Minimum Viable Product (MVP)
A minimum viable product (MVP) is the simplest working version of a new product with which a team learns as much as possible about customers with as little effort as possible, before investing in the full build-out.
The term became known through Eric Ries and the Lean Startup movement. In large companies it is often used more broadly, sometimes even for tests in which no product exists yet.
Why this matters for your decision
An MVP reduces risk compared with a full launch because it shows early on how people use a product. But it is still a product: it has to be developed, manufactured or operated. For software, this is often possible within weeks. For a home appliance, an insurance tariff or a consumer product with packaging and retail listing, even the minimal version is a considerable investment.
That is why a step before it pays off: Pretotyping. Alberto Savoia describes it as a series of quick, inexpensive experiments that test an idea with real users before time and money are invested. The logic: first check whether people want the offer, then build. The MVP then answers the question of how the product is used and what needs to be improved.
For large consumer companies, this often means: clarify demand and price beforehand in a Painted Door Test, and set up an MVP or a pilot run only for the variant with the highest measured purchase intent. This way, development effort goes into the version that real people choose most often, and the MVP can concentrate on usage and improvement.
Example
A manufacturer is planning a smart watering system for balcony plants. Instead of producing a small series straight away, the team tests two versions in a Painted Door Test: a basic model at €79 and an app-controlled model at €129. Around 2,500 visitors per variant reach the offer page. The basic model achieves 3.2 percent measured purchase intent, the app model 1.9 percent. The MVP is built for the basic model, and app control will be tested later as an accessory.
How it differs
Pretotyping and the Painted Door Test check demand before a product exists, and sell nothing. An MVP is a working minimal product that is actually used and often paid for. A prototype mainly serves technical testing and is usually not intended for customers. A pre-order test accepts advance orders with payment and requires a delivery commitment.
Limitations
If an MVP can be built quickly and cheaply anyway, for example for a simple digital feature, a preceding demand test adds less value. A Painted Door Test shows the decision for an offer, not usage, satisfaction or repeat purchase. Only a product in people's hands answers these questions.
Horizon starts before the MVP: with a Painted Door Test that measures the purchase or sign-up intent of real people without a product having to exist. Nothing is sold.
Evidence
Ries 2009: Definition: the MVP is the version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort. Minimum Viable Product: a guide, Startup Lessons Learned. Source
Savoia 2019: Pretotyping as a series of quick, inexpensive experiments that test an idea with real users before time and money are invested. The Right It: Why So Many Ideas Fail and How to Make Sure Yours Succeed, HarperOne. Source
Frequently asked questions
What is an MVP?
The simplest working version of a new product, with which a team learns a lot about customers with little effort.
What is the difference between an MVP and Pretotyping?
Pretotyping checks demand before a product exists. The MVP is already a working minimal product.
Does every initiative need an MVP?
Not necessarily. A demand test beforehand often clarifies whether building is worthwhile at all and which variant should be built.
Want to know whether your MVP is worth it before you build it?
Bring your decision question, and we will outline a possible test design.
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Founder & CEO, 30 minutes
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