Here’s a sad truth: it doesn’t matter if your product idea is awesome. If there’s no market demand, it won't sustain a business.
This is one of the major reasons why more than 20% of small businesses fail within the first year.
Don’t let this happen to you.
Don’t ignore the practical approach of developing a product that your target market really wants.
As the leading SEO company in Miami, we suggest you validate your ideas first before devoting your time, energy, and money to creating, launching, and marketing a business.
Product validation is the process of testing your idea with potential customers and determining whether there's a need for your business.
The earlier you do this, the more time, money, and frustration you can save on unworkable ideas.
According to Marc Andreessen, co-founder and co-creator of Netscape and Mosaic internet browser, a product/market fit means "being in a good market with a product that can satisfy that market".
To find out if you have a product your ideal customers want and are willing to pay for, here are the main three questions to ask yourself:
Try answering these questions as honestly as possible. Don’t let your enthusiasm crowd your judgment.
The first step in market validation is setting your business goals.
Once you know what you want to achieve in the future, you can now create assumptions about your product idea and develop a hypothesis.
Here are some questions you want to ask yourself about your idea:
Answering these questions can help communicate the value and uniqueness of your product, and allow you to craft assumptions and a hypothesis that you will test later.
The next step to validating whether your product idea is a good venture or not is to identify who your ideal customers are, estimate the size of that market, and determine the share you can potentially capture.
This will help you check if there are enough people out there who will buy your product.
To figure out who your ideal customers are, you need to identify what pain point your product is addressing and find people who are searching for a solution for that particular problem.
If your target market is too broad and the competition is tight in your industry, find an underserved need in the market and tailor your products or services according to their specific needs.
If there are too few prospects to sell your products to, then you need to see if there's a larger opportunity or market that your product or service could cater to.
As a trusted SEO and digital marketing company in Miami that helps small businesses succeed, we suggest that you start with a narrow audience.
The more specific the better.
You don’t want to create a product that aims to cater to “everyone”. Instead, focus on a particular age group, or a group of people who share the same interests, people who share similar buying patterns, etc.
Focusing on a smaller group allows startups and small business owners to save resources, time, and energy when it comes to advertising and launching your product. As your business grows, you can then begin to expand your market and reach a wider audience.
Another way to check the viability of your business idea is to determine the search volume of the terms related to it.
The logic behind this is that when people need a product or service, they tend to look it up on the web to see what the market has to offer.
If there’s not a lot of search volume surrounding your product idea, it’s a sign that there’s not much of a demand for it right now.
The key here is to use terms that your target customers will likely use when they look for your products or services online, or keywords that express customer intent.
As your go-to Miami SEO company, we suggest that you also check social media hashtags and use Google Trends to determine the relevance of your products or service to your target audience.
Once you’ve confirmed that there is a need for your product based on search volume and market size, it’s time to interview potential customers to confirm your hypothesis.
There are many ways you can conduct customer validation surveys and interviews, including:
By conducting interviews and surveys with your target market, you can learn about your product’s potential and at what price point they’re willing to pay for your product.
Go back to your assumptions and hypothesis about your product idea and confirm this with your audience during the interview.
Take note of their feedback. You can use this to improve and further develop your product ideas. If necessary, you can repeat the market validation process until you’re confident in your idea.
To test your product idea, you need to create a prototype.
You can use this throughout the validation process, especially for gathering insights from your ideal customers and even for pitching to investors.
There are two types of testing that you’ll want to do:
Testing is necessary because this is how you can assess if your product is valuable to its intended audience. It can also give you insight into how you can better meet customer needs.
Digital Resource is a Miami SEO company and digital marketing agency. Once you’re confident in your idea, our team is prepared to help you market it to the world.
Contact us today to learn more about how we can take your business to the next level.