Market testing done right could have your target audience eating from the palm of your hand. That’s why validating your business assumptions before you go all-in is crucial.

Think about it. Starting a business is like diving into the deep end—you have big ideas and bold ambitions, but how do you know if they’ll actually work? One of the biggest reasons startups fail is because they launch without fully understanding their market. In fact, 34% of startups end up going belly up because of poor product-market fit. 

We get it. It’s easy to fall in love with your idea and assume everyone else will, too. Sorry to break it to you, but the market doesn’t always care about your brilliant plan. 

Beyond making your small business digital ready, you need to test, tweak, and sometimes even pivot, to make sure you’re actually solving a real problem that your audience cares about. But guess what? It’s easy as 1-2-3!

1️⃣ Identify Your Key Assumptions 

Before you start market testing anything, it’s important to get clear on what you’re assuming about your business. Have you really nailed your target market? Your value proposition? The way you’ll generate revenue? Every business has core assumptions baked into its model, and it’s your job to identify and challenge them. Some examples include:

• Who is your ideal customer, and do they really need your product?
• Does your solution solve their problem in a unique way?
• Will they pay for it? How much?

2️⃣ Test Those Assumptions 

Once you know what your assumptions are, it’s time to test them with real-world data. The earlier you can validate your ideas, the better. Here are some effective methods to test your assumptions:

• Surveys: Ask potential customers direct questions about their pain points, buying behaviors, and opinions on your idea. Make sure you’re talking to your target audience and not just friends who want to support your dream.
• MVP (Minimum Viable Product): Create a simplified version of your product or service and release it to a small group. The goal here isn’t perfection, but to see how real users interact with what you’ve created.
• A/B Testing: If you’re at a stage where you have customers, try testing different versions of your website, app, or marketing materials to see what resonates most with users.

3️⃣ Interpret Results & Adjust 

So, you’ve got data – now what? If your tests validate your assumptions, great! You’re on the right track. But if the results show that your assumptions don’t align with reality, don’t panic. 

This is the moment where many entrepreneurs find themselves needing to pivot – change some aspect of their business strategy to better meet the market’s needs.

For example, you might find that your ideal customer isn’t who you thought, or that they’re not willing to pay as much for your product as you had hoped. By staying flexible and willing to adapt, you’ll set yourself up for long-term success.

So, what’s a founder to do? 

Validating your assumptions isn’t a one-time process. Markets evolve, and so should your business. Keep testing, keep learning, and most importantly, stay curious. With each new piece of data, you’re one step closer to building a business that not only survives but thrives in the real world. You can even turn your customers into your very own influencer army.

Need more guidance in navigating your market’s waters? Book a mentor session today and find out how you can effectively connect with and actually sell to your target market.

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