At what point do you know that your idea has been validated?
I've got my landing page and I'm gonna start trying to get some leads on it soon. I'm wondering, at what point can you say it's enough? This is for investors mostly, by the way. Thanks!
edit: forgot to mention, I'm looking for signups. I don't really have a way of making a pre-purchase sort of thing.
Investors invest in you when YOU CAN HELP THEM MAKE MONEY. The only way you can help them return more than TRUMP's stock rally and 2x or 3x to account for security, in 2 years.
Investors don't help you launch. They take the cake after the launch.
Investors don't validate. They reason from emotion and then after they have decided to invest they do due diligence. But that due diligence is not to validate the proposition but to ensure there is nothing untoward or dodgy about the cap table, agreements or liabilities of the company.
If an investor is still on the fence about your business proposition, and is waiting for validation, then they will not invest, ever. They are just using you to learn something about your market or strategy.
No one really knows that answer, I believe there are several validations a startup have to do at different stages and different kinds.
When you collect a lot of emails on a landing page, that's a problem+ market validation (incomplete), but not a product/ solution one.
As a startup you have to aim for one big validation, which is product market fit. When you achieve that, then you have leverage. Then you try keep going until you start noticing that you’re no longer pushing your product to the market but rather the market place is pulling it out of you.
People want access, geographical location want you to launch in their place, demographics want to use it even though you’re not targeting them yet, businesses want it even though it’s consumers only etc. That point is called product market fit or PMF.
But it all starts with getting 3 people to pay you within 48 hours and then continuing to iterate your product and go back to them and then iterate again and so on until they absolutely love it.
1 note: inevitable someone will make a big deal out of this 3 customers in 48hrs to boost their ego. It’s obv not carved in stone. It’s merely a useful guideline to incentivize speed and avoid the biggest risk when starting. Namely, that you optimize for false positives. You keep building and building, wasting months (or years) and hundreds of thousands of dollars, creating something no one wants because you erroneously believe that people will buy it at some point. By doing it this way, you’ll get false negatives (kill an idea that might’ve worked) but if you make some money quickly, there’s a higher probability that you’re onto something and that you’re addressing a real problem/need the marketplace has.
Question asked by
May 7, 2020 at 11:58:56 AM