Yes I think you described this approach well. I've worked on a bunch of things built this way... as an overall approach it will certainly minimize the chance that you waste time building something totally un-sellable.

On the other hand, I've seen organizations using this "BVP" approach for absolutely everything they build, which I've come to view as a sort of product development antipattern, reflecting some lack of ambition/conviction/vision at the top. It's like the polar opposite of a moonshot: building things in such tiny increments that you can only ever achieve a local maxima, because the higher summit requires a bigger leap.