The minimum viable product (MVP) prototype was introduced three decades ago. Until then the startups spent a few years adding intricacies to the product after its development. This was a futile model because apart from the time being wasted, the end products were not preferred by the customers due to several additional features.
When the MVP model was launched, it was aimed at developing a product with the most demanding lineaments a customer required. As per the MVP protocol, the product was bought into the market at a stage when its applications were nominal (minimally viable) thereby easing the customer’s concerns.
Though the concept of MVP had its advantages such as quick availability of the product with limited work and easy determination of its feasibility, it had its pitfalls.
- This model proved to be arduous to determine the commercial viability of the product. Customers had no qualms about the product usage, but they were uncertain of paying for it. It turned out to be a challenging environment for the entrepreneur
- In some cases, the minimal approach was considered mediocre by the customers
- Contentment issues arose amongst the entrepreneurs, and they hesitated to ask the customers for money until it was late to act
The billable viable product (BVP) model promotes the introduction of sustainable products into the market, the kind of commodities the clients would pay for. With the BVP, a fully functional product is introduced, irrespective of its state of completion.
The aim here is to address the immediate problem of the customers and then develop the now functional product. Therefore, the product is completely operative even if it is not complete. BVP can be more advantageous in the following ways:
- The result is quick. The entrepreneur can talk of acquisition and investment sooner. If the scenario seems devoid of success, he can move on to improving the product or creating more viable options
- It does not harm the commercial viability of your product. The customers would convey interest because the product is functional and hence the risk factor is less
- The responsibility would eliminate the feeling of contentment if it were to arise. When the customer pays for the product, the work has to move quickly, or the deal stands cancelled. Such obligations are absent with the MVP model
When the Minimal Viable Product model is employed as a part of the Billable viable product, it makes it easier for the creator to estimate the commercial growth of his product apart from helping him fulfil the market expectations. BVP can help an entrepreneur in several ways when compared to a typical MVP model.
As it is important to choose the right model for every business, it is important to choose the right partner who knows what model will be ideal and how to implement it for maximum productive.