What is the best way to define and test your MVP?

Achieving a clear definition and effective testing of your MVP plays a vital role in reducing risks, validating assumptions, and determining product-market fit: 1. Clearly state what your MVP aims to accomplish and the problems it solves 2. Determine the essential features that address the problem statement and provide value to your target audience 3. Develop a simplified version of your MVP 4. Formulate hypotheses around your target market, customer needs, and value proposition 5. Map out features based on user feedback, market dynamics, and changing requirements 6. Evaluate key performance indicators (KPIs) against predefined goals 7. Use the user's feedback to make data-driven decisions for future iterations

In my experience as a multi-unit franchise owner and entrepreneur, an MVP is crucial for business success. It's like launching a boat for the first time—you wouldn't set sail on a multi-day trip without first testing how it handles a few waves. An MVP allows you to validate your concept in the real market with minimal risk and investment. It's not about cutting corners but about smart allocation of resources. It also sets the stage for iterative growth. Feedback from your MVP can guide future development, so you're building what customers want, not what you think they might like. As someone who loves sailing and entrepreneurship, I find that understanding your MVP is like knowing the true north of your business journey.

The success of any product depends on factors like - whether it performs the way it promised or is supposed to. An MVP is a minimum entry product with limited features and can be trialed with the specific target audience to collect feedback and evaluate its potential. It helps minimize the risk of miscalculating demand and losing time, resources, and money. Next, important to conduct usability tests and collect feedback from the users to make well-informed decisions.

The reason for this is that an MVP is a culmination of YOUR ideas, concepts and hypothesis, but it may not be what your customers are looking for. The hypothesis requires testing before further resources and finances are committed to launching or introducing products which don't fit the consumer needs of your chosen segment. Sometimes, through the process, you discover an entirely new market which that prototype may be more suited to serving.

Defining an MVP is a lot like planning a sailing trip. First, know your destination, or in business terms, the problem you're solving and for whom. This is your market research. Next, set your compass by establishing a clear value proposition. This is how you'll navigate the market differently than your competitors. Now, pack only what's essential—list the features absolutely necessary to solve the problem. Prioritize these based on what your customers really need. An MVP is about setting your course with a well-researched destination, a calibrated compass, and only the essential supplies. This focused approach minimizes risk and sets you up for a successful voyage in the business world.

PRETOTYPE AND TEST LIKE TESLA As innovation facilitator of 100+ projects, I like to share how Tesla interested buyers for their first car. In 2003, the founders of Tesla had an ambitious idea (an all-electric 2-door sports car). In order to convince potential buyers to order its car, Tesla created a pretotype of what the car would look like. Lotus supplied Tesla with a ‘glider’ Elise - which was filled with models of key components. This was not a prototype, because the vehicle didn’t function. Tesla was able to show buyers a close proxy for the final design. Tesla asked “Will you put down a $5,000 deposit to have it built to order? From this test Tesla secured several hundred deposits, a non-trivial result to reassure their Investors

The only constant thing in life IS CHANGE. Every brand or product, must be willing to stay flexible to the ever changing trends, wants and need of consumers. Also, gaps in the market need to be constantly sought out and innovative ways implemented to use existing products to either fill those gaps or create new products that do.

Iterating your MVP is a dynamic process that's a lot like adjusting your course while sailing. Feedback is your compass. If you're on the right track, "persevere" by making small, data-driven tweaks to your product. Think of it as fine-tuning your sails for optimal performance. If the feedback suggests a significant change is needed, then "pivot." This is like altering your sailing course due to unexpected conditions. You're not giving up; you're adapting to reach your goal more effectively. Lastly, there's the "kill" option. If the feedback is overwhelmingly negative, it may be time to scrap the idea and start anew—akin to anchoring down and planning a different voyage.

It's dangerous to believe that product market is some kind of final destination. In most circumstances businesses are forever iterating. MVPs iterate, just at a smaller scale. To scale we need to iterate too. Figure out what works, do more of that. Change with how the world and industry changes. No product is ever done.

As entrepreneurs, we strive to provide innovative solutions to everyday problems through the use of products. Most of these products start off as ideas, Which are then brainstormed, tested for market fit, before being transformed into products. These Early versions (MVP)s must be validated against the target user group. The reason for this is that an MVP is a culmination of your ideas, concepts and hypothesis, but it may not be what your customers are looking for. Consumer interviews are one of the best ways to gather this data

I'd like to emphasize the importance of team collaboration and flexibility when iterating an MVP. In both sailing and business, you're not going solo; you've got a crew. Engage your team in interpreting feedback and making adjustments. Their diverse skills and perspectives can provide invaluable insights that you might not see. Also, don't underestimate the value of your first customers. They're like your test crew on a maiden voyage. Keep the lines of communication open, and make it easy for them to share feedback. Their early experiences can give you a clearer picture of where to steer your business next.