When starting a new business venture, diving right in and getting started on your big idea immediately can be tempting. However, as many entrepreneurs have learned the hard way, this approach can often lead to expensive failure and decades of wasted time. That's because in order to make your idea successful, you need to build an MVP – a minimal viable product – that will allow you to test your concept and determine if it has real potential for success.
The principles of MVPs are a cornerstone in the lean startup methodology and offer a practical framework for building a bare-bone version of your product that can get you to the next validation stage.
With a lean startup approach, you start by focusing on product market fit and determining if there is an actual demand for your product before investing significant time and resources in its development. You also begin testing early – with prototypes or at least dummy data – in order to identify any flaws or issues that might need to be addressed before you launch.
1. Running out of cash/Fail to raise capital.
2. No demand for the product.
3. The company got out-competed.
4. Flawed business model.
5. Regulatory/legal challenges.
These are the top 5 reasons for failing companies, and our MVP framework protects our clients against them all.