A Minimum Viable Product (MVP) is a version of a new product or a major new feature that is used to validate customer needs and demands prior to developing a more fully featured product. It is the version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least amount of effort. The purpose of an MVP is to test the assumptions behind a product or business idea and to validate a market need for a product. An MVP includes only the minimum capabilities required to be a viable customer solution, which reduces development time and effort.

To develop an MVP, businesses should ensure that their planned MVP aligns with their business objectives. They should also be strategic in deciding which limited functionality to include in their MVP, based on several factors such as the products overall vision, the specific solutions they want their product to offer users, and the purpose the MVP will serve. An MVP can be part of a strategy and process directed toward making and selling a product to customers.

Benefits of an MVP include analyzing the demand for a product, ensuring quick release, and having the first customers. An MVP allows business owners to get valuable first-hand insights into their product and to decrease the number of development iterations and improve a product on the go. With an MVP, businesses can gain key insights and live test products before sinking too much capital in them.