Lesson 3： Minimum Viable Product (MVP)

At the end of the first lesson, I mentioned that we need to let go of the obsession with being a “jack-of-all-trades” and focus on finding that one skill where your strengths and customer pain points intersect. If you’ve gone through this reflection, then it’s time to design your Minimum Viable Product (MVP).

Many business students have likely come across the term MVP before, but through my conversations with users, I’ve noticed that many don’t truly understand it. This reinforces something I’ve observed in deeper discussions with people: they often don’t apply the knowledge they’ve learned, or fail to connect it to their lives and businesses.

So, what is an MVP? It’s simply the smallest, sellable product that provides value to your customers and can generate profit immediately. Does that make sense? But let me ask you another question: in your entrepreneurial journey, out of all your skills and experiences, what is your MVP? You might need to pause and think about that for a moment.

Don’t rush—there’s no right or wrong answer. I encourage you to take out a pen and paper, or a voice recorder, and ask yourself this: among all the things I can sell, what is the smallest, most straightforward product that can immediately solve a problem for my customers?

If you’ve thought of an answer, great! If not, let me give you an example from my past. As a TOEFL teacher, my MVP wasn’t a full TOEFL course (even if it was a beginner class, it wouldn’t be right), nor was it a single listening course—that would be too broad. Instead, my MVP would be a small 20-minute video that explains a specific, painful problem students face in TOEFL speaking. It’s brief, solves a targeted problem, and can be sold as a standalone product.

Some of you might ask, “Can this really be a product?”

Yes, absolutely. In contrast to our intuitive thinking, an MVP should be as small as this. If it gets any bigger, you risk not being able to ensure it effectively solves a problem for your users. Don’t believe me? Try it yourself. As a teacher, which product is easier to sell—a full course or a solution to one specific, painful problem? Compare the number of times each product is resold, and you’ll see the difference. Feel free to share your results with me.

This is similar to what our curriculum team used to tell us: if you can teach one concept well in one session, that’s more than enough (though it’s easier said than done).

Entrepreneurship, especially lean entrepreneurship, is no different. It doesn’t start with a massive investment to test the market, hire employees, or develop fancy tech. All you need is a small product that directly and effectively solves a specific problem for users, and you’ll generate cash flow immediately. In essence, it’s about “being specific and providing value to others.”

A Real-World Example of a Small Business Model

Let me share a small business example from my circle. Although this business is small, it has generated significant profits, and its business model is extremely healthy.

Bookseller A: I came across A on Xiaohongshu while searching for a book. A had only posted the book’s table of contents and a few powerful excerpts. The account was clean, with just three posts, all about this one book. After adding A on WeChat, I discovered that they only sold this single book, priced at 199 RMB. Without hesitation, I negotiated an 80% discount and purchased it. I finished reading it in three days. Since I paid a premium for the book, I cherished it and found that it fundamentally changed some of my core beliefs.

Later, I encountered another bookseller, B, while looking for another book. B didn’t ask me what I wanted; after I added them on WeChat, they sent me six PDFs and asked me to tip whatever I felt appropriate. I tipped 20 RMB and started browsing. Among the six books, I not only found the book I was looking for but also the book I had paid 199 RMB for previously.

A normal person might think, “Wow, I overpaid for the first book.” But I didn’t feel that way at all. In fact, I felt that B had broken some unwritten rules, and my instinct was that B probably didn’t earn as much as A. My instinct was correct, and let me explain the logic behind it.

Bookseller A was selling an original book, and the 199 RMB price was perfectly justified because it was their own work. A’s MVP was well-crafted and valuable, and it took six months to release another book of the same quality. The key point is that I bought the book to gain insights, and A’s method made me value it highly, motivating me to read it quickly, reflect, and put it into practice. The value I gained exceeded 199 RMB. A’s smart pricing strategy protected their intellectual property, and most readers respect this, refraining from sharing it widely.

On the other hand, Bookseller B sold pirated versions, which not only violated copyright laws but also devalued the knowledge. Short-term, consumers might feel they’re getting a bargain, but you’ll notice that books sold this cheaply are rarely cherished. As a book lover, I didn’t even finish downloading all six books before I lost patience. I thought, “Just give me the one I need, stop overwhelming me.” The experience wasted my time, and I had to delete the files I didn’t want. B’s business model attracts bargain hunters who don’t truly appreciate the books, which means they’re unlikely to gain real insights or apply the knowledge. The same book, sold two different ways, has a completely different value to the consumer.

Thus, the value of a product isn’t determined solely by the product itself—how it’s sold also shapes its perceived value.

If you can create a product that truly enhances the consumer’s thinking or actions, that’s a high-value product. We should learn to design business models that offer such value.

Now, returning to the topic of MVP, who do you think applied the concept better—Bookseller A or B? The answer is obvious: A.

In summary, narrow down your product line to the one thing your customers need the most. Focus on perfecting that single product and expanding its sales frequency and reach. This is an incredibly efficient approach for entrepreneurs.

As entrepreneurs, we differ from multinational corporations in that we don’t have deep pockets, brand recognition, or trust. The only things that speak for us are our products and ourselves. So we must focus on sharpening these two elements to a razor’s edge. Only with a well-crafted MVP can we cut through the competition in a tough market. (Here’s a statistic to remember: 90% of U.S. startups fail. If the healthiest startup environment in the world still faces this kind of failure rate, we as entrepreneurs need to pay extra attention to refining our product lines and increasing our chances of success.)

If you think MVP only applies to small businesses, you’re mistaken. Do you know McDonald’s? The world’s largest real estate company (yes, food is only part of their business) earns most of its profit by leasing land to franchises and selling franchise rights. McDonald’s has thrived for over 80 years and weathered three major economic crises by continuously transforming its business model. One of those transformations was based on the MVP concept.

Here’s how it went: In 20th-century America, restaurants weren’t part of chains, and most were small family-run businesses offering full menus. Customers had a wide variety of choices, which led to long wait times for food. McDonald’s brothers identified the biggest pain point for customers: the long wait. Their revolutionary idea was to cut the menu down to the essentials—fries, burgers, and cola. This was the first time anyone in the restaurant industry had done this.

As a result, McDonald’s saw explosive growth and profitability. Why? They solved a problem others hadn’t—reducing wait times for orders. As I mentioned in lesson 1, profitability comes from solving problems for others. Scale comes from solving problems for many people.

Now, let’s return to my clients: corporate managers, visual directors, fashion bloggers, language teachers, entrepreneurs... Let’s classify how MVP could apply to their businesses.

For teachers: A dance teacher’s MVP could be a short sequence of dance moves. How many moves should be included? Which moves should be selected? The standard should be that through this short sequence, the customer can achieve a very specific value: for example, choreographing a 1-minute dance for a company event. The focus should be on explaining the connections between the moves and why they evoke specific emotions from the audience.

For language teachers: Think back to the most painful problem you’ve solved for students. Focus on solving one specific problem (don’t try to do too much), record a video explaining that skill, set a reasonable price (pricing strategies will be discussed later), and start selling it (sales channels and strategies will also be covered in future lessons).

For visual directors: Post your most satisfying work on your most active platform and offer your services with a clear price.

If you’re in a different field, feel free to share your ideas with me. You can also DM me if you’re unsure about what to choose as your MVP. In my own entrepreneurial journey, my MVP is a series of courses delivered in written form. It could be smaller, but I chose not to because I want my audience to thoroughly understand and apply the concepts to gain tangible benefits. If I want them to reach actionable outcomes, I need to explain things deeply and thoroughly. That’s why I couldn’t finish this topic in just one article. I’m sharing everything my mentors taught me, but in a way that’s easier for you to understand.

At the end of this lesson, I’ll share some funny and valuable feedback from readers after Lesson 2:

User A: "Lisa, the flywheel effect you mentioned—the one that breaks down and stops—is more like the ‘broken wheel effect.’" Thanks to this lovely user for this comment—it helps everyone easily remember both concepts. This also highlights the importance of feedback because it enhances the accuracy and vividness of our output.

User B kindly summarized the two concepts I wanted to explain, which was a great example of being considerate and helpful to others. Altruism is a crucial principle in business. I’d like to share User B’s insightful question and my thoughts:

How do you efficiently find target customers or traffic?

Refer to Lesson 1, where I discussed the combination of your “signature skill” and customer pain points. Then, deliver your MVP to those customers.

Use this formula to answer the question: Signature Skill:Customer Pain Point:MVP:

How do you build a moat around your business?

This is an important question that many overlook in short-term entrepreneurship. You can build a moat in several ways:

1. Information barrier: You possess insider knowledge that others don’t. For example, some people have real insider information about the financial markets. This creates a barrier others can’t cross. The network you build through education or relationships can also create a moat.

2. Technical irreplaceability: Ensure you have a unique skill that sets you apart. For example, in accounting, becoming a partner at a firm requires a CPA. While the CPA itself doesn’t guarantee partnership, without it, you can’t even be considered. This technical qualification creates a barrier.

3. Being unique and different: Like Douyin’s popular content creator, Guo Beibei, who stood out with her quirky personality. Her uniqueness created a fan base. While I’m not encouraging everyone to become a social media star, I do encourage finding what makes you different.

How to quickly attract target customers:

This is a deep topic that requires more discussion. Let’s cover it in the next lesson.

Thank you for reading this far. It’s been over 4,000 words, and while writing is tough, reading is even harder; understanding is tougher, and taking action is the hardest of all. Feel free to DM me with your thoughts, feedback, or questions on how to link this lesson to your business or life!