Validating startup business model through MVP and Lean Product Development : A case study on "Todo Groups"

Abstract

The thesis explores how early-stage startups can utilize the Minimum Viable Product (MVP) and Lean Product Development (LPD) methods to validate their business models through iterative experimentation. The research was conducted as a case study of the startup Todo Groups, which followed first iteration of the build-measure-learn (BML) loop. Each phase of the loop was implemented and analysed to assess how MVPs and lean practices contribute to actionable insights and validation outcomes. The findings demonstrate that MVP and LPD can serve as effective tools for guiding product development and refining business models in a resource-efficient, customer-focused manner in early-stage startups. However, the study also highlights several limitations of these approaches, including potential pitfalls in experimental design, overreliance on user feed-back, and the risk of losing innovative direction due to the overreliance of the user feed-back. These insights offer valuable guidance for startups considering lean strategies and looking for ways to validate their own business models.