Eric Ries helped popularize the term MVP (minimum viable product) in his 2011 book The Lean Startup. Though the term has become ubiquitous, many overlook the nuances that are integral to the idea.
I want to emphasize one of those often overlooked points: aspiring entrepreneurs do not necessarily need to build a working product to test the market demand for their idea. Ries presents four such methodologies to test your idea, only two of which involve a real product. The other techniques, which can best be described as a Minimum Viable Experiment (MVE), can save you months of time and tens or even hundreds of thousands of dollars if you are able to design the right experiment. Sadly, many fail to explore these options and challenge their creativity.
Remember: we have zero interest in whether someone says they would buy, only whether they do buy, or attempt to buy, when given the chance. For the MVE, the customer must believe the product exists and you should measure how many attempt to purchase it. Do an apples to apples comparison with the purchase funnel with comparable businesses to see how your hypothetical startup measures up.
