📊Analytics, Strategy & Business Growth

What is a Minimum Viable Product (MVP)? A Founder's Guide

Learn how to build a Minimum Viable Product (MVP) that actually works. Our step-by-step guide helps founders test ideas and build products customers love.

Written by Jan
Last updated on 10/11/2025
Next update scheduled for 17/11/2025

A Minimum Viable Product (MVP) is a version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least amount of effort. Coined by Frank Robinson and popularized by Eric Ries in 'The Lean Startup', the core idea isn't to build a cheap or unfinished product. It's to build a *scientific tool* for testing a business hypothesis.

Think of it this way: you have a grand vision for a revolutionary new app. Instead of spending a year and a million dollars building all 50 features you've imagined, you identify the single most critical problem your app solves. Then, you build only the essential features needed to solve that one problem for a specific group of early users. You release it, watch how they use it, talk to them, and learn. The MVP is your first step in a continuous loop of building, measuring, and learning.

It helps startup founders and product managers answer the most terrifying question in business: 'Am I building something anyone will actually pay for?' before they run out of time or money. It's about replacing 'I think' with 'I know' by using real user data instead of assumptions.

A Minimum Viable Product (MVP) is the simplest, most basic version of your product that you can launch to test your core idea with real users. Its purpose isn't to be perfect or feature-complete; its purpose is to *learn*.

You build just enough for it to be 'viable'—meaning it solves a real problem and provides value—so you can get it into the hands of early adopters. Their feedback, usage data, and willingness (or unwillingness) to use it tells you if your core assumption is correct. It's the fastest way to stop guessing and start knowing if you're on the right track.

🚀 The Raft Before the Battleship

How to test your biggest ideas with the smallest possible product.

Introduction

In 2007, Drew Houston had an idea that seemed impossible: a service that would seamlessly sync files across all your devices. The problem? Building it would require conquering immense technical hurdles, taking months—or years—and millions of dollars. How could he know if anyone would even want it? Instead of writing a single line of complex code, he did something incredibly simple: he made a video.

He recorded a 3-minute screencast demonstrating how his theoretical product, Dropbox, would work. He narrated it himself, filled with inside jokes for his target audience on Hacker News. The video showed a folder on a desktop where files magically appeared on other computers. It wasn't real, but it *felt* real. The result? The beta waiting list exploded from 5,000 to 75,000 people overnight. Drew Houston had validated his core idea without building the product. That video was his Minimum Viable Product.

This is the power of the MVP. It's not about building a smaller version of your final product. It's about finding the cheapest, fastest way to learn if you should build it at all. It's the raft you build to find land, long before you invest in building the battleship.

🎯 Step 1: Define Your Core Problem and User

Before you write a line of code or design a single screen, you need absolute clarity on two things: who are you building this for, and what single, painful problem are you solving for them?

Your vision might be to solve ten problems, but your MVP must solve one. Be brutally specific. Don't build for 'everyone'. Build for 'Sarah, a 35-year-old freelance project manager who struggles to track invoices across multiple clients.'

'The first step is to find a problem that you have, that your friends have.' — Drew Houston, Co-founder of Dropbox

Why it matters: Without a clear problem/user fit, you're just throwing features at the wall and hoping something sticks. A sharp focus is your greatest asset when you have limited resources.

Quick Win: Write a one-sentence problem statement. Format it like this: '[Target User] needs a way to [achieve a goal/solve a problem] because [pain point].' For early Dropbox, it was: 'Tech-savvy individuals need a way to access their files across devices because carrying USB drives is a hassle and emailing files is inefficient.'

🗺️ Step 2: Map the User Journey

Now, map out the steps a user would take to solve their problem using your theoretical product. Don't think about features yet; think about actions. What's the 'happy path' from A to Z?

For Sarah the freelancer, the journey might look like this:

  1. Signs up for the service.
  2. Creates a new client profile.
  3. Generates an invoice from a template.
  4. Sends the invoice to the client.
  5. Gets a notification when the invoice is viewed.
  6. Marks the invoice as paid.

This simple story board reveals the necessary actions your product must enable. It gives you a narrative to build around, ensuring the final product feels logical and intuitive.

🔪 Step 3: Prioritize Ruthlessly with a Feature Matrix

Look at the actions from your user journey and brainstorm the features needed to accomplish them. Now comes the hard part: you can't build them all. It's time to prioritize.

A great tool for this is the Impact/Effort Matrix. Draw four quadrants:

  • High Impact, Low Effort (Quick Wins): Do these first. These are the core of your MVP.
  • High Impact, High Effort (Major Projects): Plan for these later, after your MVP validates the idea.
  • Low Impact, Low Effort (Fill-ins): Be careful. These can lead to feature bloat. Only include if absolutely necessary.
  • Low Impact, High Effort (Money Pits): Avoid these at all costs.

Your MVP should consist almost entirely of 'High Impact, Low Effort' features. For Sarah's invoicing app, 'Generate an invoice' is High Impact. 'Customizable color themes' is Low Impact.

✅ Step 4: Define Your 'Viable' Threshold

This is the most misunderstood part of MVP. 'Minimum' doesn't mean buggy, ugly, or incomplete. 'Viable' means it has to be good enough to be used and loved by your first users. It must deliver on its core promise reliably and with a decent user experience.

A car with only three wheels is minimum, but it's not viable. A skateboard is also minimum compared to a car, but it's perfectly viable for getting you down the block. Your MVP should be the skateboard, not the three-wheeled car. It must be:

  • Functional: It works. The core feature isn't broken.
  • Reliable: It doesn't crash every five minutes.
  • Usable: The user can figure out how to use it without a 50-page manual.
  • Valuable: It actually solves the user's core problem.
'As you consider building your own minimum viable product, let this simple rule suffice: remove any feature, process, or effort that does not contribute directly to the learning you seek.' — Eric Ries, Author of The Lean Startup

🏗️ Step 5: Build, Measure, Learn

Now, you build. But the 'build' part is only one-third of the equation. The process is a loop, as defined by the Lean Startup methodology:

  1. Build: Develop the version of the product with the minimal feature set you defined.
  2. Measure: Release it to your small group of early adopters. Collect quantitative data (How many users signed up? How many created an invoice?) and qualitative feedback (What did they say in user interviews? What did they complain about in support emails?).
  3. Learn: Analyze the data and feedback to validate or invalidate your core hypothesis. Did they use the feature as you expected? Did they ignore it completely? This learning informs your next move.

This loop is the engine of your startup. Each cycle should be as fast as possible. The goal isn't to build a perfect product in one go, but to iterate your way to a perfect product-market fit.

📊 Step 6: Set Your Success Metrics

How do you know if your MVP is working? It's not about revenue or profit at this stage. It's about learning. Your key metrics should reflect this.

Instead of tracking 'Daily Active Users,' track:

  • Activation Rate: What percentage of users who sign up successfully complete the core action (e.g., send one invoice)?
  • Retention Rate: How many users come back a week later? This is a strong signal of value.
  • Feedback Volume & Quality: Are users so engaged they're telling you what they want next? Or are they just reporting bugs?

Success for an MVP isn't a big launch day. Success is a clear answer—'yes' or 'no'—to your core hypothesis. If the answer is 'no,' that's not failure; it's a successful pivot, saving you years of wasted effort.

The MVP Canvas: Your One-Page Plan

Before you build, fill out a simple canvas to align your team. This forces you to think through the critical components on a single page.

  • MVP Vision: What is the high-level goal for this MVP?
  • Target Users: Who are we building this for? (Be specific!)
  • User Journeys: What are the key steps the user will take?
  • Features to Build: What specific features are needed for those journeys?
  • Learning Goals & Metrics: What do we want to learn, and how will we measure it?
  • Hypothesis: 'We believe that [Target Users] will [do this action] because it provides [this value]. We'll know this is true when we see [this metric].'

Types of MVPs (It's Not Always Code)

An MVP doesn't have to be a software application. The goal is to learn with minimum effort. Consider these types:

  • Landing Page MVP: A single web page describing your product and its value proposition with a call to action like 'Sign up for early access.' The conversion rate on the signup form validates interest.
  • Concierge MVP: You manually deliver the service to your first clients. Want to build an AI-powered meal planner? Start by creating meal plans for 5 clients by hand. This provides deep insights into their real needs.
  • Piecemeal MVP: Stitch together existing tools to deliver your service. Use a combination of Airtable, Zapier, and Stripe to create a 'product' without writing custom code.
  • The 'Wizard of Oz' MVP: Create a front-end that looks real, but have humans manually perform the tasks on the back-end. Customers feel like they're using a seamless, automated system, while you validate the process before building the complex technology.

🧱 Case Study: Buffer's Two-Page MVP

Buffer, the popular social media scheduling tool, started as one of the simplest MVPs imaginable. Founder Joel Gascoigne had an idea: what if you could schedule tweets to post at optimal times throughout the day?

Instead of building the app, he created a simple two-page website.

  1. Page 1: A landing page that explained the concept and asked a simple question: 'Do you tweet so much you wish you could space them out?' It had a button that said 'Plans and Pricing.'
  2. Page 2: If a user clicked the button, they didn't see pricing. Instead, they saw a message: 'Hello! You've caught us before we're ready. Leave your email address and we'll let you know when we launch.'

He didn't want to just collect emails; he wanted to gauge purchase intent. The click on 'Plans and Pricing' was a much stronger signal than a simple 'notify me' button. Enough people left their emails that he knew the demand was real. Only then did he proceed to build the actual product. This brilliant, low-cost experiment validated his entire business idea in a matter of days.

Remember Drew Houston's video? It wasn't a product, but it did the product's most important job: it proved people wanted what he was selling. The MVP isn't really about products at all. It's a philosophy. It's a commitment to humility, a promise to listen to your users more than your own assumptions.

The lesson is simple: the biggest risk isn't building the wrong product, it's building a product nobody needs. Your raft—whether it's a landing page, a video, or a simple app—isn't meant to be the final vessel. It's your tool for discovery, your compass in the vast, foggy ocean of market needs. Use it to find the coordinates of true customer pain, and it will guide you toward the land where your battleship can one day rule the seas.

So don't ask, 'What's the minimum I can build?' Ask, 'What's the minimum I need to learn?' That's what Dropbox did. That's what Buffer did. And that's what you can do, too. Your next step isn't to open a code editor; it's to grab a piece of paper and define that first, crucial hypothesis.

📚 References

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