Professor of Management Practice
For many years, it has been the goal of start-ups to create a Minimum Viable Product (MVP) as soon as possible. An MVP represents the bare minimum product version that can be released to the market for testing and validation. However, lately, we have seen a growing recognition that focusing solely on creating a Minimum Viable Product might not be the most effective strategy. Enter the concept of the Minimal Viable Market (MVM), a paradigm shift that prioritises identifying the right market segment before perfecting the product. Professor of Entrepreneurship Yannick Dillen explains the benefits of this new start-up approach.
Why would a Minimal Viable Market be even more crucial than a Minimum Viable Product?
Yannick Dillen: "Because the Minimal Viable Market approach addresses the true needs of the customer. Creating an MVP often focuses on delivering a product with limited features quickly. While speed is important, this approach might overlook whether the product genuinely addresses the needs of a specific market. By understanding the Minimal Viable Market first, you ensure you create something that solves a real problem for a well-defined group of customers."
Professor of Entrepreneurship Yannick Dillen explains the benefits of this new start-up approach - and how it can save time, effort and resources.
Are there additional benefits besides identifying market needs first?
Yannick Dillen: "Sure, there are many. Developing a product takes time, effort, and resources. Pouring these resources into creating an MVP without clearly understanding the target market can lead to wasted efforts. Focusing on the Minimal Viable Market enables start-ups to allocate resources more efficiently by concentrating on a specific target group that is most likely to benefit from the product and embrace it."
Why have entrepreneurs focused on the Minimum Viable Product for so long, then?
Yannick Dillen: "A brilliant product with groundbreaking features might not find its place in the market if it fails to resonate with customers. The risk of launching an MVP to a broader audience and receiving bad responses is higher than when you've already validated the demand within a Minimal Viable Market. This risk mitigation strategy can prevent costly product failures and help preserve a start-up's reputation."
"Moreover, knowing your Minimal Viable Market allows you to gather focused feedback from a relevant audience. This accelerates the iterative process of refining and improving the product. By constantly iterating based on real customer input, your product becomes more competitive and aligned with market demands."
What’s the main takeaway for start-up entrepreneurs?
Yannick Dillen: "While the concept of a Minimum Viable Product remains valuable, the shift towards understanding the Minimal Viable Market emphasises the importance of identifying the right audience first. By catering to a specific market's needs and obstacles, you not only increase your product's chances of success but also set the stage for sustainable growth and innovation. In today's competitive landscape, it's not just about launching quickly, but about launching smartly."