It seems that there is a misunderstanding about the concept of MVP (Minimum Viable Product). In fact, many people use this term to refer to a prototype, which is not entirely accurate.
Here, we’ve put together some explanations of MVP to help you look at the concept in a more common-sense, business-like way and remove some of the cognitive distortions.
Firstly,
It might be helpful to consider that the term „Minimum Viable Product“ is not necessarily intended to be taken literally as a „product“ or even a minimal, partial version of one. Rather, it is more accurately understood as a process or methodology. This means that it is not entirely accurate to refer to MVP as a single entity.
MVP can be thought of as a generalized set of actions and results obtained. It is a process or methodology of testing the demand for a feature that we want to implement in our future product.
Secondly,
Viable doesn’t mean „realistic, feasible.“ So, the MVP is a way of testing the value and how to deliver it without developing a full-fledged product.
Thirdly,
The essence of the MVP is the process of testing the funnel, our ability to find and then attract an interested audience and deliver value that will translate into a willingness to pay money for it.
When we say „our MVP is…,“ we should follow up with a profitable financial model and an algorithm demonstrating how we arrived at that figure. For instance, we may have done X, attracted Y customers, and received Z money. Based on this, we can project that when we create the first prototype of the product, we will attract M clients and receive N money.
This leads to the fourth conclusion: MVP does not equal „prototype.“
After all, you can test sales without a prototype. Only by finding your target audience and making the right offer.
Therefore, first the MVP, then the prototype.
Prototype is the first working version of the product. MVP is not a version of the product.
MVP is about creating an illusion of the product to test the demand for it.
When the illusion is already selling well, it can be realized as a concrete product, the first version of which will be a prototype.
MVP is not a way to test a solution. But a methodology to understand if we have found a problem that needs to be solved by many people. Payments, and not the actual delivery of a working product, will serve as confirmation
MVP is the answer to the question „how to test the economics of a single sale as quickly and as costlessly as possible”. The answer is quite simple: to find an algorithm on how to test the sales funnel and process, but not to test the product in the store.
