Market Research and Analysis
The purpose of this lesson is to explain to potential entrepreneurs / freelancers that constituting a start-up means, first of all, being willing to undertake a discovery and learning path. Before coming to the configuration of your business, it is necessary (and winning) to feel what the innovation market is about to start-up: we will talk about Customer Discovery and Customer Validation.
Lesson time foreseen
1 hours for reading the lesson
• What is the so-called Customer Discovery?
• What is the so-called Customer Validation?
The goal of Customer Discovery is to identify potential customers and see if the problem that start-up wants to solve is really important to them. To be able to do this, you have to face reality by going out of the factory or from the office to learn directly from consumers. Everything that will be discovered will allow not only to understand what are the important features for them, but also to focus on how to present the product.
In the office, alone, the first hypotheses on the product, potential customers, pricing and distribution channels, market type, and how to create demand, on the competitive position (competitors) are formulated.
But then, at some point, you have to go out on the market, and approaching potential customers with first friendly contacts, present them the problem and the solutions that start-up plans to offer.
In this way, you get a first check on the idea, followed by a more intense presentation of the product on the potential market, through direct user visits, obtaining a second more thorough check and structuring of the start-up if the tests have suggested that it would be convenient to undertake the business.
The aim of Customer Validation is to develop a repeatable and field-tested sales process, demonstrating that start-up has actually identified customers and a market. If and only if this process is repeatable, then you can move to the next stage by building the actual company.
As a result of a positive Customer Validation, there will be phases of business creation and construction of the start-up infrastructure.
The business creation phase is based on the first sales successes: its goal is to support product demand. Obviously, as is well known, the process can vary considerably depending on market features: some start-ups enter into existing markets, others create ex-novo markets, others are still trying to re-segment existing markets by aiming at price or on a niche of customers. Each of these markets requires different strategies.
Finally, the construction phase of the start-up infrastructure represents the transition from an informal, learning and discovery organization to a formal structure with departments and sales managers, marketing and other business functions. This is a very delicate phase because it is often a risk of anticipating time by setting up a company that is not yet able to stand on its own legs and where revenue volumes cannot cover the costs of the organization.
https://www.youtube.com/watch?v=ewEtBz9SST4 - Customer Validation, how to Build a Startup
https://www.youtube.com/watch?v=FRzz9JJ6iiI - Customer Discovery, how to Build a Startup