The Top 7 Reasons MVP Builds Fail Due to Founder Mistakes

The title of this article may seem confronting, but the intention is to equip you with the tools you need, especially if you are a non-technical founder, to give your startup the best chance for success. By understanding these common pitfalls and learning how to avoid them, you can navigate the challenges of building an MVP more effectively and set your tech startup on a path to success.

Author's note: these 7 key reasons originated from some material I read online (credit Sivan Atad) in the form of 7 bullet points without explanation, but I have seen each one of them play out within startups over the last 10 years, and I want to provide a deeper insight into each.

Creating a Minimum Viable Product (MVP) is crucial for any tech startup. It's a way to test your product idea with minimal resources, gather valuable feedback, and make informed decisions for future development. However, despite the best intentions, many founders stumble along the way, leading to failed MVPs. Understanding these common pitfalls can help you avoid them and set your startup on the path to success.

Here are the top seven reasons MVP builds fail due to founder mistakes:

1. Defining an MVP Scope That Is Too Large or Not Aligned with Real Customer Demand
   • One of the most significant mistakes is overcomplicating the MVP by including too many features or misaligning it with what customers truly need. This often results in increased development time, higher costs, and a product that doesn't resonate with users.
2. Lacking In-House Technical Capabilities or a Trusted Technical Advisor
   • Without the right technical expertise, founders can struggle to make informed decisions, manage development teams, and ensure the quality of the product. This gap often leads to costly errors and delays.
3. Opting for the Cheapest Quote or Equity Offer That Seems Too Good to Be True
   • While saving money is essential, choosing the lowest bid or an overly attractive equity offer can backfire. These options often come with hidden costs, poor-quality work, or unfavourable terms that can hinder your startup's growth.
4. Falling for a Good Sales Pitch Instead of Proven Capabilities
   • A compelling sales pitch can be persuasive, but looking beyond the presentation and evaluating the vendor's or partner's proven capabilities is crucial. Failing to do so can lead to unmet expectations and subpar results.
5. Poorly Defining the Scope, Leading to Numerous Scope Updates During the Build
   • Ambiguous or incomplete scope definitions can result in constant changes and adjustments, disrupting the project timeline and increasing costs. A well-defined scope is vital to keep the project on track.
6. Setting Inadequate Milestones and Payment Schedules
   • Inadequate milestones and rigid payment schedules can create cash flow problems and strain relationships with vendors or partners. Properly structured milestones and flexible payment schedules are essential for smooth project management.
7. Having a Very Short Runway
   • A short runway or limited time before funds run out can lead to hasty decisions and increased stress. Adequate financial planning and resource management are crucial to ensure your startup has the necessary runway to succeed.

By recognising and addressing these common mistakes, you can improve your chances of building a successful MVP and, ultimately, a successful startup. Stay focused on your goals, seek the right expertise, and maintain flexibility to adapt to changing circumstances. Your journey may be challenging, but with the right approach, you're well on your way to success.

In the following articles, I'm going to break down each one, do a deep dive into the pitfalls to avoid, and give actionable recommendations to help you set you on the right path with your tech partner.