UNDERSTANDING THE MARKET
Market Size. Competitors. Market Structure. Customers. Will They Actually Pay to Fix the Problem?"
Testing Your Concept
Finish Line will help you navigate the tricky question of confirming if your solution will be accepted by your chosen customers.
Step 1: Market Research
Market Size
Estimate the size of the Total Addressable Market to confirm that this market is worth pursuing
Economic Value of Solution
What is solving this problem really worth?
Market Structure
Research how this would impact how the new product would be sold
Customer Assessment
Identify and prioritize who would pay for it, and estimate the customer acquisition cost
Competitor Identification & Analysis
Search market for existing competing solutions and assess comparative advantages
Step 2: Product Validation
Product-Market Fit
Formulate a formal value hypothesis that identifies both the chosen customers’ real problem(s) and the product features needed to satisfy the customers.
- Generate product requirements
- Model and test Go to Market plan
Initial Product Test
Formulate a formal value hypothesis that identifies both the chosen customers’ real problem(s) and the product features needed to satisfy the customers:
- Set goals to test the value hypothesis
- Construct an MVP (Minimally Viable Product)
- Develop a basic marketing plan
- A/B testing
- Customer acquisition cost testing
THE COST
The cost of this service is calibrated to the funding stage of the startup. In the early stages of a startup, additional funding (or even first funding) goes hand in hand with improvements in market validation. The trick is to make sure you can complete the next MVP stage without running out of money. Because Finish Line only works with startups, we are experts at managing this dynamic.