Validate Your SaaS Startup Idea: Step By Step Guide

Moreover, according to Statista, in 2021,72.7% of people in the United Statesown at least one smartphone and use it at least once per month. So, many people can potentially use your mobile application or your competitors. Most companies are trying to create unique, innovative solutions that will help them maintain their current position and increase their market share in their industrial sector. After getting validation on your idea, your next steps would be to build your product’s MVP, iterate constantly, and start growing your user base. This approach is similar to pre-sales in terms of trying to promote something you have not built yet. The only difference is that, with waitlists, you gather the contact details of potential customers instead of selling them your product.

” By asking such questions, you limit your interviewees, while your goal is to find out as much as possible about them and probably get some insights. Data gathered during market estimation is quantitative and helps you not only with validating your product but also when attracting investors, as nothing persuades more than numbers. SAM is the part of the market you theoretically can serve, taking into account your geographical location and service specialization. Taking the insurance example, let’s assume you provide only life/annuity insurance in a few states. Only a certain percentage of the total market (48.9%) could possibly benefit from your service.

Most of what you write down are assumptions.

As soon as you’ve made some basic decisions, and written down your assumptions, get out to test them to see if they resonate with potential customers. I encouraged Startup Weekend attendees to get out on the street and save valuable https://www.wave-accounting.net/ time by getting on the phone if the customer type warrants. I often see teams debate minor details, waste valuable time rather than make a guess , and then get out into the real world to test whether it’s the right idea.

Check if they have any Share your startup/idea/product threads. Many startup guys skip this step thinking it’s some sort of woo-woo exercise. When you create plans in the Idea Validation stage, you’re drawing different lines in the sand, not engraving messages in stone. With the competitive analysis, you should already have an idea of what market you’re dealing with. A part of the competitive landscape is geared towards “social media management” – i.e., managing your channels, delegating tasks to users, seeing overall social media analytics, etc.

Conduct the Design Sprint

As you think about how to make your app, use this example for inspiration. Nick Swinmurn created an online shop featuring Tools And Practices For Validating Your Business Idea For A Software Product a variety of different shoes. At this point, you’re ready to get an early version of the app up and running.