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Market research, surveys, and feedback from friends and family can point you in the right direction, but real product validation only happens when money changes hands. For us, that happened at the first few shows we went to, where complete strangers bought our product. Exploring the current market can also help you mitigate risk and build confidence in your idea before investing too much time and money.
One way to make sure there is a healthy market to sell to is to look closely at your direct competition. Find out what they are doing and how it compares to what you are planning to do. Businesses that don't make money don't stay in business, so learning about how long your competitors have managed to stay in business and roughly what their trajectory has looked like can provide some rough validation that this is a market you can successfully sell in.
Remember not to get discouraged when you see competitors that have already grown big businesses. The easiest way to discover your competitors is a simple Google search. You can also check out hashtags on Instagram or Pinterest, or run a quick search on Facebook.
A third strategy you can use to validate your product and its market is to analyze demand and search volume. The easiest starting place is to go to Google Trends. The last thing you want to do is jump into a declining market. This tool allows you to search for keywords and phrases related to your product, and then displays the total number of searches for each of the terms you choose.
We realized they were more likely to search for names of the final products or recipes they wanted to eat, which could lead them to our products as a new way to make those dishes. The quickest and easiest way is to provide friends and family with your minimum viable product MVP and then gather feedback using a free survey. We recommend creating an anonymous survey in a Google Form or with SurveyMonkey. Be resourceful here, and be willing to have conversations with friends or family to help you find your ideal customer.
Talk to other business owners to get ideas on how they did this as well. One of the benefits of a crowdfunding campaign is that you have a firm timeline and it requires all of your focus and effort to reach your goal. Indiegogo and Kickstarter are well-known platforms, though there have been many others that have popped up in recent years. Do some research to ensure you have the right platform with the right community to launch your product, and definitely try to talk to people who have run successful crowdfunding campaigns for tips.
Another method we can confidently recommend is to sign up for a craft show or local market. It provided a convenient way to gather quick, first-hand feedback from potential customers. Selling in person has the added benefit of a strict deadline that you need to take action by, which is why we personally love it. This deadline acts as a forcing function that pushes you to get your products ready, and to get yourself ready to sell them.
Search for markets and craft shows in your area to find ones that fit well with your brand and product. Consider having a set of questions ready to ask customers, such as their preferences on color and flavor, and what if any competing products they might currently be using. Finally, test different price points to see if there is a certain price that works best for your product, especially when you are in the early stages.
There are a number of other ways to validate your product, and we share additional resources in our full course on Shopify Academy. One final point all entrepreneurs should keep in mind is to not let validation turn into procrastination. Within a few hours, 10 people had paid for the service, asking for UX feedback on their websites.
Having validated the demand, I needed to fulfill my promise by delivering the service to the people who had paid. Did not build any functionality; just a form to collect information. Because this market is two-sided — with entrepreneurs and designers — I tested the demand side first to see whether the solution provided enough value to elicit payment. Then, I tested the supply side to learn what kind of work designers were looking for and whether they were willing to consult virtually.
Test the second side of the market: the supply side. To my surprise, the UX designers I spoke with had established clientele and were very picky about new clients, let alone wanting to consult with random startups online. But they all mentioned that they had been eager to take on any work when they were first starting out and looking for clients.
So, I switched my focus to UX designers who are not yet established and are open to honing their skills by giving feedback online. Armed with these insights, I iterated on my landing page to accommodate both sides of the market and proceeded to fulfill the demands of the customers I had accumulated. No wireframes. No code. Just a landing page and two forms! A landing page that tests both sides of the market, simultaneously.
Interest in this service can also be measured by their willingness to fill out the form. To simulate the back-end functionality, I emailed the requests to the UX designers, who would then respond with their feedback, which I would email back to the startup founders.
Each transaction would take five minutes, and I did this over and over again with each customer until I could no longer handle the demand. This is called a concierge experiment. Once the manual labor has scaled to its limit, then write the code to open the bottleneck. Through this process, I was able to collect feedback on use cases, user expectations and ideas for improvements. This focused approach allowed for more informed iterations in a shorter span of time, without getting lost in wireframing much of the application up front.
Today, BetterUX. What did I do differently? The structured process of testing my assumptions saved me time and confirmed that each part of my work was actually creating value for end users. Below is a breakdown of the steps I took, so that you can do the same. My first mistake with my first startup was assuming that others had the same problem that I experienced.
This is a common assumption that many gloss over. Build products that scratch your own itch, right? As product people, we often have many ideas bubbling in our heads. Before getting too excited, test them and decide which one is the most viable to pursue.
To get started, break down your idea into testable elements. An effective experiment must clearly define these four elements:. As you go along, use the board as a framework to design your experiment and track progress. Refer to the templates provided on the board to quickly formulate your hypothesis, riskiest assumption, method and success criterion.
You can also watch my video tutorial for more information on designing effective experiments. Every experiment starts with a hypothesis. Start by forming a customer-problem hypothesis. Once it is validated, you can go on to form a problem-solution hypothesis. Now that you have formed a customer-problem hypothesis, poke some holes and extract the riskiest assumption to be tested. Start by brainstorming on a few core assumptions. These are the assumptions that are central to the viability of your hypothesis or business.
Think of an assumption as the behavior, mentality or action that needs to be true in order to validate the hypothesis. Ask your team members, boss or friends to suggest any assumptions that you may have overlooked. After listing a few, identify the riskiest one. This is the core assumption that you are most uncertain about and have the least amount of data on.
Testing the riskiest assumption first will speed up the experiment cycle. If the riskiest assumption is invalidated, then the hypothesis will be invalid, and you will have saved your company from going down the wrong path. After identifying the most critical aspect of your idea to test, determine how to test it. You could conduct three kinds of experiments before getting into wireframes. But you could choose a different method depending on your level of certainty and the data.
Before running the experiment, decide up front what result will constitute success and what result will constitute failure. The minimum criterion for success is the weakest outcome you will accept to continue allocating resources and pursuing the solution. Factors like budget, opportunity cost, size of market, level of demand and business metrics all play into it.
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