Business Canvas Model - the differences in MVP and a full product vision Canvas

Are there differences in building a Canvas model for a startup at the MVP stage? Do you build it the same way as a standard Lean Canvas model?

As a startups collaborator, I built or optimized several Business Canvases. And when I founded my own startup, the vision of a full product completely overshadowed my focus on the MVP phase and building a Canvas model proved more difficult than I thought. Why? Because at the MVP stage, defining the value proposition can be particularly challenging as the product is still in its nascent form. From my experience, if we’d defined a value proposition for our full product, it was quite difficult to choose the basic and most important value proposition to start with at the MVP stage

Well, that’s the point! And it turns out that it's not so obvious at all, that the Canvas for the MVP is built a little differently than for the full version of a product or service, that is, a project that has already validated the MVP.

The importance of Canvas Model

Creating a business canvas at the MVP (Minimum Viable Product) stage is crucial for laying a solid foundation for your startup. The Business Model Canvas is a strategic tool that helps entrepreneurs visualize and structure their business model in a straightforward and comprehensive manner.

Key Components of a standard Lean Canvas Model

The value proposition should articulate the unique value your product brings to the market and how it solves a specific problem for your target audience. This can be refined later as more feedback is gathered.

Identify and define the specific group of customers your product aims to serve. This includes understanding their needs, behaviors, and pain points.

Determine how your product will reach your customers. This could be through online platforms, physical stores, partnerships, or a combination of these.

Define the type of relationship you want to establish with your customers. This could range from personal assistance to automated services.

Identify how your startup will make money. Consider different revenue models such as direct sales, subscriptions, or freemiums.

Outline the essential resources required to deliver your value proposition, including human, financial, physical, and intellectual resources.

Define the critical activities needed to deliver your value proposition and operate your business successfully.

Identify key partners and suppliers that will help you achieve your business objectives.

Detail the major costs involved in operating your business and delivering your product.

Contact me to send you the print-ready file of this standard Lean Canvas Model

Key Components of MVP Lean Canvas Model

MVP Proposal

Purpose: What is the primary goal of our MVP?

Target Personas

Audience: Who is our MVP intended for? Can we identify and test it with a specific subgroup?

User Journeys

Improvements: Which user journeys will be enhanced by our MVP?

Key Features

Scope: What features are we developing in our MVP? Which actions will be simplified or improved?

Expected Outcomes

Goals: What are the desired learnings or results from our MVP?

Validation Metrics

Measurement: How will we measure the success and validate the business hypotheses of our MVP?

Cost & Timeline

Budget and Schedule: What are the estimated costs and deadlines for our MVP? When can we analyze the data for validation? Are there any schedule constraints?

Contact me to send you the print-ready file of this MVP Lean Canvas Model

Lean Startup + User Centric Design at MVP stage: Build to learn and learn to build

From Lean Startup, we have the build-measure-learn loop, a straightforward and simple cycle that is challenging to implement due to the dichotomy between a scientific approach (building to learn) and a user-centric approach (learning to build).

User Centric Design (UCD) is a design approach that prioritizes the needs, desires, and limitations of end users throughout every phase of the design process. This methodology emphasizes the importance of user outcomes and feedback, driving ongoing iterations and enhancements to the product's design.

User - Journey - Action loop to validate business hypotheses

By focusing on the persona and their journey, the MVP can be precisely tailored to address the genuine needs and pain points of its target users. This alignment with actual user experiences allows for effective testing and measurement of the MVP's impact. It’s very important to identify the touchpoints where your MVP can streamline processes, offer value, or resolve current issues for an each journey you include in your Canvas.

Following the above processes:

starting with the proposal,

identifying personas,

listing the journeys,

assuming the expected outcomes & measures to do that,

and learning at each step you take - following Lean and Design Thinking methodologies to verify and improve the substance you added to your MVP Canvas, you can better reassess the features that your first product needs to have.

And to do right, it’s worth to ask yourself and your team:

Are these actually minimum features required?

Is each step as simple as possible + is any simplification possible?

Do your MVP’s features make the product viable?

Can a more streamlined version of your MVP be found to achieve your goals?

Is it possible that you overlooked any crucial components necessary for the MVP?

How to approach the expenses & schedule in your MVP Canvas?

It is recommended that the expenses and the schedule is the last step in your Canvas Model.

This strategic placement prompts us to consider these aspects only after thoroughly addressing the other essential blocks.

It is also is a nuanced task, often accompanied by various methodologies and expert recommendations. However, if these elements are crucial to your business strategy, this is the appropriate stage to define your financial and temporal expectations. It’s also required by investors, so it’s worth it to do it wisely, as budgeting for an MVP is more than just financial planning; it’s about making thoughtful and strategic decisions.

In your costs breakdown include: development, testing, marketing, and potential contingencies

Try to embrace a strategic approach when crafting the budget at this stage and thoughtfully align your budgeting strategies with your project’s objectives. Ensure every ‘coin’ spent truly contributes to your MVP’s success. At this stage it is of course important to keep it simple and exclude unnecessary costs.

Instructions for Startupers to start the MVP Canvas

The MVP canvas can be an essential tool for your project's development, whether you are a solo entrepreneur or part of a team. Solo entrepreneurs may find it difficult to address all these perspectives on their own. If you need insights from diverse backgrounds or would benefit from the advice of a more experienced entrepreneur, consider using chatMVP.ai . This intelligent tool acts as your personal expert on the MVP canvas, providing valuable guidance and support.

But you can certainly get started in the traditional way. And if you have mentor friends and advisors around you, I would say you are lucky. Thanks to my activity in business communities and my multidisciplinary experience, I've been the lucky one to have some great entrepreneurs and advisors to help me without having to spend out of my family budget. For me, their 'intelligence' - years of experience and perspective - are far more valuable than artificial intelligence. But it may be different for you!

I am very interested in your opinions and experiences. Feel free to email me with your thoughts or questions and good luck on your MVP Canvas!

https://www.valuecoders.com/blog/solutions/budgeting-for-your-mvp-what-to-expect-and-how-to-plan/