The value of having a Minimum Viable Income

Why Every Small Business Owner Should Start with a Minimum Viable Income 
For many aspiring entrepreneurs, launching a business is fueled by passion, purpose, and the dream of independence. But somewhere between that dream and sustainability lies a crucial but often overlooked concept: the Minimum Viable Income (MVI). 
Just as a Minimum Viable Product (MVP) helps test and validate a product idea with minimal resources, Minimum Viable Income is the baseline monthly income a business owner needs to cover personal and essential business expenses. Understanding and building toward your MVI early on is a strategic move that can determine whether your business survives—and thrives. 

Why Minimum Viable Income Matters 
1. Focuses Your Priorities 
Defining your MVI forces you to calculate exactly what you need, not just what you want. It keeps your financial goals realistic and grounded, especially in the early stages when cash flow is tight. Instead of aiming for six figures right out of the gate, you’re setting a practical income target that can fund your lifestyle and keep your business afloat. 
2. Reduces Pressure and Burnout 
Running a small business is demanding. When your income needs are uncertain, anxiety creeps in, which can cloud your decision-making and drain your energy. Having a clear MVI gives you a financial target to measure against and creates peace of mind, especially if you hit that number consistently. It’s the breathing room that lets you focus on growth instead of survival. 
3. Validates Your Business Model Early 
If your business can’t meet your MVI within a reasonable timeline, it’s a strong indicator that your model needs adjustment before you've invested too heavily. Maybe your pricing is too low, your niche too narrow, or your expenses too high. Establishing and testing against your MVI helps you validate not just your product or service, but your overall business viability. 
4. Supports Better Decision-Making 
Knowing your MVI helps guide smarter decisions around pricing, workload, and scaling. For example, if your MVI is $3,000/month and you're charging $100 per client, you know you need 30 clients a month to break even. That insight can guide your marketing efforts, sales goals, and how you spend your time. 
5. Builds Confidence and Momentum 
Reaching your MVI proves your business can pay the bills. It’s a huge win that builds confidence. Once that baseline is secure, you can plan for what’s next: expanding your offerings, hiring support, or reinvesting profits. Hitting your MVI is the first real step from "side hustle" to sustainable business. 
6. Start building your MVI 
Calculating your MVI is easy, you just need to set aside some time to write out your expenses. Start by dividing your expenses into two types: Mandatory Expenses & Optional Expenses. Mandatory Expenses are expenses that you must pay to survive and run the business (rent, utilities, gas, insurance), whereas Optional Expenses are expenses that you would like to pay for to live well (shopping, eating out, entertainment). 

Emily Mason, Small Business Advisor

Emily Mason is an entrepreneur, business coach, and small business advocate. Originally from England, she earned a master’s in chemical engineering in Scotland before working at NatWest and becoming a certified business coach. She founded EFL Tutors, a successful online tutoring company, which she continues to run remotely. Now based in St. Thomas, Emily is excited to support local entrepreneurs through the Elgin-St. Thomas Small Business Enterprise Centre.