Idea validation and estimating market size

I have an idea for a form builder app targeting a specific niche B2B. I am about to start validating my idea. According to my estimation there are about 500 organisations to which I could market this product. I am planning to contact 100 of these organisations for idea validation to gather initial feedback.

Considering a very optimistic scenario, if I only manage to secure 100 customers, and charge 89$ per month for subscription which would result 8900$ a month. Is this enough to run a small SaaS company?

Now I am wondering if 500 organisations is too little? I could potentially market it to other organisations. Should I also include other potential organisations in my idea validation process?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Need help in finding idea validation service.

Hey guys,

I usually look to validate new ideas which are mostly web-based. Most of them require a back-end and a front-end. Does any of you know any service where I can swiftly set up a disposable container running all these services to validate the idea and once it is validated I could migrate the data gathered onto a more appropriate server setup? It would be a plus if they could provide front-end development services since I am a backend developer.

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Startups – Rapid Growth and Innovation is in Our Very Nature!

MVP, Idea Validation, Whats next?

So during lockdown I revisited an old project and decided to rebuild things from the ground up in a agile moving manner. I built the entire product in a little under 3 weeks. Bare bones MVP. Minimal product to achieve the target goal.

The app is technically B2B, but it is actually B2B2C. So I secured a business who was willing to test our app for us. It’s been in use for over 3 weeks and has been successful. By successful I mean 200+ user registrations and over 350 app downloads. Along with that we have processed 250+ orders with a value of over £3000. We take a fixed commission on each order therefore we have made around £70. Nothing crazy but a good start.

I’ve spent the last few weeks trying to find more customers, and I’ve found one more that are launching with us next week. Which is great.

However, I’m struggling with a few things:

  1. What is a good growth rate? 2 customers in 3 weeks feels underwhelming. Am I being too harsh on myself?

  2. How do I manage selling vs building? I have an MVP but it is lacking in features that are absolutely needed going forward. I think it’s an expected from most customers, so should I focus on getting those features in before trying to scale more?

  3. When do I hire? I’ve got financial backing, but I’m reluctant to hire so soon. I feel like if I can’t sell my product, no one will. On the other hand I’m very precious of my code. Where do I go from here?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

A Juicy $3,000 Mistake: Starting with a Product before Market Validation

Hey, r/startups!

We all know juice is a healthy drink. But sometimes, juice can make a business fail. This is the story about a Bangkok guy’s juicy mistake

How it all started? 🔙

Asian bitter melons lower blood sugar and a host of other health benefits. If someone would be able to make a bitter melon juice that went from choke to death to barely drinkable, it will sell like crazy.

So, he went all-in.

How did he build it?🛠️

In just 24h, he spent $ 2,000 on cold press juicers to start making his new product.

He sampled liters of fresh juice, which produced great results for his body. He came up with the secret commercial recipe that made bitter melon juice barely drinkable.

How did it start growing?📈

He sent samples to his target customers. The results ranged from “This is actually OK” to “I’d rather not touch it ever again even for free”.

It turned out the cost of delivering juice is the same as the cost of the juice.

Biggest challenges?⚔️

To break-even, he needed to sell more than 500 bottles priced at Starbucks espresso.

One person can only drink one 80 ml bottle per day. So, he needed to sell to 50 highly committed customers just to not make a loss.

How did he realize the project was not going in the right direction?📉

Once he got to the point of calculating how many bottles he had to sell until this became a profitable project.

If he had pursued it further he would have a new hobby rather than a business.

How much money did he lose?💰

He made $ 300 and the cost of the equipment was around $ 3,000.

If he went forward, labor and shipping would probably have been a lot worse than that. He lost at least $ 3,000 for the project.

What would he do differently?🔄

🍂Make an MVP first.

🍂Instead of 3 weeks of mixing juice, should have spent 3 weeks of market research on juice enthusiasts and validating his assumptions directly with potential customers.

Advice for fellow entrepreneurs?🗣️

🍂Have customers from day 0. Call it pre-launch audience building or content marketing. Have early relationships and nurture them.

🍂Solutions do not equal demand. Just because there's a healthy option doesn’t mean customers will choose it.

🍂Make a landing page and see if the problem exists. We're not the ones to decide if ideas are good or not, it’s the market.

🍂Validate your idea. If it doesn't work out is fine too, because a lot of successful people failed the first time.

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Startups – Rapid Growth and Innovation is in Our Very Nature!

(Pre-MVP Stage) Should I use WordPress, Wix/Unbounce/GoDaddy, Mailchimp, or some other tool to create a landing page for validation?

I've been researching this question for a week and it seems like everyone has different recommendations based on specific needs. I really only need something CHEAP and GOOD ENOUGH. I'm only creating a landing page to validate my startup idea. It would be a simple page with text, a graphic, CTA, and maybe a navigation bar leading to other pages. Emailing list and other marketing tools are a bonus, but not necessary.

The options I gave are basically in order of freedom to less freedom:

  • WordPress is very customizable however I'd need to actually put effort into it and I'd need to pay $ 3-10/mo for hosting.
  • Wix/Unbounce/GoDaddy etc are more specific drag and drop website builders. Less effort which is good, but less customizable. These are $ 10-20/mo
  • Mailchimp is more geared towards email marketing, but they do have a landing page builder which is nice. The price is similar to drag and drop builders.
  • Other options I've seen include Webflow and Carrd, but I think those are limited in functionality.

I'm really stuck in a loop here so I'd love to hear testimonial from you all. Again, I just need something that won't break the bank and is simple enough to use where I'm not dedicating too much time on it.

I'm open to advice and recommendations, i.e. features I SHOULD be looking for in a website builder.

THANKS FOR THE HELP!

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Startups – Rapid Growth and Innovation is in Our Very Nature!

How do I find people to interview for problem validation?

In the past, I would have just approached people in public. With COVID people are understandably not very interested in engaging with strangers. I'm wondering how others are dealing with this? Is my only option to pay for surveys? I just feel that being able to slightly alter my questions based on their answers, which can only be done in person, provides much better information than a survey does.

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Startups – Rapid Growth and Innovation is in Our Very Nature!

With partnerships at major children’s hospitals, Manatee seeks clinical validation of its CBT-based app

When Manatee founder Damayanti Dipayana’s brother was diagnosed with autism spectrum disorder, the family took all the steps to ensure that he was properly cared for. All of the things that could have been an obstacle to getting treatment weren’t for Dipayana’s family.

A comfortably middle class background, a supportive family and ready access to care were all available, but still the therapy didn’t take. For Dipayana, it was witnessing the breakdown between the care provided at sessions and the differences in treatment at home that led her to create Manatee.

“Therapy just sucks for kids,” Dipayana said. “My brother hated it. It can’t be the best thing for children to put them in a room with an adult and have them talk about their problems for an hour.”

Now the graduate from Techstars Los Angeles has $ 1.5 million in funding from investors including the Michigan-based investment firm Grand Ventures; Telosity, a fund launched by Vinaj Ventures & Innovation that invests in companies improving children’s and young adults’ mental health; and the American Family Insurance Institute for Corporate and Social Impact. Manatee will pursue clinical validation for its suite of apps and services to provide a continuum of care for children with cognitive and behavioral disorders. 

Beginning with Children’s Hospital Los Angeles, Manatee has started a trial with 10 clinicians and 50 families to evaluate the commercial use case for Dipayana’s service.

The first targets for care are anxiety and oppositional disorder, Dapayana said.

Image credit: Manatee

“I really want to focus on children. From a social [return on investment] perspective it seems insane to me that we don’t invest more in the early well-being of children,” said Dipayana. “If we did, then we probably wouldn’t have to deal with a ballooning juvenile detention system.”

From the company’s earliest days the stars seemed to align for Dipayana. She found her technical co-founder, Shawn Kuenzler, thanks to a post on AngelList. A veteran in the health tech startup world, Kuenzler ran engineering at Health Language and Zen Planner and has two exits under his belt. If that wasn’t serendipitous enough, Kuenzler’s wife is a clinical psychologist.

The two Denver-based entrepreneurs then took their startup on the road to the Techstars Los Angeles accelerator. It was there that they were introduced to contacts at companies including Headspace and LA Children’s Hospital that are paving the way for clinical validation of digitally delivered cognitive behavioral healthcare.

“We’re going to spend money and resources on launching our research with Children’s LA to understand the impact for a health system,” Dipayana said. “We position it as everyday therapy for kids. We provide the platform for providers to make it the day-to-day therapy for kids.” 

Manatee sells its services directly to healthcare systems to ensure that it can reach the broadest population of users rather than just ones who could afford to access the company’s app-based offerings. Doctors use Manatee as a clinical dashboard and way to communicate to both a child and their family around care plans and treatment.

“I thought about this really long and hard… Looking from my personal experience. Parents and families that have kids with autism… there’s so much snake oil that gets pushed down their throat that they’ll try anything,” Dipayana said. “It was very important to me that I understand the clinical workflow and understood how the workforce manages behavioral healthcare and whether the work we were doing was valuable.”

Startups – TechCrunch

How should I get idea validation?

Hi! So I'm at the point in my startup where I'm trying to get idea validation before going any further.

It's a pretty developed plan (about ~3 years), but with college and life, I'm just now getting to moving it into action. My business focuses on non-profits and other businesses, so the current plan is to gather an email list of ~5000 non-profit and business emails through Fiverr (people make email lists on there for $ 5), then cold-email them my idea with a brief survey attached. In return, they would get a free year of premium once we launch and special recognition. I also plan on offering a free mailing list for them to track my startup's progress and such.

I only expect about 3% to actually take the survey, then I would run it at a larger scale. So… my questions are:

  1. Does this sound like a good way to test my idea validity quickly?
  2. Is this a safe idea? Sending my entire idea out there to complete strangers to potentially steal?
  3. Do you have any other ideas for safe, quick, cheap large-scale feedback?

Thanks for helping everyone!

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Startup/App idea validation

Hi, I have an idea which I am thinking is a promising one. I want to check with the community if that's really good one before investing any resources.

Idea: Its like a freelance platform where individuals post their problems and freelancers provide solutions almost instantly. Here the problems could be as small as how to get rid of this error in my program or any other issues. The pricing could be as low as 0.99$ .

Do you think it is viable application or any other apps for this purpose?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Question about early adopters and validation

Hey,

So in order to go through validation successfully, you ideally need to:
1) Conduct some user interviews, and verify that the problem you think you're solving exists, your solution is good, and people will pay for it 2) Have some version of an MVP running and see traction/signups/purchases/etc

These are clear to me in order to start, what isn't clear is how do early adopters tie into this picture, since: 1) Doing user interviews with early adopters can be tricky, since they might be scattered all around the globe, and getting a decent response might be trickier than getting interviews with random people 2) While if you understand the market and users right you can find the right segment for your product, what are the chances that the audience you reach will be early adopters, eager to test your solution, even if it's a bit "raw"?

Tl;dr: when you're doing validation with user interviews and metrics, are you trying to go for early adopters, or is it doing it for the general audience and hoping that early adopters are in that audience?

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Startups – Rapid Growth and Innovation is in Our Very Nature!