MVP vs Prototype - What's the Difference and Which Do You Need?

"Should I build a prototype or an MVP?" This question causes endless confusion for founders. The terms are often used interchangeably—but they're fundamentally different tools for different purposes.

This guide will clarify the distinction and help you choose the right approach for your stage.

---

Table of Contents

1. Quick Definitions
2. Key Differences Explained
3. When to Build a Prototype
4. When to Build an MVP
5. The Progression Path
6. Real-World Examples
7. Making Your Decision

---

Quick Definitions

What is a Prototype?

A prototype is a preliminary model of your product used to:

• Visualize the concept
• Test user experience
• Communicate ideas to stakeholders
• Identify design problems early

Key characteristic: A prototype doesn't have real functionality. It's a simulation.

What is an MVP?

An MVP (Minimum Viable Product) is a functional version of your product with just enough features to:

• Deliver real value to early users
• Validate core assumptions
• Generate feedback for iteration
• Potentially generate revenue

Key characteristic: An MVP works. Real users can accomplish real tasks with it.

---

Key Differences Explained

The Comparison Table

The Core Distinction

Prototype: "Does this solution make sense?"
MVP: "Will people pay for this solution?"

Analogy: Building a House

• Prototype: The architectural drawings and 3D model. You can see what the house will look like and walk through it virtually, but you can't live in it.
• MVP: A tiny house with one bedroom, one bathroom, and a kitchen. Basic, but you can actually live in it.

---

When to Build a Prototype

Signs You Need a Prototype

✅ You're still exploring the solution
✅ You need to test different design approaches
✅ You want feedback on user experience before investing heavily
✅ You're pitching to investors or stakeholders
✅ The problem is validated, but the solution isn't clear
✅ You want to reduce development risk

Types of Prototypes

1. Paper Prototypes

What: Hand-drawn screens and flows
When: Very early ideation
Cost: $0
Time: Hours

2. Wireframes

What: Low-fidelity digital layouts
When: Early design phase
Cost: $0-500
Time: Days
Tools: Figma, Balsamiq, Whimsical

3. Clickable Mockups

What: High-fidelity designs with navigation
When: Design validation
Cost: $1,000-5,000
Time: 1-2 weeks
Tools: Figma, Adobe XD, InVision

4. Interactive Prototypes

What: Realistic simulations with animations
When: User testing, investor demos
Cost: $3,000-10,000
Time: 2-4 weeks
Tools: Figma, Framer, Principle

What Prototypes Can Validate

• Navigation and user flows
• Visual design and branding
• Feature prioritization
• User expectations
• Usability issues
• Stakeholder alignment

What Prototypes Cannot Validate

• Willingness to pay
• Product-market fit
• Technical feasibility
• Scalability
• Real user behavior
• Retention

---

When to Build an MVP

Signs You Need an MVP

✅ The problem is validated (people have it and care)
✅ You've tested the concept with prototypes
✅ You're ready to acquire real users
✅ You want to test pricing and willingness to pay
✅ You need to generate revenue or traction for fundraising
✅ Speed to market matters

Types of MVPs

1. Concierge MVP

What: Manually deliver the service before automating
When: Service-based products
Cost: $0-5,000
Example: Food delivery—you personally deliver before building an app

2. Wizard of Oz MVP

What: Appears automated but has humans behind the scenes
When: Complex automation needed
Cost: $2,000-15,000
Example: AI chatbot where humans answer, then automate later

3. Landing Page MVP

What: Landing page with signup/payment to test demand
When: Validating demand before building
Cost: $500-2,000
Example: Pre-sell a course before creating it

4. Single-Feature MVP

What: One core feature, fully functional
When: Clear value proposition to test
Cost: $10,000-30,000
Example: Twitter started as just status updates

5. Full MVP

What: Complete but minimal product
When: Ready for market launch
Cost: $20,000-100,000+
Example: Functional SaaS with core features

What MVPs Can Validate

• Product-market fit
• Willingness to pay
• Core value proposition
• User acquisition channels
• Retention and engagement
• Technical architecture

---

The Progression Path

The Ideal Journey

Stage 1: IDEA VALIDATION
├── Customer interviews
├── Problem validation
└── No building yet

Stage 2: SOLUTION EXPLORATION
├── Paper prototypes
├── Wireframes
└── Concept testing

Stage 3: DESIGN VALIDATION
├── Clickable mockups
├── User testing
└── Stakeholder feedback

Stage 4: MARKET VALIDATION
├── Landing page MVP
├── Concierge MVP
└── Test demand

Stage 5: PRODUCT LAUNCH
├── Full MVP
├── Real users
└── Revenue generation

Common Mistakes

Mistake 1: Skipping prototypes

• Jump from idea to MVP
• Expensive redesigns later
• Wasted development time

Mistake 2: Getting stuck in prototype phase

• Endless iteration without real validation
• Fear of launching
• No revenue, no real feedback

Mistake 3: Over-building the MVP

• Too many features
• Too expensive
• Takes too long to validate

---

Real-World Examples

Dropbox: Prototype First

The Problem: File sync was technically complex

Prototype: 3-minute video demonstrating the concept

Result: 75,000 signups overnight from a video alone

Then MVP: Built the actual product after validation

Lesson: Test demand before heavy investment

Airbnb: MVP First

The Problem: Needed real transactions to validate

MVP: Simple website with their own apartment listed

Result: First bookings proved the concept

Then Scaled: Built features based on real usage

Lesson: Some ideas require real value delivery to test

Figma: Both

Prototype Phase: Internal prototypes to test the technical approach (browser-based design tool)

MVP Phase: Limited launch with core design features

Result: Validated that designers would use a browser-based tool

Lesson: Complex products may need both approaches

---

Making Your Decision

Use This Decision Tree

Have you validated the problem?
├── No → Customer interviews first
└── Yes → Continue

Is the solution clear?
├── No → Build prototypes
└── Yes → Continue

Have you tested the UX?
├── No → Build interactive prototype
└── Yes → Continue

Can you manually deliver value?
├── Yes → Concierge MVP
└── No → Continue

Do you have budget for development?
├── No → Landing page MVP
└── Yes → Full MVP

Quick Assessment

Build a Prototype if:

• You're unsure about the solution
• You need to test multiple approaches
• You're pitching investors soon
• Budget is very limited
• The UX is complex

Build an MVP if:

• The solution is clear
• You've tested prototypes
• You're ready for real users
• You want revenue/traction
• Time to market matters

Hybrid Approach

Many successful startups do both:

1. Week 1-2: Prototype to test UX
2. Week 2-3: User testing and iteration
3. Week 3-6: Build MVP based on validated design
4. Week 6+: Launch and iterate

---

Cost and Time Comparison

Prototype Path

MVP Path (after prototyping)

Combined Total

Prototype + MVP: 9-16 weeks, $22,000-70,000

Skipping prototype: Might save 3-5 weeks upfront, but risks:

• 30-50% redesign costs later
• Building features users don't want
• Launching with UX problems

---

Conclusion

Prototypes and MVPs are not competitors—they're sequential steps.

• Prototype: Validate the design and experience
• MVP: Validate the product and market

The right approach depends on your stage:

• Early stage, uncertain solution → Prototype
• Validated design, ready for market → MVP
• Very early, uncertain problem → Neither (do customer interviews)

Most successful products go through both phases. The question isn't "which one?" but "which one first?"

---

Ready to move from prototype to MVP? DreamLaunch helps founders navigate from idea to launched product in 28 days. Book a free consultation to discuss your stage.