From Idea to Revenue: Agile Methods and Contracts for «MVPs in 100 Days»

Strategies, plans, and concepts are helpful, but innovation happens only when ideas are implemented. As always, taking action is more important than just wanting to—execution is key. This article outlines how Tech Ventures can rapidly deliver and iterate on MVPs and how startups can engage with B2B customers through appropriate commercial structures (contracts).

Innovation and disruption is not linear

Waiting for the perfect idea before launching a venture is risky. Entrepreneurs should start quickly and iterate based on real customer feedback. This is especially true for startups—around 90% evolve far from their original idea.

The focus should be on the team's ability to bring an idea to market fast, test it, and continuously refine it. This is crucial in digital business models, where initial requirements are often unclear. A flexible, agile approach is necessary to navigate these uncertainties.

And I know - it's complicated to be active in so many disciplines with so little time and resources.

And all areas have their own methods - of course 🤪.

Navigating Complexity with Agility

Disruption often starts complex before it simplifies. Entrepreneurs must embrace uncertainty and adopt an iterative, agile approach, balancing structure with flexibility. This mindset allows for faster progress through continuous adaptation.

Innovation projects involve both analog and digital transformation—merging customer needs with potential products and viable business models. These projects often begin with incomplete information, requiring agility rather than rigid planning. Entrepreneurs must accept this uncertainty and use an agile, iterative approach that balances simplicity with chaos.

Choosing the Right Engagement Models

For startups engaging with corporate clients—especially in software development—choosing the right engagement model is critical. It defines how startups and clients collaborate, manage risks, and ensure successful delivery.

Here’s an overview of some common engagement models in software development:

Time and Material (T&M)

Clients pay for actual hours worked and materials used. This model offers flexibility and accommodates scope changes, ideal for projects with evolving requirements.

• When to choose: For projects with unclear or frequently changing scopes. Suited for early-stage development or research projects.
• Advantages: High flexibility for changes, transparent billing based on effort.
• Disadvantages: Potential for higher costs due to extended project timelines or frequent changes.

Fixed Price

A set price is agreed upon for a clearly defined scope. This model shifts risk to the agency and works best when requirements are well-defined

• When to choose: When requirements and project scope are well-defined, such as in a website redesign or an app with specific features.
• Advantages: Cost certainty and reduced financial risk for the client.
• Disadvantages: Limited flexibility for changes once the project begins. Defining the scope upfront can be time-consuming.

Agile Fixed Price

This hybrid model combines agile methodologies with a fixed price. The project is divided into phases or sprints, with the client paying a fixed amount for each phase / sprint. This model allows flexibility while keeping the budget under control.

• When to choose: When flexibility is needed, but the budget must be managed carefully. It’s ideal for projects with clear goals but evolving requirements.
• Advantages: A good balance between flexibility and budget control.
• Disadvantages: Scope misunderstandings can occur, and changes must be managed within the sprint budget.

Dedicated Team/Retainer

n this model, the client pays regularly for the availability of a dedicated team that works exclusively on their project. It’s suitable for long-term projects or continuous development needs.

• When to choose: For long-term projects or when continuous development and maintenance are required.
• Advantages: Long-term availability of a dedicated team, continuity, and deep project understanding.
• Disadvantages: High costs, even when the team isn’t fully utilized. Less control over exact costs per deliverable.

How to contract in Innovation and disruption projects?

In innovation projects, it’s essential to break the process into smaller stages. This approach allows better control over progress and expectations.

For the initial stage, define a minimal scope with key deliverables. Since the exact product may still be unclear, avoid overly detailed requirements. Focus instead on essential outcomes with an agreed price, allowing for flexibility while controlling costs.

This approach flips the traditional waterfall model, making it better suited for innovation. However, corporate purchasing or legal departments may find agile contracts challenging, as they require more flexibility from all parties.

To manage expectations, begin with joint workshops to record a minimal version of the product using visual prototypes or mock-ups. This ensures alignment from the start, reducing the risk of miscommunication later.

MVP in 100 days

The Minimum Viable Product (MVP) approach is key to delivering innovation quickly. The goal is to create the smallest version of your product that customers are willing to pay for, validating the idea without overinvesting in unnecessary features.

By focusing on an MVP, you attract the right talent, foster a culture of experimentation, and bring innovations to market rapidly. Depending on the scope, it's possible to deliver an MVP in 100 days.

Agile Fixed Price! So why not try it?

Give yourselves a push – just get started. Begin with a small, initial project based on an agile fixed price and see where it leads. Because real progress only happens through action.

By embracing uncertainty, adopting agile practices (even in contracts), and focusing on fast iteration, you can bring innovative products to market that make a real impact. You’ll also drive the necessary analog and digital transformation through a dynamic project that evolves visibly every day.