#marketvalidation

[smarterarticles]

When Investment Becomes Revenue

[smarterarticles]

When Investment Becomes Revenue: The Closed Loop AI Economy

[thinkforges]

7 Proven Ways to Validate Your Startup Idea Before Launch

Validate your startup ideas with proven frameworks, tools, and insights to build a successful MVP that customers truly need.

[the-path-to-mastery]

From Frustration to Fortune: How Everyday Challenges Can Spark Lucrative Business Ideas

Is building a business a journey or a destination? What if the key to a fulfilling entrepreneurial path isn’t the destination itself, but the problems we solve along the way?

We’ve all been there, right? Scrolling through social media, bombarded with the latest business ideas, marketing tips, and overnight success stories. It’s enough to make anyone feel like their own business journey is missing that certain “je ne sais quoi.”

But what if the secret to building something truly valuable wasn’t chasing the next shiny object, but focusing on a deeper purpose: solving a real problem for real people?

Drew Houston co-founded Dropbox in June 2007, one year after graduating from MIT, in response to the frustration of losing thumb drives. He identified a personal pain point that resonated with a broader audience.

Now, before you launch your business venture based solely on that next “million-dollar idea,” let’s rewind a sec. Every entrepreneur worth their salt knows – it all starts with the “why.”

By nailing down that “why,” you can unearth the real problems your target audience is facing, long before you dive headfirst into product development.

Don’t let “shiny objects” distract you. It’s easy to chase the latest trends. But true impact comes from solving a problem you truly care about. Think back to the story of Dropbox. Their success stemmed from identifying a personal pain point that resonated with others.

Remember, even the smallest annoyance can be a valuable business idea. By focusing on solving real problems, you’re not just building a business – you’re creating value and making a difference.

As Steve Jobs, the co-founder of Apple, once said, “ You have to be burning with an idea, or a problem, or a wrong that you want to right. If you’re not passionate enough from the start, you’ll never stick it out.

[macelbacs]

Hi! It's me again. Last week, we were tasked to perform market validation for our customers and future business partners. 1. Hypothesis Definition The customers will be happy with the ease of the delivery service because they will receive their groceries in the comfort of their own homes. As for the business partners, the proposed business conditions are favorable to them because of the following reasons: 1. For the establishment/s who will be our main supplier for the groceries, it means more income for them since they are sure that we will purchase goods from them. 2. For the delivery manpower (CMU Students who wish to work), it is favorable for them since it will mean additional allowance for their expenses here at Central Mindanao University. 2. Hypothesis Testing For the last week, I asked two customers, one student who wants to be a delivery rider, and one supplier from outside CMU (refer to the attached picture). Customer 1: "Ganahan ko sa concept kay dili na bitaw hassle na magpalit pa ug ginagmay sa market tas magbalik balik pa. Ma plan napud nako ahead of time akong lutuon sa akong meals since makapalit man ko ug pang one week na budget kay ideliver na man siya." Customer 2: "Convenient siya for me as someone na hectic kaayo ang schedule kay dili nako mabalaka na mahutdan ko ug groceries sa boarding house. Unta apilan sad ug food and medicine if ever para isahan rasad nag palit tanan hehe." Delivery Rider: "Actually nice siya na concept kay makatabang siya sa students na gusto mag part time while ga skwela. I suggest lang na makahimo namo ug guidelines sa kung unsa ang requirement para ma hire ninyo, ang share per delivery, ug lain na mga butang na need ninyo sad iconsider para sa safety sa rider pero overall nice jud ang concept unta mahimo ninyo ni kay dako ni nga tabang sa uban." Supplier: "Okay lang ginahatod man ka namo sa CMU kada monday dalahon nalang nato ang stocks. Sa presyo, lower than SRP nako ihatag since direct man ta sa distributors mas gamay lang akong patong since in bulk man sad ninyo paliton. Pagsaba lang daan unsa na stocks imong kuhaon para mapalit sad sa distributors inig schedule nila. Okay rasad kay sure na nga naay mahalin sa stocks haha strictly cash sa imoha hahaha. Mayra sad nga nakahuna huna ka ana. Ayaw lang kalimot mag inventory para dili ka malugi haha." In summary, our hypothesis was accepted and it was deemed favorable for all parties involved.

3. Team Decision 1. Craft a partnership contract with the suppliers as a form of agreement to purchase goods in bulk lower than SRP. 2. Craft guidelines on how delivery riders will be paid and their benefits as business partners. 3. Look for more suppliers outside CMU for lower prices. 4. Take advantage of close connections in purchasing goods at supplier prices (family businesses). 5. Take into account buyers' suggestions like including pasabuy on food deliveries and other necessities aside from groceries. 4. Team's Options 1. Purchase groceries in bulk from CMU Market Pros: Accessible, Close to Campus Cons: Higher prices since they already bought it from somewhere else 2. Purchase groceries in bulk from close connections Pros: Lower than SRP since we will be given a special price, easy negotiations and agreements Con: A bit far from CMU 5. Lessons During our market validation, I have learned that starting a business is more than just thinking about the money that we will be using for the startup. There are a lot of things to consider aside from the capital fund for the business. Market Validation is very important in creating an insight on how people will react to your business. It will also give you an idea on how your business will impact other people's lives, it's impact to the current market, and the ways that you can do to sustain the business. I have also learned that being in the business world is more than just finding customers. As a businesswoman, I also need to form partnerships with suppliers and gain their trust that I can also help their business thrive while taking care of mine. What a long blog entry for this week haha. That's all guys! I hope you also learned something form reading my blog. See you in my next blog! Byeee!

[aybaaan]

On the Journey to Pitch

During the course of this week, we engaged in a wide range of activities and discussions. However, there was a specific requirement that we needed to fulfill in order to continue with our pitching. Our task was to develop a product or service that not only benefits people but also allows us to generate income. As a group, we initially brainstormed and compiled a list of potential product or service ideas. The compilation consists of various ideas, including a food delivery app that provides access to all the food stalls on campus, an application that offers information about nearby boarding houses near CMU, an automatic traffic light sensor, an electric cup that adjusts its temperature according to the owner's preference, and a booking application that facilitates the transportation services such as motorelas or motorcycles for students and faculty members, where drivers can accept bookings through the app.

After carefully evaluating and assessing our ideas, we determined that our primary focus should be on creating a product that can make a significant impact on society. Ultimately, we selected a booking application called "PASAKAY," which combines the functionality of both motorelas and motorcycles. The intended users or target market for this app include motorela and motorcycle drivers, students, faculty members, staff, and residents in the Musuan area. Through the application, students, faculty, and staff will be able to conveniently book their transportation, while drivers can accept these bookings directly within the app. We opted for this particular application because, as CMU students, we have personally observed transportation issues on campus. While not everyone may have noticed it, we have observed that students residing in certain areas of Musuan face difficulties in accessing transportation. Additionally, there is limited vehicle availability for certain colleges within CMU, resulting in long waiting times for students. Consequently, some students are left with no alternative but to walk due to the lack of transportation options. That is the reason why we are actively promoting and supporting the development of this application.

During our venture proposal, the most significant recommendation put forth by our group was the importance of conducting market validation and considering the cost of developing the application. Therefore, this week, our focus is on carrying out the market validation process. As part of this, we have formulated a null hypothesis which is as follows:

No1: The motorela and motorcycle drivers are not in favor of the proposed application

No2: The students are reluctant to download and utilize the application due to its high cost

As part of our market validation process, we conducted interviews with students, motorcycle, and motorela drivers. Before proceeding with the interviews, we obtained their consent and asked if they were willing to answer our questions. We inquired about their possession of a gadget and their willingness to use the proposed application. Their feedback regarding the application was predominantly positive, which served as an encouragement for us to further promote its development.

Additionally, we received valuable input during these interviews. One important aspect we addressed was the exclusion of illegal transport vehicles from using the application. This issue has arisen among our own CMU motorela and motorcycle drivers due to the emergence of unauthorized transportation services. Therefore, in creating this application, we emphasize the principles of fairness and enhanced safety in transportation services.

After completing the market validation process, our team reached the conclusion that we had to “reject the null hypothesis”. The motorela and motorcycle drivers showed great enthusiasm for the proposed application. They expressed their satisfaction and appreciation, as they saw it as an opportunity to enhance their services and keep up with the advancements in technology. Additionally, students demonstrated a willingness to download and use the application, recognizing its potential to provide faster and safer transportation within the campus premises.

During this week, our team made some minor revisions to our revenue plans. Initially, we had considered implementing a commission structure of 10-15% on the total fare and incorporating advertising services. However, upon further reflection, we decided to revise this approach. We realized that including commissions would not take effect in getting a lot of users and having an ads from the start would add to the initial costs of developing our application. As newcomers to the market, it might not be feasible to attract businesses for advertising right away, as they are likely to observe our performance first. Additionally, considering the high cost of application development, we intend to collaborate with IT students and developers to reduce expenses and ensure easier maintenance of our application in the long run.

Throughout our journey this week, I have gained valuable insights. One of the key lessons I learned is the significance of evaluating various factors and conducting market validation prior to developing a product or service. This process allows us to truly understand the challenges faced by our target market, enabling us to develop effective solutions that address their needs.

[kentjasserdurias]

Compare prices with ComPrice

Kent Jasser L. Durias

Following the completion of our idea with our start-up, the team completed a series of activities to ensure that the market will patronize and use our application. The team has encountered challenges as we validate our market, but we believe that we have done enough interaction with the target market to ensure that we can do the necessary things, such as doing surveys and interviews, sending emails to some local retailers, and developing our prototype.

For the surveys and interviews, we asked several respondents and allowed them to answer a series of questions about whether they have felt the effects of rising commodity prices and whether they are willing to make more informed decisions. Fortunately for us, the majority of respondents have had this experience. Commodity prices are simply too high for them to bear. After reviewing the responses, the team determined that we could create a premium product.

Furthermore, the group issued a letter of request to all small, medium, and large businesses in Bukidnon. We tried to email them to see if they would be willing to provide some information regarding the prices of their items; while we did not obtain any responses from large corporations, we did receive favorable responses from a handful of stores we contacted.

Another project we completed was the digital prototype; it was difficult, time consuming, and a little stressful, but it was a worthwhile experience. We were able to put our editing talents to the test while also showcasing our creativity in developing the prototype. It was quite rewarding, and I had a lot of fun doing it.

In conclusion, the market has a wide range of needs from which we might draw inspiration. However whether the market is willing to utilize the solution we made for them, is up to the hands of the entrepreneurs to work hard and earn the validation of the market. Overall it was a great experience for me and observation about the market never stops.

[jushkabalagulan]

BLOG # 2: Market Validation and Customer Empathy Map

Hello there!  In this blog I will discuss to you my learning’s about Market Validation and Customer Empathy Map.

What is MARKET VALIDATION ?

It is the process of determining whether your product is of interest to a given market. Put simply it’s finding potential customers, ensuring there’s enough of them to sustain a business, and getting specific feedback on the product or service you want to offer.

Any entrepreneur you talk to will tell you that it is important to validate your business idea before actually starting a business. Validating your business idea can enable you to reasonably predict whether people will buy your product or service, and whether your business will be profitable.

It has been discussed that Market Validation is one of the most important things you can do for your business – whether you’re a startup or launching a new product. This is also crucial in every business because it helps you identify an existing problem that you would want to address and provide a solution, as well as possible competition. It’s important to validate your idea early in the entrepreneurial process to ensure you don’t waste time and resources creating a product that isn’t a good fit.

EVERY CUSTOMER COUNTS! 

OBSERVATION with curiosity & empathy Solicit information through: 

1. ASK – Open Ended Questions 

2. SEEING/SHADOWING – watching people & processes 

3. ENGAGING – participate in communication activities to uncover new patterns of behavior

VALIDATE BEFORE YOU BUILD!

By going through the process of validating your business idea, you can gain a deeper understanding of how your product does or doesn’t meet your target customers’ pain points. The insights you gain can help you create an offering that not only addresses your market segment’s needs, but earns you your first paying customers.

If you want to create a memorable experience for your customers you need to dig a little deeper into who your customer is and what they want. You need to get into your customers head and consider who they are influenced by, what their pain points are, and their goals and challenges. One of the most popular ways to extrapolate this information and begin improving your customers experience is by using a Customer Empathy Map.

What is CUSTOMER EMPATHY MAP ?

It is a tool used when collecting data about customers to better understand your target customer base. They allow you to visualize customer needs, condense customer data into a clear, simple chart, and help you see what customers want — not what you think they want. 

When we look at empathy from a marketing perspective, we’re talking about putting ourselves into our customers shoes, to be able to understand their needs and wants better. And thus, deliver a product or service that not only meets but exceeds their expectations!  At its core, innovation is about solving someone’s problem. To do it right, you need to understand the person and their job to be done better than they understand it themselves. You need to know their motivations, frustrations and inspirations. This ability to understand your customers needs better than they understand themselves

In this lesson, an empathy map is a simple, easy-to-digest visual that captures knowledge about a user’s behaviors and attitudes. It is a useful tool to helps teams better understand their users.

ELEMENTS & STEPS :

The representation of the user is often a large empty head. Around the user, the sheet is divided into sections or quadrants. Each section is labeled with a category that explores the user’s external, observable world, and internal mindset: what the user is doing, seeing, hearing, thinking, and feeling (including pains and gains).

Step 1: Establish Focus and Goals

Who is the person for the map?

What is the desired outcome?

Step 2: Capture the Outside World

What does she SEE?

What does she DO and SAY?

What does she HEAR?

Step 3: Explore Inside the Mind

What does she THINK and FEEL?

PAINS and GAINS 

Step 4: Summarize and Share

Tips for an Effective Empathy Mapping Session

Don’t get hung up on what goes where.

Only explore what matters about the user’s perceptions related to the project goal.

Adapt the map for your situation and needs.

I learned that by understanding what your customers think, feel, say and do you can develop rich insight which helps you to identify genuine issues, problems or concerns that your customer may have right now. In turn, this equips you to create solutions that are aimed at truly enhancing your customer experience. Empathy mapping digs deep into the mind of your customer, it will help you to clearly identify their evolved wants and needs and theme key positive and negative areas for your specific focus.