Why Would a Fractional CTO Advise a Founder to Delay an MVP?
Is there a good reason why a Fractional CTO might advise a founder to delay their MVP product? When we talk about launching a startup, the goal that often is top of mind is the launch of an “MVP,” or Minimum Viable Product. It is that first, fundamental version of your product that you believe can hit the market and start solving real problems for real users. But what if sometimes the smartest move might be to hit the pause button on your MVP? Delaying your MVP could actually be a strategic play, and not just a procrastination tactic.
Take the founders of Airbnb, for instance. They didn’t start with a fully automated platform connecting millions of users worldwide. No, they kicked things off with something much simpler: a basic website and a ton of legwork behind the scenes. They manually managed bookings, communicated with hosts and guests, and handled everything including customer service. This hands-on approach allowed them to move forward when they had no money upfront. It also gave them invaluable insights into their customers’ needs, helping to shape the powerhouse Airbnb is today.
So, why did I, a Fractional CTO, advise a founder to possibly delay their MVP? It is not about putting off progress. Instead, it is about recognizing that sometimes, the best foundation for your tech-driven dream is a bit of old-fashioned, manual hustle.
Background and Context
Three founders started a health-tech company with the goal of helping mothers overcome postpartum depression. Their idea was to use a mobile app and artificial intelligence to offer support and services. However, at this early stage, they did not have a working product yet. Their main challenge was a lack of technical expertise to develop the product and a limited budget, mostly coming from their own savings.
Typically, startups in this situation would rush to create a Minimum Viable Product (MVP). An MVP is the most basic version of the product that can be released to early users to gather feedback and start the iteration process. It’s also a way to demonstrate to potential investors that the idea has merit and can attract users.
The founders faced a common problem: investors were interested but wanted to see more proof that the idea was viable and that there was a demand for their product. They kept hearing that they were too early for investment and were advised to come back when they had developed their idea further and gained more traction.
This presents a dilemma for many startups. On one hand, developing an MVP seems like the logical next step to validate the business idea and attract investment. On the other hand, doing so requires resources and technical capabilities that may be beyond what the founders have, especially when working with a very limited budget and balancing full-time jobs.
The situation sets the stage for considering alternative approaches to traditional startup development paths, highlighting the need for creative solutions to overcome these early challenges.
The Consultation
Recently, I had a meeting with one of the founders of this startup. The purpose was to explore the possibility of a business partnership, where I would come on board as a Fractional Chief Technology Officer (CTO) to guide them through the technical side of building their product. Early on in our discussion, it became clear that their main obstacle was not just the lack of technical expertise but also their tiny budget.
During our conversation, I asked them about their efforts in validating the idea. It was impressive to learn that they had already taken steps towards this. They ran a one-month prototype test where they enlisted 11 mothers to use their service for free and provide feedback. Without an actual app, they improvised by using a free text messaging platform for daily communication and manually utilized free GPT tools for responses, essentially simulating the app’s intended functionality. This experiment provided positive feedback and a preliminary validation of their concept.
At this point, I found myself reevaluating the conventional approach of proceeding to build an MVP. This led me to consider an alternative approach that could offer a more practical solution to their current challenges.
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The Pivot to a Manual Solution
Therefore, I suggested a different approach from developing a Minimum Viable Product immediately. Instead of investing their limited budget into building an MVP, I proposed continuing to offer their service manually, similar to their initial one-month pilot, but with a couple of changes.
The idea was simple: hire one or two part-time employees, possibly stay-at-home moms looking for a low-stress job that could be done remotely, to manually perform the tasks that the app would eventually automate. This would allow the founders to simulate the app’s services without the immediate need for a technological solution. They could then charge a small fee for the service, turning their idea into a revenue-generating operation much sooner than if they waited to build and launch an app.
This manual approach would bring several benefits:
- Extended budget efficiency: Leveraging manual labor for tasks meant for the app stretches the startup’s limited budget, avoiding the high costs of technological development.
- Immediate revenue generation: By charging for the service, even in its manual form, the startup can begin generating income. This revenue can help cover the costs of hiring the part-time employees, making the operation self-sustaining more quickly.
- Valuable customer insights: Direct interaction with users provides a wealth of feedback and data, informing future product development.
- Building a knowledge base: Continuous collection of feedback and data from real users will create a repository of insights, significantly informing and refining the eventual product design.
- Future staffing benefits: The part-time employees hired for manual tasks could transition into full-time roles as the company grows, bringing a deep understanding of the service and customer needs from day one.
- Strengthened position for investment: Demonstrating that customers are willing to pay for the service validates the business model to potential investors, showing traction and market demand.
A Partner Fractional CTO Prioritizes the Company's Best Interest
In the context of the startup mentioned, the Fractional CTO’s role extends beyond simply advising on which technologies to use or how to build the product. It involves understanding the broader business challenges the startup faces and finding creative, pragmatic solutions that align with the company’s current resources and long-term vision.
For this health-tech company, my advice to delay the MVP and opt for a manual approach to service delivery might seem counterintuitive. However, I made that choice very intentionally because I believe it is the right direction for them. By recommending a solution that does not directly involve technology development, I am prioritizing the company’s immediate needs and long-term success over the potential for personal gain from a technical partnership.
A fractional CTO who is a true partner will prioritize what is most beneficial for the company they are assisting. My goal is to be the kind of fractional CTO who focuses on and recommends what is best for the client, even if it means I will not be hired. In this case, the idea I suggested to this founder does not generate any business or income for me personally. Nonetheless, I aim to advise them on what I believe is optimal for their success.