Piyush Soni .

Why do you think that most entrepreneurs don't validate their business properly?🧐

About half of all startups that fail, cite "NO MARKET NEEDED" as a reason for their failure!

This seems insane in some ways, as I'm positive that almost 100% of them would have been SURE that there was a market need for what they built.

Otherwise, why would have they build it?😕

One of the main reasons why a product fails is because it is launched without Proper Validation!

Isn't it?🤔

So my queries are;

  1. Why do you think other people think that many startups skip this step, or just don't do it properly?
  2. What are the best processes to help startups validate their idea?
Originally Posted Here

Bakulesh Rane

If idea is good its stolen by biggies

Piyush Soni

Yeah it might happen, can we build a trusted platform for this or is there any other way this can be tackled?

Sandeep M. Naik

Most of the time, there is a perceived need, but unless and until you put a product or service in front of the customer and ask them to pay you would never know.

In a B2B scenario, the best way possible is to build an MVP which provide the UX and workflows and pitch to the customer and see if they are willing to pay. In a B2b scenario testing a MVP with basic fucntionality is a must.

Piyush Soni

Yeah agree with you here, customer pitching is important and that can surely be a way to validate your product!

Zain Siddiqui

There was this Pushstarter once who'se business model was to offer product validation and mvp development. I forget who it was. Need of the hour though

Sayan Ganguly

For all project requirements we do a Feasibility study to determine whether to take that up or not. Have a standardized format for the same if you need that. Basically this documentation from our end helps DRDO to decide whether to go ahead with a requirement or not. But the template could be relevant for any Startup.

Piyush Soni

Can you please elaborate! I didn't got this?

Sayan Ganguly

So as a part of my job, we are supposed to assess the feasibility of a project requirement as put forth by the Armed Forces (within the scope of the TDF Scheme). After our assessment and similar inputs received from the industry, an expertpanel meets to give recommendations and the final inputs on the feasibility of the same. These 3 inputs are collated again by us and sent to DRDO, and DRDO sees through the reports and takes a decision on whether to take up the requirement under the scheme. For the entire thing, we follow a rigid format. Given the exhaustive nature of the format, I believe it can work for Feasibility analysis of any product or service in the world. If you want I can share it. That's what I said

For better understanding, the boundaries of the scheme are:
1. Development within 24 months of selection.
2. Development within a cost of 10 Crore Rupees.

Piyush Soni

Now I got you! Basically you analyse based on various factors and pass it onto DRDO and then they give the final confirmation?
BTW What all major factors you take into consideration while declaring anything feasible?

Sayan Ganguly

Determination of Feasibility
- Brief Understanding of the Project
- Subject Knowledge and Manual Expertise of the Technology involved in the Project in India

- Current status of technology and Technology Readiness Level (TRL) of the proposed technology required in the project, in India and worldwide
- Manufacturing Readiness Level (MRL) of the proposed technology, in India and worldwide
- Key market players/ R&D institutions involved in the similar projects in India & worldwide and their current status
- Current technical solutions existing in India & worldwide and alternates (technology / process) which can be pursued to achieve the desired outcome
- Challenges/Risks in achieving the desired Technology. What are the efforts needed to overcome the challenges/mitigate the risks? Any Innovation to be looked into for developing the technology?
- Existing and future market opportunities for the proposed technology
- Details of raw materials, Components and technologies for the project. Please also mention if they are available in India or not.
- Any support / collaboration required with Academia for development of the proposed Technology / Project? If Yes, please explain in detail.
- Manpower details (Give list of manpower with roles & responsibilities, approx. cost of each and total cost of manpower)
- Required Equipment Details (Give list of Equipment, Brief specification/requirement of each Equipment, Quantity and Estimated Budget
- Required Consumables Details (give list of Consumables, Brief of specification/ Requirements of each Equipment, Quantity and Estimated Budget)
- Other Miscellaneous requirements (if any)
- Estimated total time of development
- Estimated total cost of development
- Any other relevant important aspects of the project (if any)
- Overall Summary: Summarizes the author’s findings from aforementioned points
- Conclusion: Conclusions about the feasibility of the project requirement based on the findings from aforementioned points

Piyush Soni

Great Sayan!!

Sayan Ganguly

It generally takes not more than a week to complete the entire study. As we have Google Mata.

Matt Rowbotham

Sayan Ganguly I spoke to a guy here in the UK that was thinking of something similar. The issue, we concluded, is early stage entrepreneurs don't know what validation is and therefore don't realise they need it. So for an idea like that to work you would need to put a lot of emphasis on the 'educational' part.

Premnath Borkar

The mistake most of the entrepreneurs do while doing market research is if they have the same background/or been working in the same sector in which the idea is, then they assume and don't actually perform a market research while those who aren't from the same sector find it difficult/time consuming/costly to invest time in market research.

Piyush Soni

Yeah completely agree with you! Experimenting the product with different types of people is really important!

But can we automate this process using any platform?
Any ideas on that?

Premnath Borkar

First thing is awareness of this problem and then we can ofcourse develop a solution for it. Most importantly the entrepreneurs forget to invest time and money in market research.

Arunaday Basu

Well the best way to put this is via an advice that is generally given entrepreneurs when they are beginning to work on an idea:

Never get obsessed with your product.

In fact, successful entrepreneurs are those that can look at their own product from a third person perspective.

I believe most don't validate because they are absolutely sure of what they are doing. They don't stop, to re-evaluate their own idea.

Validation of an idea is simple. Think that you're the customer. Now imagine whether you would pay for the service your company is offering. If the answer is yes, you have a product.

Finally, have the courage to dump your idea if it's bad. Don't try to make it work just because you can.

Piyush Soni

Yeah being logical rather than being emotional is the way to achieve your business growth!
Having said that considering yourself being your own customer is somewhat I say is a logical approach but that being the only factor, cannot ensure that business would work. I mean you got my point? Basically apni Cheez to sabko acchi hee lagti hai! How can we make it work through others perspective?

Sandeep Singh

Even I have the same question what Piyush Soni asked.

Aditya Soni

Indeed. You need to think as a customer and think that whether you will pay for it or not.
So iterations and testing until you yourself want to purchase your product.

Matt Rowbotham

Arunaday Basu I get your sentiment but disagree on your validation point. You can never rely on the Founder to validate. It's too biased an opinion and they are never going to be the one to part money for the solution. However your points on not getting obsessed and dumping the idea are excellent.

Sandeep M. Naik

First rule as far as validation is concerned - go for feedback with your MVP to a potential customer with whom you have had no connection so far. Friends, colleagues and existing business connects will never give an honest feedback until its time for them to cut the cheque for your product. Then there will be excuses with regards to budget, recent procurement / subscription of a similar product or service etc.

Piyush Soni

Yeah all things boils down to market research but don't you think some handful of customers would not give us the exact position of our product? How can we ensure its success on a larger scale, Can we validate this on a larger scale?

Sandeep M. Naik

you need to speak to as many people as possible. We did our validation at a trade show with a 34 page screenshot presentation on a tablet to showcase the flow.

Matt Rowbotham

Sandeep M. Naik you completely nailed it. This is lessons from 'The Mom Test' 101.

Sneha Sharma

We help start ups in validating their ideas. And the biggest challenge we have experienced is entrepreneurs do not consider it as a part of process rather they take it something where you should spend only if you have extra time, money and efforts. Second, they are always in a pre notion that its a great product/service and the company will surely be a unicorn some day. Third thing, they always consider a small territory as there research audience, like if they are launching the product in Delhi, they will only research the product/service in Delhi and not different backgrounds/genres/regions for research. In the end you should always think about the vision and act accordingly. Where you want to reach in the long run, who would be your target audience once the current market is captured and the placement of the product especially wrt to competition and industry. I hope this helps.

Piyush Soni

Yeah I completely agree. Market research is one of the important parts in identifying the target audience while setting up your business! And most importantly why people do not share their ideas is because of their idea being stolen! So Validation platform should also be you know that authentic which ensures all these things!

Santoshi Aparajithan

People fail because they skip the basics, before making and testing the MVP or prototype.

The first step is to get to know your customers. For that you need to identify your 'extreme users' and interview them. Atleast 20 people.

Based on this you are required to build Customer Personas.

Later comes the prototype testing with strangers.

Piyush Soni

Yeah that seems like a good idea!
But thats how most of the people work basically showing their MVP to different customers and take feedback for the same, Can we not automate this process through some platform?
Any ideas on that?

Santoshi Aparajithan

I don't believe such a platform could exist. Not all types of customer personas will be available in a single platform.
The results will be biased.

Matt Rowbotham

Santoshi Aparajithan and you'll never get a truly accurate understanding of whether you are solving a problem without interviewing them. You want to hear whether it's causing them excruciating pain or something they can live with.

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