Focus > Problem Solution Fit Testing
Why
According to a post-mortem research of global startups conducted by the venture capital database CB Insights, the most common reason why new ventures fail is because they build and launch something customers don’t want or don’t want to pay for. If your target customers need to be ‘educated’ for them to understand the need for your product, you are probably solving a non-existant problem.
Before investing months or years of effort towards building a product, determine early on if this product is something worth building.
How
- There is no other way of testing your problem solution fit other than talking to your potential customers. You can make calls, schedule meetings or send out surveys to collect information on how important it is for them to have the identified problem solved.
-
Some of the common areas to focus on are:
- How do customers rate your value proposition? ‘Nice to have’, ‘Should have’ or ‘Must have’? It’s difficult to build a business model around ‘Nice to have’ ideas.
- How many customers are willing to try out your product when a working solution is available?
- What is the price point your customers are ready to pay for the solution you’re offering?
- What are the features customers would buy, given each feature is $1,000 and they have a $3,000 budget?
- If your test results are not favorable to the solution you are offering, PIVOT. Repeat testing until you find a problem worth solving (a problem where customers write cheques even before the solution is built).