Minimum Viable Product (MVP): Full Guide

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Published
12/16/24
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Building a Minimum Viable Product (MVP) is the smartest way to validate your business idea without unnecessary investment or delays.

Focusing on essential features and an efficient path to market helps collect valuable insights while reducing potential risks. This guide dives into practical steps, proven strategies, and expert advice to help any team develop a product that aligns with actual user needs.

Read on!

What is a Minimum Viable Product (MVP)?

A Minimum Viable Product, commonly abbreviated as MVP, represents the simplest version of a product that solves a problem or delivers value.

This concept allows teams to validate ideas and gather critical insights about users with the least possible effort. An MVP focuses on core functionality to test whether a market genuinely exists for the solution being offered.

By releasing this version early, businesses gain the advantage of real-world feedback, preventing wasted time and avoiding unnecessary development based on assumptions. Instead of perfecting every detail, the emphasis is placed on understanding how potential customers respond to the product’s essential features.

The essence of an MVP isn’t about cutting corners but about prioritizing necessities. Teams can identify which aspects resonate with users and which don’t need further refinement.

For instance, several successful companies, including Dropbox and Airbnb, began with basic iterations. They introduced just enough to connect with their intended audiences, using feedback to optimize and grow over time.

An MVP isn’t the final version of a solution—it’s the starting line that reveals an idea’s potential while minimizing risk.

Benefits of an MVP

Test Market Demand with Minimal Investment

Launching a product often comes with uncertainty.

Will customers embrace it?

Does the idea address a genuine need?

A Minimum Viable Product (MVP) helps clear these doubts without exhausting resources. Introducing a concept with only essential features allows teams to measure interest and identify pain points early in the process.

Instead of investing heavily in a full-scale rollout, businesses get answers before committing to significant expenses. Validating assumptions helps reduce risks.

Feedback collected from early adopters offers insights that no amount of speculation can replace. These learnings guide future development, saving both time and finances.

Tech giants like Twitter and Spotify are great examples of companies that started with MVPs.

They introduced simplified versions, adjusted based on user reactions, and expanded over time. Testing demand with a smaller commitment means that decisions are made using real-world data rather than guesses.

Reduced Time to Market

Bringing a product to customers quickly can be vital for staying relevant and meeting demands before competitors do. MVPs allow businesses to fast-track the development process by focusing on the essential components needed for functionality, instead of delaying entry with unnecessary features.

The faster roll-out provides a significant advantage.

Early availability means valuable feedback starts coming in sooner, helping refine and improve the product based on actual user experiences. Adjustments can then be made in real time, guided by what truly matters to the audience.

Take the example of Instagram—it launched as a simple photo-sharing solution. By prioritizing speed, the creators introduced it quickly, allowing users to shape its evolution.

Getting to market quickly also means ideas are tested in real-world conditions, giving businesses a head start on learning. Iterations made from this stage lead to better-defined products that fit user needs, all while maintaining a more agile workflow.

Collect Valuable User Feedback Early

Building a product can involve several assumptions about what customers might want. Testing these ideas early by using an MVP helps businesses understand what works and what doesn’t—directly from their intended audience.

Collecting feedback at this stage not only provides clarity but ensures decisions are made with accuracy, backed by real-world interactions.

An MVP opens the door for users to interact with the product in its simplest form. The reactions collected during this phase highlight areas needing improvement and confirm aspects that connect well.

Focusing on priorities defined by actual customers saves time and reduces unnecessary efforts. Listening to what users need, instead of guessing, keeps the development process sharp and efficient.

Dropbox, as an example, began with a straightforward demo video showcasing fundamental ideas. Watching how potential users responded allowed the team to refine and shape the product into its eventual form.

Avoid Over-Building & Save Resources

Creating an elaborate product packed with features might seem like a good plan, but it often leads to wasted effort.

Taking on too much early in the process can drain resources and shift focus away from solving the core problem. A Minimum Viable Product avoids this error by emphasizing only the essential aspects needed to test your idea in the market.

Teams can avoid wasting time on features that may never be used with this approach. Instead, by concentrating on just the critical functionality, you can ensure that your initial version is built efficiently. The simplicity of an MVP allows businesses to get their product out quicker and start learning from real users earlier.

Take Airbnb’s first iteration as an example. It was bare-bones, with only basic functionality allowing hosts to list spaces and travelers to book them.

Steps to Build a Minimum Viable Product

Step 1: Identify the Problem & Target Audience

Without a clear understanding of the challenge or the people experiencing it, moving forward strategically becomes difficult. This step sets the foundation for your entire MVP, helping you focus efforts where they will have the greatest impact.

Start by defining the problem in specific terms. Ask questions like, "What gap exists in the current market?" or "What frustrations do people face that this product can resolve?"

Speak to potential users directly or observe how they interact with existing solutions. These insights often highlight patterns or unmet needs, providing vital information for refining your idea.

Knowing your audience is equally essential.

Consider their demographics, behaviors, and preferences. Are you targeting professionals, students, or hobbyists? Each group will bring unique expectations and experiences, influencing the design and delivery of your MVP. Tools such as surveys, interviews, and forums can clarify who your ideal users are and what they value most.

Take Spotify as an example. When it first launched, the idea addressed a clear problem—users wanted access to music without downloading files or breaking copyright laws.

Spotify designed an MVP focused on delivering an easy streaming experience with a straightforward library by understanding its audience. Identifying needs and who had them made their proposition compelling from the start.

Step 2: Map Out Essential Features

Focusing on the most important features is crucial when developing an MVP. Including too many functions may overcomplicate the process and dilute the core value of your offering. Instead, pinpoint the core capabilities that serve the primary purpose of your idea.

Begin by revisiting the problem you identified and ensure that your feature list aligns with solving it.

Ask yourself, “What does the product absolutely need to accomplish its basic mission?” Aim for clarity in defining this foundation, as it forms the basis for further development. Features that are nice-to-haves can always be added later once the MVP has proven its value.

Prioritization plays a key role here. Use methods like MoSCoW (Must Have, Should Have, Could Have, and Won’t Have) to categorize features properly. Talking to potential users at this stage provides useful insights into what they value most. Understanding their preferences will help you shape an offering that fulfills their expectations while avoiding unnecessary complexity.

An example worth exploring is Twitter’s early version.

It launched with limited options, allowing users to post short messages. That simplicity aligned perfectly with the main idea, creating a new way for people to communicate quickly. Its success came from sticking to essential functionality and avoiding distractions in the initial stages.

Once the essentials are in place, collecting feedback becomes easier since users can clearly see what the product aims to achieve. These insights then guide the next steps, making improvements more effective over time and keeping the minimum viable product guide relevant through each growth stage.

Step 3: Prototype Your MVP

Once the essential features have been identified, it’s time to turn ideas into something tangible. Prototyping allows teams to create a simplified version of their MVP for initial testing. This stage is essential in the "minimum viable product guide" because it merges concept and execution.

Prototypes can take various forms, such as wireframes, mock-ups, or click-through designs, depending on the nature of the product. For example, a digital app might start as a static design showcasing how users would interact with it. A hardware solution, on the other hand, could involve building a basic physical model.

The goal is to quickly create a functional representation of the product’s idea.

These early prototypes allow stakeholders to experiment without large resource commitments. Feedback collected during this phase helps refine the user experience. It’s an opportunity to identify potential hitches, smoothen interactions, and eliminate unnecessary elements that add no direct value to the MVP.

Prototyping also encourages better collaboration across teams. Developers, designers, and product managers align on the visual and functional aspects, reducing the chances of miscommunication. With a clear understanding of the direction, everyone can move forward effectively.

Step 4: MVP Development

After prototyping, the next step focuses on turning concepts into a functional product.

MVP development is where ideas materialize into a version that real users can interact with, emphasizing practicality over perfection. The goal is a functional offering that highlights the core features identified earlier.

Start by selecting a technology stack suitable for your product’s scope and budget. Balancing efficiency, scalability, and affordability ensures you can deliver something actionable without overstepping available resources. Collaboration between your development team and designers at this stage is critical to keep the focus aligned with user needs.

Instead of building every feature, prioritize functionality that directly fulfills the problem your product sets out to solve. This prevents unnecessary complexity, saving time and effort. When each feature serves a purpose, it’s easier to test usability and measure its value to the end user.

Testing during development should be frequent and structured.

Break the process into smaller stages to validate individual components before combining them into the larger whole. Using agile methodologies, where quick iterations improve based on consistent feedback, often results in a smoother MVP-building process.

Completing the MVP development phase doesn’t require a polished product. Instead, strive for something functional enough to showcase its purpose and gather insights.

Step 5: Launch Your MVP

The moment your minimum viable product is ready, the focus shifts to introducing it to the world.

Launching an MVP is not about reaching perfection but presenting a functional solution to a specific problem. For a successful rollout, planning and strategic execution are essential.

Start by selecting a small, focused group of users for release.

This initial audience, often referred to as early adopters, provides valuable feedback without the pressure of a broader launch. Their experiences and insights help refine the product before scaling further.

Creating a clear messaging strategy is equally crucial. Transparent communication about what the MVP offers and its purpose sets the right expectations. Highlight the primary problem it solves and explain how the product benefits users.

Avoid overpromising—early users are likely to appreciate honesty over-inflated claims.

Tracking results post-launch ensures the efforts are data-driven. Utilize analytics tools to monitor user behavior and engagement. Identify patterns, highlight areas for improvement, and act on feedback to make informed decisions for the next iteration.

Every piece of data collected contributes to shaping a better experience.

Being active in engaging with users establishes trust. Respond to questions, address concerns, and show that feedback is valued. Fostering an open dialogue creates stronger connections and builds a loyal community around your product.

Steps to successfully launch an MVP:

  • Set clear goals
  • Target early adopters
  • Deliver transparent messaging
  • Use analytics tools
  • Collect and act on feedback

MVP vs. Other Development Approaches

MVP vs. Proof of Concept (PoC)

When building a product, it’s important to understand how a Minimum Viable Product (MVP) differs from a Proof of Concept (PoC).

Both approaches evaluate ideas, but their purposes and execution vary significantly. Understanding these differences ensures the right method is chosen depending on the development stage and goals.

A Proof of Concept often seeks to validate whether an idea is technically feasible.

It’s a preliminary experiment, designed to test if the core functionality of a product or feature can work as intended. For instance, when software developers test whether a new algorithm processes data correctly, they might create a PoC to prove viability without focusing on usability or user experience.

On the other hand, an MVP focuses on delivering a working version of the product to its intended audience.

Unlike a PoC, it’s not limited to technical feasibility but instead prioritizes solving a real problem for users. An MVP is developed with just enough features to meet essential needs and collect meaningful feedback.

Unlike a PoC, which might remain internal, an MVP is released into a real-world context. By doing so, developers collect insights and measure demand before committing more time or money.

Consider the difference between designing a concept car to test an engine (PoC) and manufacturing a simple, functional vehicle for customers to drive (MVP).

Main differences between MVP and PoC:

  • User-focused vs. system validation
  • Released to users vs. internal testing
  • Feedback-driven vs. feasibility testing
  • Features included vs. technical core only

MVP vs. Prototype

Developing a product often involves both MVPs and prototypes, though each serves a different role. Knowing the distinctions ensures businesses choose the right approach depending on their stage of development.

Prototypes are usually built to simulate how a product might function. The focus at this stage often centers on design, interface, or basic usability. Teams use these early models to explore ideas and address potential user experience issues. For example, prototype versions may not work entirely but can showcase appearances or workflows.

An MVP, in contrast, goes beyond appearance and functionality testing.

It’s a working product version made to meet essential user needs. While prototypes may remain internally focused, MVPs are shared with a target audience to solve problems and collect actionable feedback.

Prototypes are often disposable since they aim to refine concepts before development begins. On the other hand, MVPs kickstart real-world use, helping teams gather practical insights and validate demand.

For instance, a food delivery app prototype might include static screens showing potential features, whereas an MVP would involve basic ordering and tracking functions.

Understanding this distinction can save time and resources, ensuring efforts align with business goals.

Main differences between Prototype and MVP:

  • Simulate functionality vs. core functions
  • Used internally vs. shared externally
  • Test ideas vs. validate user needs
  • Disposable vs. scalable

MVP vs. Final Product

Distinguishing between a Minimum Viable Product (MVP) and a final product is crucial for understanding the stages of product development. While both aim to deliver value, their purposes, features, and complexities differ significantly.

An MVP is an initial product version containing only the essential features needed to address user problems.

Its purpose centers on testing ideas, gathering user feedback, and assessing market demand. Keeping development lean allows businesses to pinpoint what works before committing significant resources to features or improvements.

On the contrary, a final product is the outcome of iterations and improvements based on earlier feedback.

It includes a fully refined set of features, polished design, and broader functionality intended for long-term market adoption. For example, an MVP mobile app might have a sign-in feature and basic navigation, while the final version boasts advanced functionalities like analytics, integrations, and comprehensive support.

An essential difference lies in the audience.

MVPs target early adopters willing to provide valuable insights, while final products are launched to appeal to a wider customer base. The final version needs to operate smoothly and meet higher user expectations.

Main differences between MVP and Final Product:

  • Minimal core features vs. complete functionality
  • Early adopters vs. broad audience
  • Focus on testing vs. long-term growth
  • Lean design vs. polished outcome

Challenges in MVP Development & How to Avoid Them

Over-Engineering the MVP

The main purpose of an MVP is to test your product idea efficiently, collecting feedback from users without committing excessive resources. However, over-complicating the development process can counteract this goal, resulting in wasted time, inflated costs, and user confusion.

Over-engineering happens when teams focus too much on adding unnecessary features.

Instead of prioritizing the essential elements designed to solve the problem, they pile on functionalities, aiming for perfection too early. This results in a product that doesn’t reflect the problems users face or answer the critical questions about its potential viability.

For instance, adding advanced design elements or integrations that don’t directly contribute to solving the problem can bog down the MVP’s effectiveness.

Another cause stems from team members fearing that a stripped-down version might appear incomplete or lacking. Yet, an MVP isn’t about perfection—its focus should remain solely on delivering value in its simplest form.

Preventing over-engineering requires discipline and communication.

Clearly define the product’s must-have elements based on user needs and business goals. Break down problem-solving into small, testable segments. Communicate boundaries to your team so efforts remain tightly aligned with the goal of rapid testing and iteration.

Misinterpreting User Feedback

Misinterpreting user feedback can lead to incorrect assumptions, wasted resources, and missed opportunities in the development process. Businesses can run into this issue when they jump to conclusions without considering the bigger picture.

User feedback provides clues about pain points and preferences.

However, relying solely on surface-level comments can result in skewed priorities. For instance, individuals might request extra features unrelated to the core objectives of the MVP. Addressing every request without evaluating long-term goals can dilute focus and increase development time unnecessarily.

Another common mistake is failing to differentiate between individual opinions and trends across the entire user base. A single voice, even if passionate, doesn't always represent the majority. Decisions made without proper analysis might prioritize minor inconveniences over fundamental issues.

Balancing what users say with what they do helps avoid these challenges.

Observe behavior patterns alongside verbal input to uncover valuable insights. Testing and tracking how users interact with the MVP can often highlight areas for improvement that direct feedback overlooks.

To truly benefit from feedback, establish a structured approach. Focus on collecting data from a defined group of users, prioritize findings based on impact, and revisit initial goals regularly to keep progress aligned with the original purpose.

Targeting the Wrong Audience

When targeting too broad a group, feedback may conflict or lack the depth needed to fine-tune the product.

For example, potential users with little investment in the problem may request unimportant features that don't align with real pain points. This could lead to prioritizing unnecessary elements over core functionality.

On the other hand, narrowing your focus too tightly might limit the range of valuable insights.

Identifying users with both interest in solving the issue and willingness to engage with an unfinished product is critical for success. Without these early adopters, essential insights may be missed, delaying progress.

To avoid this trap, start by defining your ideal MVP audience through research.

Pinpoint their specific problems and confirm your solution has potential value for them. Clear communication during outreach will also help in connecting with individuals whose feedback adds the most value.

Once the right people are in place, their comments will guide iterations effectively.

MVP Development Frameworks

Lean Startup Methodology

The Lean Startup methodology offers a practical framework for developing an MVP by emphasizing efficiency and adaptability. This approach is rooted in creating a product quickly with enough essential features to gather meaningful insights from users.

Rather than spending extensive time crafting a perfect version, teams prioritize real-world learning to guide improvement.

Starting small and iterating based on user behavior helps startups minimize the risk of wasting resources. This methodology combines building, testing, and learning as an ongoing cycle.

For example, creating a simple version of an app, releasing it to users, analyzing feedback, and adjusting accordingly keeps development on track. The focus remains on validation rather than overextending resources.

The Lean Startup's core idea lies in creating a feedback loop. Teams observe how users engage with the MVP, gather actionable insights, and use these findings to drive the next steps.

Key points of the lean startup methodology:

  • Build, Measure, Learn
  • Focus on validation
  • Real-time user feedback
  • Avoid unnecessary features

Agile Development Framework

The Agile Development Framework is a flexible approach designed to adapt to changing requirements during product development. For an MVP, Agile provides a structure that emphasizes collaboration, incremental progress, and regular feedback from all stakeholders.

Small, manageable development cycles, known as sprints, allow teams to focus on delivering functional portions of the product regularly.

Using Agile, teams can quickly identify and fix problems, which helps maintain focus on the MVP's purpose. Since development happens iteratively, adjustments based on user input or unexpected challenges become simpler.

Agile encourages transparency and open communication across the development team.

Daily meetings or check-ins help promote awareness of goals, tasks, and any obstacles. Regular reviews at the conclusion of each sprint provide an opportunity to evaluate work, adjust objectives, and plan the next steps effectively.

Key points of the agile development framework:

  • Iterative sprint cycles
  • Incremental product releases
  • Continuous user feedback

Design Thinking Approach

The Design Thinking Approach focuses on understanding user needs to create meaningful solutions. This method emphasizes empathy, collaboration, and iteration throughout the product development process.

For an MVP, Design Thinking ensures that every decision aligns with solving real-world problems faced by users.

Teams begin by engaging deeply with potential users to uncover their challenges and preferences. Developers can establish trust and identify issues through interviews, surveys, or observation.

Once these insights are captured, brainstorming sessions generate ideas to address those needs. During this phase, creativity thrives as multiple solutions are proposed.

From there, prototypes—simple, cost-effective versions of the product—are built and tested with users. Through these rapid iterations, teams refine the MVP based on immediate feedback.

Key points of the design thinking approach:

  • Empathize with users
  • Define the problem
  • Brainstorm innovative ideas
  • Build and test prototypes
  • Iterate based on feedback

Build-Measure-Learn Cycle

The Build-Measure-Learn Cycle is an essential component of the Lean Startup methodology, often referenced in a minimum viable product guide. Centered on feedback loops, the cycle helps businesses stay aligned with user needs and preferences.

The process begins by constructing a product with just enough features to test a specific hypothesis.

These features address a problem identified during customer research, ensuring relevance from the outset. Once the MVP is ready, teams gather data by observing how users interact with it. Tracking key metrics uncovers insights into performance, usability, and overall demand.

After evaluating the collected data, adjustments are made to improve the product or validate existing features. Consistently repeating this loop allows teams to create value while avoiding unnecessary development.

Collaboration, focus, and responsiveness are key for maximizing learning with each iteration.

Key points of the build-measure-learn cycle:

  • Create hypothesis-driven products
  • Gather actionable user data
  • Analyze metrics for insights

Rapid Prototyping Techniques

Rapid prototyping techniques focus on quickly creating product models to test ideas with users.

For an MVP, these methods offer a way to gather feedback before investing heavily in development. Teams can refine concepts to better meet customer needs through iterative prototyping.

This process typically begins with low-fidelity prototypes, such as sketches or wireframes. These rough drafts allow developers to validate basic ideas without committing significant resources.

Feedback collected from early-stage models helps highlight gaps or areas needing improvement.

Moving forward, higher-fidelity prototypes, such as clickable designs or semi-functional versions, provide users with a more realistic experience of the product.

Involving potential users at every stage helps rapid prototyping reduce risks tied to guesswork. Teams can adapt designs based on real-world feedback, avoiding costly mistakes. The cycle continues until an MVP is ready to meet the market or undergo further testing.

Key points of rapid prototyping techniques:

  • Create initial sketches
  • Design clickable wireframes
  • Test semi-functional models
  • Iterate based on feedback

Signs Your MVP is Successful

Positive User Feedback Grows

When positive user feedback grows, it often signals that your MVP is hitting the mark.

Engaged users expressing satisfaction with key features or offering constructive suggestions indicate that your product resonates. It’s a sign that the problem you aimed to address is relevant and your solution holds value.

Comments, testimonials, or even repeat engagement can highlight growing interest.

Metrics such as higher usage rates or returning customers frequently accompany this feedback. Listening to what users appreciate about your MVP allows teams to refine it further, building momentum for broader adoption.

High Engagement & Retention Rates

Strong engagement and retention rates serve as powerful indicators that your MVP is meeting user expectations effectively. When people interact frequently with your product and continue returning over time, it’s a clear sign they find value in what you offer.

Measuring active usage trends, such as daily or monthly engagement, provides insight into the product’s appeal. Observing retention rates highlights how well your MVP maintains interest after the initial adoption phase.

A consistent pattern of returning users often correlates with long-term demand and validation of the solution.

Early Adopters Paying Consistently

When individuals see enough value to repeatedly invest in your product, it demonstrates that your offering addresses their key needs effectively. These early customers are often the first to validate both pricing and functionality.

Monitoring this group’s behavior can provide actionable insights.

Steady revenue signals that your solution resonates with its target audience. Engaging early adopters in meaningful conversations can uncover additional opportunities for improvement or feature expansion. Their willingness to pay consistently validates the potential for scaling your MVP into a fully-fledged product.

Strong Market Demand Signals

Observing rising interest through inquiries, pre-orders, or waitlist sign-ups reflects growing curiosity about the value offered. These signals emerge when the product directly addresses a pressing need or solves a specific problem effectively.

Analyzing trends such as website visits, application downloads, or increased demo requests can provide clarity about user interest.

Consistent spikes in these numbers suggest your MVP holds appeal and is worth further development or scaling.

Tuning into these indicators helps teams decide where to focus efforts. Evaluating demand trends early ensures the solution aligns with what people actively seek, creating a foundation for growth.

Steady Increase in New Users

A growing number of new users often reflects that your MVP is catching attention and addressing relevant needs.

Observing a steady rise indicates people are discovering your offering and choosing to engage with it. This trend provides early validation that your product resonates with a wider audience.

Tracking metrics like sign-up rates or app downloads can reveal whether marketing efforts effectively reach potential users. Expanding the user base not only highlights demand but also provides a consistent stream of feedback to refine your product further.

Let NerdHeadz Develop Your MVP

Choosing NerdHeadz to develop your Minimum Viable Product means tapping into a seamless no-code development process designed to deliver results. Their unique framework is built to help startups quickly take ideas to market with minimal risk.

NerdHeadz utilizes no-code platforms like Bubble, allowing rapid delivery of MVPs that meet essential user needs. Traditional coding often requires significant time and resources; however, NerdHeadz leverages tools proven to save up to 90% on development expenses.

Their experienced team prioritizes simplicity in approach, creating MVPs with essential features to validate your concept successfully.

A three-step process ensures products reach early adopters efficiently, integrating feedback mechanisms for constant improvement. This model not only aligns with their expertise but also highlights an understanding of how to adapt products to market needs effectively.

With certifications and awards backing their reliability, NerdHeadz has established itself as a global leader in no-code MVP development. Supporting clients after launch with tailored updates, maintenance, and a focus on scalability, ensures every project evolves seamlessly into something more robust.

For startups looking to enter the market with the right foundation, NerdHeadz offers a clear and trusted path forward.

Get in touch with NerdHeadz to get started.

SEO & Content Manager

Luciani Zorrilla is a content marketer with experience in sales development, outbound sales, SEO, design, email marketing, and UX. She stands out in driving sustainable growth for tech startups through impactful SEO strategies and leading results-oriented marketing teams.

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Frequently asked questions

How to determine a minimum viable product?

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Identify the core problem your target audience faces and focus on building only the essential features needed to solve that problem effectively. Avoid adding extras that do not directly address the main issue.

What are the three elements of MVP?

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1. Core functionality: The minimum set of features needed to solve the primary problem. 2. Target audience: A specific group of users whose feedback will validate the product. 3. Feedback loop: A way to gather user input for improvement and future iterations.

What are MVP requirements?

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- A defined problem to solve. - A clear understanding of your target audience. - A basic set of essential features. - A simple, functional design. - A plan for collecting and analyzing user feedback.

How many iterations are needed to build a minimum viable product?

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There's no fixed number, as it depends on user feedback and product goals. Typically, building an MVP involves multiple iterations to refine the product, improve features, and deliver better value based on feedback.