At LunarLab, we sometimes talk to entrepreneurs and startup founders who have an exciting new idea, but aren’t sure what the next step is. They’ve got the idea for the next big thing and maybe they’ve done some initial validation or user research. Should they hire a team of developers and start building their dream app? Well, not so fast.
Sometimes there are circumstances where the answer is yes: start building. But the answer is often no: don’t start building a brand new robust app at this stage. There’s a better way… a way that can set these founders up for success, save them a lot of time, save them thousands (or hundreds of thousands!) of dollars, and even get them to an earlier launch date.
If you’re thinking of building a new app, take time to consider whether a prototype or an MVP product might be a good choice for your current stage.
What is a prototype and when is it best?
A prototype is a model that shows how your app will function. Instead of starting with a vague idea, a prototype gives you something tangible that reflects how people use the app, how they navigate, how it will flow, how it’s designed, and what their experience will be. Your prototype can be as big or as small as you need it to be: it could be a paper sketch of your app, or it could be an interactive clickable prototype.
Many startups use prototypes to get funding to start development, or even to sell a startup idea. One of the biggest benefits of building a prototype is that it can help you to validate your idea, determine the feasibility of your product, and confirm your development direction.
Prototypes can also save you a lot of money down the road… doing usability testing with a prototype can help you find critical design flaws with real users before it’s too late (and too expensive) to fix during development. According to the 1:10:100 rule of change, on average it will cost you $1 to do initial research, $10 to change your design, and $100 to change your product during the development phase.
When to use a prototype:
- When you want to attract investors and get funding
- When you want to communicate design to shareholders or stakeholders to get buy-in
- When you want to validate your idea
- When you want to find the most profitable direction for your product
- When you want to save time and money by finding critical design or usability flaws early in the process
- When you don’t yet have funding for expensive development work
- When you want crystal clear communication to your development team on how the app should work
What is an MVP and when is it best?
An MVP (“Minimum Viable Product” or “Minimum Valuable Product”) is a lightweight version of your product that includes only the features that solve your users’ core problem. It allows you to launch to the public quickly with minimal cost, and get feedback very quickly. That feedback then determines the future of the product. With an MVP, you can build in way that is easier, cheaper, and less risky than creating a big, robust, fully featured (expensive) app. Many, many of your favorite apps launched with an MVP first.
Mature products are the result of years of development work, and they are very expensive. Launching an MVP means that you can get your initial version out which will then become a more complex product. You leverage information from real users to make decisions that maximize ROI, then scale sustainably by adding more features and more resources as the app grows. Ideally, your app will begin bringing in revenue quickly (rather than waiting years for your mature app to be built before your revenue starts flowing).
MVPs can also be a very cost effective way to build, because they allow you to gain insights before spending money on features that users don’t want or need (you would be surprised how often this happens when apps are built solely on assumptions).
The trick to a successful MVP launch is to rapidly push new features to keep people engaged and excited about your product.
When to use an MVP:
- You want to verify your product viability in the real world
- You want to attract investors by demonstrating early market fit and the business case for your app
- You want to start bringing in revenue to reinvest in the business
- You want to provide immediate value to your user base
- You want the mature version of your app to be solid and polished, backed by user insight
- You’ve got a development team ready to work
- You’ve got a very solid feature backlog and you’re ready to push updates quickly
Which one is right for your app?
A prototype is great for early-stage companies during the idea validation stage, while an MVP is perfect for companies who are ready to start testing the idea in the market. This doesn’t have to be an “either/or” decision: often, a great prototype leads to a great MVP.
Both methods can help you move quickly, reduce risk, save money, get critical feedback, and raise funding. Both will get you better results and create products that bring value to the end users. And by using prototypes and/or an MVP, you can avoid expensive mistakes along the way.
To choose the path that’s right for you, think about where your business is today and what level of commitment you’re prepared for. Generally, a prototype is going to be lower cost and is great for people who have an idea that needs validation. An MVP is going to be a slightly higher cost and time commitment, and is best for founders who have more people and resources involved. A prototype can help with the early validation, while an MVP can come later when you’re ready to release. A prototype can be easily changed or scrapped altogether, while an MVP is out in the world so changes have bigger implications.
The key for either route is understanding your goals and finding the best path to achieve success based on where you are today. Now that you know the difference, you’re ready to start building!
Thinking about building a prototype or MVP? LunarLab specializes in both! Contact us – we’d love to chat about which one might be best for you.
