(MVP)Minimum Viable Product
Your MVP is going to depend on your product or service, so get creative.
It’s a crucial step to identify your UVP (Unique Value Proposition)
But you’re not ready to market yet. Don’t be tempted to go for a big launch with a product or service that you think people want, with fingers crossed behind your back.
Take a tip from Lean Startup Methodology. This has as its premise that every startup is a grand experiment that attempts to answer a question. The question is not “Can this product/service be created?”
Instead, the questions are:
Ø “Should this product/service be created?”
Ø “Can we build a sustainable business around this set of products and services?”
The way it works is to:
Ø Trial a product or service (“Good is good enough” for a trial basis).
Ø Get feedback and listen to it.
Ø Make adjustments based on the feedback.
Ø When satisfied, market the product or service widely.
The trial product for a new business is sometimes called a minimum viable product (MVP) which is the most pared-down version of a product or service that can still be put on sale as it has just enough to offer to early customers.
It has three key characteristics:
Ø It has sufficient value to be offered for sale and to find customers even in its initial form.
Ø It delivers on its promise and retains early adopters.
Ø It provides a feedback loop to guide future development.
Through the feedback loop, you then work towards improvements before you market it on a grander scale. This will be the first of many products or services you offer in the lifetime of your business, so it’s good to have a clear starting point. And, to begin with, a good chance of selling something that people actually want.
Based on the information you’ve put together on your target customer, your business niche, and your marketplace research, answer these questions:
Ø What product or service do you propose to sell? What is the most pared-down version that will still be a valuable purchase?
Ø How did you check out that idea? Did you do enough research?
Ø Who is it for? Is it right for your target customers?
Ø What will it solve for them? What is its UVP?
Ø How will you sell it to customers? (E.g. a membership site, store, eCommerce, trade fairs, farmers’ markets, etc.)
Test Your MVP
To be as certain as you can that your idea will be a success, test it out with a small segment of your target market.
Remember in another module you made notes on where your ideal customers hang out?
This is where to go now to find potential testers. Of course, if you already have a few customers or know of suitable people to approach to test your MVP, then do that too.
Make it clear that you’re offering something valuable in exchange for getting honest feedback.
For example, you could offer:
Ø A discount on the price, like 50% off.
Ø A free tasting sample.
Ø A demonstration.
Ø A free product (they just pay shipping and handling).
Here’s are some more detailed examples:
Ø An app developer who advertises for a group to beta-test a new app for free.
Ø A start-up restaurant which gives away free samples in the neighbourhood before deciding what should go on the menu.
Ø A business coach who offers a new online course at half price.
Your MVP is going to depend on your product or service, so get creative. Make sure you have a way to collect feedback (e.g. on a Facebook group page you set up, or on an email list).
This trial is a great way to test whether your idea appeals to your target audience, and to collect positive comments. You’ll get priceless feedback so that you can make changes that will maximize sales later. At that point, you will already have established customers, and your product will have helped people solve real problems.
Big Takeaways
Ø To be absolutely certain that your idea will be a success, test it out with a small segment of your market first. Get feedback and then make adjustments.
