Every entrepreneur intending to build a startup has struggled to build traction from users mostly because they did not validate the idea well and right.
Why do so many people who have “Great Idea” struggle so much? What is that they miss that some get right?
The answer may be very complicated and perhaps no one has found it. But, however, one of the fundamental things that founders need to do first before jumping in with all might, is to validate if the idea truly has the potential to become a viable startup.
What should be validated as part of idea validation
- Is the problem that you are solving indeed faced by large enough group of people?
- Is there a genuine need for the solution that you are providing? Would someone adopt your solution (even for free?)
- Are these set of people ready to use your solution
- How much would they be willing, if at all, to pay for such a solution?
What should not be part of the idea validation
- Features that users want or need
- UI/UX of the product
- Funnel optimization
- Product engagement, retention of users etc
- Validating how big the market is (Build things that don’t scale)
Users are not same as customers. It is important to understand the customers really well. Do not start with what you think or know or what solution you are offering.
Start with trying to understand the customer by listening to him/her, asking questions about what they do, why they do certain things. Ask questions to understand their problem well.
Every founder must not get emotionally attached to his idea, it gets difficult to pivot or accept that idea is not right for taking to next level.
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It is important to build a dirty, but bare minimum functional MVP (Minimum Viable Product)
The next step is to perform the real test to the onboard user, show him your solution and ask him to purchase at the price that you derive from the earlier interaction. Multiple such tests (different landing pages, different pricing points to different user groups etc) need to be carried out for the validation of the startup idea.
Founders can explore non-paid means to reach customers like that of BetaList, Reddit, Facebook Groups, LI Groups, Entrepreneur community etc.
Simple Google/FB/LI campaigns can be used to acquire users with a hypothesis and landing page
Experiment with different pricing options to understand the cost of acquisition, cost of operations and unit economics etc. Remember that validation is an iterative process.
Startup founders need to keep in mind that B2B sales cycles are often longer than expected. It takes longer to meet the right person, it takes even longer to meet the decision maker. Also, different customers have different requirements. Typically, the large players keep throwing the big list of requirements at you and want to get things done for free as much as possible. But the founder has to keep calm and hold his own.
Finally, no payment should be assumed until purchase invoice is done because intent to purchase is not the same as the purchase.
Following these tips and validating the startup idea with the right set of people will help the entrepreneurial venture become a success.
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