How to plan an MVP: prioritization, cost and validation
An MVP (minimum viable product) is the smallest version of a product that can test with real customers whether the problem exists and whether they would pay for the solution. The goal is not to launch an unfinished product but to learn as quickly and cheaply as possible before investing in the whole thing.
MoSCoW prioritization
- Must have: without it, the product does not solve the core problem.
- Should have: important, but the test works without it.
- Could have: improves the experience; it can wait.
- Won’t have now: out of this version.
RICE score
To rank features within each group, use RICE = reach × impact × confidence ÷ effort. A feature that reaches 2,000 users, with medium impact (1), 80% confidence and 40 hours of effort, scores 40. The higher the score, the more value per hour of work.
Cost and timeline
Add up the hours of the MVP features, add a contingency buffer (20% to 40% is common in software) and multiply by the team’s hourly cost. In the calculator’s example, the MVP with 4 of the 8 features costs about $27,000 and takes 3 weeks, against about $56,000 and 7 weeks for the full product.
The example uses the calculator’s default values; replace them with your own.
How many users to validate
To measure a conversion rate with an acceptable margin of error you need a minimum number of users. To estimate an 8% conversion within ±2 points at 95% confidence, you need about 707 users. The calculator also shows what it costs to bring them in through ads.
Define the hypothesis before building
Write down what must be true for the business to work, such as “8% of visitors subscribe to the paid plan”, and decide before the test what you will do if the result comes in lower. Sometimes a pre-sale landing page or a manual process validates the idea before any code is written.