Taking risks as a business should always involve some level of calculation. That’s where market validation comes in. When you are considering starting a business, your only option isn’t jumping in blind. In fact, you can assess the market beforehand to see exactly what the reaction to your product is. This will allow you to find out whether or not your product is viable and the ways that you can improve upon it.
What Is Market Validation?
What market validation means, in simple terms, is that you present the concept of your product to the people that you’re targeting it at. This should happen at the early stages of your business before you have invested heavily in the business.
You can go about market validation in two ways. The first is interviews with people who fall within your target market. The second is through sending surveys to that same group. Either way, you get information about how they are going to respond to your product.
Why Do You Need To Go Through Market Validation
There are many reasons why you should go through the market validation process, the most intuitive of which is that it allows you to avoid investing money and time into an idea that will not work out.
Another reason is that it market validation can help you secure funds and resources for your business. When you are looking for investors for an idea, the best way to inspire their confidence is to show them the proof that your idea would actually work.
Thirdly, market validation can also help you realize the flaws with the execution of your idea through the feedback that you will receive from potential customers.
Whether it’s through interviews or surveys, preparing questions that you want to ask beforehand will make your market validation process more effective.
The Entrepreneur’s Corner is a weekly series that brings you business tips and insights from people with real-world business experience.