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Startup

What is MVP?

Minimum Viable Product

Last updated: January 15, 2025

On this page

TL;DRExampleExplanationWhy It MattersCommon MisconceptionsRelated Terms

TL;DR

An MVP (Minimum Viable Product) is the simplest version of a product that you can launch to test if people actually want it.

Example

The Dropbox MVP was just a video.

Before building any file-syncing technology, Dropbox founder Drew Houston made a 3-minute video showing how the product would work. He posted it online and collected email addresses from interested people.

70,000 people signed up overnight, before a single line of code was written for the actual product.

Other famous MVPs:

  • Airbnb started with the founders renting out air mattresses in their apartment
  • Zappos tested demand by posting shoe photos online and buying them from stores when orders came in
  • Buffer was just a landing page explaining the idea, with a pricing page, before any software existed

The key insight: test demand before investing heavily in building.

Explanation

The Philosophy Behind MVP

The MVP approach comes from the Lean Startup methodology. The core idea: don't spend months building something nobody wants.

Instead:

  1. Identify your core hypothesis (e.g., "People will pay for X")
  2. Build the minimum needed to test that hypothesis
  3. Launch quickly and measure real behavior
  4. Learn and iterate based on actual data

What "Minimum" Really Means

Minimum doesn't mean low quality or broken. It means:

  • Core value only - Just the one thing that matters most
  • No nice-to-haves - Features that aren't essential wait
  • Good enough to use - It should actually work and provide value

What "Viable" Really Means

Viable means someone would actually use it (and ideally pay for it). A half-working prototype isn't viable. An MVP should:

  • Solve a real problem
  • Be usable without extensive help
  • Provide enough value that people will engage with it

Common MVP Types

  1. Landing page MVP - Describe the product, collect signups
  2. Wizard of Oz MVP - Looks automated, but humans do the work behind the scenes
  3. Concierge MVP - Manually deliver the service before automating
  4. Single-feature MVP - One feature, done well

Why It Matters

For Business Owners

Reduce risk. Instead of betting everything on a fully-built product, you test assumptions early and cheaply.

Faster time to market. Get something out there in weeks instead of months. Start learning immediately.

Preserve resources. Don't burn through your budget building features nobody asked for.

Real customer feedback. Opinions are nice, but watching what people actually do with your product is invaluable.

The Counter-Argument

Not everything should be an MVP. If you're entering a competitive market where user experience is critical, a "minimum" product might just feel inferior. Know when to apply this approach.

Common Misconceptions

Related Terms

SaaS

SaaS (Software as a Service) is software you access through the internet and pay for monthly, instead of installing it on your computer.

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