What does the term "minimum viable product" (MVP) refer to?

The term "minimum viable product" (MVP) refers to the simplest version of a product that includes just enough features to be functional and to satisfy early customers. The purpose of creating an MVP is to test a business idea and validate whether it meets the market demand with minimal resources and development time. By releasing a stripped-down version of the product, entrepreneurs can gather user feedback and insights that are crucial for refining the product, determining product-market fit, and making informed decisions about future development.

In contrast to a fully functional or complex product, the MVP approach allows businesses to pivot or adjust their offerings based on real user data and preferences, ultimately leading to a better outcome and less wasted effort. This iterative process is essential for startups and those in the innovation space, highlighting the importance of validating ideas before investing heavily in product development.