An important part of the Business Model Hacking method is testing new business models. When testing business models, it is recommended to use the Lean Startup approach and to validate assumptions through Minimal Viable Products (MVPs). The MVP-scorecard can help to validate faster and better.
Download the MVP-scorecard: PowerPoint (fill in format), A1 or A0.
The MVP-scorecard helps you choose the right experiments needed to validate a plan’s riskiest assumptions. The MVP-scorecard helps speed up, structure and eliminate waste by asking every MVP the question: Can we test the risky assumptions faster and cheaper?
- Helps to test risky assumptions as quickly and cheaply as possible
- Helps to validate better
- Provides structure and overview in the validation process
Before you start working with the MVP-scorecard, it is important to be clear about the riskiest assumptions of the project. It is recommended to have performed the Riskiest Assumption Test beforehand.
1. Place the riskiest assumptions on the MVP-scorecard
Write the riskiest assumptions on sticky notes and stick them on the canvas.
2. Choose the targeted MVP to validate the assumptions
Brainstorm different MVP’s to validate the riskiest assumptions. Write the MVP’s you think you should perform on a post-it note. Check whether you validate the most important assumptions with the MVP’s.
3. Determine how much time it takes to perform each experiment
Now try to estimate how many resources are needed to execute an MVP. How much time is needed? How much manpower? And how much budget?
Once you’ve completed the MVP-scorecard, take a step back. Investigate whether validating the assumptions can be done faster, smarter or cheaper. The following questions can help you with this:
- Can alternative experiments be devised to test the assumptions more quickly?
- Can we devise alternative experiments with which the assumptions can be tested more cheaply?
- Which of the MVPs are really crucial and which are possibly redundant?
Once the MVP-scorecard has been drawn up, it is time to start executing the MVPs. Set up an experiment, learn from the results and use the insights from the experiments to adjust.
Ready to implement a winning business model?
Testing business models in the right way is an important part of the Business Model Hacking method. Get started with the MVP-scorecard and validate properly.