When you think of developing a new software, what comes to your mind? You might plan to solve a problem and create value for your clients. Or reshaping some vintage ideas can be an option. 

Regardless of the novelty of your product idea, some questions remain unanswered. Is your product idea viable? Can it address users’ issues? Does it have enough potential to generate some revenue? And most importantly, is it sustainable in the long-term? 

All these questions are extremely important and cannot be ignored. The best way to find their answers is by testing software viability with a minimum viable product (MVP). It is a proven approach where companies first release a simple version of software (called MVP) and iterate based on users’ feedback. 

As a result, iteration with customers’ involvement increases the chances of product success. 

Read this article to understand the concept of a minimum viable product (MVP) and learn its importance in software development. 

What is a Minimum Viable Product (MVP)? 

Think of a minimum viable product (MVP) as the first draft of an application. Suppose you are developing an HR software. Its MVP will have minimum features that can be used to ask users whether they like the idea or not. 

If the customers’ response is positive, you can move ahead with full-fledged software development. On the other hand, if most users are unhappy, identify and remove those bugs until you get good reviews. Clients can also suggest new features they are looking for. Adding those features can make your application stand out and be successful. 

Now, let’s define the minimum viable product (MVP). It refers to the simplest or early version of a software, tool, or application with essential features only. MVPs are not built to earn money. Instead, the sole purpose behind their creation is to validate unique product ideas based on users’ feedback. 

The Need for MVP in Software Development 

Software development is a competitive industry. Thousands of software and applications are built every day. Each software aims to deliver value or meet users’ needs. 

To test whether customers like a new product or not, software development companies validate their ideas through MVP development. It allows them to evaluate public response and make necessary adjustments. Iteration leads to perfection and contributes to business growth. 

Conversely, going for full-scale software development without creating an MVP is quite risky. Developers may end up wasting their time, money, and resources if the market does not approve of the idea. That’s why MVP development is crucial. 

Hidden Benefits of MVP in Software Development 

Starting with MVP development is the most recommended practice by tech experts. Below are four key benefits of MVP in software development. 

Best Way to Test Product Ideas 

When you are developing a new product, there is no better way to validate its practicality than MVP development. The idea of iterative development is widely accepted because it directly asks end users about their opinions.  

Honest feedback gives you a clear picture of whether your product will succeed in the market. You can check if your product idea resonates with your target audience.  

Moreover, MVP also lets you identify your most active users and track their behavior. The approach gives you valuable information about customers’ interaction with your software or app. Eventually, you can use customers’ reviews to tailor the app functionality and expand your user base. 

Risk-free Approach 

Entering the highly competitive software development industry is quite risky, particularly when you compete with established giants. Startups have to be extremely careful when releasing new products. 

MVP development gives entrepreneurs the flexibility and freedom to validate unique ideas with minimum risk. As a startup owner, you test your concept on a smaller scale by building a simpler version of a product. You don’t need huge resources or large teams to build an MVP. 

Next, you gather user feedback to validate the app’s potential. Even if the idea fails, there is not a huge risk of wasting extensive resources at an early stage. Therefore, MVP development is given extra importance in the SDLC. 

Low-cost Market Demand Validation 

Hundreds of applications similar to yours are already availability in the market. Why would customers pick your software? Does your desired product have market demand? MVP can answer both of these questions. 

MVP development includes extensive testing, validation, and iteration. It tells you what features are liked the most by your customers. Besides, you also realize the true potential of your product, presenting unique features to prospects. These USPs offer a good understanding of the market demand. 

For instance, if your HR software has two exclusive features that no other competitor is currently offering, you can assess their market demand through MVP. Instead of making assumptions, you can analyze data to find if your product fulfills users’ needs.  

Identify and Target Your Core Audience 

Every software targets a specific audience. Say you are targeting executives and business leaders with your HR software; you must be familiar with their individual problems first. Only then can you address those concerns with your product. 

When you present your MVP before intended users, you gather feedback from early adopters. Some like your product, while others have negative feedback. Similarly, some users admire the idea but at the same time, also suggest improvements. This data is extremely valuable for your long-term success. 

Consequently, you can find the core audience for which you have built this solution. You can focus on these customers in your marketing campaigns and drive more conversions.  

Popular Examples of Successful MVPs 

MVP is the first step toward the creation of a successful digital product. Here are two examples of popular brands that started with the minimum viable product: 


Facebook is the most widely-quoted example of MVP success. Mark Zuckerburg, along with his friends, started Thefacebook in 2004 as a minimum viable product. It would connect students to their peers and create an online community of class fellows. The idea gained immense popularity. Soon, college graduates from other universities joined, and Thefacebook eventually became Facebook. 


Dropbox didn’t even start with a product. Rather, they discussed their product idea with an explainer video. It was the simplest example of MVP that attracted over 70 thousand people. Overnight, Dropbox founders Arash Ferdowsi and Drew Houston received a lot of emails from potential customers. Today, Dropbox has 700 million registered users, including 15 million premium customers. 

Final Thoughts 

MVP development is the process of validating unique and novel product ideas after collecting feedback from end users. This cost-effective and risk-free approach is crucial for the long-term success of digital products.  

Most tech startups nowadays begin with a minimum viable product and assess the market demand first. With this approach, they can spot their target audiences and identify core features most liked by potential users. Once the product idea is validated, they can move towards full-scale software development and release the final product faster. 

Facebook, Dropbox, Airbnb, and Amazon are popular examples of digital products that started with MVP development.