20 November, 2013

1-1-21 value creation: MEVO

MEVO is "Minimum Economically Valuable Offer":

The first prototype people are willing to pay for
-         The whole process of value creation is this; to reach the prototype that people are willing to pay for. In other words: is to get to MEVO as quickly as possible
-         We have talked a million times about that you can't just throw everything to reach a perfect 100% finished product and then see whether it will sell or not
-         The iteration cycles don't just keep going forever till reach the perfect "value form", there isn't even such a thing called perfect form. Iteration is needed all the time. 
-         So, you keep iterating and taking feedback till you reach MEVO, and then start to sell, or ask for preorders immediately
Why to do that?
1-    You are going through A LOT of processes when you are preparing your business. All these processes need money. The only part that includes gaining money is the selling part. You need to reach that as quickly as possible, MEVO does that  
2-    You will actually test and validate if a market exists or not, before you spend too much money and effort in vein. The disaster is not discovering that your idea has no market (at all or yet … ), but it is discovering that after spending months and a zillion dollars to make a perfect product that people don't want
3-    Your iteration cycles and decisions will be way more clear according to what your customers want
4-    Preordering will give you A LOT of motivation to go on and keep moving
Note that: all you need to do is to make people aware of what it is you are going to be doing, make that valuable enough for them to pay for in advance

Also, make them well aware that it is not complete yet, a prototype that is improving over time

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