After the prototype comes the minimal viable product (MVP): This makes it possible to gather maximum knowledge about your customers and target group with as little effort as possible and to test your solution under real conditions. The addition of further impact indicators also helps to record short and medium-term changes in your target group. Important: Both the process of MVP development and impact measurement are iterative and should be continuously adapted to the latest findings to maximize impact.
You’ve come to the right place if …
- you want to found an impact startup or are already in the middle of it with your team.
- you can clearly identify your target group as well as the problem, solution and impact.
- you have developed a validated prototype.
- you have received initial evidence of the impact of your solution at outcome level.
- you have identified a market for your solution and it is scalable.
- you have developed an initial business model.

Not quite ready yet?
Then select the appropriate chapter here
This chapter helps to …
- to develop a Minimal Viable Product (MVP).
- extend the impact measurement for your solution to the outcome level.
This is about the target group that will benefit from your solution. In other words, the focus is on making the solution more effective and socially relevant .
We deal with the business-oriented and financial area here.
MVP and prototype: these are the differences
A prototype and a minimum viable product (MVP) are two important concepts in product development that differ in several aspects:
- Purpose and functionality: A prototype is primarily used to visualize the product design and to test different concepts. It has limited functions and represents the first tangible form of a new idea. An MVP, on the other hand, contains the essential functions for a functional product and is used to test usability, design and overall functionality.
- Field of application and development phase: Prototypes are mainly tested internally in the startup or by a small group of target users. MVPs are tested on a broader market segment and represent the first edition available to the public. They represent the simplest version of a complete product that already offers added value to users.
- Purpose and maturity: Prototypes are used entirely for internal testing purposes and are not used live. The ideas used are often not yet fully developed and are therefore very error-prone. MVPs, on the other hand, are tested in live operation with real customers. Although they are minimal, they are already suitable and functional for use by customers.
- Objective: Prototypes are aimed at identifying sources of error and testing the display on various end devices. MVPs are used to quickly achieve initial results on the market and gain experience for the development of the larger, complete solution.
Development of an MVP and other impact indicators
Before you start, you should define which functions your MVP absolutely must have and which you can only add later:
1. prioritize functions/aspects of your MVP
Create a feature list and collect all potential elements for your solution. Categorize the elements according to the MoSCoW method andprioritize the elements in each category according to importance.
The MoSCoW method
The MoSCoW method is a prioritization tool that helps you evaluate the functions and requirements of your MVP and rank them in order of importance. The method divides the requirements into four categories:
- Must have: Indispensable elements without which the MVP would not work. They are essential for the basic functionality of the solution or the fulfillment of the core needs of the target group.
- Should have: Important elements that offer added value but are not immediately necessary. Ideally, they should be integrated, but can be postponed if time or resources are scarce.
- Could have: Desirable elements that are not crucial for the core functionality of the solution. They can be added later if time and resources allow.
- Won’t have (this time): Elements that are deliberately excluded for the current version.
Concentrate on the “must haves” first. Develop the MVP first with the most important elements that have the greatest influence on the success of your solution. In the chapter “Solution design for impact start-ups: reality check for solution ideas” we use the impact-effort matrix, which you can also apply here.
Resource planning for the construction of the MVP
Plan what resources you need from the outset. Good planning will help you find the right balance between over- and under-allocation of resources. This is crucial to deliver a functional and valuable product without overstretching the team or the budget
1. identifies required resources
Break down your project into smaller, manageable work packages and estimate the effort required for each one. Determine which resources you need. Possible resources are
Personnel: e.g. developers, designers, project managers, workshop leaders
Technology: e.g. development tools, servers and licenses
Finances: e.g. budget for development, marketing and external services
2. plan your human resources
Distribute the work packages within the team, taking into account the workload of the employees. Prepare for unforeseen challenges by building in time buffers. By clearly allocating resources and recognizing bottlenecks early on, you can make your workflows more efficient and at the same time prevent overload and long-term team absences.
3. calculate your costs
Calculate your costs by estimating personnel costs, additional technology costs and any external service providers. A precise cost calculation will help you to set and manage a realistic budget. A detailed cost breakdown will also help you in discussions with potential investors and increase your chances of obtaining funding.
Developing indicators for the impact goals
The next step is to select the right metrics to make the actual impact of the MVP measurable up to level 6 of the impact ladder.
1. focus on outputs and outcomes
Measurements up to level 6 show whether the MVP actually leads to a measurable improvement in the life situation of your target group.
Why measure up to level 6 here?
Evidence of actual change
You not only record changes in awareness and behavior (levels 4 and 5), but also concrete improvements in the target group’s life situation (level 6)
Early impact measurement
Although the MVP does not yet have the full impact of the mature product, you can obtain early indications of the social impact (level 7) by measuring up to level 6.
Validation of the concept
You can better assess whether the MVP has the potential to bring about long-term change.
Recognize challenges at an early stage
Metrics up to level 6 help to identify obstacles at an early stage.
Better basis for decision-making
With data up to level 6, you can make informed decisions about the further development or adaptation of the MVP.
Stronger argumentation for stakeholders
Evidence of changes in the target group’s living situation (level 6) is more convincing for investors and partners.
Examples of indicators up to level 6 of the impact ladder:
Stage 1 — Activities take place as planned
- Number of workshops/trainings/events held
- Percentage of project activities implemented as planned
- Number of employees/volunteers deployed
- Quantity of materials distributed (e.g. flyers, textbooks)
- Adherence to the schedule for project milestones
- Number of products developed or manufactured
- Number of trees planted in a reforestation project
Stage 2 — Target groups are reached
- Number of applications/registrations for a program
- Reach in various communication channels (e.g. social media followers, newsletter subscribers)
- Number of customers who know the product
- Area of renaturalized areas in hectares
Level 3 — Target groups accept offers
- Participation rate in events/programs
- Completion rate of courses or programs
- Purchase or usage rate of services or products offered
- Satisfaction rate of the participants
- Recurring use, purchase or participation in offers
- Survival rate of newly planted trees after 6 months
Stage 4 — Target groups change awareness or skills
- Number of participants who have gained new knowledge about a specific topic
- Change in the target group’s attitude towards a topic
- Number of people who can demonstrate new skills after a training course or workshop
- Increased motivation to change one’s own behavior through extrinsic or intrinsic incentives
- Increased number of opportunities to apply own (new) skills
- Number of customers who can correctly describe the product characteristics after purchase
- Increase in biodiversity in renaturalized areas
Stage 5 — Target group changes its actions
- Number of people who adopt a new behavior as a result of participation, use or purchase, e.g. more sustainable consumption habits
- Number of participants actively involved in new initiatives or projects
- Number of new collaborations or partnerships concluded as a result of the initiative
- Return of endangered species to the ecosystem
Stage 6 — The target group’s life situation changes
- Percentage of the target group whose social or economic situation has improved (e.g. through a better job or better educational opportunities)
- Number of people whose income or financial stability has increased as a result of participation, purchase or use
- Improvements in the health or well-being of the target group
- Improvement in customer satisfaction with regard to the problem area addressed
- Improvement of air quality in a city measured by particulate matter and NO2 levels
- Increasing CO2 sequestration through reforested areas
2. sets clear goals
Set clear, measurable, realistic and time-limited targets for your impact indicators by formulating them according to the SMART criteria:
- Specific: must be clearly defined and unambiguous.
- Measurable: must be quantifiable.
- Attractive: must be relevant to your goal.
- Realistic: must be achievable with your available resources.
- Scheduled: must be limited in time. Set a time frame of two to four months.
3. determines a baseline
The baseline is the initial value that serves as a reference point to compare the state before and after your measures (e.g. number of people with awareness of the importance of healthy eating or with skills in stress resilience).
Ideally, you should set the baseline using official statistics and not by self-assessment. This could increase the risk of impact washing.
4. implements a measurement system and creates a data collection plan
By defining objectives, indicators, data sources and responsibilities, you create a solid foundation for your MVP and ensure that all important aspects are taken into account. You can create the data collection plan in Excel, for example. It should have the following columns:
Goal
Indicator
Base value (baseline)
Target value
Data source, e.g. internal documents, surveys, observations or external sources
Survey method, e.g. questionnaires, interviews, observations or document analyses
When/how often is it collected?
Who collects the data?
Who analyzes the data?
Next chapter: Reality check
You are now well positioned to develop an MVP that not only works, but has a real impact.
As soon as the MVP is ready, we recommend doing the reality check. You can do this in the next chapter by collecting reliable data on the acceptance and effectiveness of your solution and checking whether and how it is scalable.