The document discusses the limitations of the Minimum Viable Product (MVP) approach and introduces the concept of a Minimally Viable Business (MVB). It argues that an MVB, through additional non-product research, can better validate the probability of organizational success by investigating factors like revenue and customer acquisition costs at scale, competition, team skills needed, and financing requirements. The document provides examples of the types of non-product research an MVB approach could involve and recommends combining MVP and MVB methods into a dashboard to track business metrics over time.

1. Minimally Viable Business
James Geshwiler
Managing Director, CommonAngels
james@commonangels.com
October 2012

2. Great Products Aren’t Necessarily
Successful, Lasting Businesses
2

3. Sometimes You’re Just the Ice Breaker
Who Does all the Work for The Next Guy
3

4. How MVP Falls Short…
 Revenue: Media companies often can’t test at low volume
 CAC: Usually artificially low or high at launch
 Market: Early adopters may give false estimate of size
 Competition: Little indication from established players or
new entrants
 Team: Concept ignores evolution of skills that may be
critical for long-term success
 Finance: Even with positive market test, access to capital
may be critical component to win, esp if making a market
4

5. 5

6. Enter MVB…
A series of non-product research aimed at validating the
probability of organizational success
 Revenue/CAC: investigate pricepoints, marketing at scale
(eg., interviews with larger, established players)
 Competition: approach potential strategic partners early
(if they’re going to steal the idea, better to know now….)
 Team: if there are identified key gaps that are too early to
fill, seek to recruit talent as advisors or keep close a hand
 Finance: get high-quality, part-time CFO & speak with
later stage sources of capital early to forecast
requirements, social opportunity
6

7. If You’re Going to Fail, Fail Early…
7

8. Make a Dashboard Combining MVP & MVB
Here’s an example for a SAAS company using channels that
should expect viral marketing from using the product:
Category 12/31/12 3/31/13 6/30/13 9/30/13
Target MRR
Min MRR
Total Partners
Threshold
Partners
Referrals from
End Users
Cash
8

9. 9