What is the difference between MVP, working prototype, and beta version?

Even experienced CEOs with successful business sometimes confuse these terms. So let me quickly explain the differences.

MVP

Goal: Validate market (will anybody buy this?)

Its main purpose is to validate assumptions. So an MVP could be anything from a working software prototype to a landingpage, a story you tell or a service you fulfill manually.

Working Prototype

Goal: Validate technology (can we build this?)

A working prototype can also be an MVP, but companies usually tend to keep MVPs much simpler. If the biggest risk with your business model is not the market, but the technology, then you should probably start with working prototypes.

Beta Version

Goal: Validate solutions and scalability

Once you found a market (MVP) and know you can build a solutions (working prototype), you need to validate whether the whole package fits. This is usually the last step and is only tackled, once you already have a validated business model.

The best tool to track the validation of your business model is the Business Model Canvas. Check it out at Business Model Canvas (Basics) | Udemy. It helps you to plan your MVPs in a structured way!

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