Product-market fit validation
No idea is validated until you test it in real life with real people and ask them to pay for it.
Innovation teams lack the validation methodology. What they call validation is actually a preparation.
Test before you build
Only by taking the early prototype in front of real, precisely target market cohorts you are able to confirm the market response for the product or an idea and confirm your P&L assumptions.
— identify your target market cohorts and measure their behavior
— focus on quantitative metrics and test qualitative reactions
— experiment with willingness to pay, branding and positioning
— build a growth formula
Structure venture incubation before investing too much too soon!
A successful venture validation confirms or denies an existence and profitability of a business model.
You are looking for a growth formula, that will be based on real data, coming from multiple experiments ran across different target market cohorts. To make a good investment decision you need the revenue streams forecasts that has been proved possible.
Validation runs experiments in three basic dimensions:
branding & positioning
willingness to pay
target market cohorts
Branding & Positioning
Willingness to pay
Target market cohorts
Which manufactures the demand function ex ante any development or investment.
The smoke test delivers one of the following scenarios:
A repeatable growth model for a new venture with actual data to back it up. Your decision will be made on the data that has actually been achieved instead of what could be achieved.
the ammunition to eliminate an idea before you commit teams, time to market, and hundreds of thousands in investment $$$ that could’ve gone to a good idea.
The reason why
Over 40% of digital products fail due to a lack of a product-market fit.
Validating a product before putting it in production results in a winning product that users actually want to buy. Saving you time and money that can now be utilized in growing and scaling your winning product.
5 steps to better new product surveys
Mvp is dead
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