Don’t blow all your money on an MVP

by Giff on March 2, 2013

I fear a general misconception out there that you can validate a startup in just a few weeks. I have been particularly pained by both non-coder startup founders and managers at big companies who think that all they need to do is pour money into a single MVP and they’ll have a binary answer as to whether something is awesome or terrible. (note: when I use the term MVP, I mean an actual product, not an experiment)

If you do not have the budget and runway to iterate an MVP and run through multiple build-measure-learn cycles (tip: you should always start with “learn”), all you really are doing is playing the lottery.

Even if an idea is truly solid, in 99% of the time, you still won’t have product-market fit after an MVP. This stuff is not that easy.

What an MVP definitely gives you is essential learning and market signals, and hopefully an important initial foothold in the market.

If you don’t have the determination and ability (budget) to iterate, I don’t really believe that it is worth starting in the first place.

  • http://twitter.com/mgrassotti Michael Grassotti

    Couldn’t agree more. 

  • http://profiles.google.com/andrevan Andrew Fader

    Right, I think of an MVP as a hand in poker. Maybe you have A K, but the flop is 2 7 J. You’re basically betting on 1/13 chance, so you probably shouldn’t go all in even with a good hand. More often than not your hand isn’t so clearly good and you’ll need to keep some chips around to play another one. Also, like poker, good players fold early and often.

  • http://giffconstable.com giffc

    thanks for the comment fader.  ”fold early and often” is a troublesome one, for me, because so very context specific. I’ve come around to wanting to see a lot of heat in order to pursue an idea, but I also know how much persistence is required.

  • http://twitter.com/LeeEnglestone Lee Englestone

    Loving the poker analogy. Coincidentally my startup is poker related. http://www.PokerRave.net check it out.

  • http://theleanstartupmachine.com Trevor Owens

    You can definitely invalidate a product in a few weeks. P/M Fit takes a lot longer, though.

  • http://giffconstable.com giffc

    yes I often say that about LSM — you can definitely *invalidate* an idea in a weekend, but don’t expect to truly *validate*