You’re Risking Money Unless You Do This With Your Next Business

MVP

A business idea untested is a great way to lose a lot of money. The road of the entrepreneur is full of people who think they have a good idea for a business—and maybe they do—but it’s often not workable. Perhaps the price needed is too high for your market. Perhaps there’s already a good enough version of it. Perhaps—and this would sting—you’re just too far ahead of the times. Innovation, even revolutionary innovation, isn’t always going to be accepted right away.

Only the market can decide. Research and observation can get you close to prediction, but until someone is presented with it in the real world, with a real price tag, will it be clear if you’ve struck gold. 

Now, there’s nothing wrong with mistakes, to a reasonable degree. Learning is a part of the process. But certain business ventures cost a lot of money and failing at those can make it impossible to try again. At least, not until you find more capital. 

There’s a solution, however. The MVP. The minimum viable product. A simple business term for a simple idea that many people don’t apply enough. All it is, is a version of your product or service that proves the core appeal or features—with no further bells and whistles. A stripped-down, cheap-as-possible, barebones version. 

The benefits of this are massive. First, there’s cost reduction, as we’ve discussed. You’ll discover whether people like your product and still have money to pivot. The second is faster feedback. Even if people like your product, you can find out what additional things they would like. And though not the only other reason to do an MVP, the final benefit we’ll discuss is income. If the MVP has good features, you can make some money off it. This can help keep the momentum going for the rest of the project. It can get more money for development. And, more important than you’d initially think, it can help keep morale high. 

MVPs aren’t a perfect system for everything, but it’s a safer option for any venture that requires an upfront cost. It can reduce the stress of possible failure and make things much more scientific. The more you can test without getting yourself in trouble, the better a product you can make for future happy customers.