So, you have an idea for a great tech business but before you go all in, risk your retirement, hire staff and rent office space you should test it.
A Minimum Viable Product (MVP) is a version of the business product with the least amount of features needed for you to test it in the real world. It lets you gather customer feedback, understand market receptiveness and create the proof needed for further capital investment — all with limited exposure to risk.
Some famous MVP’s include:
- Dropbox
Dropbox launched an explainer video on how the concept “works” before diving deeply into development. The video hinted at the user experience and functionality and resulted in the Dropbox waiting list growing from 5,000 to over 75,000 email in one day.
Once the Dropbox team were sure that they would get the user numbers that they needed they were able to invest in their software.
- Zappos — (sold to Amazon in 2009 for $1.2 billion)
Zappos is the largest online shoe shop in the world.
Before holding any stock, Zappos’ founder, Nick Swinmurn, launched a very basic website. He would go to local shoe shops and ask the owners permission to take photos of the shoes they had.
He then posted the images on his website.
When he received an order he would go to the local shop, buy the pair and ship it to the customer.
Once he had sustainable orders, proof of a market and insight into the kinds of shoes that people wanted to buy online he started carrying stock of his own.
Here are some tips on how to decide on an appropriate MVP:
1. Document what you want to do
Like building an app, the first step is to write a one-page summary of what your business will do, who would use it and how it will make money.
This will give you direction.
2. Think outside of the box
To launch an MVP you may not need to build an app or bespoke software solution from scratch.
Think about the problem your idea solves and then find a solution that involves the least amount of unnecessary tech possible.
3. Be prepared to work hard
Your final product should solve a problem for the end user in the most efficient way possible (like an app that connecting drivers and passengers directly).
Your MVP will, on the other hand, solve a problem for the end-user in a way that may not necessarily be the efficient way (like taking photos of shoes are your local shop and posting them online for purchase).
4. Use the resources that you have available
Tools like Google Forms allows you to gather survey data for your MVP at no cost.
There are free or freemium tools online for almost everything you will need. You just need to look.
5. Use to your social network
Don’t be afraid of sharing the idea with your friends or family. They will give you advise and could introduce you to potential partners or investors.
Busy testing an MVP? Let me know or tweet @CraigRivett