How to Build a Minimum Viable Product in 2025: Tips, Benefits, and Development Guide

A minimum viable product is a new software product with a basic set of crucial features. Building an MVP for startups is a great approach to validate the core idea of a product with minimal resources. It reduces the risk of investing heavily in an unproven concept and provides early real-user feedback for data-driven decisions and iterative improvements. MVPs also reveal market demand and user preferences, guiding teams toward a more focused and effective development strategy.

Let us discuss why startups have a vital need for MVP development, considering statistical insights:

• A study by McKinsey & the University of Oxford found that IT projects without MVPs, on average, run 45% over budget, 7% over schedule, and deliver 56% less value than expected.
• A Harvard Business School report stated that about 35% of startups fail as they don’t find enough product-market fit, going without an MVP.
• McKinsey & Company highlights that testing product-market fit through MVPs allows companies to validate value early, iterate faster, and prevent costly mistakes from premature scaling.

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

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

Launching your product to end-users early not only allows you to gather and analyze their feedback swiftly but also plays a crucial role in refining your MVP through validated learning about customers. The simplicity and small scale of the codebase for Minimum Viable Product (MVP) further enhance the efficiency and manageability of this process. A study in the Journal of Business Venturing Insights found that startups using MVPs were 2.3x more likely to pivot successfully after gathering customer insights compared to those launching fully developed products.

By focusing on a limited set of core features, building an MVP for startups allows you to gauge consumer response effectively. If these features are well-received, you can introduce new functionalities tailored to user preferences. This cost-effective approach ensures that additional features are implemented without incurring the higher expenses of developing a comprehensive software solution. Research in MIS Quarterly Executive highlighted that MVP-driven iterations reduced feature waste by 30–50%, ensuring development efforts focused only on validated features.

Developing cross-functional applications requires substantial time and financial investment. However, developing an MVP process allows for a more economical path by focusing on incremental development. Instead of committing to a full-fledged product from the start, you release a simplified version that meets core user needs.

This approach not only reduces initial expenses but also minimizes the risk of wasted resources on features users do not actually need. By prioritizing essential functionality first, you ensure every dollar spent contributes to validated product growth and avoids costly rework later in the project.

If you are a startup company seeking to get funding for mobile app development, an MVP can be a robust tool for you to attract investors. Demonstrating a working prototype or initial version of your product shows tangible progress, which is often more compelling than a theoretical concept.

This aspect makes investors more likely to trust and support a startup that has moved beyond the idea stage, making them feel secure and trusting in their investment. Harvard Business Review emphasizes that MVP-backed traction doubles investor trust compared to business plans alone.

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

Let’s dive deeper into the most well-known types of minimum viable product you might want to build, and how each of them will help your business benefit more.

Creating an MVP of this type is particularly useful when you need to validate complex ideas without investing in full-scale automation. Instead of automating processes, you directly interact with users to provide the experience, so you can gather detailed feedback and understand user needs intimately. For example, a travel planning app could start by having a team of travel experts create custom itineraries for users. The key advantage is the ability to pivot quickly based on direct user feedback. Moreover, this MVP is a low-cost way to validate your assumptions and build relationships with early adopters.

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

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

A no-code MVP allows you to validate your idea without writing a single line of code. Instead, you rely on visual tools and platforms that let you create simple websites, apps, or prototypes quickly. This approach is perfect for the startup founder who wants to test assumptions and collect early feedback without hiring a full development team. For example, tools like Webflow, Bubble, or Glide give an opportunity to build an app that demonstrates your core idea. The biggest benefit is speed and affordability: you can validate demand, attract first product users, and even show traction to investors before committing to full-scale software development.

A single-feature MVP building focuses on building only the most critical functionality of your product. This strategy reduces complexity and development costs while letting you test the exact value users expect from your idea. For example, if you want to build a product like a photo-sharing app, instead of building messaging, filters, and community features at once, your vendor can launch an MVP with just the photo upload and sharing function. By concentrating on one feature, you gain clear insights into whether users find it valuable enough to keep using and recommending your product. Once validated, you can expand gradually with additional features.

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

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

To guide you through the MVP development journey, we’ve prepared a practical and step-by-step roadmap covering everything from market research to growth strategies, so you’ll know exactly how to build an MVP from scratch and move toward a successful product launch.

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

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

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

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

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

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

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

If you need a reliable software provider for MVP development, feel free to contact us. The Cleveroad team has extensive experience in MVP development. For example, for our client, a US-based transportation company, we’re developing a P2P ridesharing platform.

Our client wanted a service similar to Uber or Lyft but tailored for riders with disabilities and medical needs. We moved away from a standard Uber-like model, built a custom filtering system, validated drivers offline, and integrated Stripe-powered payments with a free-ride option. By iterating on real user input, we delivered a scalable platform that met business goals while ensuring accessibility and customer satisfaction.

As a result, our client obtained a scalable and accessible ridesharing platform that met their business goals while ensuring user satisfaction.

Here is what John Salmon, Founder at Unified Potential, says about collaboration with Cleveroad:

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

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

At Cleveroad, we also offer a Free Solution Design Workshop, where our domain experts connect your business needs with technical implementation. This workshop helps identify risks early, validate assumptions, and ensure your MVP roadmap is aligned with both your vision and market demands.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

One of the most common mistakes startups make is treating an MVP as an open-ended project. To avoid delays and overcomplication, define a clear scope, just the core features needed to test your assumptions, and set realistic deadlines for delivery. This discipline ensures your MVP remains lightweight and focused on validation rather than becoming an endless development cycle.

At Cleveroad, during the Discovery phase, we draw up a detailed project plan structured in sprints. This plan covers the development of the MVP itself and also the roadmap for improvement and refinement after release, so that startups can move forward with confidence and clarity.

An MVP is not a final product but a learning tool. To get the most value from it, you need to plan for iteration from the very beginning. Each release should generate feedback that guides the next round of improvements. By setting up a structured feedback loop and planning incremental updates, you create a product that grows in alignment with real product user needs instead of relying on assumptions.

No matter how thorough your initial research, real-world testing often uncovers unexpected insights. You may discover that users value features you considered secondary or that your initial solution does not fully solve their problem. Be prepared to pivot, refine, or even change your business model if necessary. Flexibility is one of the main reasons creating an MVP succeeds, as it allows you to correct the course before making heavy investments.

Creating a minimum viable product is the start of your product journey, not the finish line. After you release the first version, you must focus on scaling, improving usability, and planning long-term growth. Think about how your MVP can evolve into a full product: which features to add, which integrations to consider, and how to align development with your strategic business goals.

At Cleveroad, we provide compensatory support and maintenance after release, ensuring your MVP remains stable and secure. Beyond that, our team helps you continue developing the minimum viable product by adding new features, refining usability, and preparing the product for scaling. This approach ensures your MVP becomes a strong foundation for sustainable success and leads smoothly into defining growth strategies.

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

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

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

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

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

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

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

A current trend worth considering is AI-powered functionality. Features such as personalized recommendations, intelligent search, chatbots, or predictive analytics can dramatically enhance user experience and help your product stand out in a competitive market. However, you should add AI only if it solves real user problems and supports your product strategy. It must solve real user problems and align with your overall product strategy.

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

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

At Cleveroad, we know firsthand how to make a minimum viable product that drives real business results. More than 100 projects in our portfolio started with MVP development and have since been successfully launched or continue to evolve into full-scale products. Let us share one of these success stories with you – Web Platform for Searching Travel Activities and Accommodation. The solution had to incorporate the original Minimum Viable Product (MVP) with an advanced UX, allowing it to gain a competitive edge and make the platform attractive for hospitality and activity providers.

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

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

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

Cleveroad is a qualified outsourcing software development company with headquarters in Estonia. We've been assisting startups and organizations of all kinds in acquiring cutting-edge technology for 13+ years. We specialize in a wide range of IT services and bespoke software solutions that improve workflow efficiency, address business issues, and help acquire competitive advantages.

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

• A partnership with a company that has a broad domain expertise, including Healthcare, FinTech, Logistics, Education, Media, and more
• Free Solution Design Workshop with our expert team to match your business needs with technical solutions and prepare a clear development roadmap, considering the right point to start with MVP
• On-demand software development services: custom software building, maintenance, legacy system modernization, IT consulting, UI/UX design, etc.
• Flexible cooperation models to match your resource needs: IT Staff Augmentation to expand your development capabilities, a Dedicated Development Team working exclusively on your product, or a Project-Based cooperation
• Innovative building approaches and a cutting-edge technology stack: web: (React, Angular, AWS, Azure, .Net, JS, TypeScript, etc.) and mobile (Flutter, Swift, Kotlin, GraphQL, ARKi,t and ARCore, etc.)

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