What is a Minimum Viable Product, and How Does it Differ from a Proof of Concept (PoC)?

When developing a new product, it’s crucial to validate your ideas before committing significant time and resources. But should you start with a Proof of Concept (PoC) or a Minimum Viable Product (MVP)? While these terms are often used interchangeably, they serve distinct purposes in the product development process.

A PoC is designed to test the feasibility of a specific functionality or technology, helping teams determine if an idea is technically possible. On the other hand, an MVP is a type of minimum viable product that is market-ready and built to gather user feedback.

In this article, we’ll break down the differences between a PoC and an MVP, explain when to use each, and share real-world examples to help you make the right decision for your product development journey.

What is an MVP and a PoC?

A Minimum Viable Product (MVP) is a product with just enough features to satisfy early customers and provide feedback for future development. MVPs are often developed using agile development methodologies to enhance adaptability and efficiency. This concept is central to the Lean Startup methodology, which aims to test business hypotheses and validate learning with the least effort. By launching an MVP, businesses can gather user feedback and validated learning to make data-driven decisions to refine their product.

On the other hand, a Proof of Concept (PoC) is a small-scale implementation of a product idea to test its feasibility. It helps determine whether a particular idea or technology can be successfully integrated into a larger system.
While both MVP and PoC are used to test and validate product ideas, they serve different purposes. An MVP focuses on market testing and user feedback, whereas a PoC is more about technical feasibility.

Key Differences between MVP and PoC

While both Minimum Viable Product (MVP) and Proof of Concept (PoC) are used to test and validate business ideas, they serve distinct purposes and have different scopes, features, testing environments, and outcomes.

• Purpose: The primary goal of a PoC is to test the feasibility of a specific idea or technology. It answers the question, “Can we build this?” On the other hand, an MVP is designed to test market demand and validate the business model. It seeks to answer, “Do people want this?”
• Scope: A PoC typically has a narrower scope, focusing on a particular aspect of the product or technology. It’s a small-scale implementation to prove that a concept can work. In contrast, an MVP is a more comprehensive product with a broader scope, encompassing the core features necessary to solve a problem for early users.
• Features: A PoC usually includes limited features, just enough to demonstrate the technical feasibility of the concept. An MVP, however, includes a minimal set of features that are essential to the product’s functionality and value proposition. It’s built to be usable and valuable to early adopters.
• Testing: PoCs are generally tested internally within the development team or organization to validate the technical aspects. MVPs, however, are tested with a small group of external customers or users to gather real-world feedback and insights.
• Outcome: The outcome of a PoC is typically a decision on whether to proceed with further development based on technical feasibility. The outcome of an MVP, however, is a validated business model and a clear understanding of market demand, guiding future development and investment decisions.

When should you build a PoC?

Say you have a business idea and want to test it before you start to pour hours of work, budget, and any other resources, right? 

You have 2 options: build a proof of concept (PoC) or a prototype.  

• You should go for the PoC when you need to know if the technology you want is feasible (e.g., an algorithm, hardware piece, a specific functionality, etc). This helps you and your team to fully understand the size of the app and the needed resources, scalability, and feasibility, and it is a great way to explore emerging technologies.
• The prototype is recommended for user testing - to see if users approve of the interface, the experience, the flows, the design, etc. A good example of how a prototype looks would be going to Flexidrive's page we have here and scrolling down to get the feel of the app. You will see that you can easily play around with a clickable, interactive prototype and navigate from screen to screen.

To give you an example, we first started with a Proof of Concept for our internal product called Raindrops.

Basically, we wanted to test if we can connect to the watering device and see the plants' status and the level of water left in the "tank" so we can easily update their watering schedule from an app. Once we had a proof of concept for the hardware component and found the right tech to do it, we started working on the MVP app for iOS and Android! 
 

When should you build an MVP? 

The MVP is an actual product you launch on the market for the customers to use, but it has limited functionalities to interact with. An MVP allows teams to gather the maximum amount of validated learning about customers while minimizing effort.

We recommend building an MVP after you already know your audience and their needs and you want to launch a teaser for what is to come. Once launched, you just gather as much data and feedback as possible and top-up the MVP with needed features and functionalities. Also, we have already written about the steps to build your MVP here.

Development process & methodologies

Building a successful product requires more than just a great idea—it demands a structured approach to development. Proven methodologies can help businesses reduce risks, optimize resources, and create products that truly resonate with users.

In this section, we’ll explore development strategies, including Lean Startup principles, market research techniques, and success measurement frameworks. Understanding these methodologies will help you navigate the product development journey with clarity and efficiency, ensuring your MVP or full-scale product meets both business objectives and customer needs.

The Lean Startup Methodology: A Framework for MVP Development

One of the most effective approaches to building a successful MVP is the Lean Startup Methodology. Inspired by Lean Manufacturing, this methodology minimizes waste and focuses on delivering value through a continuous Build-Measure-Learn cycle.

• Build: Develop a minimal version of your product with just the core features.
• Measure: Gather feedback from real users through data analytics and performance tracking.
• Learn: Use the collected insights to iterate, refine, and improve the product.

This approach ensures that your MVP is built efficiently while keeping the focus on market needs and product-market fit.

Market Research and Analysis: Understanding Your Users

Building an MVP without market research is like shooting in the dark. Before launching, you need to understand:

• Who your target customers are.
• What problems do they face?
• How can your product solve these problems better than competitors?

Methods like surveys, interviews, and online analytics tools help collect valuable insights. The more you understand your audience, the more effectively you can prioritize your MVP's features and ensure its success.

Aligning Your MVP with Business Objectives and Model

For an MVP to succeed, it must align with your business goals. This is where the Business Model Canvas comes in. It helps you map out key elements like:

• Customer Segments – Who will use the product?
• Value Proposition – What problem does it solve?
• Revenue Streams – How will the product generate income?

It's crucial to prioritize all the features that an MVP will include to ensure it meets user needs effectively.

By defining these aspects early on, you ensure that your MVP is not just a product but a strategic step toward business growth.

Measuring Success: How to Track and Improve Your MVP

Once your MVP is in the hands of users, the next step is measuring its success. Key metrics to track include:

• User acquisition – How many people are signing up?
• Retention rate – How many users keep coming back?
• Engagement levels – How actively are they using the product?
• Customer feedback – What do they love or dislike?

These insights help determine what to improve and what additional features to prioritize in future updates.

Final Thoughts: Choosing the Right Approach for Your Product

Whether you’re exploring a Proof of Concept (PoC) to test feasibility or launching a Minimum Viable Product (MVP) to engage early adopters, the key to success lies in structured development, user feedback, and continuous iteration.
Minimum viable products are essential for gathering validated learning and refining product features based on feedback.

By leveraging methodologies like the Lean Startup approach, conducting thorough market research, and aligning your MVP with business objectives, you can create a product that not only validates your idea but also meets real customer needs.
Still unsure about the best approach for your project? Let’s chat! Our team can help you refine your product strategy and build a digital solution tailored to your business goals. The right foundation today sets the stage for long-term success tomorrow.