtained insights in the further evolution of your product, turning it into a full-fledged software solution step by step.
Flexibility and Scalability
MVP development for tech startup involves creating an initially scalable, flexible foundation that is easy to modify and to which you can quickly add new/remove unnecessary functionality without much risk (primarily, associated with the appearance of hard-to-fix bugs).
Building a User Base
Finally, when you launch a full-fledged solution, it will already have some audience interested in using it. Thus, you will be able to reduce your budget for early adopter engagement and, in particular, the time and money needed to research and create a portrait of a potential client.
Conclusion
Now, knowing all the advantages and goals of startup MVP development, you can understand whether this option is right for you. In particular, if you are inclined in its favor, you can contact us, a service provider with many years of experience creating MVP solutions for startups in different industries. We will accompany you throughout the entire lifecycle of your project – from the ideation stage to the release and support of its full-fledged version.
An MVP, or Minimum Viable Product, is a basic version of a product that contains only the essential features needed to function. It's used to test the product idea with real users and gather feedback for future improvements.
Why is an MVP good for startups?
A Minimum Viable Product is good for startups because it allows them to quickly test their ideas with real users. This helps save a lot of time and money by focusing development on only the most important features.
Can an MVP attract investors for my startup?
Yes, an MVP can attract investors. MVP shows investors your idea works and has market demand. It proves you’ve reduced risks and know your audience.
What are common mistakes to avoid when developing an MVP?
Common mistakes include packing the MVP with too many features, not clearly defining the core functionality, and ignoring user feedback.
In recent years, mental health has taken center stage globally. Currently, approximately 792M people globally have mental issues and lack access to traditional therapy due to financial constraints or societal stigma. The best way to solve the issue — is to go digital. That is where mental health app development comes into play. It cuts costs and makes mental health available to everybody around the globe.
As to the market, in 2024 alone, the app market saw expansion to approximately $7.38B. In a decade, forecasts promise growth up to nearly 10% annually, scorching $17.52B.
If you are ready to build a new solution — now is the perfect time to start. Below, we will explain how to develop a mental health app, share standout mental health app ideas, and highlight key factors to keep in mind.
Why mental health apps are in demand
Even though people have faced mental disorders throughout the entire history, only in recent years solving these problems become normal and generally accepted. And it won’t stop. Let’s numbers speak louder — according to 2019 alone, the global capitalization for the global antidepressant market was estimated at $11.67B. By 2027, the market promises to grow to a record $18.29B.
Of course, depression is not the only issue. According to the World Health Organization (WHO), there is a growing tendency for PTSD, anxiety, and OCD (due to economic instability, military conflicts, pandemics, as well as personal problems).
Additionally, the fast-paced world daily brings panic attacks, triggers, and burnout (prevalent among doctors, teachers, and IT workers). Youngsters are prone to issues, too; among the most “popular” — are low self-esteem and social isolation.
Financial constraints and a lack of free time put hefty pressure on those who need a traditional approach to addressing mental problems. Then, an in-person visit to a psychologist or psychiatrist becomes a real luxury. But what if there is a more efficient, accessible alternative? That’s where developing your mental health app comes in.
Business and monetization models of mental health applications
For mental health app development, the following monetization models have proven to be the most profitable:
Fee for the services of real psychologists. According to this model, the application acts as a platform, connecting users with professional psychologists, coaches, or therapists (similar to a marketplace with reviews, ratings, cost of services, and other attributes). In this case, the application earns the commission from each transaction (usually 15-30%).
Subscription-based model. This model has a fixed fee for regular access to content and/or services for a certain period (month, year, etc.). If your app has diverse content and functions, offer multiple pricing models. This lets users pick a plan that suits their needs best.
Freemium. These models give free access to basic functionality, with particular features to be paid. Usually, there are personalized recommendations, access to exclusive courses, advanced progress analytics, etc.
One-time purchase. This model involves a one-time purchase of the application, after which the user has access to all its functionality.
In-app purchases. Here, the basic functionality is available for free, but additional materials or services are paid (personalized plans, unique selections of tracks for meditation, etc.).
Ad-supported model. In this case, app is free but includes built-in advertising (banners, videos, native advertising, etc.). At the same time, to improve the user experience, you can offer an option to turn off ads for an extra fee.
B2B model. This model translates into you selling licenses to companies with internal programs to support employee mental health.
Selling merch. This model focused on branded wellness merchandise promotion via scented candles, self-improvement guides, and mindfulness notebooks.
Top mental health apps on the market
Now, let's explore the most popular mental health apps. Perhaps they'll give you extra inspiration for your mental health app development project.
Headspace
Endorsed by the editors of the New York Times and 2.8 million users globally, Headspace is a product of the mental health company of the same name. Its core functionality includes meditations dedicated to improving sleep quality, relaxation, and cultivating mindfulness. They also offer courses on meditation, managing borderline emotional states, and more. Moreover, the platform has scientifically proven results in stress reduction and a user-friendly interface.
Calm
The Calm app is loved for high-quality content and a simple and intuitive interface. by 4.5 million (2023). And it is rightfully so. This app spins everything, from meditation sessions and effective breathing exercises to audio programs that are good for falling asleep faster. As for monetization, there is a free version with limited access. Full access to functionals is only available with a paid subscription.
BetterHelp
BetterHelp has over 2 million users and connects with licensed therapists via text, phone, and video. Patients must pay a fee to continue their subscription and can also volunteer to donate to others. This app goes far beyond mood issues. It covers complex disorders and symptoms, such as clinical depression and PTSD.
Talkspace
Talkspace provides online therapy with licensed therapists through a tiered subscription model (with health insurance coverage). Moreover, this app is ideal for managing medication treatment and has many formats for direct communication with psychotherapists (including cases of emergencies).
Moodfit
Founded in 2018, Moodfit has become the top mood assistant for more than a million people worldwide. It has personalization options, customized mood data analysis through visualization tools, and mood-improving recommendations. In addition, the app has cognitive-behavioral therapy exercises as a handy and entertaining way to deal with mental issues.
Woebot
Woebot is a free AI-driven bot founded by Dr. Alison in 2017. It is based on text format and has cognitive behavioral therapy methods. Initially, this software was intended for youngsters in college and graduate school, but today, people of all ages use it.
Sanvello
Sanvello, created by Dale Beermann and Chris Goettel, provides evidence-based CBT techniques and tools to support mental well-being. Since 2015, the app has offered free features and premium content through subscription or insurance.
Key components of a mental health app
Let's determine what mental health app features should be included by default.
Registration/authentication/authorization system
The main functionality of this system includes two types of registration: full-fledged, with the user’s email, and fast, through social networks (this is implemented through the OAuth 2.0 protocol, which is suitable for integration with Google, Apple, and Facebook).
For better protection of user data, use two-factor authentication and store hashed passwords. This can be done, for example, using bcrypt. Additionally, allow password recovery via email or SMS and register log-in/logout events for a data security audit.
User profile
Include the functionality for adding, saving, and changing personal information (name, age, mental health goals), maintaining the user’s activity history (exercise completed, courses, sessions with psychologists, etc.), and privacy settings (public/anonymous profile). Typically, profile data is stored in a relational database (PostgreSQL/MySQL); it is also necessary to set a clear separation between public and private user data.
Home screen and navigation
The home screen should feature a clickable menu, allowing users to update content based on their settings. You can also add push notifications (for example, using Firebase Cloud Messaging). As for the menu, place meditations, psychological tests, stretching, and yoga exercises in text, video, and/or audio format. You can also include real-time communication with specialists via text, voice, and video chats.
Use cloud platforms such as AWS S3 to ensure scalable content storage. If your application is media-rich — add media streaming via HLS.
Finally, localize content for users from different regions if you plan to maximize your target audience.
In-app payment system
If you plan to monetize your app through subscription payments or in-app purchases, integrate App Store and Google Play to process payments via the In-App Purchase API. You can deploy the web version via Stripe. Once everything is ready, provide access control based on the paid features.
Analytics and recommendations
Place functionality for tracking user progress and boosting their motivation (e.g., mood changes) and recommendations based on analytics. The latter makes sense to implement using machine learning models (e.g., based on TensorFlow).
What to consider before creating a mental health app?
The basic functionality of a mental health app goes far beyond making it popular and profitable. Therefore, to maximize your chances of success, consider the following factors before creating a mental health app.
Competitive environment
Usually, it involves the user interface, content accessibility, and the quality of the exercises/recommendations. Notably, the Calm application (sleep stories) and BetterHelp (online chat with therapists) are prime examples of such.
Analysis of bad ratings — matters too. In particular, users usually complain about the high subscription costs, lack of personalization, navigation problems, and negative experiences with customer support service. You can use it to make a competitive feature.
Target audience
Your target audience — above all. This can be young people (18-35 years old) who need an effective solution for stress management and improving sleep quality. Or the elderly might be searching for a more convenient professional in-home/palliative care format. Finally, it could be corporate clients who want to implement programs for the mental support of their employees.
Ultimately, user needs may vary. Based on the insights, determine the preferred content format (e.g., meditation, CBT, DBT, video sessions) and presentation style.
Regulatory requirements and user data privacy
The most common and comprehensive regulations are GDPR and HIPAA regulations, which govern the processing of personal data and medical information. To comply with them under the mental health app development process, you must implement data encryption (via SSL/TLS) and ensure transparent privacy policies.
Marketing strategy
To attract a broad user base, create a unique selling proposition. This can be achieved through AI diagnostics, integration with wearable devices via IoT, or simply offering a lower price than competitors. Next, point out the comprehensive marketing strategy. Select the right promotion channels: social media, partnerships with therapists, or advertising through user reviews. is essential for developing a comprehensive marketing strategy. Additionally, to retain users — regularly update content.
Testing and feedback
It’s better to subject an app with a diverse target audience to beta testing. To do so, find the first users who could be your potential consumers, gather feedback, and optimize the app based on their input.
Financial costs and ROI
Finally, estimate the project budget. It should include development, marketing, updates, customer support, and infrastructure maintenance. Given the costs, you must also estimate how long it will take till your project is profitable. It might be useful for future investors.
What are the main phases of mental health app development?
Now that you have so many insights at hand, you can start the mental health app development process. Let's find out how this happens in practice.
Ideation
First, define the problem. It is the mental health issues that trouble your audience and their goals. Obviously, your app should cover it. The solution might vary. It could reduce stress, help with sleep, or heal depression. Moreover, in the very first stage — conduct a competitive analysis. This will help identify niche leaders, find the target audience, and formulate a USP.
Planning
At this stage of the mental health app development process, you will already have enough information to determine the main functionality of your teletherapy application. Select a technology stack (or at least decide whether it will be a native or cross-platform solution), and clarify the business model. Based on this, you can calculate an approximate project budget.
Design
From now on, your mental health app developers can start creating prototypes and gradually turn them into a full-fledged design. Note that to develop mental health apps, you must use WCAG 2.0 guidelines, which ensure all users can access the app's functionality. Once the mental health app design is complete, test usability with real users to refine the navigation.
Development
The mental health app development process is divided into frontend and backend. The first includes the implementation of the user part of the software, and the second – everything that happens on the server side. As individual modules are ready, your mental health app developers will need to perform unit and integration testing to prevent difficult-to-fix bugs in the future.
Testing
Once the entire codebase is ready, QA specialists and testers will create test cases to ensure each function works correctly and the app performs well under high user load. This testing also ensures that all user actions within the app are secure and protect their privacy.
Release
Now that testing is complete, and all detected bugs are fixed, you can publish the application in the App Store and/or Google Play (your development team will first need to check whether it meets all platform requirements). After publishing, you can launch an advertising campaign to attract the first users, as well as set up tracking tools like Google Analytics and Amplitude to analyze user behavior.
Post-release support
At this mental health app development stage, you must check your application's speed and stability regularly. You will also need to update/expand its functionality once in a while and optimize what already exists based on feedback from real users. An equally important point is ensuring compatibility with newer versions of iOS/Android.
Challenges in mental health app development
Various challenges can arise during the mental health app development process. Let’s analyze them:
Compliance with regulations. Mental health apps often handle and maintain personal information, including medical data, which imposes obligations on you as a developer to implement GDPR, CCPA, or HIPAA compliance.
Balance between personalization and privacy.
While personalization — is a key feature of these apps, it sometimes conflicts with privacy requirements. To address this, implement advanced mechanisms for anonymizing user data, which will reduce the need to send sensitive information to the server.
Evidence base. The content provided by your app must be scientifically sound and effective for users. To do this, you should either accompany all your treatment plans with individual recommendations from real therapists or initially use approaches with proven effectiveness.
User retention. Many users abandon apps after a few days of use, so your app may need additional retention mechanics (such as gamification and adaptive push notifications) that won’t make users feel guilty or overwhelmed.
Monetization efficiency. Most users search for free or cheap health-related apps. At this point, you need to figure out the balance between user accessibility and the financial sustainability of your software.
How much do developers charge to build a mental health application?
The budget for developing a mental health app development depends on its complexity. So, we can't give exact numbers without first discussing your idea with your development team. But the approximate price ranges from:
$140K for a teletherapy app.
$70K for a simple mood-tracking app with self-monitoring features.
Back-end features, like a database and admin panel, are often overlooked in cost estimates. Developers typically include these in the overall pricing for mental health applications.
If you want to get an estimate of your project, please contact us.
Mental health app design: Best practices
Now, let's analyze several mental health apps (some of which have already been presented to you above) whose design has pleasantly surprised us. Maybe they will help you think better through your mental health app development process.
Headspace
This app is praised for its simple and minimalistic interface, with bright illustrations and smooth animations that literally "nudge" users to meditate with its help. It is also adapted for beginners and is generally perceived as intuitive. This approach to design minimizes anxiety in users and motivates them to meditate regularly.
Calm
The aesthetics of the Calm app lie primarily in the author's images of nature, a soft color scheme, and smooth animations. Together, they create an atmosphere of relaxation - that’s what you need to reduce stress. The app also stands out from its competitors with its "sleep stories" that help people with high anxiety fall asleep faster.
Reflectly
Reflectly's unique design uses artificial intelligence to offer a personalized experience. A clear, user-friendly interface, dynamic prompts, and mood analytics complement this. Together, these features make the app an ideal choice for audiences of all ages.
Daylio
Daylio's intuitive interface is accompanied by simple icons for tracking the user’s mood and activity. Moreover, all these application elements are easy. Developers ensured that performing target actions doesn’t take too long. The application also has a built-in report generator with visualization elements so that users can monitor their progress.
Happify
The Happify app has a gamified interface. It simplifies and informalises the process of improving the psycho-emotional state. The gamification principles here are based on scientific methods to improve mood. So, it does not add to users' cognitive load.
Mental health app ideas to succeed in 2025
In this section, let’s look through the most viral mental health app development ideas so you can pinpoint your project to success:
Integration of AI. AI assistants can help analyze moods and behavior patterns, give personalized recommendations on how to improve well-being, and remind them of any regular upcoming activities, like a daily mood rate system.
Social interaction. This can be implemented via in-app groups of users with similar mental problems where they could share their healing experiences and receive mutual support.
Integration with wearable devices. Through the IoT, you can analyze heart rate, assess stress levels, determine sleep quality, and create a common mental health map.
AR and VR tools integration. It might be useful for relaxation (to enhance the immersion effect).
"Instant help". Through the screen for quick access to ready-made materials and an online chat with a psychotherapist.
Content specially adapted for children and adolescents. For example, these could be games for managing emotions or recommendations for teenagers on dealing with anxiety and stress;
B2B solutions for companies. in particular, these could be psychotherapeutic assistance to prevent burnout.
Highlights of our experience in delivering healthcare solutions
Finally, we'd like to share our experience developing a mental health app. A client approached us to expand their services to the web, specifically to support small businesses recovering from the recession caused by the coronavirus pandemic. The objective was to create a platform to attract a target audience seeking health-related products and services.
For this project, we assembled a team of ten specialists. We chose Ionic and Vue.js for the frontend tech stack, with Laravel for the backend. The result was an online platform featuring a simplified login process, the ability to schedule and reschedule meetings between clients and trainers, an intuitive search for events and classes, role-based access, and an integrated payment system for online payments (covering group and individual courses, as well as event participation). We also implemented live session connections via Google Meet and Zoom. The solution was complemented by a clean, minimalist design with a calming color scheme, ensuring a pleasant and user-friendly experience.
If you want to learn more about this project, please follow this link.
Final thoughts
With this comprehensive guide, you can confidently start looking for specialists who would bring your idea to life. Don’t go any further, as you are already in the right place! Just fill out this form, and our mental health app development team will contact you as soon as possible!
In today's world, companies are actively seeking ways to automate and optimize their business processes with the help of software. When choosing how to implement such solutions, the question arises is whether to create custom software or buy a ready-made solution. Both approaches have their cons and pros, but each has its own application for a specific purpose. The final decision on the choice between these approaches will depend on the client's individual needs and the business goals.
Let's look at both approaches in more detail, which may help to choose favor of one of them.
Build custom software
The essence of this approach is that the company orders software product development from an IT company's specialized development team. It has a clear plan of action and a list of requirements for the future product. Also, a digital product created from scratch can fully automate specific business processes of the client company, taking into account the specifics of the industry.
Pros of the approach
Tailored to individual needs
The company will receive a solution fully customized to its unique needs and requirements. That can be registration forms, buttons, visual elements, individual blocks, custom graphics or dashboards, unique designs, and more. The company can also define the required functionality, architecture, design, and integration with other systems according to specific business processes.
Flexibility and scalability
The customer company controls the whole development process and can make changes and expansions as needed. That allows them to respond quickly to changes in business requirements and scale the system as the company grows.
Security
Developers can implement data protection mechanisms and use advanced encryption methods to ensure high security in the finished system.
Ability to integrate
The development of a digital product from scratch provides the ability to fully integrate with the company's other systems. That allows for efficient data exchange between different systems and increases the overall efficiency of the client's company.
Ownership of intellectual property
The company has complete intellectual property rights associated with the created product. That gives the company control over it and the ability to develop and monetize it further.
Cons of the approach
High price
The development of any product usually requires a significant financial investment. A company must consider the cost of hiring experienced developers, conducting requirements analysis, designing, developing, testing, and supporting the product. That can lead to significant costs, especially for smaller companies with limited budgets. Nevertheless, a business development investment quickly pays off for the company.
Development duration
Creating software is a lengthy process, especially for complex and large-scale projects. The time required for requirements analysis, design, development, and testing can be significant, which delays the implementation and use of the finished product in the business.
When a business needs custom development from scratch
Customized needs
If a company has unique business needs that cannot be met by ready-made solutions on the market, developing a customized digital product allows them to create a solution that fully meets the requirements and goals of the company.
Competitive advantage
A unique software solution created specifically for a company can provide more efficient and innovative functionality, an engaging user experience, or improved processes, which helps stand out in the market and attract new customers.
Long-term strategy
Instead of relying on third-party vendors and ready-made solutions, a company can create a product that it can control, develop and scale according to its needs and changes in the business.
Business process optimization
Specialized software allows companies to automate routine tasks, improve interaction between departments and increase the company's efficiency as a whole.
Buy ready-made solution
Ready-made software solution usually has a wide range of functionality that can be applied to various business tasks. That allows companies to save development time and start using the software almost immediately after purchase. When choosing a ready-made solution, a company should carefully evaluate its functionality and flexibility to ensure it meets its basic requirements.
Pros of the approach
Customizable functionality
That includes adding modules, integrating with other systems, and customizing program parameters.
Time-saving
Digital turnkey products are already developed, tested, and ready to use. Purchasing this product saves the company's time they usually spend on requirements analysis, development, and testing solution.
Fast start-up
Ready-made digital products have already been developed and tested, allowing companies to use and benefit quickly. The company can quickly incorporate the product into its business processes and get results without waiting for development to be completed.
Low costs
Buying a ready-made digital product is usually cheaper than developing a solution from scratch. In this case, the company avoids the high costs of hiring developers, requirements analysis, and the development process, which can significantly reduce costs and improve budgetary performance.
Proven solution
Ready-made digital products are usually thoroughly tested and have a proven track record. By purchasing such a product, a company gets a proven solution that has already been used by other customers and has demonstrated its effectiveness.
Cons of the approach
Business process mismatch
The turnkey solution may not meet the company's exact needs or require additional customization and integration with existing systems. In some cases, the company may need help adapting the turnkey solution to specific business processes, which can result in a loss of time and resources.
Limited customization and integration
Ready-made digital products may offer limited customization and integration with other systems or applications to meet unique customer requirements, which may require additional modifications.
Vendor dependency
Buying a ready-made product can create dependence on the supplier of that product. The company will rely on the vendor for support, updates, and bug fixes if any are encountered. If the vendor is unable or unwilling to continue to develop and support the product, the company may find itself in a quandary.
High licensing costs
Buying a ready-made solution can incur significant licensing costs, especially if the company plans to use the product on several workstations or for a large number of users. That can impact the company's budget and reduce financial efficiency.
When a business needs to buy a ready-made digital solution
Urgency
When a company has urgent needs for a specific functional solution, buying a ready-made product can quickly meet those needs. That is especially true if there is no time or resources to develop their solution.
Limited budget
If a company has a limited budget to develop its digital solution, buying a ready-made product can be more cost-effective. It avoids the cost of development and hiring developers and reduces the risks associated with budget and development time.
No need for unique features
Buying a ready-made digital solution may be enough if a company doesn't require specific features and capabilities only available when developing its solution. If the solution offers all the features the company needs, it can avoid developing and testing its product.
Narrow specialization
Some industries have specialized, ready-made digital solutions designed for specific vertical markets or industries. In such cases, buying such a solution specifically tailored to the needs of an enterprise may be preferable because it already meets that industry's specific requirements and standards.
Summary
Ultimately, choosing between creating custom software and buying a ready-made solution depends on a company's specific needs and goals. If a company has unique business processes or needs full software customization, custom software creation may be preferable. That will allow the company to get a solution that best meets its requirements and contributes to optimizing business processes.
However, ready-made software may be the best option if a company requires a faster, more cost-effective solution. It is essential to carefully study the market for this kind of solution to choose the one that best meets the company's needs and is flexible enough to adapt to individual requirements. It's also important to consider company resources, budget, and timeline.
Ideally, companies can combine both approaches, using ready-made solutions as a foundation and complementing them with custom development to meet unique needs. For example, a company might purchase an off-the-shelf customer relationship management (CRM) system and complete it with the custom development of a module specific to its industry or business process. That strikes a balance between efficiency and flexibility.
If you have an idea for implementing a digital solution, but its business model is not yet clear, you may need a lot of resources to find the right one. But how can you test the effectiveness of this idea in practice when each of the potential target audience’s representatives may perceive it differently? The answer is simple: you should consider minimum viable product or MVP development for startups. Below, we will explain its peculiarity and analyze the advantages of this approach.
What Is an MVP for a Startup?
An MVP for startups is a software solution with a basic set of functions and a simplified visual that clearly demonstrates its unique selling proposition (USP) and does not have any additional features (that is, if you remove something from its functionality, it will lose this USP).
The Importance of MVP Development for Startups
The main purpose of MVP development for startup is simple: since early-stage startups do not have clear, verified business models, it is important to make sure that they will be accepted by their target audiences. Otherwise, their owners risk losing a lot of financial and time resources on something that “does not work” for the end consumers. So, to avoid this, it is better to implement such projects gradually, optimizing and expanding them, taking into account feedback obtained from real users.
MVP Development Process
Here are the main stages of the MVP development startups process:
Defining the problem or goal of the target audience that you are going to help them solve/achieve with your product;
Conducting market demand analysis, which consists of a detailed study of the target audience, market trends, similar software solutions, etc.;
Rapid prototyping of the future solution and defining its key features that form the USP;
Agile development of an MVP;
Collecting feedback from real users;
Continuous product iteration after the MVP launch aimed at tailoring the product to the needs of its target audience.
Top 9 Benefits of Building an MVP for Startups
In this paragraph, we would like to introduce MVP benefits that are valuable for each startup owner.
Cost Efficiency
Creating a minimum valuable solution is, first of all, much cheaper than in the case of a full-fledged one. This means that the initial budget for your project will be moderate, and you will not have to sacrifice anything important – for example, the budget for marketing, the salaries of your full-time specialists, and so on.
Faster Time to Market
No matter how unique your idea is, there is always a risk that someone will follow your example before you. In turn, the implementation of the MVP will allow you to reduce the time-to-market and, thus, gain an additional competitive advantage.
Market Validation
A quick launch of the MVP will help you validate it in real market conditions as fast as possible. In the future, you will be able to optimize it based on real feedback from its users and then improve it with each iteration and make it more and more valuable to them.
Risk Mitigation
Getting a working solution up and running quickly will help you identify its hidden issues early on, all thanks to the fact that it will be accessible to users from all over the world. In fact, no other type of testing, no matter how many resources are involved, can provide the same thoroughness in identifying errors and inconsistencies.
Investor Attraction
By launching a “raw” but functioning product to market early, it will be available to potential investors, too. Agree that this approach to demonstrating your idea looks much more viable and capable of achieving your goals than presenting a business plan only.
Customer-Centric Development
Generally speaking, creating a minimum viable solution is one of the key startup success factors since its entire development cycle is tailored to “please” its target audience. Indeed, since user feedback has to be taken into account long before the solution is released (first, it is tested by the project team and then – by representatives of focus groups), it turns out to be truly focused on the needs of the end users.
Enhanced Learning
MVP in startups helps to conduct an end-to-end assessment of market needs and make decisions based on the data obtained. This way, you can use the obtained insights in the further evolution of your product, turning it into a full-fledged software solution step by step.
Flexibility and Scalability
MVP development for tech startup involves creating an initially scalable, flexible foundation that is easy to modify and to which you can quickly add new/remove unnecessary functionality without much risk (primarily, associated with the appearance of hard-to-fix bugs).
Building a User Base
Finally, when you launch a full-fledged solution, it will already have some audience interested in using it. Thus, you will be able to reduce your budget for early adopter engagement and, in particular, the time and money needed to research and create a portrait of a potential client.
Conclusion
Now, knowing all the advantages and goals of startup MVP development, you can understand whether this option is right for you. In particular, if you are inclined in its favor, you can contact us, a service provider with many years of experience creating MVP solutions for startups in different industries. We will accompany you throughout the entire lifecycle of your project – from the ideation stage to the release and support of its full-fledged version.
Connect with us
At this stage, we get acquainted with your needs, outline the goals and desired results. We are always happy to take your project to the next level, and then beyond
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