Dear advisor: I have a startup idea, what Should i do next?
How to validate your idea before building an MVP
Having mentored over 20 (very) early-stage founders, I get asked this question a lot. Here's my industry-agnostic advice for those that are just starting out.
TL;DR: Understand who your customers are, what pain points you're solving for them, and who will pay for it (and how much) -- before developing a Minimum Viable Product (MVP).
Part I: Identify your target customers
You have an idea for your start-up (!). To help you see if the idea has potential for product market fit, you'll need to know:
Who your customers are -- be as specific as possible here.
Note: If you’re developing a 2-sided marketplace, you have two sets of customers: buyers and sellers.
There are over 30 customer pain points. What pain points do your customers have? How are they solving them now?
Note: Really try to understand why they would purchase your product and how soon to they expect your product to solve their problem(s).
How will your business will make money? How much are your customers willing to pay for a solution that solves their pain point?
Here's a framework to help you: JTBD.
Part II: Understand your customers
Before you spend any money on developing a solution, talk to your prospective customers to narrow down who they actually are, really understand their needs -- and see if they’d be willing to pay for a solution to their problems. Sometimes it feels like a catch-22, you need customers to find more customers. How do you get started and find your first one?
Can you bring value to the prospects during the interview?
e.g. Are there publicly available (or paid) resources you can leverage to provide insight(s) they didn't have?
e.g. If you're considering developing a 2-sided marketplace, what will you offer the supply side to convince them to join before the demand is there?
Where do your customers go?
Industry and vertical conferences (free or $$$)
Meetup groups by vertical, expertise and/or industry (free)
Offer (paid) studies on social media ($$$), especially if cold emails and follow-ups are getting no response
Join start-up communities, such as 805 start-ups to meet other founders (free)
If developing SaaS, consider offering consulting services to prospective customers, to help you prove out and fine-tune the idea
Part III: Iterate on Parts I and II
measure/identify themes that come up; and
learn if there are themes that come up again and again -- and any words/phrases your customers are using to describe their pain-points.
By using their words to describe your idea, you'll be able to resonate with future customers.
Part IV: Wireframe and Iterate on Parts I - III
If you found promising themes around your customer pain-points, consider developing your product as interactive wireframes, for the next stage of idea validation -- to help you see if people would be willing to pay for an MVP/service.
Are you looking for support in navigating these steps, to improve your product/service? I'd like to help. Please find a time that works for you to have a complimentary, 30-minute, NDA-free strategy session.
You may also like:
How to do proper market research discussion on Reddit
Different types of marketplaces, by Casey Winters