Question

Founders translate company ideas into business model hypotheses, test assumptions about customers’ needs, and then create a ______________to try out their proposed solution on customers.

• A. Beta version
• B. Brand
• C. Minimum viable
• D. Service

Answer 1

The Correct Option is C

In the context of innovation and entrepreneurship, the process involves turning company ideas into actionable strategies that can be tested for viability. A common step in this process is creating a form of the product or service that allows the founder to gauge customers' reactions and gather valuable feedback.

The correct answer to the question provided is "Minimum viable". The term "Minimum Viable Product" (MVP) refers to the most pared-down version of a product that can still be released to market. The idea is to quickly get a working product in front of customers to start gathering feedback as soon as possible. This helps in verifying market need or product fit before spending too much time and resources on a fully-fledged version.

Explanation of Other Options:

• Beta version: This is a version of the product that is released for public testing before the final product launch. While it is used for feedback and tweaking, the main focus is on refining a product that is nearly complete rather than developing an initial concept.
• Brand: A brand refers to the identity of a company's product. It doesn't involve product testing in the business model or testing hypotheses.
• Service: This is a type of product offering that potentially meets customer needs, but the question pertains specifically to the development stage of products.

Therefore, the phrase "Minimum viable" correctly completes the statement by emphasizing a strategic approach to testing and iterating a new business idea with early adopters in the lean startup methodology.