An MVP refers to a minimum viable product, a development technique popularised by Eric Ries. The simplest definition of an MVP is “The smallest thing that you can build to gain validated learning”. That will test whether your product or service will succeed in the current marketplace.
Following on the principle of work smarter not harder, developing a MVP will help in collecting maximum quality feedback, by targeting specific groups, or types of users. The main change is in the behaviour: mover away from the concept “Can we build this product or service?” to “Should we build this product or service?”.
5. Business Model
A business model is defined as “the conceptual structure supporting the viability of a business, including its purpose, its goals, and its ongoing plans for achieving them”. This answers the following questions: Who is your customer, what does the customer value, and how do you deliver value at an appropriate cost?
A business model is similar to a business plan in its makeup and content. However, a business plan specifies all the elements required to demonstrate the feasibility of a prospective business, while a business model demonstrates the elements that make an existing business work successfully.
Your business model should include the following:
· A description of your business model (Online, offline, indirect, direct, etc.)
· An outline of the income streams. With details of how your business will make money and how you see it growing
· A strategy that is heavily supported by numbers