Plain and simple:
Don’t offer what people doesn’t want. The purpose of this phase is to validate that your idea is aiming a problem that actually exists; Along with that, that the solution is something doable.
Step 1: Idea Validation: Technical and Economical
This step we consult with experts on the company about the feasibility of the solution to be build. This quick analysis would reveal basically two things: The idea is built in a reasonable amount of time (1 – 6 months) with a reasonable amount of money.
In this step is also important to write the specs to any Proof of Concept needed in the next Phase. A Proof of Concept, is indeed a proof that the idea can be built, usually use for mitigating any doubts from the technical perspective and gain stakeholders support.
Step 2: Market Validation: Estimation and Competitors Analysis
Market validation is the way to confirm that your idea is a solution to a problem people actually have. Is this step and before building anything we close test your idea with a small group inside the company to get an honest feedback.
In this same step we take the time to build the first Customer Archetype, defining some aspects of our Market Audience: Age Range, Income, Work Sector, Job Titles, suffer from the problem we are trying to solve, how is the best to find them and how can we expose the product to them.
At the same time we start researching your competitors investigating ways in which the problem was solve before, their weakness and their power points, also how this solutions get to market and how well they are doing SEO.
Step 3: Value and Growth Hypothesis
Once we had established ground, we build our first version of our Startup Hypothesis:
- Value Hypothesis: We write down how our idea will provide value for those who are willing to use it.
- Growth Hypothesis: Once we got the point in which we are actually providing value, we write down the ways we can massively reach potential customers.