CMA Final · Entrepreneurship and Startup · Idea to Action
A founder of a packaged millet-snack startup has built a basic version of the product and plans to sell it to a small group of early customers in two cities. The aim is to learn which features customers actually value before committing money to a large production line. Which concept does this approach best represent?
The approach is a minimum viable product launch. The founder releases a basic version to a few early customers to test assumptions and learn which features matter, which avoids heavy investment in production before demand is validated. It is a lean, feedback-driven way of moving from idea to action.
- ALaunching a minimum viable product to test assumptions through customer feedbackCorrect
- BPreparing a detailed five-year financial projection before any sales
- CAchieving economies of scale through bulk procurement
- DSeeking a controlling stake through a leveraged buyout
Explanation
A minimum viable product is the simplest version of a product released to early users so that the founder can validate assumptions cheaply and learn from feedback. The scenario describes limited release, learning about valued features and avoiding large upfront investment. Detailed five-year projections or bulk procurement do not test customer demand, and a leveraged buyout is an acquisition technique unrelated to idea validation.
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