Most people don't like homework, but that's exactly what we tell all our clients thinking of launching a new product with Lotus - do your homework!
There are many steps to researching and preparing a plan to launch a new tech startup or software solutions business, and market validation is an important part of that process.
What is Market Validation?
It might sound complicated (and it can be) but the concept is simple: prove that there is a need for your software solution and people are willing to pay for it.
Why is it important?
You've identitified a need in the market and just know you have the best solution out there. That's great! However, if you can't find customers willing to pay for it, or to pay the price you might need to run your business, then your efforts are not going to end well.
Part of market validation is ensuring that you are even indeed trying to seduce the right customer. Just imagine - you've got a great idea, know that your competitors aren't doing it well, and the industry is ripe for your entry. However, what if your target audience is incorrect?
You wouldn't be the first entrepreneur to go after the wrong customer, costing you time, money, and fatigue - all things you are already short on as a small business owner.
So, how do I do it correctly?
If it's so important that you do market validation early in the business process, then how do you tackle it correctly? Well, we'll tackle that in a future post.