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Term · Custom software

MVP (minimum viable product)

An MVP is the smallest version of new software that is already usable. You learn from it before you build further.

Updated 7 October 20262 min read

In short

MVP stands for minimum viable product: the smallest version of a product that already works and that you learn from. With custom software it means: start with one improvement, use it, and build further on what you learn.

What is an MVP?

An MVP is the smallest version of a product that is already usable in day-to-day work. The abbreviation stands for minimum viable product. The aim is learning: does this work, and what is the next step?

The term comes from the world of startups. For an SME that has software built, the idea works just the same: start small, with what helps most.

How does an MVP work?

  1. Choose one problem. Not everything at once. Choose the work that takes the most time or causes the most mistakes.
  2. Build the smallest piece that solves it. Without extras. Those come later, if it turns out they are needed.
  3. Use it in your day-to-day work. Employees quickly notice what works and what does not.
  4. Build further, or stop. Based on what you learn, you decide on the next step.

Example in an SME

Made-up example

A construction company wants an app for its entire project administration. As an MVP, there is first only a digital job sheet. The technician fills it in on his phone, and it ends up in a database at the office. After a few months of use, it is clear what the next step is.

What should you look out for?

  • Small is not sloppy. An MVP has few features, but what is in it must work well. That also applies to security and backups.
  • Build on a foundation that can grow. Choose technology you can build on, so that you do not have to start again.
  • Agree what counts as done. Set down in advance what the first version must be able to do. Then everyone knows where they stand.

With me, that first step is called Implementation: one improvement built, connected to your systems and explained to a colleague. Read more about custom software, about custom software as a term and about what custom software costs.

Frequently asked questions

What is the difference between an MVP and a prototype?

A prototype shows what something could look like, often without it working. An MVP does work, and you use it in day-to-day work.

Is an MVP cheaper?

The first step costs less than everything at once, because you build less. What the total comes to depends on what you build after that. You do reduce the chance that you pay for features nobody uses.

Written by Bart van Engelenhoven Founder of Uniekaiconsultancy in Ede, the Netherlands. Bart analyses how SMEs work and builds software, integrations and AI applications himself. Last updated: 7 October 2026

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