We already know the importance of assumption testing to validate what we believe before making something seriously. MVP (Minimum Viable Product) is used to test if customer is willing to sacrifice something to buy your value proposition and product vision.
So what’s next when you validated your assumption?
Of course it is time making paying customers. But you don’t have enough resource to build product that matches your ending product vision.
At this time you have two choices. One is to search and meet the venture capitalist to get injected funds for building sellable products and paying operation costs. Another is to build and sell AVP which means affordable viable product you can make and sell within your team’s capability, network and resources to generate revenues.
Why is AVP important to your startup’s success? The purpose of AVP is generating revenue and cash inflow. You can learn more from paying customers with AVP. MVP usually get limited insight from users because the sacrifice from customer is designed to be somewhat little just for experiments. You can get revenue that exceed ramen profit, minimal profit to sustain your team with AVP. Moreover, you can earn time needed for pitching and getting investment with more concrete and working business model.
Is AVP, interim products always good approach? AVP increases survival rate. But it may decrease the speed of expansion either. So if timing about market entry and domination matters, you would better use two track with AVP and searching venture fund to build dream product at the same time.
AVP can be your stair case to reaching vision while standing on today’s constraints.