If you’re ever asked “What is a minimum viable funnel?”, then this article is for you. Here, you’ll learn what a minimum viable funnel is, and how it can benefit your business.
Most entrepreneurs have optimism syndrome. When we come up with our “big ideas”, we think they’re the best, and we’re “sure” they’ll work UNTIL we act on our optimism too many times, and learn the hard way that’s not the way to go.
How would you like to know soon after you get your “big idea” whether it’s going to sell or not?
Well, guess what?
You can and…
The minimum viable funnel is your answer.
You don’t have to spend alot of money on a website, a prototype, or very much at all with the minimum viable funnel, so you’re probably wondering, “How is that so?”. Let me explain…If you’d like to see this content in video, check it out here:
Where Did The Minimum Viable Funnel Come From?
In their books, “The Lean Startup” and “The $100 Startup”, Eric Ries and Chris Guillbeau both discussed the concept of building an inexpensive minimum version of the full product, then testing to see if you get buyers.
If you get buyers, good for you! Scale up.
If you don’t get buyers, tweak, and retry on the market.
It can save you tons of cash to attempt the minimum viable funnel method, rather than buying everything necessary to create the full blown product or service, spending lots of advertising dollars, and finding out the idea is a flop.
Instead, why not test it out and let the market give you feedback?
The Benefits of the Minimum Viable Funnel
Regardless of how big or small the company is, there’s always room to grow and using the money wisely can enable that, but especially if you’re on a tight budget or schedule, you don’t want to throw money or time away. The MVP makes sure:
1. You get feedback from the market before you invest
A good idea is not a really good idea unless it is in demand. As creative or exciting as the idea may be, if people don’t want to buy it, it won’t make you money, and it turns into a business flop.
Before you invest lots of time or money into an idea, it’s best to have feedback from the market regarding whether they like the idea or not.
2. You’re sure people will buy before you invest
If they really like the idea, they’ll buy. If they say, “Wow. That’s a great idea for someone else to spend money on”, it’s not good enough. You need proof of concept by way of sales. When you have purchase orders before your product is created, you have: 1) Money for production 2) Proof your concept solves a problem in the market.
3. You potentially have money to invest in scaling
With enough sales, you can:
- Get help with production
- Provide better quality
- Market and advertise more so you can get more leads
With the minimum viable funnel, you’re keeping your startup costs extremely low until your concept is proven. As a result, you’ll save lots of money from flops, and you’re able to allocate money to scaling the business.
4. You don’t wait long periods to find out if it works
Depending on what your idea is, it could take months or even years to make a prototype! If you create a minimum version of the idea, it could cut down the production time drastically, and enable you to get feedback much quicker.
What does a Minimum Viable Funnel Consist of?
The recipe for a minimum viable funnel will vary from business to business, but in general, the MVP will consist of:
1. A Minimum Lead Generation System
The minimum lead generation system could be as simple as testing the idea out with $5 Facebook ads or search engine ads sending traffic to a WordPress landing page for signup or purchase. You want to see:
- How many people would respond to your ads and the copy on your landing page?
- Does the data prove there’s a demand for the idea in the market?
- Are people willing to buy?
2. A Minimum Lead Conversion System
Almost every page on Amazon serves a dual purpose. Others, might have “sign up for a quote” or transfer internet leads to an offline setting. Regardless of which way you choose to convert leads into buyers, you’d want to have this setup in your MVP. It could be:
Search or Social media traffic > Sales page > Checkout page
Search or social media traffic > Lead Generation page > Sales/Conversion personnel phone call
For example, let’s say your idea is a women’s dress design. You can create a mockup on Photoshop or have someone help you with that, create a landing page on your website using an e-commerce plugin like Woocommerce, or using a landing page plugin like Thrive Architect. Then, you’d setup ads to drive traffic, and see whether or not you acquire buyers. The market will speak.
Each industry is going to have a relatively different standard and different customer expectations, and you’ll want to translate that into your MVP. For me, I use Thrive Themes for landing pages (including sales pages) and I choose my advertising based on my campaign goals.
You can always get digital marketing training (you can get started free!)
3. Client Fulfillment System
You’ll want to have a way that you will deliver the expected goods or services to the customer. In the beginning, you may provide streamlined product and as the proof of concept becomes clear, you can add more quality, but the idea of the MVP is to startup with a minimum version.
4. What About the Other Business Components?
While I’m a proponent of having all 7 business systems in place for a full business, the MVP is simply a product/service test to see if you can scale your concept into a business or product line. The other business systems such as the branding system, management system, leadership system, and job prototypes can be worked more after the concept is proven.
Final Words answering What is Minimum Viable Funnel?
The goal of this article was to show what is minimum viable funnel? This concept can really save you loads of money and time in your business if it’s used properly. If you have questions or concerns about this, don’t hesitate to leave them in the comments section. I’d love to help you out!
If you would like to get more tips on setting up your minimum viable funnel, check out my free e-course. It’s a framework to grow a business from idea to enterprise. Plus there’s my invitation to get help setting up your minimum viable funnel there. Check out the free e-course and you’ll see what I mean.
Now, it’s Your Turn…
Have you invested too much money in an idea that flopped? What was your experience? What are you thoughts on minimum viable funnels? Leave your comments below.