MVP (Minimum Viable Product): Learning More with Less

The MVP, or Minimum Viable Product, is one of the most fundamental and revolutionary concepts of the Lean Startup methodology. An MVP is not a low-quality version or a half-finished product. It is the simplest version of a new product that allows a team to gather the maximum amount of validated learning about customers with the least amount of effort, time, and money. The primary goal of an MVP is not to generate revenue or delight users; it is to test one or more fundamental hypotheses about a business model.

Every new business is built upon a series of assumptions. “We believe customers have this problem,” “We believe they will pay for this solution.” The MVP is the scientific tool to transform these assumptions into facts before investing significant resources in building a complete product. It is designed to answer a crucial question: “Should we build this product?” By putting a functional, albeit extremely simplified, version into the hands of real customers (early adopters), the entrepreneur can observe their behavior, collect feedback, and measure what truly matters, validating or invalidating their hypotheses.

There are several types of MVPs, and many of them don't even involve writing code:

• Concierge MVP: The entrepreneur manually performs the product's function for a small group of customers. It's a highly customized service that simulates the technology to deeply understand customer needs.
• Wizard of Oz MVP: To the user, it appears to be an automated product, but behind the curtains, a team of people is performing all tasks manually. This allows testing the demand for a complex service without building the technology.
• Landing Page MVP: A single web page that describes the product, its benefits, and functionalities, with a call-to-action button (e.g., “Sign up for early access”). The conversion rate of this page is a strong indicator of market interest.
• Video MVP: A video that demonstrates how the product will work, clearly and convincingly showcasing its value proposition (as in the Dropbox example).

Example in an entrepreneur's routine:

Imagine an entrepreneur has an idea for a personalized healthy meal prep subscription service, “NutriBox.” The hypothesis is that people will pay more to receive a weekly menu at home, designed by a nutritionist based on their goals (lose weight, gain muscle, etc.). Building a website with a payment system, an industrial kitchen, and delivery logistics would be a huge and risky investment.

He then decides to create a Concierge MVP. He finds five friends who fit the customer profile. He goes to each of their homes, conducts a detailed interview about their tastes and goals, and creates a personalized menu. He cooks the meals in his own kitchen, places them in simple packaging, and delivers them personally. At the end of the week, he returns to talk, collect feedback, and charge for the service.

With this MVP, he learns things he would never discover in market research. He finds out that customers hate broccoli but love sweet potatoes. He realizes that the biggest pain point isn't a lack of time to cook, but a lack of creativity to vary the menu. He learns that delivery needs to be made by 6 PM, not at night. Most importantly: he validates that the five friends were so satisfied that they were willing to pay the price he charged and continue with the service. With this validated learning, he has much more confidence to take the next step: perhaps creating a Wizard of Oz MVP, where he creates an Instagram page to receive orders, and hires a cook and a delivery driver to scale the operation a bit, before thinking about an app and an industrial kitchen. The MVP allowed him to learn from reality, not assumptions.