Tips & Tricks on how to build MVP
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The document provides tips and tricks on building a minimal viable product (MVP) from lean startup practitioners. It defines an MVP as having the minimum feature that will encourage users to engage with the solution and test the idea with minimal resources. The document emphasizes testing ideas through landing pages, prototypes, customer interviews and other low-cost methods before investing significant time and money into full product development. It outlines 5 steps for transitioning from waterfall development to building an MVP, including identifying key features, removing non-essential elements, using iterative development and being prepared to fail often to learn quickly.
Tips & Tricks on how to build MVP
- 1. Tips & Tricks on How to Build MVP From Lean Startup Practitioners
- 2. What is covered? ⊙What is MVP with real-life examples? ⊙Why do you need MVP? ⊙How to recognize if what you are building is MVP or a full product? ⊙What is Minimal Quality for a Minimal Product? ⊙Tips and Tricks of how to test idea ⊙5 steps to go from waterfall to MVP
- 3. MVP
- 4. What is MVP Minimal What is essence of your idea? Think of 1 (one, uno, ein) feature that will make users anticipate to use your product or service Viable Does the idea make sense for people / business? The math must make sense Product Here’s where the tricky part comes in. Is what you have really a product or service that you can show to your target audience. Or will you turn them away by it’s low-quality? These 3 magic letters M V P stand for Minimal Viable Product
- 5. Minimal What is essence of your idea?
- 6. MVP paradox Pain that solution addresses > Pain to use solution
- 7. Viable Does the idea make sense for customers? And... The math must make sense.
- 8. Take an abstract food ordering platform. UK market in 2014 was estimated to ~40 000 fast food restaurants, ~20 bln total revenue. Startup is ambitiously aiming at 20% of the market. Monthly payments for registered companies Creates entry barrier for new businesses (have to become profitable first) vs secured MRR (monthly recurring revenue) Possible business models Transaction fee for each order made on website Win-win scenario, customers do not lose money.
- 9. Example of basic calculations to estimate viable idea You don’t need a university degree to figure out math here. Probably your mid- school children are able to do this User base 40 000 *0,2=8000 User revenue 20 000 *0,2= £4 000 mln ARR (monthly subscription £5 per company) 8000 * £5 *12 = £480 000 Average transactions volume per year (assuming transaction cost ~ £40) £20 000 mln/£40 = 500 mln % Transactions volume online (guts feeling) 25% Volume of online transactions in targeted fast-food market 500 mln* 25% = 125 mln Cost of transaction to get to £480 000 ARR (as for subscriptions) ~4 cents
- 10. Product Product or service in MVP is something your users can use to solve their TOP pain
- 11. Did early PayPal provide a possibility to pay with its currency online? No, they started with possibility to send money via email as this was the most widespread way of communication in late 90’s. They integrated into Ebay after they got over ~0.5 mln of users and grew user base to ~4 mln in 6 months. But it wasn’t a part of their MVP. If they had not got the traction using simple email service, they would not have had that credibility for online consumers at Ebay.
- 12. Dropbox MVP http://techcrunch.com/2011/10/19/drop box-minimal-viable-product/ “Extremely easy to use, flawless files sharing experience” Business model: freemium/premium Did guys have product to test? Yes Was it stable or reliable? No How did they get the funding? They tested MVP and got fantastic traction after publishing video with humorous inserts on how Dropbox works.
- 13. Yipit Get rid of everything, except your idea. Guys at Yipit spent first 9 months analyzing manually daily deals and creating tailor-made digests for each one of their users. Result: raised $1.3 million in 3 months. Leaders in their segment.
- 14. Why do you need MVP? ⊙Test the demand: what features users resonate with? ⊙Test the price: what users are ready to pay for? ⊙Test marketing: will customers be able to find your business? ⊙Test audience: do you reach the right audience? ⊙… and find answers to many more questions that you might have ?
- 15. You need MVP because it will cost you less time & money and because your investors want to see the real traction
- 16. How to recognize if what you are building is MVP or a full product? Product or MVP? Does it contain the feature that you assume will drive the early- adopters to your product? Can you learn about user experience from it? Yes? Looks like you’re building MVP :) Does it contain extra features to what your early-adopters asked for? Do you know what you need to release product to mass market? Yes? Beware! Full-stack product launch!
- 17. What is Minimal Quality for a Minimal Product? OK, I want to build MVP. But how can I be sure that it is not low quality that drives people away? Now go back to MVP Paradox. People will use your solution only if it solves their PAIN #1. If they don’t, then you: a. targeted wrong people b. targeted wrong pain
- 18. Test MVP MVP will not build you business in 2 months. MVP will help you to learn what you need to build your business in 2 months. There are multiple ways to test your idea whether you are a developer, or not.
- 19. Do “comprehension test” Explain your idea in 5 minutes to your friends, relatives, strangers in a pub. Ask them to retell you the idea in their own words. Result => Make sure that you are able to explain your idea to people. First steps to testing idea Create very simple landing page Landing page is not a must, however it comes handy for many types of testing. Consider using tools for creating landing pages. Even with free options you can get a lot, and not spend time on building the whole website.
- 20. 5 Tips and Tricks to test idea if you’re Not a Developer
- 21. Test the demand with Google Adwords Create a simple landing page and test what users are interested in. Run A/B or multi-variations tests to see what words work best for your UVP. Pretotype There are a few tools that you can use to prototype like Balsamiq, inVision, Proto.io. Prototype Use cheap platforms like fiverr.com to find someone to get dynamic prototype in place. Try to pitch your idea using crowdshouting Thunderclap is fantastic, simple yet extremely powerful tool to get the message to the people. See how many people support your idea so much that they are ready to share it via their social networks. Do the interviews Go out, shut up and listen to your potential users. When you’ll know what the next person is going to say to you, then you’ve just gained trustworthy knowledge. Tips and Tricks for non- developers
- 22. 5 Tips and Tricks to test idea if you’re a Developer
- 23. Forget that you’re a developer and go two slides back. You need to learn about 1) product (pains) 2) market. If you have created MVP already, then proceed to next tips. Carry out “hallway” tests Show the solution to the people who are not familiar with your idea. Ask them for opinion and feedback. Do the interviews Go out, shut up and listen to your potential users. When you’ll know what the next person is going to say to you, then you’ve just gained trustworthy knowledge. Test if the solution clearly solves problem you targeted You can use mTurk for surveys to ask strangers how they perceive the solution. The budget here can be below $10, and you can get the results within a few days. Do user experience testing You can use guys like usertesting.com. Costs a bit more (up to $40) but you get user-experience test report with video within a day. Tips and Tricks for developers
- 24. And finally: Try to sell the solution If people don’t buy, test MVP to understand why. Check out prev slides to see what techniques you can use.
- 25. 1. I’ve been building a product for 6 months. How do switch to MVP now? 2. My team is driven by high-quality of our solution. Can we use MVP approach? 3. My idea is vogue right now. How do I create MVP from here? Some of the questions people are asking: Check out 5 steps to move to MVP. See how they can fit with your reality and team.
- 26. steps to move to MVP ⊙Identify what feature will encourage users stick with your solution or even share it with friends. ⊙Get rid of everything that is not essential for your early-adopters. ⊙Build-measure-learn from small batches of functionality. Learn to understand how your users react to the changes and adapt accordingly. ⊙Understand your target audience. Start with very specific group, where your conversion would be quite high. ⊙Be prepared to fail often. Make conclusions and move forward to try new ways. 5
- 27. Thanks! Want to know more? About testing ideas, Building MVP, Experimenting, Analysis Visit our blog and subscribe to updates. We have unsubscribe feature just in case :) And yeap, we know the design sucks. But it is not about design, is it? :) You can also contact us via email team@red-button.co
- 28. Images that we used https://c2.staticflickr.com/6/5342/9151044000_9f0315951b_b.jpg https://encrypted- tbn0.gstatic.com/images?q=tbn:ANd9GcSq3afsrS64v4G74gJfMJ246kWoS5o76- Z0y6wYGAFvoBdeJbBJDg https://c2.staticflickr.com/8/7158/6688652773_23bd26b5cf.jpg https://farm9.staticflickr.com/8152/7460432496_10aaff5ee0_o_d.png https://c1.staticflickr.com/9/8068/8232512969_95290b0c2b_b.jpg https://farm9.staticflickr.com/8446/7932314722_ff91ec2254_o_d.jpg https://upload.wikimedia.org/wikipedia/commons/4/41/Facebook_like-hang-tag.jpg https://upload.wikimedia.org/wikipedia/commons/0/0a/Tr%C3%A5dtelefon- illustration.png If you don’t want to come back to previous slide, here’s the link to our blog. http://red-button.co/blog/