How to Build an MVP

Executive Summary:

  • Building a Minimum Viable Product (MVP) is crucial - launch quickly with minimal features and iterate based on customer feedback, rather than extensive upfront planning.
  • Successful MVP examples include Airbnb's basic accommodation booking, Twitch's single-streamer website, and Stripe's manual account setup - all focused on learning from early users.
  • Target "desperate" customers with urgent problems, and learn from actual interactions with the MVP rather than just customer surveys.

Meeting Notes:

The Importance of Building a Minimum Viable Product (MVP)

  • Michael Seibel defines an MVP as launching something quickly with minimal features and iterating based on customer feedback, rather than doing extensive research upfront.
  • The "Midwhip Meme" illustrates how first-time founders who just launch a basic product can often discover what customers want faster than founders who try to build a perfect product from the start.
  • Key benefits of launching an MVP quickly:
      1. You only truly start learning about users when you put a real product in front of them.
      1. Letting customers see the product evolve can make them more excited and likely to use/pay for it.
      1. Iterating based on real user feedback is far more valuable than extensive planning upfront.
  • Michael Seibel addresses fears like early customers disliking the MVP - he explains that early adopters expect imperfect products and are open to helping improve it.

Examples of Successful MVPs

  • Airbnb's early MVP:
    • No payment integration (had to arrange payment separately)
    • No map functionality to see listing locations
    • Could only book air beds, not full homes/rooms
    • Only available during conferences in each city
  • Twitch (JustinTV) started as:
    • Single page with one streamer (Michael Seibel's co-founder Justin) broadcasting 24/7
    • No video games except occasionally playing simple games
    • Extremely expensive video streaming costs
  • Stripe (Flash Payments) MVP:
    • Had to manually file paperwork each night to set up customer accounts at a small bank
    • Very limited API features, too basic even for YC startups like Twitch initially

Identifying the Right Customers for Your MVP

  • Target "desperate" customers with urgent "hair on fire" problems - they will use an imperfect MVP to solve their pain.
  • Customer surveys alone are limited - customers are experts on their problems but not necessarily the best solutions.
  • The key is learning from actual customer interactions with your MVP, not just gathering feedback, to discover the right product solutions.

Tips for Building and Launching an Effective MVP

  • Set a clear, short deadline (e.g. 2 weeks, 1 month) to avoid scope creep.
  • Document a concise feature spec to avoid debating what to build.
  • Ruthlessly cut unnecessary features - only include the minimum for users to start using it.
  • Avoid falling in love with the initial MVP - it will change significantly through iterations.

The Power of an MVP Approach

  • An MVP lets you build a dedicated user base invested in the product's evolution.
  • Focus on providing a great experience to a small core user group over scale initially.
  • The iterative MVP approach of launching quickly and learning from customers is key, even for companies like Apple that are renowned for great products.
    • Michael Seibel highlights how products like the original iPhone and iPod went through many iterations based on customer feedback after initial launch.