I spent $8,000 developing a web based visual media platform in 2011. It’s cool, and it works, and it’s out there on the web behind a password protected portal but it’s wrong. It should be prettier, easier to use and mobile. I lost money and time. I overbuilt the product before I had traction. I didn’t apply the idea of The Minimum Viable Product properly.
The Minimum Viable Product is a concept written about in Eric Ries’ book The Lean Startup. It’s now the de facto standard for startups. Before you waste money and time overbuilding an idea, you create something minimal first. The biggest problem with the concept of “The Minimum Viable Product” is what “Minimum” and “Viable” actually mean.
I’m working on a new product-based company and it has major traction. Starting this company cost $317. I had an idea for something I needed. I made 4 prototypes, each a different color. I posted some photos of it on social media and my friends said “Cool! I want one!”
But I didn’t believe them. You can’t trust your friends.*
So I took the prototypes to 5 stores. If 3 of 5 stores wanted it, I’d move forward with figuring out the details and getting them produced.
Four of the 5 stores wanted it NOW. Everyone said “Yes.” The product worked but wasn’t finished.
We figured out the details, took a few orders launched into 3 stores and sold out in 4 days. We refreshed the inventory and sold out again. Every new store we’ve opened sees a similar trend. We’re validated and now we’re going big.
We even developed a no-lose negotiation strategy that converts stores who say “no” to “yes” instantly and even makes them long-term customers.
We have revenue, demand and our idea is validated. Now we are confidently allocating more capital with a high expected return.
We’ve filed patents and invested in infrastructure. We’re refining our logo and branding. We’re getting better product photography and making promo clips. We’re begging media not to publish anything about us because we’re just a few steps away from being able to fill massive demand. We’re going to blow the doors off of a category that has been stale for 30 years or more.
We had revenue before we had a real product. That’s what matters. Now we can hunt without starving first.
The key to the MVP is one goal and one goal only: accelerate the sales cycle. The MVP should get you from concept to traction. If no traction move on immediately.
Don’t waste your time on infrastructure or paperwork or permission or overly ornate packaging or a business entity or lawyers or following “the rules” you think are required. Time is your greatest asset. You don’t even need a business plan. Whatever it takes to get to your customer saying “yes”, or better yet “holy crap I want that” is the point of the MVP. Any business can use the MVP philosophy.
Everything starts small.
Validate first, scale and grow later. Talk, date, marry, have kids.
Sell before you spend, promote before you develop, get users and customers before you dig a hole, don’t overdevelop your MVP. Don’t commit too much too early.
Sell the sizzle.
Want to sell cookies? Bake a batch in your kitchen and sell them. Have a product idea? Prototype it cheaply and get orders with the prototype. Got a great beer recipe? Brew it and get restaurant or bar owners to try it. Mobile app? Design it in MS Word or Photoshop. Think of all the corners you can cut. It’s like speed dating for business. You talk, flirt and if there’s a fit you go on a date. You know very quickly whether or not you’re attracted in the first 6 seconds (aka “Blink” by Malcolm Gladwell).
That’s the point of an MVP. If you can’t sell the sizzle, put it to bed and move on. Don’t lose your hard earned cash or your time.
This is how to make $millions with a minimum viable product.
So what’s your idea?
*Unless they are honest or have a solid history of being accurate in their opinions