Building an MVP for startups: succeed with CTO-as-a-Service

In today's world, an idea is not enough. It's only worth something when creating a technical solution and addressing certain user needs. This is because technology is evolving rapidly, and one idea can simultaneously come from different parts of the world. As a result, competition is only growing. That's why it's important to enter the market in time to attract investment and make a name for yourself with an MVP.

This stage is a kind of product validation to see if the world requires your product. The development team creates the first version of the product, which contains the main features and brings value to users. This way, startups can test their assumptions with minimal startup costs, collect feedback from users, and start working on an improved version of the product if it is successful.

This article is designed to provide an overview of the basics of building an MVP for startups and the main steps involved, as well as to consider getting technical leadership for fixed hours through CTO-as-a-Service. Startups in the early stages of development may have some problems with hiring a specialist, but giving up strategic leadership in the early stages of a project is not an option. On the contrary, it can bring the development to a standstill. We have a solution to this problem, which we would like to share with you next.

Building an MVP for startups: definition and key benefits

An MVP is a kind of test version of a product with minimal features that will provide basic value to the user. When developing an MVP, more effort goes into the functions and working model than the design. All this can be implemented later. At the MVP stage, it is important to make a name for yourself, show it on the market, get the first users to test it, and get investors who are ready to invest in the project. 

The biggest advantage of creating an MVP in startups rather than a full-fledged project development is the ability to enter the market quickly and at minimal cost, show your concept, and understand whether the product will solve a certain problem. Simply put, an MVP allows you to test whether the audience will like the product or not and whether it's worth investing more money and working on the project or not. An MVP will help you get feedback from users at an early stage, which will help you plan further development in the right direction. This is an extremely useful stage, as optimization based on user feedback guarantees an increased chance of success.

The main feature of startups that leads them to success is the ability to adapt to market needs quickly and, as a result, use their resources correctly. MVP for startup companies helps to put these two aspects into practice.

Why MVP is Important for Startups: Key Benefits

1. Quick Feedback. An MVP (Minimum Viable Product) enables you to quickly gather user feedback, allowing you to either improve the existing version or make necessary adjustments. Timely feedback helps you understand your audience better and refine your product to increase its chances of success.

2. Flexibility. Imagine you launch a fully developed product, but it requires significant changes. This results in additional investments, and the cost of mistakes is much higher than with an MVP. An MVP reduces these risks by allowing iterative development.

3. Ease of Validation. An MVP lets you test your product idea in the market quickly and with minimal cost. It doesn’t require extensive engineering or flawless design, enabling you to test your assumptions with a lean version.

4. Return on Investment. A well-developed MVP can help recoup initial investments. With an MVP, you can organize pre-sales or early user engagement even before the product fully enters the market.

5. Reduced Competition Risk. Developing a fully polished product can take years, during which your unique idea may lose novelty or be claimed by competitors. MVP development is much faster, allowing you to enter the market quickly and gain an early advantage.

6. Attracting Investors. Showcasing and testing a working version of your product demonstrates its potential and can attract investors, boosting your chances of securing funding.

7. Understanding User Needs. An MVP provides insights into users' needs and market demand, helping shape a final product that meets user expectations.

8. Marketing Insights. MVP testing in real target audience segments helps you understand customer preferences and optimize the product. This knowledge is valuable for future advertising campaigns, and early adopters from focus groups may become strong advocates for your brand.

Therefore, an MVP allows you to test, make changes, and enter the market quickly and ahead of the competition. We have listed eight advantages of creating an MVP, and there are some disadvantages. They are relatively fewer compared to the advantages.

1. Lack of product features. Since an MVP involves the implementation of only basic functions, there is a risk that they will not be enough to fully satisfy the user. In this case, you should consider refining the MVP to meet the needs of the product.

2. Mistakes in choosing the audience for testing. The wrong audience for product testing can affect the optimization of the full version of the product and the search for customers for the final product. Detailed analytics will help to avoid this.

Thus, thanks to MVPs, startups can launch a product faster, get feedback, and make the necessary adjustments if necessary. This strategic approach minimizes costs and increases the chances of successful product scaling.

MVP development for startups: Key Stages

In this part of the article, we’ll outline the essential stages involved in creating an effective MVP. One of the most crucial steps is planning. At Muteki Group, we follow a structured approach that allows for flexibility at any stage, as agile decision-making is essential in today’s dynamic world.

1. Understanding the Target Audience. Developing a successful product starts with knowing who it’s for and why it’s being created. This insight shapes MVP development, informs marketing activities, and guides product-related decisions.

2. Identifying Core Features.  As we noted before, an MVP should include only the essential features that directly address user needs. Focusing on basic functionalities rather than secondary features or elaborate design helps keep development time and costs in check. The MVP stage is about testing the product’s appeal, so concentrating solely on core functions is essential.

   
   

3. Prototyping. The goal here is to create a simple mockup or interface that allows the team to visualize how the product will look and function in practice. A prototype provides developers with a clear vision, while also giving you the chance to detect potential issues before coding begins.

4. Development. This phase involves coding and the technical implementation of the idea. Startups without a CTO may face challenges here, as technical leadership is crucial. At Muteki Group, we’ve created a service that lets you hire a CTO for a fixed number of hours at any point in your project’s development, ensuring successful MVP execution.

5. Testing. Testing helps verify quality and catch errors before the MVP reaches users and potential investors. At this stage, you may invite an audience to participate in testing, gathering early feedback on functionality and usability.

6. MVP Launch. This final stage marks only the beginning of the product’s development cycle. Here, you evaluate how well the product resonates with your target audience. After launching the MVP, collecting and analyzing user feedback promptly is essential for making adjustments in the final product version. 

After MVP for startup companies: What’s Next?

Creating an MVP is an effective strategy for testing hypotheses for relatively little money and time. With an MVP, you can increase your chances of success when you launch your full product. The next steps involve gathering user feedback and refining the product further. Use the insights gained to build a truly outstanding product!

Measuring MVP Success

The next phase after launching an MVP is preparing for the full product version. Before diving into full development, it’s essential to conduct an in-depth analysis of customer feedback to make necessary adjustments. Positive feedback alone isn’t enough to create a remarkable product, so here are some key metrics to help you evaluate your MVP’s success.

1. Active Users. This metric tracks the number of active users engaging with the MVP, such as subscribers, the number of sessions, and session duration on the site.

   
   

2. Conversion Rate. This measures the percentage of users who take a desired action on the site. These actions could include signing up, downloading an app, leaving an email for a newsletter, sharing or liking on social media—any action you consider a target goal.

   
   

3. Customer Satisfaction. Gauge satisfaction through user feedback, which can be collected via social media posts asking for reviews, surveys, chatbots on the site, or email prompts requesting feedback. At the MVP stage, gathering as much user input as possible is crucial for shaping your product.

   
   

4. Customer Retention Rate. This metric shows how many users continue using your product after the initial interaction. For example, it can indicate the percentage of users who downloaded your app and chose to keep it. A high churn rate, where users leave after initial use, is a negative indicator that suggests your product may not be addressing the target problem, prompting users to seek alternatives.

Here are the important indicators of success created to provide you with an understanding of how your MVP is performing in line, with your business goals. 

Navigating the hurdles of being an MVP and strategies for conquering them

Creating a Minimum Viable Product (MVP) is more than a chance to try out an idea in the market; it also brings forth a range of hurdles that startup founders commonly come across during the process. 

Here are the primary obstacles that typically arise:

1. Lack of Technical Expertise. Properly assessing the technical aspects of a project requires technical expertise, which founders may not always possess. Relying solely on a development team isn’t ideal either. You need someone who can take on technical leadership, design a project roadmap, and prioritize promising technologies. Assigning this role to an unqualified person can lead to inaccurate development timelines or poor technology choices—problems you’ll want to avoid. Fortunately, MG provides access to skilled technical experts who can guide you in making informed technical decisions. We recommend involving technical leaders early in the MVP creation phase to avoid costly mistakes.

   
   

2. Budget Constraints. Developing an MVP can be financially challenging, especially for startups seeking to attract additional investment as soon as possible. Building a full team or hiring a CTO requires significant financial resources, which might be limited. Our “dedicated team” and “CTO as a service” options provide flexible access to qualified support when you need it, allowing you to adjust team size or CTO hours at any stage of MVP development.

   
   

3. MVP Quality and Stability. Although an MVP focuses on essential features, it should still be well-crafted, as it reflects your company, brand, team, and leadership. Our services ensure not only a high-quality MVP but also thorough testing to create a smooth user experience, leaving a positive impression on users and potential investors.

CTO-as-a-Service for startups: tech leadership subscription

The startup's Chief Technology Officer (CTO) combines technical expertise with a focus on achieving business goals. This role is not only in the technical execution of ideas but also in ensuring that those ideas are consistent with all business goals. The CTO’s responsibilities include overseeing development, creating a technology roadmap, and planning growth strategies. Given the high skill level required, CTOs typically command substantial salaries—something that may be challenging for startups to afford. However, there’s a solution: CTO as a Service from Muteki Group.

Muteki Group's CTO as a Service is specifically designed for early-stage startups, MVP projects, and SMEs that do not require a full-time CTO. To meet the needs of our target audience, we offer three service models: full-time, part-time, and on-demand. These flexible options let you adjust CTO expenses to suit your project’s needs.

With CTO as a Service from Muteki Group, you can achieve your technical goals without excessive spending. You control the CTO’s involvement, eliminating unnecessary financial strain on the project. Our technical director provides rapid, reliable technical expertise exactly when you need it.

When CTO as a Service is Essential:

1. When you have a project concept but lack a clear implementation plan.  Hiring a CTO can help outline the right stages of project development, select promising technologies, and assemble a team to bring your idea to life.

2. If your project’s architecture is outdated. A technical director can review the current state of your project and implement necessary updates, ensuring timely modernization and continued support for your product.

3. During MVP development for tech startup. When creating a minimal viable product, it’s crucial to engage a technical expert early on to identify suitable technologies and determine the essential features for the initial release.

Outsourcing the position of Chief Technical Officer allows you to access expert knowledge and experience at a lower cost compared to hiring a full-time specialist. This enables you to enjoy all the benefits without being tied to long-term contracts, while still launching a successful product to the market.

MVP development for startups is a strategically crucial stage. It allows for a quick viability check of the product, determining whether it meets the needs of target users, gathering feedback, and adapting accordingly. Essentially, it acts as a test before embarking on large-scale development. Creating an MVP requires technical leadership, as without it, startups may fail to include all necessary components in the MVP. This can lead to failure, issues with current investors, or a failed funding round.

That’s why we recommend the CTO-as-a-Service from Muteki Group as a key solution for startups with limited funds seeking qualified specialists. This collaborative model allows startups to receive experienced technical leadership without the need to hire a full-time expert, saving resources and ensuring a successful project launch. This approach also helps properly assess technical requirements, choose the right technologies, and ensure product quality. With MVP, startups can quickly gather valuable user feedback, increase their chances of attracting investments, and confidently move toward scaling.

Developing an MVP with technical support from Muteki Group provides startups with the necessary flexibility, efficiency, and competitive advantage. We are committed to helping you succeed!