TL;DR:
How do we build an MVP (Minimum Viable Product) after we have a product solution for a problem that users have? We start with the design mock-ups, build an MVP and validate it with our users, then iterate further on it. Right? Actually, not quite, and doing so can be risky! Even the best MVPs can fail if the business fundamentals aren’t considered. Infrastructure, software, materials, distribution costs, and maintenance can make a product unsustainable, no matter how loved by users.
For example, building a hardware MVP without checking the Bill of Materials (BOM) could make the final product unaffordable, destroying even the best design. Similarly, developing an MVP without verifying its technological feasibility is a sure way to head in the wrong direction.
That is why, it is recommended to start with the business side of things while you are designing your product and defining your MVP.
The Longer Story:
MVPs Can Mislead Without Economics
When designing a new product — physical or digital, it’s easy to get lost in the design details. As designers, we naturally focus on user experience, visuals, and interactions, but often overlook the economics that make the product viable. Many creators measure success by adoption or engagement metrics, but these don’t always equal sustainability. A product might delight users but fail financially if production or operational costs are too high. Sometimes it’s too late in the MVP and even production process when designers realize that the business costs of making the product are unsustainable.
At that point, they must either abandon the project or return to the drawing board. This valuable time could have been saved by simply researching the business side of the product from the start.
The smarter approach: parallel-track your design and business research. Keep your MVP vision alive, but gather data on costs, pricing, and operational feasibility alongside the design.
This ensures that when the MVP reaches users, it’s not just desirable—it’s also profitable and scalable.
Parallel Track: Check Business Side + Design & Define Your MVP
Instead of sequentially building the design first and only later testing business feasibility via MVP, run both tracks in parallel from day one. This ensures that creative decisions are grounded in financial reality and reduces the risk of wasted time and effort.
Here are useful steps towards that approach:
- Adjust scope of the final product (keeping it closer to the MVP) – this means only features that solve the user’s problem at hand and to what is financially realistic.
- Also, don’t simply build what users ask for; filter features through the lens of profitability, scalability, and operational capacity – e.g. (team size, time and budget). Focus on the subset of features that maximizes value while keeping costs manageable.
- Map the full product lifecycle: Understand production, distribution, and support costs before committing to a design. For physical products, this includes BOM, logistics, and inventory; for digital products, factor in server costs, maintenance, and scaling expenses. It is recommended to consult with experts (e.g., engineers or financial advisors) to identify key considerations. A hardware or software engineer can provide guidance on the technological feasibility of the product. A financial advisor specializing in logistics can identify and quantify costs related to shipping, warehousing, inventory management, and distribution, helping ensure the MVP remains financially viable.
- Quick product cost snapshot – list major costs: key components, software, cloud fees, or essential services. Don’t go deep; just enough to know if the idea is feasible. At this step, you should also briefly list the business costs such as: consumables, salaries, etc.
- Set a target price range for your product – estimate what early users might pay, based on value you bring to them (e.g. time saving), similar products, or quick competitor checks.
- Draw a conclusion: Do the projected costs exceed potential profits? If so, the product is not sustainable, and the business will not be viable.
- Based on your findings, adjust the design and redefine the MVP. At this stage, you’ll know which elements drive your biggest costs. If let’s say, electronic components are expensive, explore alternatives or modify the design to achieve the same functionality differently. For example: A device with multiple sensors and controllers, each handling a specific function that defines the device’s form factor, can become costly—particularly when curved or complex shapes introduce additional hardware design challenges. Another example – client-server intensive operations can be offloaded to the user’s device to reduce server costs, provided security, performance, and data integrity are maintained.
- Iterate business and design simultaneously. As you gather more information, keep iterating on your design based on the business sustainability. Every design iteration should be informed by the updated cost and technological analysis, creating a feedback loop where both design and business objectives evolve together.
By aligning design and business early, you avoid investing heavily in features or visuals that might never be economically viable. This parallel approach ensures your defined MVP is clear, desirable and financially sustainable, creating a stronger foundation for long-term success.
