To test assumptions for a new business or new product idea is among the foundations of the Lean Startup methodology.
By selecting the riskiest assumption, defining an hypothesis, testing it with customers and then analysing the results to decide the way forward, entrepreneurs can systematically reduce the risk of launching a new product.
This is extremely important, since 72% of all new products fail to generate the expected results in terms of positive impact on profit.
But how do we choose the right test to validate the riskiest assumption?
Any 3 pennies out of 4 spent during the early stage of a new business or product idea are very likely to be wasted, so it’s best to minimise by:
- using cheap and quick tests when uncertainty is high
- using more expensive and longer tests when the riskiest assumptions have been tested and validated already
In order to facilitate the difficult task of choosing the right test at the right time, I’ve collected a library of tests to get market validation, combining my personal experience with what the Strategyzer team have written in their Value Proposition Design bestseller book.
The tests are ordered below from the cheapest and quickest one to the longest and most expensive.
One note though: this is just an overview, intended to be a catalogue to facilitate choice, not execution. You will find in the text links to other posts where I’ve collected more details on how to conduct specific actions required by each test.