In development this is called the minimum viable product, the minimum product that is needed in order to solve a huge customer pain.
For example, there was a time when consumers couldn't shoot a video and easily upload it into a computer. Then the Flip Cam came along.
It didn't matter that the flip cam was "an ugly color" or "was a little over priced", because the flip cam solved a huge customer problem (a problem still not fixed with remote controls!).
Of course, having a minimal viable product sounds very reasonable and obvious.
However, there are two traps that amateur entrepreneurs fall into that keep them from creating a minimum viable product:
1) Perfectionism / Non-Essentialism
In a previous post (click here), I discussed why there was so much BS In the business world. This is primarily because most people do not understand value drivers.
This is directly applicable to startups and minimum viable products. If there is no serious customer pain and there is no true value proposition then it is easy to forget this obvious fact and get lost in the details of non-essential activities. This is a business form of escapism and it is often done on a subconscious level (for ego protection).
The antithesis of an MVP mentality is a "it needs to be perfect" mentality.
2) Bitching Customers
No matter how good a product is there will always be a small subset of customers who bitch and moan. Contrary to popular belief this subset is usually a very small percentage of customers. However, these customers are often very vocal and can confuse the entrepreneur into thinking that they account for more than a tiny percentage of consumers.
My personal recommendation is to forget about these customers. Usually these complaining customers are also the most cheap and frivolous customers a company has.
Keep in mind, even products like Facebook, the Iphone, etc. etc. have people who constantly bitch about them YET continue to use them (with Facebook even being a free product).
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There are many reasons and excuses for not launching a product. It all comes down to one main issue: DOES your product solve a CORE issue? This is a question that many startups are too afraid to ask. Many times, startups insulate themselves from reality and pass around and drink their own koolaid, convincing one another that they have a "great product".
These startups, sadly, fail to realize that it is not about having a "great product" but it is really about solving a "great problem". More so, if the problem is already solved, then the solution must be 2-3x better to replace the previous solution (20-30% better doesn't cut it).
Does your product solve an already existing issue that customers experience or are you creating this perceived problem? Does the product minimize a problem (good) or does it lead to a new benefit (much weaker)? Psychologists have found that people have roughly a 7-1 aversion to losing money as they experience join in making money (Losing $10 hurts as much as making $70 makes one happy).
If the product solves a core problem then the details are not very important. If it doesn't, then the details are also not important.
You can not put lipstick on a pig.. but it's still a pig.
Details will be filled in with time.
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