Validating Your Business Idea

While friends and family can provide emotional support, their feedback often lacks objectivity. They're naturally inclined to be supportive, which can lead to false validation of your business concept.

The 20-Customer Rule

A goal that I start with is engaging with at least 20 potential customers in meaningful conversations. This number isn't arbitrary - it provides a statistically significant sample to identify patterns and validate market demand.

If you struggle to find 20 people willing to discuss their problems, it may indicate a lack of market demand or a need to refine your target audience.

Strategic Customer Interviews

Focus on understanding their pain points rather than pitching your solution. The goal is to gather insights about their current challenges and existing solutions.

Key Questions to Ask:

  • How are you currently addressing this problem?
  • What is the financial impact of this problem on your business/operations?
  • What aspects of current solutions are most frustrating or inefficient?
  • What would be a reasonable price point for a solution that addresses these pain points?

Payment Intent as Validation

The strongest validation of your business idea comes from actual payment intent. Consider these progressive validation milestones:

  • Email signups for updates
  • Pre-orders or waitlist registrations
  • Letters of intent from potential customers
  • Actual payment commitments

Each step closer to payment represents stronger validation. If customers are willing to commit financially, you've likely identified a genuine market need.

Presales: The Ultimate Validation

While all forms of validation are valuable, presales represent the gold standard in market validation. When customers are willing to pay for your product before it's fully developed, you've achieved the highest level of market validation possible.

Why Presales Matter:

  • Real money exchange demonstrates genuine demand
  • Provides early capital for development
  • Creates a committed customer base
  • Validates your pricing strategy
  • Generates social proof for future customers

Presale Best Practices:

  • Offer early-bird pricing to incentivize commitment
  • Provide clear timelines and deliverables
  • Maintain transparent communication about development progress
  • Create a sense of exclusivity for early adopters
  • Use presale funds to accelerate development

Remember: A successful presale campaign not only validates your idea but also creates momentum and provides valuable feedback from your most committed customers.

Next Steps

After gathering this feedback, analyze patterns in responses and adjust your solution accordingly. Remember that validation is an ongoing process - continue to engage with customers as you develop and refine your product.