In my previous article, I described the tradeoffs and constraints between “Time-Quality-Money” when establishing a sustainable MVP (Minimum Viable Product). To emphasize its importance, let’s recall that not hitting the MVP’s milestones – on time, within budget, and acceptable quality is a bad start.
Every startup has its own MVP on its journey to increase value. Quite a few startups I worked with (more in the pre-A round, less in the pre-B round), faced the question of presenting an MVP.
Clear communication is critical both internally and externally. I often use the phrase “over-communicate” amongst my clients to ensure everyone’s in sync and that “lost in translation” scenarios are minimized.
Most CEOs aim to have one visual slide to represent their MVP. Based on my experience, here is the slide I recommend you use for your MVP. It connects three dimensions representing the three limitations. In my view, it’s the foundation for all team members to be on the same page in order to execute with excellence.
I advise every CEO to have this kind of slide, saved and pinned under their “Favorites”.
- Vertically (marked in the blue bubble) – critical outcomes, representing qualitative projects and milestones that define MVP. These are measurable and quantified outcomes connected to future “tipping points”, but also related to drill-down projects (i.e. bottom-up). Examples from a Healthcare startup: reaching FDA approval, or successful Clinical Trial results
- Horizontally (marked in the orange bubble) – time frame, representing each subcategory’s starting and ending date. It clarifies operations at “thirty thousand feet” and interfaces with the company’s budget, as a “single source of truth”. I recommend using a time frame of at least 18 months.
- Internal cells (marked in the green bubble) – money (or expenditures) involved per sub-project for each time frame, and in total. This connects to the “sources and uses” view, which is presented to the board and potential investors. In one of my following articles I will share tools for cost estimation.
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Following examples taken from Software (example 1) and Healthcare (example 2) startups:
