How can you create and test your MVP with your target market?

It is important to define your targeted market segment for your MVP. Having a well-defined segment allows you to control the scope & budget - remember you are not trying to deliver a product that makes everyone happy, that is not the purpose of a MVP. Another benefit of having a well-defined segment is being able to focus your efforts on addressing certain unmet needs and positioning your product against competition - establishing your customer value proposition. Lastly, segmentation helps provide early determination of the price the customer is willing to pay - validation of the product’s commercial viability.

At this stage, it's crucial to connect with potential users or customers through a call to pose a series of questions. Depending on the size of your target audience, determine the number of customers you wish to engage. These questions aim to understand: 1. The nature of the problem they face. 2. Their current solutions to this problem. 3. Whether they use any tools presently. 4. If they do use tools, what functionalities might be lacking. 5. Any feedback or ideas they might have. 6. Their willingness to pay for a solution like the one you propose. 7. If willing, an estimate of how much they might pay. And so on.

Drawing from my experience at a startup incubator, the journey from an idea to a viable product necessitates a strategic MVP (Minimum Viable Product) approach. MVPs, stripped-down versions of a product idea, validate demand and gather feedback without excessive resource expenditure. For instance, instead of launching a complex AI chatbot, a simple version gauged user preferences first, saving both time and funds. Engaging target users early and being adaptable based on their feedback is pivotal. This cyclical MVP process, involving launch, feedback, and iteration, ensures the final product aligns with market desires, minimizing risks and optimizing resource utilization.

What I've learned was to never define your own problem but to define your customer's problem. This is something that Bill Aulet teaches in his class Disciplined Entrepreneurship at MIT Sloan School of Management. He also emphasizes the idea of the MVBP, or the Minimum Viable Business Product, which has three core elements: 1. The customer gets value out of using the product. 2. The customer is willing to pay for the product. 3. The product is sufficient to generate feedback from the customer to ensure future iterations towards a better product.

If you’re a first-time bootstrapped solo founder, experienced entrepreneur, or part of an enterprise innovation team, the steps for finding product market fit and defining your MVP are pretty much the same. But the resources available to you are very different. So how can you do affordable research? For market sizing, you can use digital advertising platforms to analyse demand in your product category, to spot competitors, to identify target customer types and even get pointers for product messaging. For your very first target customer research respondents, start with friends and family. But make sure you learn how to ask great questions. The Mom Test by Rob Fitzpatrick is a great research primer.

Here's how to think about MVP: 1. The first MVP should be proving that it's technically feasible and produce utility. So design it, build it by yourself. Once you know it works.. 2. The second MVP should prove desirability and viability that the market wants this to solve their problems and are willing to pay for it. Use google ads, product announcements in communities, landing pages, fake pricing pages. 3. The third MVP should be finishing up your high-fidelity prototype. 4. The fourth MVP would be putting it up nicely in a landing page, pre-sales, demo-booking, etc. Basically you are iterating between feasibility followed by desirability and viability.

Speed and adaptability are essential in building your MVP. Aim for 5 out of 5 successful tests. Quickly iterate your MVP based on user feedback until it consistently delivers value. Your MVP can take many forms, from a landing page to a survey or prototype. Rapidly build, test, and refine to approach product-market fit.

Deliveroo founder Will Shu literally got on his bike and personally picked up and delivered food to city workers to test the logistics for the app. The very definition of a concierge MVP. Plus a great way to get invaluable 'from the horse's mouth' customer and supplier insight.

If you still need to assess whether there's value in what you have to offer, being scrappy really pays off. Before getting involved in development, set aside some time to get your hands dirty in a concierge MVP, delivering your customer experience manually instead of using technology. Not only will you be able to validate your assumptions at a low cost, but you will also learn firsthand what steps are needed to get your customers to the aha moment.

Having worked for some years now with an Accelerator for startups in the geotech and proptech space, it's clear that the ones that succeed are those that can set aside their own agenda (and often ego) in order to take on board learnings. Being data-led is key. And pivoting when the data calls for it is essential. Brutal sometimes, but worth it in the long run.

Patterns, insights, and learnings that emerge from your tests are valuable sources for your future ideas and innovation :) Keep them closer.