Whoa! This seems crazy! How on earth?!
Well, it’s not that complicated. A common theme at Initprise is that we don’t need to achieve a 95% confidence interval to reduce the risk of a venture. We’re simply looking for positive indicators allowing us to confidently move to riskier phases with added knowledge that gives us confidence we are building the right thing.
Product market fit has many definitions, some as loose as “you’ll know it when you see it”. We think we can put something more concrete to the definition (for the purpose of validating it). Product market fit means that you have a product that the market wants. In a previous post, we discussed techniques to validate the problem, test proposed solutions, and validate pricing.
A Minimum Viable Product (MVP) is the simplest most basic version of a product to validate a specific assumption. In the early phases, the assumptions are basic enough to not require a product. For example, a survey is a form of an MVP, an advertisement is a form of an MVP, a landing page is another form, and a fake checkout form is another still. Each increasingly complex version of the MVP tests a more mature phase of the consumers buying process. Each moves you closer to validating product market fit. A fake product page can be built in less than 1 day, and experiments can take less than 1 week (of non-billable waiting). If you compare this against spending months building a product you can easily understand why it is critical to validate as much as possible prior to writing code.